EAP usage and ROI: the pandemic effect in 2021

The pandemic years of 2020 and 2021 put huge pressures onto employers, their people — and also EAPs. Data from the EAPA UK ROI calculator on EAP usage, impact and financial returns in the UK, representing anonymised information from seven million employees, has suggested that 347,000 more employees turned to support from an EAP between October 2020 and October 2021 compared with previous years.

More people used the full range of EAP services – but in particular there was more complexity of cases, meaning more employees withy multiple issues who needed to access ongoing support and counselling.

Rising ROI

A headline from the latest 2020/21 data, based on information from more than 1,000 EAP usage calculations, is the increase in ROI reported: £8.00 per £1.00 invested, compared with £7.27 in the previous year.

Large employers in particular have seen huge increases in their EAP ROI. Up to 50% in some cases (for those with 5,000 or more staff, up on average from £8.43 to £12.75; and from £8.47 to £12.48 for the 1,000-5,000 employee group).

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“EAPs have done a remarkable job in responding to the spikes in demand,” says EAPA UK chair Eugene Farrell. “The industry knows that levels of usage are going to stay high for the foreseeable future as people deal with the ongoing fall-out from Covid-19 and the different impacts on finances, relationships and wellbeing in general.

“For HR it’s a critical time for demonstrating that wellbeing programmes and support is having an impact and that increased spending is worthwhile. Using the EAPA ROI calculator is one way of doing that – as well as making sure attention is being given to the EAP in how its used, its promotion, management and benchmarking.”

EAP usage and ROI: the pandemic effect in 2021 – EAPA UK

Huge rises in EAP use during 2021 means higher ROI

347,000 more employees turned to support from an Employee Assistance Programme (EAP) between October 2020 and October 2021 compared with previous years.

As a consequence of higher usage, employers are seeing a higher Return on Investment from their EAP. For every £1.00 spent on an EAP in the UK, employers have seen an average return on investment (ROI) of £8.00. This compares with a previous average of £7.27. 

The new data is based on evidence from information provided by 3,200 HR professionals using the EAPA UK ROI calculator : the biggest data set on EAP usage, impact and financial returns in the UK, representing anonymised information from seven million employees. More than 1,000 calculations were made in the 2021 period.

Paul Roberts, EAPA UK board member and research project lead, said: “Figures like these on usage and ROI don’t convey the full picture of what’s been happening among employees. Behind the numbers are human stories. We know from all of our conversations with EAP providers that the average call now involves more complexity, more employees with multiple issues to deal with, meaning more stretch and strain for operations.

“EAPs have stood up to the test – dealing with the additional volume of calls and contact, more need for ongoing counselling – and continue to do so despite shortages of counselling staff.”

EAPA UK Chair, Eugene Farrell said: “Higher EAP usage is here to stay, for the foreseeable future. We’re seeing the gradual fall-out from disrupted and changing lives, from more uncertainty. During these times HR need to be demonstrating the specific value of their focus on wellbeing and the ROI data can be part of this: for benchmarking, illustrating the value of active communications and engagement, and for looking at the potential impact of trying different models of services and changing the level of investment.”

According to the new data, large employers in particular have seen huge increases in their EAP ROI. Up to 50% in some cases (for those with 5,000 or more staff, up on average from £8.43 to £12.75; and from £8.47 to £12.48 for the 1,000-5,000 employee group). This appears to be the result of higher levels of engagement with the EAP: following the best practice advice on how to get the best from an EAP.

The calculator was developed for EAPA by the Institute for Employment Studies (IES) as an open source tool for benchmarking.

Even in a pandemic, health benefits are being forgotten and under-sold

Only around half of employers believe staff know and understand the range of health benefits available to them, according to a study by the group risk body GRiD.

A third of employers said they didn’t think staff understood the benefits on offer; 10% thought they were only aware of some of the offering. 35% of staff claimed their organisation had not communicated the benefits range (or couldn’t remember if they had). 38% of employers communicated a change in benefits when it happened; 29% at the recruitment stage; 21% just once a year; and 8% not at all.

Unappreciated

GRiD also looked at the issue of whether employers understand which benefits are most valued by their people. 54% of small and medium-sized firms don’t bother to measure staff appreciation of employee benefits – and one-third of larger organisations (with more than 250 employees) are the same. The figure rises to 68% among micro-businesses (with fewer than 10 employees).

When feedback is gathered, 34% said this was carried out via a formal survey. 31% of HR teams just used informal feedback. A third used a ‘suggestions box’. 27% based their understanding of staff appreciation on the level of usage.

In its analysis of the findings, GRiD has warned HR against relying on usage rates – particularly in a context where awareness levels appear to be low. HR need to be pro-active in asking employees regularly about their experiences and attitudes towards specific benefits.

Measure to improve

EAPA UK chair Eugene Farrell [https://www.eapa.org.uk/] said: “EAPs have never been more important. It’s critical that all staff are aware of the full range of expertise and support that an EAP offers across the spectrum, from everyday worries around finances and relationships, to access to professional counselling. An EAP isn’t just for help dealing with crises after they’ve happened – just one of the misapprehensions that comes from a lack of communication.

