Employee assistance programs (EAPs): A guide for employers

A well-rounded employee benefits package is crucial for promoting employee well-being and attracting potential candidates. While employee assistance programs (EAPs) are gaining popularity, they remain an often overlooked yet valuable employee benefit.

If you’re considering adding an EAP to your benefits package, that’s a great first step. Furthermore, if you’re simply curious about what they entail, take the initiative to explore the diverse range of benefits and services that an EAP can provide.

What is an Employee Assistance Program (EAP)?

Employee assistance programs (EAPs) help employees navigate different challenges in their professional and personal lives, from mental health or substance use issues to finding a daycare for their kids.

EAPs offer referral services to help employees find local resources and provide access to different forms of behavioral health care to help employees navigate personal problems and needs.

It’s a popular addition to employee benefits packages and can play a part in your overall employee wellness initiatives.

Standard services offered by EAPs

EAP services will vary based on the individual provider, but the most common services offered by an employee assistance program are:

• Short-term counseling: EAPs include counseling services designed to help employees navigate various issues, such as managing work stress, overcoming life challenges, or processing traumatic events. The number of annual counseling sessions the EAP covers per employee is typically limited.
• Substance abuse treatment: EAPs can offer assistance to those struggling with substance use through confidential counseling or referrals to recovery programs and services.
• Dependent care referrals: While EAPs don’t directly provide childcare or elder care, they can help you find suitable local services to support parents and caregivers.
• Financial services: Employees can work with EAPs to access financial services to help them with budgeting, financial planning, debt repayment, and more.
• Support with work-related issues: While EAPs don’t replace the human resources team in dealing with workplace issues, they can provide personal and professional support as employees navigate work and career problems such as stress management, career planning, or interpersonal issues with coworkers.
• Marriage and family support: Through EAPs, employees can access various family services, including marriage counseling and family planning support.
• Legal assistance: Some employee assistance programs provide legal assistance or referrals to employees.

Benefits of EAPs for employees

EAPs can be an excellent employee resource; explore their top benefits below.

Improving financial well-being

Employers play a crucial role in promoting financial well-being for their employees by paying a fair salary and providing health benefits that will reduce the cost of accessing medical care. EAPs can then give them the tools to budget their salary and manage their money.

Planning for retirement, consolidating loans, and adjusting your budget as your family grows or the cost of living increases can be confusing. EAPs provide accessible financial assistance to help employees navigate these complex topics.

Making counseling more accessible

Therapy can be expensive, and on top of that, finding a counselor with the right expertise and availability can be a time-consuming and challenging process. Fortunately, EAPs step in to help.

They provide employees with access to short-term counseling, covering a certain number of sessions. Also, they can assist in finding a referral for a more sustainable, long-term solution.

Solving common problems

Throughout our adult lives, we will all have questions or issues where we’d like to consult a professional. We may have a problem with a landlord and want to seek legal advice, or someday, we may need to seek care for an aging parent.

EAPs have a strong network of resources that they can connect you with to help you navigate challenges. This not only enables you to find a resolution more quickly, but it can also take a lot of the process.

Benefits of EAPs for employers

Employee assistance programs don’t just benefit employees; they also offer some key benefits for employers.

Improving employee well-being

It’s essential to take care of your employees and prioritize their well-being. EAPs can help alleviate stress and improve employees’ overall well-being by assisting them in finding the resources they need to tackle life’s challenges.

Boosting employee wellness allows employees to work more productively and contribute positively to the company culture.

Reducing Absenteeism

Employees grappling with mental health challenges, substance use, childcare difficulties, or stress are more prone to absenteeism or tardiness. Consequently, employers can actively contribute to reducing unplanned absences by offering an outlet for employees to address personal matters through an EAP.

Strengthening your overall employee benefits program

Having a well-rounded benefits plan helps you stand out as an employer. Candidates consider benefits when they decide whether they want to work for you, and current employees consider them when they consider whether they want to stay with the company. A great EAP experience could affect an employee’s decision to quit.

How to choose an EAP provider

There are many EAP providers available. Here are the key things to consider when choosing an EAP vendor.

1. Consider what EAP model will work best for your team. Most small businesses will benefit from working with an outside vendor as part of an external EAP model. With an external model, an EAP provider will provide services to your team, often with a 24/7 toll-free number available to employees. There is also the internal model, where services will be provided by an in-house team, or the blended model, where a mix of both approaches will be used.
   
   
2. Identify your top service needs. EAPs offer a wide range of services. However, not every provider offers every service. Identify your team’s top needs so that you can ensure that the provider you choose offers them.
   
   
3. Set a budget. Decide how much you can reasonably afford to spend on an EAP.
   
   
4. Consider service accessibility. Be sure to consider any location or time zone differences within your team. You want the EAP services to be available and widely accessible for everyone. If you have multiple locations or a remote team, look for providers with nationwide coverage and broader (or even 24/7) support hours.
   
