How to Use an Employee Assistance Program as Part of Your Benefits Strategy

Corporate social responsibility (CSR) has expanded over the decades from simple corporate philanthropy to a wide variety of programs, including the pressing issue of environmental stewardship.

Another one of the newer CSR initiatives is employee assistance programs (EAPs). Employers have realized that taking care of their internal stakeholders is just as important as making waves in their local communities.

We’ll take a look at the general structure of EAPs, the benefits of having one at your company, and the ways your employees can use them.

Table of Contents:

• What Is an Employee Assistance Program?
• How Does an Employee Assistance Program Work?
• How an Emergency Assistance Fund Works
• How to Integrate an Employee Assistance Program in Your CSR Strategy
• Reap the Benefits of an Employee Assistance Program with Groundswell

What Is an Employee Assistance Program?

An employee assistance program, or EAP, is a suite of benefits and tools (outside of regular wages) employers use to support employees. EAPs are a relatively new CSR creation. They’re a recognition that employees are dynamic human beings whose workplace presence cannot be totally separated from their personal lives.

EAPs are often used for things like:

• Severe home damage (such as from fires or natural disasters)
• Anxiety, depression, burnout, and acute mental health challenges
• Substance use disorder
• Costly illnesses or injuries
• Death of loved ones (especially heads of households or caregivers)
• Common legal needs (such as estate planning, real estate transactions, and family law matters)

In most cases, employers themselves fund the full cost of their EAPs. Benefits for which employees must dedicate a portion of each paycheck usually aren’t considered part of the EAP bucket.

The one exception lies with employee assistance funds (EAFs). EAFs are designed to provide employees with quick cash infusions when a money-draining crisis occurs. Coworkers often contribute some of their paychecks to support their fellow employees, and employers may match these donations up to a certain amount.

Why bother with an EAP?

Some employers believe they pay their workers enough for them to respond to adverse events on their own. Whether or not that’s true isn’t exactly the point of an employee assistance program.

The main reason EAPs exist is that employees may not have the time or knowledge needed to access EAP services. You could either watch an employee go through a mental health crisis and hope they get in touch with the right resources or help provide them with the resources so they don’t have to flounder alone.

Reducing the friction between your employees and critical services minimizes workplace disruptions. Plus, employee absenteeism is not cheap. 

A study from CIRCADIAN Technologies estimated that the median annual cost of absenteeism is around $3,600 per worker. Furthermore, Groundswell found that the median employee loses around seven hours of productivity per week from financial stress.

Beyond absenteeism, EAPs can save companies money by increasing employee retention rates. Onboarding new hires can cost more than their annual salaries after you add up the soft costs.

How Does an Employee Assistance Program Work?

To access the EAP offered by their employers, workers should first verify that they are eligible for the services. Some EAPs are available only to full-time employees who have worked for a certain period.

After completing that preliminary step, employees either call an informational line or visit their internal portal. They may or may not speak with a real person before deciding upon specific services.

How an Emergency Assistance Fund Works

If a team member needs quick access to funds after a crisis, you should probably have an application process already in place to confirm the need. You can manage this in-house or contract it out to a third-party vendor. Using a 501(c)(3) means that donations from both employers and employees are tax-deductible.

Groundswell’s EAF function allows employees to submit an application and track its progress through to its conclusion. Our team handles the application vetting and approval logistics, allowing your team to focus on more pressing matters. 

How to Integrate an Employee Assistance Program in Your Benefits Strategy

Implementing an employee assistance program for your company can be difficult, depending on the amount of work you need to do on your own. The right CSR software will reduce administrative paperwork, but the following still needs to happen.

Design the EAP for Your Organization’s Needs

It’s all right if your business doesn’t have the resources for every single EAP service we’ve mentioned in this blog. Starting small is certainly better than having nothing at all. Even just an EAF that employees donate to only when a need arises can do wonders for your coworkers’ peace of mind.

You should also determine which employees are eligible for the EAP or EAF. Offering eligibility after a set period of employment can incentivize employees to stay longer, reducing onboarding costs for the company.

Create a Communication Strategy

Many employees at companies that offer EAPs are unaware of the program’s existence. The less your coworkers know about the CSR benefits available to them, the lower the ROI will be. 

Include comprehensive information about the EAP and other services to new hires, and mention them in standalone emails to every eligible staff member. Purpose-built CSR software can automate reminders to make your life easier.

Make the EAP Easy to Access

Assuming your employees know about the EAP, it’s time to ensure they don’t encounter unnecessary friction when trying to obtain the services. Groundswell includes EAFs and other employee benefits within its all-in-one CSR software. Each service has its own dashboard with intuitive navigation and simple customizations.

Reap the Benefits of an Employee Assistance Program with Groundswell

Investing in employees is one of the smartest business decisions a company can make. Keeping and retaining talented workers remains a challenge for HR teams and businesses after COVID, and a cost-effective EAP is a good tool for keeping turnover low.

With Groundswell, you can:

• Create a way for employees to easily submit EAF applications and track their progress
• Let the experts deal with application vetting and compliance issues
• Offer your workers an intuitive EAF dashboard
• Allow employees to contribute to their EAF and help support fellow coworkers

Our all-in-one CSR software also supports:

• Corporate grants
• Employee giving and donation matching
• Corporate DAFs (donor-advised funds)
• Employee volunteering initiatives

Schedule your demo today to see how easy CSR can be for your company.