“Measurement of effectiveness and ROI is fundamental. As EAPA’s recent study has shown, it’s the employers who are most engaged and interested in the performance of their EAP, who provide regular management reports using the EAPA calculator, who look at the potential for evolving the offering to best suit their workforce, who see the biggest ROI.”

Wellbeing programmes still need the proof of good data

A lack of good quality data continues to undermine the status of employee wellbeing initiatives, claims REBA, the Reward and Benefits Association.

From its survey of 309 wellbeing, HR and employee benefits specialists REBA found a striking increase in the number of organisations making use of management information to assess the effectiveness of wellbeing programmes, up to 92% from 74% in 2019.

But the actual value of the information was questioned: participants believed the biggest problems were the limited availability of data (49%), and its poor quality (43%). 36% said their organisation lacked the right data collection method; 31% didn’t have the required data analytics; and, 25% the expertise to analyse the data effectively.

REBA has highlighted how employers continue to measure the impact of employee wellbeing through ‘proxy’ measures such as changes in reported employee engagement. Other findings from the research pointed to how mental health continues to be the primary employee wellbeing concern for senior management – with 78% reporting plans to introduce mental health/resilience workshops this year.

EAPA funded the development of an EAP Return on Investment calculator with the Institute for Employment Studies in 2019. The calculator has led to the collection of more than 2,000 examples of employer calculations to date.

“The REBA research confirms the long-standing frustration of everyone who works in employee wellbeing,” said EAPA chair Eugene Farrell. “We know how important it is to organisations, their performance and stability, now more than ever before. But trying to quantify such a mass of variable factors will always be a trial.

“The ROI calculator is based on IES expertise and banks of previous research in order to provide a sensible, realistic guide to financial returns from the use of an EAP.  It’s also a useful way to check on different models, what the difference would be to ROI from changing the level of investment, an awareness campaign to increase usage etc. The more employers who use the calculator tool, the richer the dataset and the more useful it becomes for benchmarking – and for making conversations with the FD about wellbeing that bit more straightforward.” 

New ROI tool for employers and EAPs

Last month, at our AGM, EAPA UK announced the launch of the UK’s first EAP ROI tool. This new tool, funded by EAPA UK and developed by Professor Stephen Bevan at the Institute of Employment Studies (IES) is the culmination of two years of research, resulting in the development of an algorithm that enables employers and EAP providers to now measure return on investment.

“For the first time EAP providers and employers will be able to demonstrate the value of their EAPs, using the results to better inform their health and wellbeing strategies and deliver even greater value to employees. Importantly, over time, this ROI tool will also provide a UK benchmark of EAP providers to help employers make more informed judgements of EAP value and quality,” said EAPA UK Chair, Neil Mountford.

Now available on the EAPA UK website, we would like to encourage our members and the organisations they work with to test out the EAP ROI tool. We’d also love to hear your thoughts and feedback at info@eapa.org.uk so that we can continue to refine and enhance the tool.

New ROI tool for EAPs

Two years ago, EAPA UK commissioned The Work Foundation to investigate the use, impact and ROI of EAPs. This first phase of research found that while Employee Assistance Programmes (EAPs) are among the most commonly used wellbeing interventions in the UK, very few providers or their clients are able to collect systematic evaluation data beyond take-up or utilisation statistics and satisfaction surveys. More detailed findings and discussion of the study conducted by The Work Foundation is available in the full report, Employee Assistance Programmes (EAPs): Supporting good work for UK employers?

The research found that most EAPs, at minimum, covered their costs but that more work could be conducted to identify the main components of both costs and benefits at employer level. Based on these recommendations, EAPA UK funded further research, carried out by Professor Stephen Bevan at the Institute of Employment Studies (IES), to design, test and develop an algorithm that would enable employers and EAP providers to measure return on investment.

“We are looking forward to unveiling the UK’s first ROI tool for EAPs at our AGM next Tuesday 6 March at the Health and Wellbeing at Work event at the NEC. For the first time EAP providers and employers will be able to demonstrate the value of their EAPs, using the results to better inform their health and wellbeing strategy and deliver even greater value to employees. Importantly, over time, this ROI tool will also provide a UK benchmark of EAP providers to help employers make more informed judgements of EAP value and quality,” said EAPA UK Chair, Neil Mountford.

Watch this space for more information about the ROI tool which will be made available on our website very soon.

UK EAPA’s latest research to quantify the ‘return on investment’ of EAPs

Following the recent publication of UK EAPA’s research in partnership with the Work Foundation into the use, impact and reach of EAPs in today’s organisation, the UK Employee Assistance Professionals Association’s next research project will quantify the ‘return on investment’ of employers’ investment in these programmes.

