What do people think about EAPs?
Over the years we’ve had many conversations with business leaders, and HR/People & Culture and WHS Managers, about the effectiveness of Employee Assistance Programs (EAP). They’ve shared positive experiences and many negative ones too. One thing we’ve consistently found is everyone’s looking for an Employee Assistance Program that offers an appropriate level of support to their unique workforce that’s fairly priced.
Keen to offer an Employee Assistance Program in your organisation? Is it time you reviewed the nature and cost of your current EAP offering? Either way, it pays to compare the benefits, common issues, and cost structures of the various EAP services available to ensure your organisation has the best option in place.
Our thoughts on what an EAP is…
Let’s unpack EAPs
Where do you start to unpack EAPs so you can choose an EAP that is a valuable asset rather than an overlooked expense in your organisation? A great place to start is to consider the 5 key benefits and common issues relating to EAP. This should help you to clarify that an EAP service is in fact good for your people and Organisation.
5 key benefits of EAP:
- Employee Performance Improved: this is dependant on the quality of the psychological counselling services, which are an essential part of all EAPs. When employees felt supported in this way businesses find it naturally leads to increased employee wellbeing, job satisfaction and productivity.
- Absenteeism and Presenteeism reduced: with access to appropriate support employees are more likely to manage stress and their engagement and output better and continue to perform well at work.
- Cost Savings: EAPs consistently prevented workplace issues from escalating into larger, more costly problems. For instance, intervening in employee psychosocial health concerns early reduces extended sick-leave and Workcover claims.
- Organisational Performance Uplift: effective and well managed EAPs contribute to a more health conscious, engaged, and loyal workforce. In turn this improves company reputation, which attracts good people, reduces turnover, and fosters a desirable workplace culture.
- Legal and Ethical Compliance: EAPs are commonly viewed as an ideal foundational control measure for upholding an organisation’s duty of care (psychosocial risks). Compliance with such regulations safeguards everyone from potential legal issues and reputational damage.
*In Australia, it’s a legal WHS requirement that workplaces identify, address, and have measures in place to prevent psychosocial risks.
5 Common Issues with EAP:
- Underutilisation: EAPs are expensive and a liability if not managed well, especially subscription-based services. A lack of service awareness, and employee apprehension to seek help from their employer for personal issues, are the main derailers to an EAP failing.
- Stigmatisation: trying to overcome employee perception of EAP, that seeking assistance is a sign of weakness, negative to career progression, or stigmatising, is a major challenge and ultimately deters them from accessing the service and related resources.
- High Costs Without Clear ROI: EAPs can be expensive, especially bells & whistles subscription-based models with low usage. Often as a result, businesses don’t see the measurable benefits such as reduced absenteeism or improved productivity.
- Inexperienced or ill-qualified Counsellors: some EAP providers use generalist counsellors who may not have the expertise to address complex mental health or work-related relationship issues. Employees may feel that sessions are unhelpful, generic, or lack depth, and lose confidence in the service.
- Privacy Concerns: Employees may fear that using an EAP will impact their job security or be disclosed to their employer. Without strong privacy assurances, employees avoid the service, making it ineffective.
6 key features EAPs can offer?
O.k… you’ve decided an EAP would be good for your business, now what? Now its time to consider the wide range of service features available. From this list, it’s recommended you consider what features are actually essential for your Organisation.
1. Counselling & Mental Health Support
✅ Short-term counselling – Typically 3-6 sessions per issue or per person annually, covering work-related stress, relationship discord, personal problems, and emotional well-being.
✅ Business Hours to 24/7 crisis support – Timely access to mental health professionals for urgent concerns.
✅ Multi-channel support – Options for in-person, phone, video, email, or live chat counselling.
✅ Self-guided digital therapy – Online resources, mindfulness programs, or AI-driven mental health tools.
2. Organisational Support
✅ Manager & Leader support coaching – Coaching for managers and leaders to help them handle workplace stress, their wellbeing, or relationship issues more effectively.
✅ Critical incident response – On-site or remote support for workplace crises (e.g., employee deaths, natural disasters, workplace violence, traumatic events).
✅ Mediation & conflict resolution – Professional facilitation for resolving employee disputes.
3. Well-being & Lifestyle Services
✅ Financial & legal advice – Support for budgeting, debt management, and legal concerns.
✅ Career & workplace support – Guidance on career transitions, workplace stress, and performance improvement.
✅ Health & wellness programs – Nutrition advice, sleep programs, and fitness coaching.
4. Digital & Self-Help Tools
✅ Mobile app access – Some providers offer apps with meditation, stress management, and self-assessments.
✅ Online resource libraries – Articles, videos, and toolkits for personal development.
✅ Mental health check-ins – Digital assessments to help employees track their well-being over time.