   
5. Ask about credentials. You want to ensure that your staff is in good hands with an EAP, so you’ll want to ensure that the program and its staff are properly qualified to meet your team’s needs. Seek out reviews from past or current clients of the organization. You can also ask about the organization’s certifications or qualifications and those supporting your company. Professional organizations like the Employee Assistance Professionals Association (EAPA) provide certification for skilled workers in this field.

Implementing and promoting EAPs

The EAP implementation process can differ depending on the vendor you select. Interestingly, many businesses introduce new benefits like EAPs during open enrollment season.

This is even though employees typically don’t need to actively opt into or make specific enrollment choices for employee assistance plans.

Your selected EAP provider will guide you through the implementation process. Often, the process starts with a planning meeting to align internal leaders with the EAP staff on timelines. This includes what information is required to onboard employees into the EAP, and promotional strategies.

The most crucial piece of the implementation process is getting the word out to employees about the new EAP services. An EAP is only a meaningful investment for your business if your employees know about it and use the available services.

In addition, many providers offer on-site orientations or webinars for employees. These sessions aim to help familiarize them with the available services.

Confidentiality and privacy in EAPs

EAPs are typically only effective when employees trust that their personal and medical information remains confidential. Understandably, employees often prefer to keep their personal or family struggles private from their employers. Consequently, this natural desire for privacy can lead to hesitation or reluctance in utilizing an EAP.

The good news is that EAPs do have confidentiality guidelines. In most circumstances, employees seeking assistance through an EAP will keep their information private. Aggregate data on EAP usage may be provided to the employer.

However, it will not contain identifying information about the employees who utilized services.

There are some exceptions. In line with standard practices for counseling in the United States, EAP counselors are obligated to break confidentiality in certain situations.

Specifically, they must break confidentiality if they encounter instances of child abuse or neglect. They also must do so if they believe the employee is an immediate danger to themselves or others.

Another circumstance that may require breaking confidentiality is when an employee is given a mandatory referral to EAP services. A mandatory referral happens when an employer requires an employee to contact the EAP and utilize its services.

Furthermore, this is often a condition for the employee to keep their job after a workplace incident has occurred.

In this instance, the employee must sign a release allowing the EAP to share information with the employer to verify that they met the mandatory referral requirements. This typically only occurs when an employee’s substance use or an issue like poor anger management has created a problem at work.

Measuring the effectiveness of EAPs

Measuring the effectiveness of any new benefit you introduce is crucial. After all, you want to ensure that your budget is allocated towards benefits and perks that employees will actually utilize and appreciate. Fortunately, there are a few distinct approaches to gauge the effectiveness of EAPs..

Review utilization data

While you won’t receive specific details on how individual employees use EAP services, you can typically access aggregate data that provides a general overview of EAP utilization.

Remember, not all employees will require EAP services every year. However, reviewing the data is important to ensure that a reasonable percentage of your staff is taking advantage of the program.

Collect employee feedback

Including questions about benefits offerings on your employee engagement questionnaires each year is a great way to see your offerings’ effectiveness.

Ask employees if they are satisfied with the benefits available. If you do anonymous surveys, you can also ask a general question on satisfaction with the EAP services available.

If employees’ names are attached to the survey, they may not want to answer questions about the EAP for privacy reasons.

Monitor other workforce analytics

Keep an eye on your workplace reporting and look for data correlations. During the first year, is absenteeism trending downward? Is there any change in employee engagement or retention metrics? Consider where introducing an EAP may have made a noticeable and meaningful change.

Current and future trends in EAPs

In light of shifting workplace trends and priorities, we expect to see a growth in EAP adoption and a trend toward remote and tech-forward EAPs.

Remote work is excellent for many people and can provide a better work-life balance. However, it can also be a bit isolating for some people.

As remote work becomes more common, it’s crucial to offer EAPs that are readily available for teams spread across different locations. This accessibility empowers employees to discover effective stress management techniques and navigate challenges.

Additionally, it provides support even without their usual in-person support network.

Apps are becoming a popular option for supporting employee well-being. Mobile apps focused on mindfulness, getting active, or managing stress are often more affordable than traditional EAPs or wellness perks.

They’re also easily accessible to employees and may feel more separate from the employer, easing potential privacy concerns.

Many EAP programs have apps, but we now see some mobile-first ones. Headspace, a popular mental health app, now has a complete EAP program. With many areas of healthcare and life running on smartphone apps, this trend is expected to continue and grow.

More Resources:
Learning and development programs: A guide for professionals
Types of employee training programs — which is the right fit?
Golden handcuffs: Should employers use them on top talent?