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Job stress costs U.S. industry $300 billion annually in absenteeism, diminished productivity, employee turnover and direct medical, legal and insurance fees (The American Institute of Stress). The problem employee typically costs the typical American company an average of 25% of his or her salary per year.
Employees who experience both depression and stress utilize healthcare at a rate 250% higher than regular employees, a difference of $3,000 per employee, per year, (Milliman & Robertson, 2000)
Cost Effectiveness of the EAP
From EAPA's recently updated collection of articles, Cost/Benefit Analyses of EAPs, the following savings are projected for an organization:
- 27% fewer worker compensation claims
- 57% improvement in absenteeism
- 48% less likely to leave their jobs
- 58% decline in employees reporting on the job physical health problems
- 70% decline in employees reporting on the job emotional health problems
Return On ROI
The most conservative Return On Investment (ROI) reported from hundreds of studies ranges from $5 to $16 per $1 invested in an EAP. This is based on just two EAP services:counseling and substance abuse treatment. The actual ROI would be even higher if one included Work/Life information and referral services.
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