5. Customisation & Reporting
✅ Tailored EAP services – Some businesses customise their EAP to include industry-specific support.
✅ Usage reporting & insights – Anonymous reports on EAP engagement trends to help businesses measure ROI, and inform future training needs.
✅ Confidentiality & privacy guarantees – Ensuring employees feel safe using the service.
6. Additional Services & Specialised Support
✅ Add-on psychiatric or psychological services – Some EAPs offer more intensive clinical support to address more complex mental health cases.
✅ Culturally inclusive & diversity-focused support – Access to counsellors who understand cultural, LGBTQ+, or gender-specific needs.
✅ Family & dependent support – Some providers extend services to employees’ family members.
How much does EAP Cost?
Finally, now you have a clearer picture of what you actually need in an EAP service, it’s time to weigh up the price and package options. The cost of Employee Assistance Programs vary considerably based on factors such as your company size, selected services, and geographic location. EAP pricing varies significantly in Australia, from $3,000 to over $50,000 annually, depending on the organisation’s size, package inclusions, and usage. On average, this translates to approximately $75 per employee per year.
Important!!!
Remember, an appropriate EAP solution actually has positive financial implications:
- reduction in the cost associated with absenteeism and presenteeism.
- significantly reduce the risks from expensive psychological injuries.
- reduced HR and recruitment costs as employees are more productive, engaged, and less likely to leave.
- safeguarding employee well-being drives long-term organisational brand reputation, and sustainability.
Subsciption-based Vs Pay-for-use-only EAP
Subscription-based EAP:
This EAP model is more favourable for larger organisations that have allocated budgets for wellbeing and staff support. It also means their finance teams only have to deal with one upfront fee rather than a monthly fee for services based on usage. Similar to a cheap gym membership or a streaming service subscription, it can be easy to forget you are paying for something you aren’t getting value from if you aren’t diligent.
Pros of Subscription-based EAP:
- Good value for money for larger organisations as you are packaging counselling sessions and will generally be rewarded with a discounted hourly rate for doing so.
- If you’re in a higher risk industry that exposes your staff to frequent stressors you may save money on this model vs a pay-for-use-only EAP for the first year (however it will generally get refactored after the second year if you are consuming more than budgeted).
- Can be assigned a dedicated account manager to support you with general support.
Cons of Subscription-based EAP:
- Higher upfront costs for smaller businesses.
- If you don’t use your counselling sessions during your contracted time period you lose them.
- While often being promised a personal support representative it can be hard to find someone to support you with questions and comments in larger EAP providers.
- Reporting is often handled by the EAP company to ensure you are only shown the statistics they want you to see.
Pay-for-use-only EAP
This EAP model is more favourable for smaller, budget conscious, organisations. It also guarantees that their employees are supported when they need it most. This EAP model ensures smaller organisations have full transparency and control, and illuminates the risk of paying for service inclusions they typically don’t use. There is still the option of activating other services like critical incident response, well-checks, leader support, and tailored training if need arise.
Pros of Pay-for-use-only EAP
- Smaller up-front payment for services which can help with affordability.
- Significantly more affordable for smaller organisations.
- More accurate reporting and control as you are invoiced at the end of each month, based on usage.
- Ability to add other services when required to safeguard your people and actual business requirements.
Cons of Pay-for-use-only EAP
- Costs fluctuate more based on usage making it harder for larger organisations to plan a wellbeing budget.
- Excluding some features can reduce employee engagement and the associated benefits of a feature heavy EAP.
- Choosing a cheaper option means you get what you pay for. Ensure the counselling service is high quality.
Choosing the Right EAP Provider
Deciding whether to offer an Employee Assistance Program (EAP), or reviewing your current EAP service, involves a thoughtful and strategic approach. When selecting an EAP, organisations should consider:
✅ What level of support do you actually need? Essential counselling vs. preventive well-being solutions.
✅ How accessible is the service? Availability, multiple contact and platform options, and ease of booking.
✅ Does it align with company culture? Industry-specific, culturally competent, appropriate support.
✅ What is the ROI? Reporting, affordability v convenience, engagement metrics, and effectiveness tracking.
Ultimately, selecting an Employee Assistance Program, and a provider, that aligns with your organisation’s unique needs will definitely pay off. It means peace of mind for everyone!
Let us help you get the right EAP
In our experience, EAPs have consistently proven an ideal intervention control measure for organisations looking to protect the psychosocial wellbeing, functioning, and performance of their employees and their overall business success.
With well over a decade of experience of EAP facilitation, and whole service design and delivery, we are well positioned to answer any questions you may have.
Contact us to get your EAP questions answered from a highly knowledegable workplace psychologist.
It pays to get the best EAP to safeguard your unique organisational needs.
