EAPs and startups
Do Employee Assistance Programs (EAPs) make sense for startups?
One health benefit which should be of particular interest to startups is an EAP. EAPs are provided by employers to address a spectrum of issues including substance use disorders (SUDs) and mental health issues such as anxiety or depression.(1) EAPs offer confidential, voluntary contact with a counselor who helps the employee manage or resolve the issue and hopefully restore normal work performance in a handful of sessions. For more chronic medical conditions such as SUD, referral to qualified treatment providers is typical.
Choosing where to allocate precious capital is an important challenge for many smaller startups. Providing employee benefits plays a role in recruitment and retention of key talent, crucial even to the survival of the business. A recent study provides some guidance to startup leadership in selecting benefits that “generate the most bang for the buck.”(2) More than 1000 startups were followed from 2004 to 2011 to determine which of several employee benefit offerings improved the odds of venture survival. Companies offering health coverage were more likely to survive.
Multiple studies have demonstrated the positive financial impact of an EAP on the employer with improvement in work absenteeism, work presenteeism, turnover, and savings in medical and disability claims. (3) A survey of more than 24,000 EAP cases found that 3 months after counseling, work absence improved by 28%, presenteeism by 24% and life satisfaction by 22%. (3) Relative to the cost of a total health benefit program, EAPs are cheap. Fees range from $12 to $40 per employee. (3) Of course, this doesn’t include the costs of more intensive outpatient or inpatient treatment programs if required.
Why Startups Should Consider an EAP
Though 90% of larger employers include an EAP in their health benefit packages, they are not as often offered by smaller, i.e., startup, companies.(3) There are, however, compelling reasons a startup needs an EAP:
Startup employees are in the demographic most likely at risk for substance use disorders as well as anxiety and depression. 75% of all mental health illnesses develop by the mid-20s. (4) SUDs typically begin in young adulthood.
Providing an EAP improves absenteeism and presenteeism. In a startup with a smaller workforce, the impact on productivity can be huge, even enhancing the odds of enterprise survival.
Providing a health benefit package adds legitimacy to a startup, another element of employee recruitment and retention.
EAPs demonstrate commitment to employee health at a cost many startups can absorb.
Operation Lighthouse
Operation Lighthouse is a platform designed to offer startups and their employees free and convenient online access to confidential help with these challenging substance use disorders and other mental health concerns:
Provides access to Shatterproof’s concise, science-based educational tools
Provides easy access to links for suggested further evaluation and/or treatment
Offers current updates and comment on the evolving research on SUD and mental health issues impacting startups and their employees
Social stigma remains a significant barrier to addressing workplace mental health issues affecting startups. Personal engagement by leaders in creating a company culture that recognizes, accepts and supports employees struggling with SUDs or other mental health issues is critical to successful outcomes and will enhance the odds of company success.
References
EASNA (2017). Special Report. Selecting and Strengthening EAPs: A Purchaser’s Guide. Alexandria, VA. Employee Assistance Society of North America
Messersmith JG, et al. Bang for the buck: Understanding employee benefit allocations and new venture survival. Intern Small Business Journal: Researching Entrepreneurship. 2018, 36: 104-125.
Attridge M. A global perspective on promoting workplace mental health and the role of employee assistance programs. Am J Health Promotion 2019, 33: 622-629.
Posted by
Dan Mazanec, MD, FACP