Return on Investment (ROI) Calculator
EAP used to be just the pono thing for companies to do. Nowadays, more CFOs are involved in the decision to purchase EAP services, and HR professionals must often provide fiscal justification for to make sure the employer receives the highest value possible from its vendors.
Fortunately, there is much data available to back up the decision for EAP services.
- Back in 1995, the U.S. Department of Health and Human Services reported that "all of the published studies indicate that EAPs are cost-effective."1
- The U.S. Department of Labor reported that for every dollar invested in an Employee Assistance Program (EAP), employers generally save anywhere from $5 to $16.2
- Since that time, studies continue to demonstrate a positive ROI for EAP services, ranging from $1.49 to $13 per dollar spent on the program.3
- A landmark study in Canada in 2014 concluded that for every dollar companies spend on EAPs they get a return of $8.70.4
- And if those numbers aren’t enough, Mark Attridge pulled together a bibliography of 100 review papers on the workplace value of mental health, addiction, and EAP services in 2011.5
We provide you with a ROI Calculator to start to determine the possible Return On Investment you may receive from our EAP services. Based on a standard (but often high) pricing, you can calculate the ROI of low, medium, and high utilization for EAP services. These are based on average salaries in Hawaii and national expectations (e.g. the percentage of troubled employees in a company, the cost of their reduced productivity, and the impact of their productivity increasing). If you would like a customized ROI calculation based on your exact costs, a different average salary, or other changes to the standard expectations, we would be happy to provide you with a calculation that might be more exact for you. (Obviously, the less you spend for EAP the higher your Return, or the higher your average salary is the higher your return for improving productivity.)
1 Blum T. C., & Roman, P.M. Cost-Effectiveness and Preventive Implications of Employee Assistance Programs. U.S. Department of Health and Human Services, 1995
2 U.S. Department of Labor, What Works: Workplaces without Drugs. (1990), p.17
3 Goetzel, R.Z., Juday, T.R., Ozminkowski, R.J., What's the ROI? Worksite Health. Summer 1999, 6(3), pp. 12-21. Available from http://www.executivehealthcareservices.com
4 Allen, P. & Veder, P., The ROI of EFAP: Greater Employee Productivity and Lower Absenteeism. Benefits and Pensions Monitor, May, 2015. Available from http://www.morneaushepell.com
5 Attridge, Mark. The Business Case Bibliography: 100 Review Papers on the Workplace Value of Mental Health, Addiction and EAP Services. EASNA Research Notes, Vol. 2, No. 4, December 2011. Available from http://www.easna.org