April 2004   In This Issue...   Front Page   Value Model   Toolbox   Integrated Program   Risk Management   Outcomes Connections Regulatory   Update Research   Review Interact   Member     Exchange     Forum Feedback	A Business Value Model for EAPs Mark Attridge, Ph.D., Principal, Research and Analysis, Optum, Golden Valley, Minnesota Tom Amaral, Ph.D., President and CEO, EAP Technology Systems Inc., Yreka, California It is important for EAPs to measure and report on their services and state how they contribute to the business goals of the program purchaser or sponsoring organization. Whether the EAP is an internal program that needs to defend its budget or an external program that must show it returns more in savings than its services cost, it must speak the language of business and demonstrate that it delivers business value. This is especially true in today’s economic climate, when companies are more likely to ask if they are receiving a positive return on investment from their EAPs. We offer here a brief overview of a conceptual model for making the business case for EAP services. This “business value model” identifies three major outcome areas in which an EAP can have a positive affect on the bottom line: human capital management, health claims costs, and organizational impacts. The human capital management component of the business value model is derived largely from three areas: absenteeism reduction (the cost of avoided unscheduled time off from work), productivity changes (the costs of less-than-full effort while on the job), and avoided turnover (costs to replace an employee). A variety of research studies--benefits’ managers’ opinions of EAP value, supervisory ratings of employees’ changes in workplace behavior, survey-based self-reports from EAP clients, and positive impacts on sickness, absenteeism, short-term disability, and so on--have shown support for EAP outcomes in human capital areas. EAPs can also provide value by helping reduce overall medical health care claims, mental health outpatient claims, workers’ compensation claims, and disability costs. Savings in this value area are derived primarily from diversions (avoided costs that would have occurred had an external mental health provider been used instead of EAP staff) and from loss avoidance in high-risk cases (when inappropriate medical care is averted due to appropriate use of mental health benefits). Many research studies in this value area indicate that services that comprise the EAP Core Technology are often the most effective at producing claims and workplace cost savings. This is due in large part to the fact that employees with substance abuse and severe mental health problems have greater levels of benefits utilization and work impairment and, consequently, present greater opportunities for clinical improvement. Both the human capital management and claims costs value areas are derived largely from employees who use the EAP on an individual basis. In contrast, organizational services provide most of their value from use of the program at the work group level (or higher), from managerial and other leadership consultations, and from risk management and prevention activities. Four general types of EAP organizational services that can provide value are educational programs and trainings, crisis and violence risk management and response services, management and leadership consultations, and organizational development. While EAP organizational services have not received as much research attention as the other areas, some research does show the value of these services. EAP trainings yield a number of positive outcomes associated with perceived increases in morale, attitude, and productivity, Crisis management services have been shown to be an effective workplace strategy for dealing with critical issues. Managers and other leaders report positive impacts in working with the EAP around troubled employees and work groups. We believe this model provides a useful approach to understanding and communicating the business case for EAPs by speaking the language of business and placing EAP services directly within the context of business operations. A full presentation of this model, with supporting research documentation, will be available at our pre-conference workshop, “Making the Business Case for EAPs: A Review of Research and Methods,” at the 2003 EAPA Annual Conference in New Orleans on Friday, November 21. Selected Readings: Attridge, M. 2001. “Making the Business Case for EAPs: A Conceptual Framework.” EAPA Exchange 31 (Sept./Oct.): 37-38. Attridge, M., and T. Amaral. 2002. “Making the Business Case with the Core Technology of EAPs.” Paper presented at the 2002 EAPA Annual Conference, Boston, Massachusetts. Attridge, M., T. Amaral, and M. Hyde. 2003. “EAP Services to the Organizational Client: Completing the Business Case for EAPs.” Journal of Employee Assistance 33 (4th quarter): 23-25. Employee Assistance Professionals Association. 2003. “The Dollar$ and Sense of Employee Assistance.” EAPA, Arlington, Virginia. DISCUSSION (Member Exchange Forum)   Back Issues   Top of Page   Contact EAPA   © 2004 Exhange On-Line is a publication of the Employee Assistance Professionals Association, Inc. (EAPA). Reproduction in whole or in part without written permission is expressly prohibited. Publication of bylined articles does not constitute endorsement of personal views of authors. Appearance of paid advertisements does not constitute endorsement by EAPA.	Vol. 2    No. 1