Personal and financial pressures can quickly mount up even in a healthy work environment. ADP’s People at Work 2022: A Global Workforce View found that 67% of workers admit they experience stress at work at least once per week, and 53% believe their work is suffering due to poor mental health. To help employees deal with these issues, employers may implement an Employee Assistance Program (EAP) as part of their benefits offering.

What is an Employee Assistance Program?

An EAP is a benefit program funded by employers which offers confidential services to help employees and their eligible family members address work, health, or life concerns. Most EAPs, or EFAPS (employee and family assistance programs), provide a wide range of services, such as short-term clinical or professional consultations and other wellness services.

How does an EAP work?

Employees who choose to take advantage of an employee assistance program have access to virtual self-help tools and referrals to qualified professionals outside their employer’s organization, such as:

  • Counsellors
  • Financial advisors
  • Legal firms
  • Healthcare professionals
  • Childcare and elder care specialists
  • Fitness and nutrition experts

Types of services offered through EAPs

EAPs differ in the services they offer, but most offer free access to free and confidential counselling or support for:

  • Mental health
  • Family & relationships
  • Career guidance
  • Personal finances
  • Crisis management

What issues can be addressed with an EAP?

The issues addressed by an EAP can differ based on the program. Generally, they may include support around:

  • Career planning
  • Mental health issues, including depression, stress, anxiety, and grief management
  • Family issues, including divorce, separation, and abuse
  • Family planning, including parenting
  • Child and elder care support
  • Legal concerns, including family, civil, criminal, and property law
  • Financial issues, including loan management, investments, mortgages, insurance, debt repayment, and taxes
  • Behavioral health issues, including alcohol or substance abuse and gambling addiction

Benefits of an EAP or EFAP

A happy and healthy workforce can lead to many organizational efficiencies. Employers who roll out an EAP may be able to:

  • Attract and retain talent
  • Reduce absenteeism
  • Improve employee productivity and engagement

Benefits for the employee and their dependents include:

  • Free, confidential access to short-term counselling
  • Being more engaged at work
  • Being happier at home

Challenges for EAPs

Employers are demanding solutions for various challenges, including:

  • Confusing EAP offerings
  • Difficulty determining program impact and ROI due to a lack of data visibility
  • Quality of mental health professionals
  • Facing the stigma attached to certain services, making it difficult to promote in the workplace

Employees are also facing challenges with EAPs:

  • Outdated user experience due to lack of staff at call centres and dated brochures, websites, and apps
  • EAPs use a network of external professionals who may be difficult to access due to a lack of availability, resulting in long wait times
  • When the patient switches providers due to the limited number of sessions in a EAP, there is no continuity between service providers

Things to consider when implementing an EAP

Employers offering employee assistance programs should ensure employees fully understand who is covered and what services are available. These details, in addition to the following, are usually outlined in an official EAP policy document:

  1. What is an employee assistance program, and what is its purpose? Introduce EAP, define all key terms and explain how the program can benefit employees.
  2. Employee assistance program examples – List all available digital resources and in-person services.
  3. Eligibility – Breakdown of who the program covers in addition to the employee, including spouses, domestic partners, children and any other applicable dependents.
  4. Costs – Explain how many referrals are covered and estimate fees for additional services.
  5. Contact details – Provide the number of a referral agent, i.e., an HR professional, union representative, EAP specialist, etc.
  6. Confidentiality agreement – Let employees know that management cannot access information about how they use the program.

Evaluating the impact of an EAP

Employers should monitor and hold periodic evaluations to ensure the EAP meets the needs of the employees and employer.

Some key metrics to take a look at are:

  • Employee engagement
  • Absenteeism
  • Productivity
  • Disability claims cost
  • Turnover

Frequently asked questions

Is it mandatory to provide an employee assistance program?

There are no federal laws mandating EAPs, but employers who offer them may be able to improve employee morale, engagement and retention, among other benefits.

What is EAP counselling?

Counselling sessions can cover any topic that distracts or hinders employee happiness and performance in the workplace.

How much do EAP programs cost employers?

Different employers offer different EAP benefits, meaning that costs can vary from one business to the next, depending on the extent of the services provided.

What types of services does an EAP offer?

Services offered by an EAP vary but typically address personal difficulties, relationship difficulties, eldercare, childcare, substance abuse, separation, loss, financial or legal challenges, and crises.

Is employee assistance program a taxable benefit?

Employee assistance programs in Canada are a non-taxable benefit.

This article is intended to be used as a starting point in analyzing EAP benefits and is not a comprehensive resource on EAP requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.