Cost Savings

Facts

 

In the world of business, your employees are your investment and their productivity is essential to your bottom line. For every dollar invested in an EAP, employers will save up to $17.00 (US Department of Labor, reported by EAP, Inc. 2000).

Impact of Personal Distress on the Workplace

  • Nearly one in five workers who call in sick are suffering from stress rather than illness (CCH, Inc. Unscheduled Absence Survey, 2002)

  • Only one-third of unscheduled days off are because of illness, 67% are absent due to family issues, stress, or other personal reasons (CCH, Inc. Unscheduled Absence Survey, 2002)

  • Stress has increased 316% in 5 years as a reason for absenteeism. Personal (21%) and family issues (20%) show as leading causes respectively (CCH, Inc. 2002) and stress contributes to 85% of workplace accidents (Employee Assistance Report, 2001)

  • Emotional factors account for 61% of time lost through absenteeism. Companies spend nearly 5.6% of their payroll on absenteeism (Employee Assistance Report: Statistics Canada, 2001)

  • Absences due to personal, family or stress related issues cost an average of $789 per employee per year. This is an average of 5.1% of a mid-sized company’s budget (CCH, Inc. Unscheduled Absence Survey, 2002)

  • Personal problems are estimated to affect 18% of the workforce, resulting in a productivity loss of 25 % (Employee Assistance Report, 2001)

  • A Met Life study reports 23-46 % of all employees have care giving responsibilities, impacting absenteeism, retention, replacement costs, and workday interruptions (Employee Assistance Report, 2001)

  • It is estimated that depressed workers utilize 1.5-3.2 more short-term disability days in a 30-day period than other workers, with a salary equivalent and productivity loss averaging between $182-$395 (Journal of the American Medical Association, 2002)

  • Nearly $44 billion is lost by businesses and corporations across America each year due to the effects of depression in the workplace (Counseling Today, 1999).

  • More than 100 million work hours are lost in any given week because of substance abuse or mental illness (Employee Assistance Report, 2001)

  • Substance abuse and mental illness cost U.S. companies over $100 billion per year or $3,000 per employee (Employee Assistance Report, 2001)


Impact of Substance Abuse on the Workplace

Among 14.7 million adults with a substance dependence, 77% are employed (National Household Survey on Drug Abuse, 2002)

Of 13.4 million adult illicit drug users, 76.4 % are employed full or part time and 59.3% of current adult alcohol users are employed full time with 26.2 % reporting heavy use (National Household Survey on Drug Abuse, 2002) 

A typical employee experiencing problems with alcohol or other drug use:

  • Was late three times more often
  • Requested time off 2.2 times more often
  • Had 2.5 times as many absences of 8 days or more
  • Used three times the normal level of sick benefits
  • Was five times more likely to file a worker's compensation claim; and
  • Was involved in accidents 3.6 times more often. (Indiana Prevention Resource Center Infosite, 2002)


Non-alcoholic members of alcoholic families use 10 times as much sick leave as members of families where alcoholism is not a factor. (Occupational Medicine, 1999)

80% of employed family members of an alcoholic report their ability to function at work is impaired as a result of living with an alcoholic. (Membership Survey and Al-Anon Membership Assessment Results, 2000) 

Cost savings with utilization of EAP

  • According to CCH, Inc. (2002 Unscheduled Absence Survey) 68% of companies utilize an Employee Assistance Program.

  • Statistics show EAP to catalyze reduction of 30% in lost time, 60% in accident and sick pay,50 % in grievance and 70% in accidents (EAPA Facts, 2000)

  • Companies have reported a savings of $116.00 per employee in healthcare related costs as a result of EAP utilization (EAPA Facts, 2000)

  • 65-80% of all terminations are due to personal and interpersonal factors, an EAP can help resolve these issues before termination is necessary (Employee Assistance Report, 2001)

  • If 5% of employees used EAP, the potential monetary savings would be 3.45% of payroll for absenteeism and improved productivity (Employee Assistance Report, 2001)

  • Research shows a 20-30% increase in chemical dependency treatment and mental health intervention effectiveness as a result of comprehensive screening through an EAP (EAP Association Exchange, 2001)

 

For additional information, or a custom proposal, please contact Richard W. Anton at Anton Counseling & Health Psychology, Suite 1600, Sun Life Plaza West Tower, 144 - 4th Avenue S.W., Calgary, Alberta. 403-263-5543

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