What are employee assistance programmes?
An employee assistance programme (EAP) is, at its core, a helpline, paid for by employers and provided free to staff, which provides confidential advice and assistance around a wide range of subjects that might affect them both at work and in their personal lives.
This typically includes emotional counselling, financial, debt and legal assistance, information around child and elder care, as well as physical and mental health services. Users also tend to be able to access free resources around these subject, and some EAP providers will facilitate things like mental health first aid training.
EAPs are available for employees to access at all hours, every day of the week, allowing them to get support at a time that works best for them, including at home. They aim to provide support on whatever issue might be affecting an employee’s mental health and wellbeing at work, in order to reduce stressors and improve productivity.
According to the Employee Assistance Programme Association (EAPA), this is the most common form of workplace mental health intervention in the UK, with 14 million people, almost half of the total workforce, currently having access via their employer.
How do EAPs work?
Employers typically provide the details of how to access their employee assistance programme, either via telephone or, increasingly, an online platform or app, in their benefits information packages, on their intranet, or anywhere else they tend to communicate about benefits and services.
Users take part in an initial session, which assesses their need and circumstances, which is then followed up by a specific number of free further sessions which address their specific problems. The number of sessions available to employees depends on the package and provider.
What are the costs involved?
EAP costs tend to work within an economy of scale; the larger the employer, the more cost-effective the service will be. According to the EAPA, large organisations might be looking at a cost of up to £5 per employee, whereas a smaller firm could pay up to £20.
This will also vary depending on the service provided. At the lowest bracket, an EAP will be able to provide a basic telephone and online counselling service, but employers can choose to add to this, for example with specific debt support, referral systems, and even face-to-face meetings.
However, the EAPA has warned that, as inflationary pressures increase, prices may have to rise in the future. In order to assess the cost versus benefit of an EAP, the association’s website provides access to a return on investment modeller.
What are the benefits?
The most recent research from the EAPA shows that organisations with an employee assistance programme in place report an increase in savings due to reduced staff absence, as well as gains in productivity. Figures from October 2022 show that over the preceding year, for every £1 spent on an EAP in the UK, employers have seen an average return on investment of £10.85. This is up from £8 the year before, and £7.27 before that.
This is a considerable benefit considering the fact that, even at the higher end of the bracket, this costs less than private medical insurance (PMI), and provides immediate assistance, compared with the long wait times experienced when dealing with the NHS.
For a relatively low cost, EAPs are able to reduce presenteeism and sickness absence, boost resilience, provide training and resources, and help an organisation become an employer of choice.
Are there any tax or legal implications?
Some employees might be concerned about discussing sensitive personal issues, particularly those they feel might affect their standing at work, with a service provided by their employer. However, EAPs are always provided through a third-party, with complete confidentiality.
While a member of staff might be encouraged to discuss their concerns with a manager or their employer, employers are not able to access information on individual usage or employees’ issues. However, they can access anonymised aggregate data to give them an outline of usage among staff, which can help prompt things like boosting wellbeing benefits.
In terms of tax implications, if provided to all employees, as opposed to just specific groups, such as managers, then an EAP should be exempt from benefit-in-kind taxation. However, in order to remain within this exemption, there are some factors to take into consideration.
While friends or family can access couple or family counselling through the EAP where the issues affect the employee, any further use by other parties, such as use by family for issues not directly affecting the employee, will mean it is no longer exempt.
In addition, while employees can access legal advice via their EAP, this must be for topics affecting their work, or their stress or anxiety levels while at work. Legal advice not affecting work is not covered by the tax exemption. These can be complex grey areas to navigate, and employers with questions should seek out advice, either from their provider, a third party, or HM Revenue and Customs.
What are the current market trends?
The main issue perennially under discussion within the EAP market is low take-up, as there are still many employees, even those whose employers provide the service, who either do not understand the benefits and its uses, or do not realise they have access to an EAP at all.
This is largely an issue of communication, and means employers should be doing more to signpost and advertise the service. Providers want the services to be used, so most will be able to help their employer clients find ways to promote their EAP. This could be physical, with posters in the workplace, for example, digital, via an intranet or email campaign, or in person, by training managers to signpost to these support services if and when their staff are struggling. Ideally an employer will take a multi-pronged approach, in order to get the most benefit out of the service it is paying for.
While low take-up is still a problem, this is changing with time. According to the EAPA, the digital shift in recent years, as well as a growing realisation of the need for support, both of which were spurred on by the pandemic, is taking effect.
The average usage figure in October 2022 was above 12%, compared with 11.4% the previous year, and a typical average of 10.4% before that.
In addition, the association has noted that cases are becoming more complex, simply by the nature of the world around employees. As a result, employers may want to look at more extensive services, with higher numbers of sessions included as standard, in order to address the issues facing staff.
Who are the main players?
As one of the most widely adopted benefits on the market, there are many providers of all shapes and sizes. Some key names in this market include Axa Health, Bupa Wellbeing, Health Assured, Unum, CIC and Lifeworks.
