Of all the benefits available to independent brokers, the EAP seems to be the most neglected.
The reason is simple: Most brokers do not understand the complex behavioral health care needs of the employers they serve or the differences among the many employee assistance programs available. That, coupled with the relatively low cost of these programs, does not give as much of an incentive to sell the product as those more lucrative options, such as health, dental or re-insurance plans.
The good news for brokers is that high-quality EAP options do exist, and once an EAP vendor is chosen, it's a long-term relationship that keeps the broker in front of the client for years to come.
"I serve not only as a broker to my clients, but as a consultant, so when I help them evaluate EAPs, I know what to look for to ensure a good fit," says Nancy Weston of The Weston Agency. "It is one of the most meaningful products I sell; because it helps HR managers do their jobs well."
Why employers need a high-quality EAP
Ask any human resources professional, "What makes you lose sleep at night?" and it should come as no surprise that re-insurance costs or dental coverage are not on the tops of their lists. What they will tell you about are their employees' everyday personal problems - family and marital, stress and depression, child and elder care, and financial and legal issues that occupy a great deal of their employees' time and energy both on and off the job.
"Our company's success is directly related to our employees. It's my goal to provide the tools our employees need to fulfill their personal lives," said Aimee Comer, director of human resources for Robins & Morton, one of the top medical contractors in the United States.
Consider the numerous studies from a variety of sources that show the affect of employees' personal problems, and you will begin to comprehend why employers see the need to provide such a resource for their employees. According to the Employee Assistance Report released in 2001, 65 percent to 85 percent of all employee terminations stem from personal and interpersonal factors. A survey of 800,000 workers in more than 300 companies by the American Stress Institute showed that the number of employees that had called in sick due to stress tripled between 1996 and 2000. The National Mental Health Association estimates that depression cost companies in 2000 at $43.7 billion in decreased productivity, lost work days and health care costs.
"It is a common fact, and has been my observation, that stressed, worried employees are unproductive. Their moods and issues, in many cases, carry over to coworkers which can have a profound negative effect on entire departments," said John C. Thompson, Vice President and Director, Human Resources, of EBSCO Industries Inc., one of the largest privately held companies in the country. "Having a good, responsive employee assistance program is essential in today's work environment."
An EAP that addresses employees' personal issues has proven to be an effective tool in maintaining productivity. According to the Employee Assistance Program Association, proper utilization of an EAP can result in reductions of 30 percent in lost time, 69 percent in accident and sick pay, 50 percent in grievances and 70 percent in accidents.
Employees that are emotionally well do not use as many medical benefits. Benefits Selling reported in the April 2008 issue that 35 percent of benefit brokers listed EAPs as a current solution to improve the cost and quality of the medical benefits they offered. In addition, a McDonnell Douglas study shows that companies save $4 for every dollar invested in an EAP.
An EAP is instrumental in addressing other human resources issues as well. An EAP can act as a preventive measure against workplace violence, which, according to the Bureau of Labor Statistics, accounted for 13 percent of fatal occupational injuries in 2006, and is consistently among the top four causes of workplace fatalities in the United States. EAPs can also provide assistance in developing organization policies that address employee discipline or termination, sexual harassment, discrimination and other legal issues. In 2007, the Equal Employment Opportunity Commission received 12,510 charges of sexual harassment and recovered $49.9 million in monetary restitution.
Armed with these statistics, selling a high quality employee assistance program is a necessity for any broker who truly cares about helping client companies provide needed coverage. Additionally, any program you offer that can have a tangible effect on a company's bottom line is one that will draw management's attention.
How to evaluate Employee Assistance Programs
Brokers beware: Not all employee assistance programs are created equal.
Choosing the best employee assistance program can be a challenging task. It is important that you, as the broker, become informed about the qualifications of the program and the staff providing the services.
Many brokers turn to a tag-on product associated with a disability policy that is either free or very low cost, but may offer only a fraction of the services that a company truly needs. While a Web-based component of an EAP can provide good educational opportunities, it is no substitute for the face-to-face, personalized services available through a comprehensive employee assistance program.
A high quality program should always employ knowledgeable, licensed clinicians trained to assess and provide needed services. There should be both Certified Employee Assistance Professionals and Substance Abuse Professionals on staff as well as providers who specialize in child, adolescent, family, marital and substance abuse issues.
Also of prime importance is the ability to properly manage mandatory or supervisory referrals in a way that quickly moves the troubled employee back to productivity. Employees with personal problems or problem employees will have a proper avenue for resolving issues that can be very disruptive in the workplace, freeing managers and supervisors of the direct responsibility of the documentation needed for compliance with a disciplinary action.
Perhaps most importantly, with the escalation of workplace violence, Critical Incident Stress Debriefing has become a frequently requested service provided by EAPs. When administered promptly by professionally trained and experienced clinicians, this EAP service helps to mitigate the impact of the incident and assists the organization in the recovery of its affected employees.
While this addresses some of the most critical services needed in an employee assistance program, the most important aspect of the service is less tangible and harder to define. In the best of EAPs, the staff will not only learn the client company's policies and procedures and apply them consistently in managing employee problems, but they will also learn the company culture and dynamics, and in doing so, develop a natural, close, and long-lasting relationship with the employer -- being a key player in keeping their client's employees productive while keeping the business profitable.
"Our EAP program is staffed with dedicated professionals who are well-trained and eager to help our employees in need of counseling for depression, stress, drug and/or alcohol addiction, marriage relationships, and other issues," said Thompson. "It has been a most welcome benefit and one that is most appreciated by those employees who have taken advantage of these services."
A good EAP provider recognizes that it essentially has two clients: the employer who pays for the program, and employees that the EAP serves.
"Our EAP provider helps our employees and their families to find solutions to life's challenges," said Comer. "They bring a proactive attitude and attention to detail to help the people of Robins & Morton navigate financial, health, and stress-related issues, while providing solutions that allow them reach their personal potential."
Get your foot in the door
To borrow from Humphrey Bogart, the EAP can be the start of beautiful relationship. Once a company commits to a new EAP, you have established a customer-vendor relationship with that company's human resources department and executives, rather than a salesperson-prospect relationship. Congratulations, you're in the door.
And the bottom line is this: if you bring in an EAP provider that does a really good job, then you're going to win the heart of the human resources manager who is dealing with employee issues on a daily basis. As a result, a good EAP is its own selling tool for your entire arsenal of benefits options.
Through implementation of an EAP, brokers have the opportunity to demonstrate the level of service that their organizations offer. How prompt is the response? How do they handle the renewal process? As employees utilize the service, companies will have access to feedback as to the value of the service.
It is easier to keep existing customers than it is to find new ones. While the words may change from venue to venue, any sales or marketing professional can attest to the truth behind them. With a good EAP service experience, brokers will find that they have the opportunity to offer additional and more lucrative products to the customer. Consider this when you have the opportunity to provide an EAP benefit to your client companies.
So the next time you are wondering how to develop a long-term, profitable relationship with an employer, consider talking to them about employee assistance programs. You might just earn yourself a client for life.
Maureen Gleason is vice president of operations for American Behavioral, a Birmingham, Ala.-based behavioral health care and employee assistance program provider. She is a licensed professional counselor in the state of Alabama, a national Certified Rehabilitation Counselor and a National Certified Counselor, and holds counseling supervisor status. She can be contacted at mgleason@americanbehavioral .com.
