Employee Assistance Programs Keep Working

CHICAGO (TheStreet) - Given the rampant cost-cutting at American businesses these days, it's no surprise to hear generous benefits packages are becoming increasingly rare. According to the Society for Human Resource Management's 2011 Employee Benefits Survey, the number of companies offering tuition reimbursement, relocation benefits, adoption assistance and even company picnics has dropped significantly over the past five years.

But not all benefits are on the chopping block. Three-quarters of the companies surveyed offered an Employee Assistance Program, which allows workers free access to confidential counseling. EAPS, it seems, are a win-win: They increase employee satisfaction and boost productivity. The good news is that they can also be customized to a fit a small business's needs and limited budget.

Employee Assistance Programs are a win for businesses and their workers, but should be set up and used before a crisis develops.

As a general rule, about 4% to 6% of employees take advantage of an EAP in any given year. But with the recession, utilization rates have been rising, and now companies in some industries have seen 30% or more of their employees seek assistance.

Numerous studies have shown that offering counseling to employees is good for the bottom line. Workers distracted by family conflicts, financial trouble or caregiver responsibilities are more likely to take time off from work, call in sick or spend their days distracted by problems. A recently released study of more than 50,000 EAP cases from Canada found that such intervention can reduce lost productivity costs by about 25%.

Traditionally, EAPs are provided by outside vendors that charge a flat yearly rate for their services. For a company with 100 employees (the minimum number most providers will work with), a comprehensive plan starts around $5,000 per year, although it may be lower in certain areas of the country. The specifics of the plan can vary. Most allow employees three or four sessions with a counselor, while others follow an "assess and refer" model in which a counselor does an initial phone assessment, then refers the employee to a specialist for more targeted help.

Companies with fewer than 100 employees can offer an EAP by following a fee-for-service model. A standard plan might charge $500 per case, which would include three or four counseling sessions, referrals if necessary to specialized providers and a follow-up session later.