Employers - Cost Savings

The U.S. Department of Labor reports that for every dollar invested in an EAP, employers realize a return on this investment ranging from $ 5 to $ 16.

The Substance Abuse & Mental Health Services Administration (SAMSHA) reports that EAP's create a 75% reduction in inpatient alcohol and substance abuse treatment costs, a 33% decline in utilization of sickness benefits, a 65% decline in work-related accidents, a 30% decline in workman's compensation claims, a 66% reduction in absenteeism when alcohol abuse has been identified and treated.

Consider the proven savings data from a sampling of organizations that have employee assistance programs.

  • Firestone Tire & Rubber has estimated that its EAP saves $ 1.7 million or $2,350 per person involved.
  • Scoville Manufacturing noted that its EAP created an annual cost savings of $186,550
  • McDonnell-Douglas credited its EAP with a 44% reduction in missed days, a 81% reduction in attrition rates, a 14% improvement in employee productivity and $7,300 on average less in filed health care claims by those utilizing EAP services.
  • General Motors found that the EAP has resulted in a 40% decrease in lost time, a 60% decrease in sickness and accident benefit, a 50% decline in filed grievances, and a resulting $ 3.7 million savings in annual health care costs
  • Warner reported an average savings of $1,750 per employee in lowered workman's compensation costs.
  • Oldsmobile noted that its health care costs decreased overall by 29%, grievances by 78%, disciplinary problems by 63%, absenteeism due to inpatient treatment by 49%.