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Alcoholism, drug abuse, stress, divorce, mental illness, bankruptcy, grief, suicide …these are familiar terms, but somehow, meaningless unless it happens to us or someone close to us. And yet, the change that any individual can navigate life from birth to death without facing serious personal problems are virtually zero. If itwere possible for people to seperate their personal problems from their work-life, or for employers to ensure that individual productivity was unaffected by personal situations, there would be no need for employee assistance programs. However, the simple fact is that

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problems affect people, and people affect 
productivity.As an example, this is translates into: 
  • -70% of those who reported using drugs, are employed
  • -10 million employed people are current users of illicit drugs.

Despite ambiguity on what constitutes cost effectiveness, it is clear from various company results that employee assistance programs more than pay for themselves. Subjectively, there is no way to place a monetary value on a job saved, a family put back together, the gratitude of the employee helped, or avoiding the loss of a life. These are not part of any annual report, but they are a very real and satisfying return from loss to an organization. Managed properly, an employee assistance program will be a positive influence on labor-management relationships, employee turnover, productivity and the sense of identity between the employee and employer.

Cost of Worksite Behavioral Health Problems

  1. Reduced productivity as high as $100 billion (Drug Abuse in the Workplace: Consensus Summary, National Institute on Drug Abuse, 1986)

  2. 40% of industrial fatalities and 47% of industrial injuries are linked to alcohol consumption and alcoholism (Occupational Medicine, Vol.4, No. 2 1989).

  3. 36% of all employee thefts in a study of 102 companies were directly related to drug problems of abusing employees (Hoffman-LaRoche, Inc., October 1989).

  4. Drug-reliant employees incur 300% higher medical costs and benefits compared with healthy co-workers (U.S. Chamber of Commerce survey found in workers at risk: Drugs and Alcohol on the Job. U.S, Department of Labor, 1990).

Findings in Support of EAPs

  1. For every dollar invested in a drug-free workplace program with an EAP as an integral part, employers generally save anywhere from $5 to $15.
  2. Use of EAPs have been shown to result in:
 
  • 66% decline in absenteeism after alcohol abusers have been identified and treated (Hazelden Foundation, 1988).
  • 33% decline in utilization of sickness benefits: 65% decline in work-related accidents; 30% decline in workers compensation claims (American Management Magazine, November 1985).
  • A McDonnell Douglas Corporation independent study in 1989 found a 35% reduction of overall healthcare costs.
  • 28% savings on mental health benefits (Journal of Health Care Benefits, January/February 1992).

Alabama Counseling Institute 
3928 Montclair Road, Suite 100 
Birmingham, AL 35213-2419    
Phone: (205) 871-1713     Fax: (205) 871-0354 

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