Employee Assistance Program - Why It’s Vital for Your Organisation

12/03/2024

In a market worth $327m per year and growing at 3.7% year on year over the last five years, Employee Assistance Programs (EAP) have been around for many years and are an established part of the employee services framework.

Originally designed for interventions with employees who had drug and alcohol related issues, the scope of EAPs has broadened over the years to provide free (to the employee) and confidential support and resources across a wide range of psychological and mental health related areas.

What Is an EAP and Why Have One?
Many look at the cost of an EAP service against utilisation numbers of around 5% of the workforce and question whether they are worth it. In our view the answer is emphatically yes!

Let’s First Look at How an EAP Program Works
Traditionally, EAPs have been offered mainly as a phone counselling service. An employee who has an issue to discuss with management will call the EAP number and say “I am Fred from XYZ company and want to make an appointment”.

Programs generally offer 6 sessions with a psychologist or counsellor who would support and assist the employee with their issue. Issues can be work-related or personal and the sessions are generally confidential with the Employer not knowing either the content of personal discussions or which employees are utilising the service.

These days EAP providers have a range of services and options including:

Online booking system
Video as well as phone support
Online portal packed with useful information for both managers and employees
Manager referrals, where managers can have greater involvement in the support of the employee through the process
Advice for managers working with employees who may have issues
Trauma support to deal with a specific traumatic event affecting one or more employees
A range of promotional material to raise awareness of the service with everyone in the organisation

Do EAP Programs Work?
A simple cost vs utilisation calculation to measure the effectiveness of an EAP does not tell the whole story around the usefulness of an EAP. With 79% of companies saying they provide an EAP (and this is pre pandemic!), what are the benefits?

They are proven to be effective with an 84% effectiveness rating in Australia
Employees and Employers love them. Client satisfaction ratings are at 90%.
Employees who are not well are not productive and anything that is effective in helping them feel better has a huge impact on the productivity of the employee. An ABS study has shown:
- 43% of people suffer from a mental illness at some point in their lives
- 21% of people had a 12-month mental disorder and this rises to 39% in young people

So the evidence is in: yes they work and yes this has a positive impact for employers well beyond the cost/utilisation ratio.

Is an EAP Compulsory?
So we have seen the benefits of offering an employee assistance program, (EAP) but are you required to have a program in place?

If I was a lawyer (and I am not) at this point I would say “Well, yes and no”. As an HR Expert here is my advice: while there is no specific piece of legislation saying you must have an EAP, you are massively increasing your risk if you don’t.

Workplace Health and Safety legislation is clear about every employer's obligation to provide a safe workplace.

Since 2022 the legal provisions have become a whole lot more clear (and onerous) in terms of your obligations around what are known as Psychosocial Hazards. These are 14 specific Health and Safety Hazards describing, in particular, mental health in the workplace. Employers have an obligation to go through a detailed process to proactively look at these hazards, consult with their employees, and formulate plans to minimise the risks associated with these hazards.

To learn more about the first steps you could take to meet your obligations in terms of Psychosocial Hazards, book a free call with us today!

By any measure, an EAP is an efficient and effective harm-minimisation tool at your disposal as an employer. Should an incident occur (and I remind you of the stats quoted above about how often mental illness strikes) not having something as simple as an EAP in place will not be viewed well. And with fines into the millions and the criminalisation of WHS breaches, is this something you can afford to do without?

Don’t Risk It - Get Started on Your EAP
So, while an Employee Assistance Program is not going to meet all of your Health and Safety needs, not having one will massively increase your risk and lower your productivity; a pretty compelling argument, don’t you think?

To discuss how to sign up for an affordable and comprehensive EAP program, book a free call at a time that suits you, or call us to speak directly with an experienced member of the Employee Matters team:

Phone: 02 8021 4206