“The UK EAPA has asked The Work Foundation, alongside Professor Stephen Bevan from the Institute of Employment Studies, to assess the economic returns that employers can expect to accrue from their investment in an EAP. Based on data collected from EAP providers, we will build an ROI calculator that will enable those who are assessing the cost-effectiveness of their current workplace health interventions to better understand the value that an EAP can deliver,” said Andrew Kinder, UK EAPA’s Chair.

“Work has already begun to collect data from EAP providers to help build the ROI calculator and we are looking forward to working with the Work Foundation once again to develop an independent and objective appraisal of the economic returns of investment in an EAP,” said Paul Roberts, UK EAPA Executive Board Member and research lead.

EAPs are among the most commonly used well-being interventions in the UK with the EAPA’s Market Watch report (2013) identifying that almost 12 million employees in the UK are covered by EAP provision. Other data, for example from Employee Benefits (2013), suggests that 71 per cent of employers in the UK are making use of EAPs.

“These figures highlight that EAPs have the ‘reach’ to make a significant impact on the well-being of a large number of UK employees, saving UK businesses a considerable sum in reduced sickness absence and improved productivity.  We are looking forward to working in partnership with UK EAPA, as well as the Institute of Employment Studies, to better understand return on investment and make recommendations about how the design, implementation and targeting of EAPs can be adapted to maximise their reach and effectiveness,” said Dr. Zofia Bajorek, researcher at the Work Foundation who will lead this project.

The research is expected to be published in early May 2017. If you would like to receive the new research report on publication, please email info@eapa.org.uk to request a copy.

In the age of digital working, EAPs are a missed opportunity for building people performance and productivity

Employee Assistance Programme (EAP) services are a missed opportunity for building people performance and productivity in the new era of digital working, according to a new ‘state-of-the-industry’ report produced by Lancaster University’s The Work Foundation.

Just 9% of HR manager respondents in the research – carried out among 88 organisations in September 2016 – had attempted to evaluate their EAP in terms of a cost utility benefit or return on investment via the impact on sickness absence, productivity, performance or engagement. 31% admitted there had been no attempt to evaluate the quality or impact of the EAP and 9% didn’t know whether there was any evaluation.

In the study, HR managers pointed to an ongoing stigma associated with the EAP, as a counselling service primarily for staff with mental health issues, limiting the use of the wider EAP service among employees. Low-level promotion of EAPs and the scope of services available is also thought to be restricting use of services for anything other than crises and situations already at a serious stage.

The Work Foundation study was commissioned by the UK Employee Assistance Professionals Association (UK EAPA) and published on 23 November 2016 as The evolution of employee assistance: investigating the use, impact and reach of EAPs in today’s organisations.

UK EAPA is calling for a re-positioning of the EAP as a business performance driver, promotion of the EAP as an everyday support service for wellbeing and life coaching; the need for more formal ROI processes and more collaboration between providers and employers to deliver both.

Andrew Kinder, UK EAPA Chair, said: “Our digital working lives are ever-faster, more mobile and flexible. They are also more demanding, pressurised and dependent on resilience. The issue for HR is whether the workplace culture, management and its support services have kept pace with all the changes?”

“Every employee needs a release valve for the combination of home and work pressures,” added Paul Roberts, UK EAPA Board Member and Project Lead. “Which is why the EAP, the provision of professional and independent advice, is gaining in significance as a standard part of workplace life.

“Working in partnership, EAP providers and HR can deliver real organisational benefits though more of a commitment to employee wellbeing by looking closely at the hard evidence and return-on-investment from a pro-active use of EAPs and related initiatives.”

“Creating the right conditions for employees to work in, and promoting ‘good work’ in organisations, is important when considering the health and wellbeing of the working age population. EAPs are one way through which employers can be seen to promote positive employee health and wellbeing, however the research indicates that HR can be doing more to promote this service. Amidst this turbulent economic environment where budgets are increasingly tightened, it is now more important than ever to promote these services and determine what the cost-benefits of EAPs are for both employee wellbeing and organisational outcomes”, commented Dr Zofia Bajorek, Researcher at The Work Foundation.

The overall average level of use of EAP services by employees is 5%. 22% of HR managers say EAP use is rising; 6% say levels have decreased; 72% that use hasn’t really changed. The most common uses of an EAP among the surveyed organisations are for depression (57%), and coping with family events (56%). Workplace issues are less reported – difficulties with line managers (20%), workplace restructure (15%), bullying (6%). EAPs are also seen as an important resource for managers looking for support. In the research, 68% say it’s being used by managers asking for support on how to manage workplace issues, for management consultation (49%) and management information on employee and organisational interventions (44%).

To request a copy of the full report, please email info@eapa.org.uk.

Do EAPs deliver value for money?

There is probably more anecdotal evidence about the eff­ectiveness of employee assistance programmes than about any other product or service in the group risk world. But anecdotal evidence is of limited use in formulating a concrete business case and what EAPs conspicuously lack in the UK is any authoritative industry-wide data to convince employers that it is worth making the effort to promote them. With comment from EAPA Chair, Andrew Kindler, Corporate Advisor investigates – you can read the full article here.