Return On Investment (ROI)
For every $1 that you invest for an EFAP, hundreds of studies in the United States show that your Return On Investment (ROI), ranges from $5 to $16. If your EFAP program costs $6,000/yr then your return that year via direct and indirect cost savings could have accumulated from $30,000 to $96,000. This return is based on just two EAP services: counselling and substance abuse treatment. The actual ROI would be even higher if one included Work/Life information and referral services.
How does that work?
Cost/Benefit Analyses of EFAPs have estimated the following savings for an organization:
- 27% fewer worker compensation claims
- 57% improvement in absenteeism
- 48% less likely to leave their jobs
- 58% decline in employees reporting on the job physical health problems
- 70% decline in employees reporting on the job emotional health problems
These Figures could represent your company...
- General Motors discovered that their EFAP has resulted in a 40% decrease in lost time, a 60% decrease in sickness and accident benefit, a 50% decline in filed grievances, and resulted in approximately $3.7 million savings for annual health care costs.
- The problem employee typically costs your company an average of 25% of his or her salary per year.
- Oldsmobile discovered a 29% decrease in health care costs, 78% grievance costs, 63% disciplinary problems reduction, and absenteeism reduction by 49%.
- The Substance Abuse & Mental Health Services Administration (SAMSHA) reports that EFAP'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.
Contact Your Walmsley & Associates Corporate Client Representative.