Employee Assistance Programs & Wellness Programs

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Transcript Employee Assistance Programs & Wellness Programs

Employee Assistance Programs
& Wellness Programs
Ryan Okimura
Guillermo Garcia
Wiqar Shah
“AD” Kullar
….Please Find a Seat…Sit Back..Relax..and Enjoy the Show!
What are Employee
Assistance Programs?
A confidential and comprehensive
program of counseling services for
employees and their families
Designed to reduce risk, cut costs, and
enhance employee productivity
What are Employee
Assistance Programs?
Some EAP providers offer such
services as retirement assistance,
wellness/health promotion and fitness,
and crisis management
Further examples include: Alcohol &
substance abuse, domestic violence,
and stress management
What are Wellness Programs?
Cost effective employee benefits that
can improve employee health and
morale and limit healthcare costs
Main objective is prevention and
organizational wholeness
Examples include: exercise and
relaxation classes, financial
counseling, and weight management
Beginning in the mid 1960’s to mid
1970’s, workplace counseling focused on
addiction – alcohol and drug problems
Mid 1980’s – the impact of health benefit
cost containment approaches brought
about considerable change and
Today, the market is divided among
several large, national behavioral health
and assistance providers
Internal/In House
Fee-for-Service Contracts
Fixed-Fee Contracts
Peer-Based Programs
Why offer Employee
Assistance Programs?
Unlimited positive outcomes
Leads to a more energetic, positive
and productive workplace
Reduced employee turnover, lower
overall health care costs, and
reduction in on-the-job accidents and
Why offer Employee
Assistance Programs?
Up to 68% of all workers
will, at some time,
experience workplace
problems severe enough to
prevent them from coping
with day-to-day activities
As a prevention tool
As a form of managed care
As a multi-purpose human
resource tool
As a way to show you care
Video: “How Your EAP Can
Cost Issues
3:1 Return on Investment in 1st year
4:1 Return on Investment thereafter
Johnson & Johnson spend $4.5
million on preventive health care
Estimates that without preventive
measures, medical bills would be at
least $13 million or higher
Cost of Implementing an EAP
Annual EAP Costs per Number of Company Employees
Number of Employees
Cost Range
Cost Mean
Number of Employees
Cost Range
Cost Mean
More than 5,000
Fewer than 25
What can an EAP do for your
High Return on Investment
Lower Medical Claims
Decreased Use of Mental Health
Reduction in Employee Turnover
Increase in Employee Productivity
Corp Care Video
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Not Having an EAP Will….
Reduce Morale
Reduce Profits
Increase Health
Care Costs
Increase on-thejob Accidents
Current Problems and Issues
2003 survey showed only 47%
of companies offered exercise
and fitness programs
Lack of participation if
companies do offer them
Many smaller and medium
sized firms are still in the
process of implementing EAPs
Employees are afraid
to seek help in fear
employer may find out
State of Denial of
Cost Savings in Action!
Several national studies have
demonstrated that EAP’s provide a
payback of between $4,000 and 7,000
for every $1,000 invested
Abbot Lake County showed a 6 to 1
payback through savings in health
insurance premiums
Wellness Programs Examples
A recent study by the
National Institutes of Health
indicates that 70% of all
illness is stress related
Directly linked to heart
disease, lung ailments,
accidents, cirrhosis of the
liver and suicide
Alcohol Abuse
Alcohol Cost
Psychological problems account for 61% of
absences from work each year, 65-85% of
employee terminations and 80-90% of
industrial accidents.
An estimated 1,000,000 workers are absent
on an average of workday because of stress
related complaints. (The American Institute
of Stress, 2000)
Unscheduled absenteeism costs employers
as much as $688 per employee per year.
Mental Health
More than 54 million Americans have a mental
disorder in any given year, although fewer than 8
million seek treatment. (Surgeon General’s Report
on Mental Health, 1999)
Depression and anxiety disorders – the two most
common mental illnesses – each affect 19 million
American adults annually (National Institute of
Mental Health, 1999)
The estimated economic burden of depression was
$43.7 billion: $31.3 billion for indirect costs such as
decreased productivity and lost work days, and
$12.4 billion in direct costs such as medication and
physician time (NMHA, 2000)
Mental Health
Grief - 30 million people grieve each day in
the United States. Employers can't afford to
ignore grief. (Source: United Behavioral
Up to one-half of all visits to primary care
physicians are due to conditions that are
caused or exacerbated by mental or
emotional problems (Collaborative Family
Healthcare Coalition, 1998.)
Two out of ten people suffering from clinical
depression start out with stress.
Mental Health Calculator
Substance Abuse
40% of industrial fatalities and 47% of industrial
injuries are linked to alcohol consumption and
36% of all employee thefts were directly related
to drug problems of abusing employees.
Drug-reliant employees incur 300% higher
medical costs and benefits compared with
healthy co-workers. (U.S. Chamber of
Commerce, Workers at Risk: Drugs and Alcohol
on the Job. 1990)
Nearly 25% of a drug dependent employee’s
salary is lost through increased use of medical
70% of all current adult illegal drug users are
employed. (CSAT, 1999)
Video: Killing the Patient
Workplace Violence
Workplace murders claim the lives of 1,000
people each year. Another 2 million people
per year are victims of a violent event or
threat in the workplace.
EAP has three tools to reduce the risk of
workplace violence: 1) Confidential and
accessible consultation for employees who
feel stressed 2) Anger Management Training
and 3) assistance for supervisors who are
addressing potentially violent situations.
Workplace Violence
Studies indicate that workplace
violence costs American businesses
anywhere from $6.4 billion to $36
billion annually. On the average, it
costs the company $53,000 per event
in law suits, workers comp claims, and
public image problems
Wellness – Fitness is the Key
to Prevention!
Wellness – Eating Right
General Motors Corporation EAP saves the company
$3,700 for each employee enrolled in the program.
(ASIS OP Norton Information Resources Center,
Substance Abuse; A Guide to Work Place Issues,
November 1990)
United Airlines estimated it gets a $16.95 return for
every dollar invested in employee assistance. (ASIS
OP Norton Information Resources Center, Substance
Abuse; A Guide to Work Place Issues)
Philadelphia Police Department employees undergoing
treatment reduced their number of sick days by an
average of 38% and their injured days by 62%.
Thank You!
Employee Assistance Professionals Association:
The Impact of EAP Use on Health Care Costs:
U.S. Department of Health and Human Services: