A quick glimpse at the year's top headlines - "Economic crisis sparks sharp rise in workforce counseling," "Financial fears send nation's stress soaring," and "Employers grapple with rise in workplace suicide" - and it's clear how busy and invaluable employee assistance programs have been in preventing the economic disaster from becoming a workplace disaster.
But what's in store for 2010? What's the next big emerging market in EAP? And where do brokers and benefits consultants turn for new sales and growth opportunities?
The good news in a bad economy is that not all industries are affected equally. Higher education is booming, and the greatest opportunity for EAP market expansion is with student assistance.
EAPs are headed back to school. But if visions of college conjure up dorm rooms, football games, frat houses, and keg parties, think again.
Today, it's all about the non-traditional college - the hundreds of for-profit and online colleges that offer career, vocational, and technical programs. With programs catering to adult and non-traditional students, these schools have experienced record growth in an otherwise weak economy.
The University of Phoenix is an example. This heavily marketed for-profit university reported a 22 percent enrollment increase in 2009, with projections to 26 percent. The online sector grew 13 percent last year, with nearly one in four students taking online courses, up from one in 10 in 2002. Community college enrollment also rose 25 percent compared with a year ago.
Education has become big business and to these non-traditional schools, the student has become the business unit. Coupling education goals and life betterment with a profit motive creates a unique union - and brokers can leverage these business goals in the new market of student assistance.
Selling to Need
Selling to need - and helping customers understand their needs - is a brokers' stock-in-trade. So what are those needs in higher education?
Today's typical student is far from typical. She is more likely to be in her 30s, taking care of children and working full time. And as men have been hit hardest by layoffs in this tough economy, they are returning to school in droves to better career opportunities.
The National Center for Education Statistics reports non-traditional students make up nearly 90 percent of students at for-profit universities. These students often:
- Did not enter college immediately after high school;
- Attend part-time;
- Work full-time while enrolled;
- Are financially independent of parents;
- Have dependents other than a spouse; and
- Obtained GED instead of high school diploma.
Because they juggle multiple priorities simply to get to class and complete assignments, non-traditional students are at a higher risk of dropping out.
Erin Krehbiel, SVP of Marketing for ACI Specialty Benefits, reviewed 2009 utilization for ACI's new SOAR program (Student Outreach, Assistance and Resources) and found, "While many of the cases are similar to routine EAP cases, we've seen alarmingly high instances of cases that are more complex. Many are suffering from severe financial hardship, even homelessness, which makes it difficult to put food on the table and pay for gas let alone focus on school."
A new study from the Community College Survey confirms that today's college students are facing barriers to success:
- 56 percent work more than 20 hours a week;
- 30 percent have children living with them;
- More than a third are first-generation college students; and
- Almost 30 percent come from families earning less than $20,000/year.
The Bill and Melinda Gates Foundation recently launched a new initiative to sort through the poor completion rates of those who have chosen the community college route. The Boston Globe, in announcing the program, states: "there is at least some acknowledgement of the enormous barriers facing urban high school graduates; many are the very first members of their families to attend college. These students have financial problems; some are raising children; and others are held back by lack of basic skills."
Julie Alvarez, for example, is a student at a national for-profit university studying to be a medical assistant. She tearfully called ACI's SOAR because she was behind in homework and attendance. The mother of four, all under the age of 6, works 32 hours a week and her husband is in Iraq on his second tour of duty. She's determined to finish her degree to improve life for her family; but without local family or friends to help, she became overwhelmed.
Fortunately for Julie, the SOAR counselor helped find affordable childcare that worked with her schedule and helped Julie make connections with other military wives through the VA. As she felt more in control and her fear and anxiety diminished, Julie went to class.
But Julie is more than just a student in need, she is a business unit. Her commitment to education translates into revenue dollars for the school - and she is just one of countless examples of adult students who face greater obstacles and challenges than the traditional college student, but are more motivated and determined to achieve academic success.
This is the type of student that the for-profit school attracts and hopes to retain; and this is exactly the kind of student that could benefit most from the resources and support of a high-quality student assistance program.
The Student Assistance Solution
As these for-profit and online schools attract a flood of new students, the next challenge is keeping them. According to the Department of Education, 30 percent of freshmen leave after the first year and 50 percent never graduate. For every student that drops out, the school loses tuition income, as well as all potential earnings from ancillary expenses (e.g. bookstore, dining, housing, entertainment and financial aid).
The last thing these for-profit schools want is to lose revenue. They too run like a business, backed by revenue-seeking investors. The school has to prove to these investors that it can maintain enrollment, run efficiently and earn a profit. Because students are their customers and profit units, for-profit schools are innovative and quick to adopt new programs that meet students' needs. That's where the EAP comes in: to deliver comprehensive student assistance that helps the school attract new students, boost retention rates, remain market-competitive, and build revenue.
Kaplan University, a subsidiary of the Washington Post, has launched hard-hitting television ads with the message: Schools are failing you; the university must adapt to you rather than asking you to adapt to it. Clearly, the Post through Kaplan understands that education is business. Kaplan's campaign is targeting the atypical student, hoping to maximize enrollment and remain competitive.
Just as these schools are using creative marketing strategies to get students in the door, they'll be looking to creative retention strategies to keep them and that's where SAPs partnering with the broker and consultant can make the biggest impact.
How Student Assistance Programs Works
In an effort to keep students in school, a top 10 national for-profit university worked with ACI Specialty Benefits - their longtime EAP provider to deliver SOAR to select locations on a trial-period basis.
The program reported 11 percent utilization in just the first three months more than double the national average for employee assistance utilization. In addition to telephonic counseling, legal and financial consultation, SOAR also provided assistance on everything from affordable housing, food and shelter to low-cost computers even a source for free diapers.
Common challenges addressed by the student assistance counselors included: post-traumatic stress disorder; severe depression; anxiety or mood disorders; homelessness; severe financial hardship; spousal abuse; substance abuse; suicidal ideation; and severe medical problems.
While EAPs have been in the business of providing work/life services to employees for years, the students' "life" needs were noticeably more challenging. The No. 1 most requested service was for affordable housing (31 percent), followed second by emergency housing, shelter, food, clothing (23 percent) and then childcare (15 percent). Other major work/life requests included food programs/social services; affordable medical care; domestic violence shelters; federal subsidized childcare; financial assistance for living expenses; financial assistance for transportation; and scholarships and grants. For online students, "low cost laptops and computers" was the second highest request at 13 percent. (See page 30 graph.)
After providing students with resources, counseling, and referrals for all of their complex needs, a follow-up student survey revealed significant ROI data:
- Forty-one percent said it would have been difficult or impossible to continue school without the services;
- Eighty-eight percent of students stated that SOAR allowed them to focus more on school; and
- Ninety-four percent said they would recommend the service to other students or family members.
One student adviser e-mailed, "Now we have yet another tool available to empower us to save the dreams/lives of our students!"
Based on the positive feedback, combined with the impact on retention and profits, the school quickly decided to expand the program to every campus and online student nationwide.
Strategies for Developing New Clients
The introduction of student assistance is a natural outcome of the highly successful presence of EAPs in the menu of standard health and wellness benefits. An SAP can effectively address the needs of the non-traditional student and will be successful in boosting retention. College faculty, staff, and administration are equipped with tools and resources for students in need; and, from a business standpoint, the school has a great marketing tool to attract new students and remain competitive. The broker who can provide such a pioneering program will become an invaluable resource for the client, ultimately opening doors for future benefit sales and/or SAP expansion.
In developing a strategy to attract new clients, it may be time to take a new look at higher education. Here are a few selling strategies for today's emerging education market:
1. Focus on dollar signs. If the last time you visited a campus was for an alumni football game, it's time to go back to school. For-profit schools look more like glass-encased skyscrapers than ivy-covered buildings - and decision-makers are more like CEOs than college administrators. For these schools, it's about the bottom line, and they'll respond to arguments that focus on dollar signs. Keeping students in school means keeping money in the bank. Speak about ROI and EAP effectiveness in exploring the SAP landscape.
2. Listen and learn. Each academic institution is unique, with its own student demographics, culture, policies and goals. If you're already working with an academic institution on the employee benefits or P&C side of insurance, use that insight to initiate a discussion on integrating student assistance benefits. Demonstrate your knowledge of both new approaches to higher education (e.g. online degrees); as well as understanding of the "new" student.
3. Create a strong list of funnel questions to direct information to the school's business proposition, aiming toward providing a student assistance solution tailored to the school's specific needs:
- How many locations do you have?
- What's the percentage of online vs. in-classroom students?
- What programs are currently in place to assist students, either financially or academically?
- Do you have student counselors assigned to each student, or a single student counseling center?
- Do you conduct student needs assessments, surveys, etc?
As you fill the funnel, identify the major players and decision-makers in the organization; gain a clear picture of what student services are in place; and then position the SAP as a necessity to support the school's existing student resources.
4. Develop the value proposition. Most campuses are more oriented to financial and academic support. That is a start that should be reinforced as extremely positive - and the SAP goes beyond. Emphasize the aspects of traditional EAPs that specifically relate to the behavioral and work/life services professional counselors and therapists provide. Students are dealing with stress, depression, anxiety and the myriad of behavioral symptoms that characterize their lives of juggling school, work and family. Emphasize the SAP as a professional resource, and not a replacement to existing counseling programs.
EAPs also include roll-outs and many built-in tools a great way of publicizing new services at no additional cost to the customer. Get creative with marketing and promotion strategies, and highlight the ability to meet contemporary communication systems such as icasts, texting, tweeting, etc.
Professional services from an established and reputable EAP will deliver an SAP that serves the needs of the students and the school. SAP resources like training for faculty, staff and student counselors on identifying troubled students, as well as prompt crisis intervention and response in the event of a critical incident or traumatic event enhance a school's safety program, while reducing liability and negative exposure. Providing this high level of support to the existing dedicated advisers and staff also helps reduce turnover, saves administrative costs, and improves employee morale.
5. ROI is key. In addition to loss reduction whether measured in retention, life improvement, or other criteria the SAP offers detailed utilization and outcome reporting. Schools will receive key metrics on demographics and trends - invaluable data in forecasting enrollment and developing retention strategies. With this high-level of reporting, brokers will be perfectly positioned to assist the client in strategic long-term planning, make suggestions for program enhancements, and work with the client on a variety of benefit solutions for years to come.
The sales process is a large funnel. When properly used, the large opening of the funnel is the development of needs. The small end the funnel is the time spent customizing an SAP for the targeted organization. Benefits selling, whatever your specialty, is really about selling solutions. As professional consultants and brokers, you are business advisers. Understanding the academic business model, learning more about the current trends, and partnering with academic decision makers in new markets will create both opportunities and needs. Remember, you sell solutions.
Dr. Ann D. Clark is CEO and Founder of ACI Specialty Benefits, a top ten EAP and leading provider of student assistance programs, wellness, concierge and work/life services. A best-selling author, Dr. Clark is one of the original Certified Employee Assistance Professionals (CEAP) and a licensed Marriage and Family Therapist. She can be contacted at aclark@acispecialtybenefits.com.
