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Return to Virginia Business - May 2005

News & Features


Employee assistance programs boost productivity and profits

by Sonny Phipps
Virginia Business

May 2005

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Every year, U.S. businesses lose nearly $312 billion through lost productivity and absenteeism caused by mental illness. In fact, employees with behavioral disorders are absent from work three times more often than other employees and are 35 percent less productive, according to the National Institute of Occupational Safety and Health.

On average, alcohol-dependent employees miss 15.3 workdays per year, and patients with diagnosable behavioral disorders average twice as many visits to primary-care physicians than other employees.
Many businesses offer employer-sponsored behavioral health benefits, such as employee assistance programs (EAPs). These programs offer a broad range of support services including assistance with depression, alcoholism, financial management, divorce and child-care issues. To en-courage workers to take advantage of EAPs, they’re designed to be user-friendly, offering 24-hour counseling and an online component, so people can access services when and where it is most convenient for them.

But do such programs make a difference? The good news is, yes. Research shows EAPs can reduce absenteeism and improve productivity. In November 2003, ValueOptions, a Norfolk-based provider of managed behavioral health-care services to Fortune 500 companies, health plans and governments, began conducting a study to assess the effectiveness of company-sponsored EAPs. Based on data collected from more than 12,000 individuals so far, the study has found that employees who receive behavioral health treatment show considerable improvement.

During treatment, the employees were absent fewer days from work, with absenteeism decreasing by 55 percent and productivity increasing by 63 percent. After treatment, 83.8 percent of those who missed work because of behavioral health problems reported improvement, and 74.6 percent reported no absenteeism because of behavioral health problems during the previous month. In addition, of those members who reported being less productive because of behavioral health problems, 68.6 percent reported no lost productivity 90 days later.

Clearly, employer-sponsored behavioral health programs are successful because they enable individuals to participate more fully and productively in family life and at work, improving the bottom line of the businesses that provide them.

Nolan (Sonny) Phipps is director of Outcomes and Research for the Employer Solutions Division of ValueOptions and is the author of the research.

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