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The Benefits of Employee Assistance Programmes (EAPs)

The Benefits of Employee Assistance Programmes (EAPs)

Key points 

  • Young New Zealanders, especially those aged 18-34, are experiencing high levels of distress, depression, and anxiety, worsened by the pandemic and financial uncertainty. 
  • Employee Assistance Programmes (EAPs) offer short-term counseling and problem-solving services to help employees address personal and work-related challenges that may affect their job performance. 
  • EAP services typically include confidential counseling, health and wellness information, fitness and relaxation resources, and training for skills like time management. 
  • Businesses that invest in employee well-being through EAPs often see increased productivity, reduced absenteeism, and higher employee engagement. 
  • Supportive workplaces are more attractive to potential employees, with work-life balance, flexible hours, and wellness initiatives becoming key factors in talent retention.  
  • EAPs provide financial benefits to companies, with every $1 spent on mental health initiatives potentially delivering a $2.30 return through higher motivation, fewer sick days, and long-term employee commitment. 

Research shows that young New Zealanders, particularly those aged 18-34, experience high levels of stress, depression, and anxiety, with some facing suicidal thoughts. The global pandemic and ongoing financial instability have exacerbated these issues, adding extra pressure on professionals. Since employees are the backbone of any business, it’s crucial to prioritise their well-being.  
 
Many employers now offer additional benefits as part of their health and safety or wellness plans. One such benefit is an Employee Assistance Programme (EAP), which can provide employees—and often their families—with resources such as counseling to address both personal and workplace challenges that might affect job performance. 

What is an Employee Assistance Programme (EAP)? 

Research indicates that the three major factors impacting the mental health of New Zealanders are: 

  • Financial issues 
  • Relationship difficulties with family and friends 
  • Lack of sufficient sleep 

An EAP is a work-based service designed to offer short-term counseling and problem-solving support aimed at enhancing employees’ mental, emotional, and overall health. 

EAP services typically include: 

  • Free, confidential counseling for personal and work-related issues 
  • Health and wellness information 
  • Resources on fitness, relaxation, and exercise programs 
  • Training opportunities, such as time management and stress management techniques 

The types of issues EAPs address include relationship and marital problems, financial struggles, gambling, mental health concerns, trauma, communication difficulties, and substance or alcohol abuse. These programs offer employees confidential access to professionals who can help them address and resolve their challenges. 

Benefits of Employee Assistance Programmes 

Evidence suggests that businesses that invest in employee well-being often see improvements in productivity and job satisfaction3. Large businesses tend to implement EAPs to support their employees' mental health, while smaller companies may offer flexible work arrangements as a key wellness strategy. 

Boosting productivity 

A 2019 report revealed that New Zealand businesses lost 7.4 million working days due to absenteeism in 2018, costing $1.79 million. Employees who maintain both mental and physical well-being are generally more productive, highlighting the importance of EAPs in reducing absenteeism and improving overall performance. 

Attracting talent 

A positive workplace that supports well-being is more appealing to potential employees. For example, research among construction workers showed that work-life balance and personal development were top priorities. To attract and retain valuable employees, industries must offer benefits such as flexible work hours, work-life balance initiatives, and a supportive work environment. 

Supporting managers 

Managers play a pivotal role in maintaining a healthy workplace environment. They provide leadership, set examples of healthy behaviors, and support employees by recognizing achievements and addressing potential issues early. Managers also need support to be effective in this role. 

Financial Benefits of EAPs 

For businesses, the financial benefits of EAPs are evident. Studies suggest that for every $1 spent on mental health initiatives, businesses may see a return of $2.30. This return comes in the form of: 

  • Increased motivation and productivity 
  • Fewer sick days taken by staff 
  • Greater long-term employee commitment to the company 

Reducing absenteeism 

When employees face personal challenges, they may require extended leave from work. Mental health issues, such as stress or fatigue, can lead to increased absenteeism. By offering an EAP, employers provide their staff with the necessary tools and support to address these issues, helping them improve their overall health and well-being. 

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