How to Determine Cost Per Employee for a Employee Assistance Program

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Over 80 percent of state government employees and over 40 percent of private sector workers have access to Employee Assistance Programs, or EAP, according to a 2009 report by the U.S. Bureau of Labor Statistics. The cost of EAP services varies depending on the options provided. Basic EAP services typically include some combination of free counseling sessions for employees -- normally up to a maximum number per life event -- and a discounted rate for ongoing counseling services. EAP services may also include financial advice and debt counseling, 24 hour telephone availability, website resources including articles and studies about various life and family events, substance abuse help and legal advice -- not including employment law.

  • Obtain the flat rate price for the EAP services. Typically, an EAP service provider will either quote you a price per employee, or a flat rate for all services. The amount generally does not change based upon services used by the employees.

  • Identify if the flat rate quote is per month or per year. If it is the monthly rate, multiply the amount by 12 to get the annual rate.

  • Count the number of employees in the organization, or the number of full-time equivalent positions budgeted, if you prefer. The number of employees may vary over the year due to turnover, whereas the budgeted FTEs should remain constant.

  • Divide the annual flat rate cost by the number of employees to get the annual cost per employee for the EAP.

  • Estimate the approximate annual savings per employee achieved by the EAP. Calculate the dollar amount of factors like increased productivity, reduced absenteeism and reduced turnover costs. Deduct the annual EAP cost per employee from this figure to provide the estimated average return on investment per employee by implementing the EAP.

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