From the financial crisis to uncertain job security, the economy is increasing stress levels for employees and their families. The workforce is on an emotional roller coaster. Likewise, employers are struggling over balancing workers' fears and well-being and the need to manage productivity.
The business community recognizes stress can negatively affect employees' attendance, concentration and their ability to perform on the job. According to Wall Street Journal research findings reported in an Oct. 6 article, managers report employees are spending more time online, making personal phone calls and talking to one another about the fate of their companies. More workers are arriving late, and employers have been overwhelmed with questions from employees about job security and retirement investments.
The article reports the number of companies adding employee assistance programs as an employee benefit has substantially increased. An EAP is a valuable, yet inexpensive program designed to assist employees and their immediate families with personal and work-related problems.
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Not all EAPs are created equal. A high-quality EAP is typically coordinated through an accredited partner company that specializes in providing these benefits and services. The EAP service should provide 24/7 live-access to certified professional counselors. In addition, the EAP provider needs to manage referrals in a way that quickly moves the troubled employee back to being productive. EAP program features can help employees manage legal and financial referrals, anxiety and depression. They can also help employees deal with grief and loss, gambling addictions, divorce or separation, alcohol and drug addictions, domestic violence and traumatic situations. Programs also offer parenting skills and couples counseling.
The cost of an EAP service will vary based on the level of services provided. But even robust plans typically cost, at most, a few dollars per employee per month. EAPs can save employers money by preventing the use of health insurance dollars for treatment that an EAP can address. Experts estimate that 75% of employees who use this program don't have to use their health insurance because the problem is dealt with directly through the EAP.
A properly administered program is a valuable tool that can help organizations reduce employee stress (financial or otherwise), and positively impact the bottom line through improved employee productivity, decreased absenteeism, improved work performance and reduced turnover.
An EAP program can also help reduce disability costs, workers' compensation costs and medical health care costs. According to a U.S. Department of Labor study, employers generally save $5 to $16 for every dollar they invest in an EAP.
For example, offering an EAP program alongside a long-term disability insurance plan and medical care plan can help employers reduce sick leave and help employees return to work faster.
The EAP provider should also help with program promotion and provide utilization reports.
The Wall Street Journal also offered tips for managers to maintain productivity and lift workers' spirits during the financial crisis: Stick to routine. Maintain normal work habits to avoid provoking fear. Communicate often. Offer frequent updates to suppress rumors. Moderate discussions. Have a listening management team. Set aside time for employees to express emotions. Be reasonable. Don't expect 100% focus on work but stress the need to stay productive. Offer outside help. Hold a financial seminar for employees and remind workers of available support services.
If your employees find themselves in financial crisis, help them resolve these problems and focus on their work again. Tap into the financial assistance or counseling available through your EAP program to help resolve their struggles quickly. Some of the typical EAP financial service benefits include providing employees with much needed financial assistance and advice, enhancing the awareness of benefits you offer, attracting potential employees and retains existing ones, and assisting in the work-life balance struggle by providing a service at work. Benefits also can include allowing employees to make sound financial decisions and enhancing your compensation package and its value to your employees.
If you provide employees with the tools they need to resolve their financial burdens, they will be more productive and focused on the work tasks at hand. In doing so, they will be happier overall and continue to contribute to the company's efforts and success
EAP programs are an inexpensive benefit, but the value is immeasurable. Employers recognize having an EAP as part of an overall benefits package helps them recruit and keep the most qualified people. These programs help keep staff satisfied and secure while also controlling costs.
David Sargent is vice president of employee benefits for the CUNA Mutual Group. He can be reached at 800-356-2644, ext. 7597 or at [email protected]
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