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Employer: EAP Cost Savings


  • For every dollar they invested in an Employee Assistance Program (EAP), employers generally save anywhere from $5 to $16 (USDL, What Works: Workplaces Without Drugs, p. 17).

  • General Motors Corporation's EAP saves the company $37 million per year -- $3,700 for each of the 10,000 employees enrolled in the program (ASIS OP Norton Information Resources Center, Substance Abuse; A Guide to Workplace Issues, 8/90, p. 23).

  • United Airlines estimates that it has a $16.95 return for every dollar invested in employee assistance (Ibid).

  • Northrop Corporation saw a 43% increase in the productivity of each of its first 100 employees to enter an alcohol treatment program. After three years' sobriety, the average savings for each was nearly $20,000 (D Campbell & M Graham, Drugs and Alcohol in the Workplace: A Guide for Managers, New York: Facts on File Publications, 1988).

  • Philadelphia Police Department employees undergoing treatment reduced their sick days by an average of 38% and their injured days by 62% (Ibid).

  • Oldsmobile's Lansing, Michigan plant saw the following results in the year after its alcoholic employees underwent treatment: lost man-hours declined by 49%, health care benefits by 29%, leaves by 56%, grievances by 78%, disciplinary problems by 63% and accidents by 82% (Ibid).

  • While roughly 90% of the Fortune 500 companies have established EAPs (TR Burke, "The Economic Impact of Alcohol Abuse and Alcoholism," Public Health Reports, Vol. 103, No. 6, Nov/Dec 1988), p. 567), this percentage is much lower among small companies. Only 9% of businesses with fewer than 50 employees have EAP programs. 90% of the U.S. businesses fall into this category (USDL, Bureau of Labor Statistics, Report 760: Survey of Employer Anti-drug Programs, 1/89, p. 2).
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