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 approx. $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, approx. 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.
Sources:
International Labor Organization of the United States
Report, 1993.
"Not Just a Handout," by James Tiftemore,
CA magazine, August 1994.
Employee Assistance Report, Impact Publications, Inc.,
June 2000.
Missouri Department of Mental Health, Division of Alcohol
and Drug Abuse, Fact Sheet: EAPs in Industry.
Dr. Paul Rosch, American Institute of Stress, Gannett
News Service, December 29,1994.
Adam Bryant, "EAPs Broaden Their Scope," Southern
Connecticut Business Journal, June 1992.
Nancy Burkhalter, "EAPs Cut Health Costs and Boost
Productivity," New Mexico Business Journal, June 1986.
Value and Impact, Employee Assistance Professionals
Association, Inc., 1996.
"The Impact of Behavioral Health Care on Productivity:
A Look at Employer and Employee Attitudes," Medical Benefits, July 30,
1995.
Frank Sloan, Valuing Health Care, Duke University, Cambridge
University Press.
"1998 Unscheduled Absence Survey," Medical
Benefits, October 30, 1998.
Barbara Bengen-Seltzer, "Assessing Cost and Quality
in Behavioral Managed Care," Medicine & Health, June 1995.
"Medt EAP Helps Quaker Oats Save with Employee
Wellness Program," Managed Behavioral Health News, November 6, 1997.
A Guide to Workplace Issues, ASIS O.P. Norton Information
Resources Center, 1990.
Substance Abuse Prevention: Its Your Business"
Center for Substance Abuse Prevention, U.S. Dept. of Health and Human Services,
1992.
Thomas Shear, "What is the Value of Your EAP?"
EAP Digest, January/February1995.
Paul Roman and Terry Blum, Cost Effectiveness and Preventive
Implications of EAPs, SAMHSA, December 1995
Hewitt Associate L.L.C., Work and Family Benefits Provided
by Major U.S. Employers in 1997, May 1998.
Oss, M.E. and Clary, J., "The Evolving World of
Employee Assistance," Behavioral Health Management, July/August 1998.
What Works: Workplaces without Drugs, U.S. Department
of Labor, 1990.
"Management Perspectives on Alcoholism," by
M. Bernstein and J.J. Mahoney, Occupational Medicine, 1989.
NIDA Capsules, National Institute on Drug Abuse, June
1990.
"Managerial Responses to Drug Abuse in the Workplace,"
Journal of Small Business Management, April 1989.
