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EAP Facts

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The following facts show the benefits and cost savings enjoyed by employers that offer an Employee Assistance Program to their employees.

Workplace Facts
Cost of Troubled Employees
Cost Saved by EAPs

Workplace Facts

  • Psychological problems account for 61 percent of absences from work each year, as well as 65-85 percent of employee terminations and 80-90 percent of industrial accidents.
  • Up to 68 percent of all workers will, at some time, experience workplace problems severe enough to prevent them from coping with day-to-day duties.
  • Thirty-five percent of employees who had been at a job for less than two years report that they quit because of stress.
  • Up to 40 percent of industrial fatalities and 47 percent of industrial injuries can be linked to alcohol consumption and alcoholism.
  • Seventy percent of all current adult illegal drug users are employed.
  • Nearly 25 percent of a drug-dependent employee's salary is lost through increased use of medical benefits, poor attendance, and low productivity.
  • The number of employee lawsuits has been doubling every year since the mid-1980's. The EAP can serve as an added level of defense against wrongful discharge and discrimination suits.

Cost of Troubled Employees

  • Stress costs American employers approximately $200 billion a year in absenteeism, lower productivity, rising health and workers compensation costs, and other expenses.
  • Up to 68 percent of all workers will, at some time, experience workplace problems severe enough to prevent them from coping with day-to-day duties.
  • At any given time, approximately 18 percent of any work force is affected by personal problems that can affect work performance.
  • Each employee experiencing job performance problems costs a company or organization conservatively 25 percent of salaries and fringes in absenteeism, tardiness, reduced efficiency, accidents, medical benefits, and judgment errors.
  • Between 75 percent and 90 percent of visits to primary care physicians are related to stress.
  • The U.S. Department of Health and Human Services estimates that alcohol and drug abuse cost American businesses $100 billion a year.
  • A national average of 15 percent of any given workforce has chronic problems with substance abuse.
  • Estimates are that perhaps 17 percent of workers use alcohol and other drugs on the job. One consequence of this is that every employee who does use alcohol or drugs on the job costs his or her employer between $4,000 and $5,000 per year above payrolls.
  • Workers with alcohol problems generate eight times more medical costs.
  • An overwhelming majority of Americans (92 percent) agree that personal problems often spill over into work, decreasing productivity.
  • Psychological problems account for 61 percent of absences from work each year (as well as 65 - 85 percent of employee terminations and 80-90 percent of industrial accidents.)
  • Alcohol and drug abusers are absent at least 16 times more often than persons who are not harmfully involved. Even if they are not absent, they are three times more likely to arrive late.
  • Organizations with 99 or fewer employees have the highest per employee absenteeism cost, at up to $1,044 per year.

Cost Saved by EAPs

  • For every dollar invested in an EAP, employers generally save anywhere from $5 to $7.
  • With an investment of just over $58,000, the city of Phoenix is realizing an estimated savings of $2.5 million each year.
  • In 1997, Quaker Oats Co. reported saving an estimated $2 million annually through an EAP-based program that targets high-risk behaviors.
  • General Motors reported a savings of $3700 per year for each employee successfully enrolled in, the EAP. General Motors realized reductions of 85.5 percent in lost person-hours, 72 percent in dollar amounts of accident and sickness disability benefits, and 46.9 percent in the number of sick leaves taken.
  • A small company (70 employees) reduced its workers' compensation and vehicular accident costs by $75,000 by establishing an EAP with an emphasis on safety awareness.
  • McDonnell Douglas saved $5.1 million over a period of four years, a return of $4.00 for every $1.00 invested.
  • A survey of 50 companies done by Marsh and McLennan Companies in 1994 showed that EAPs lowered absenteeism by 21 percent, on-the-job accidents by 17 percent, and increased productivity by 14 percent.
  • Illinois Bell estimates that, over a five-year period, its alcohol program saved $1,272,240 in reduced absenteeism.
  • In 1993 Crestar Bank recorded that the average psychiatric costs were 58 percent less for EAP participants than for non-participants.

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