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Employee Assistance Program Savings

As a business owner, employee assistance program savings can make a difference in your bottom line. Designed to help employees who need special attention in certain mental health areas, these programs contribute to increasing employee retention and productivity.


Employee Assistance Programs

Employee Assistance Programs (EAP) are growing in popularity in the business world as a human resource tool to help employees in need. EAPs were created to provide confidential, easy-to-access programs to help maintain well-being, health and employee productivity.

This program covers a wide range of services which are tied to emotional, psychological, and financial factors. EAPs are offered to employees through their place of employment, and in some cases the government. The services are free for the benefactor. Most importantly, the information is kept confidential. Though employees attend these programs voluntarily, without the EAP programs many employees would not be able to continue on in their current circumstances.

Employee Assistance Program Savings

Using the Employee Assistance Program can help save your business money in the long run. According to the U.S. Department of Labor, for every dollar that is invested in an EAP, businesses see a return of anywhere from $5 to $16. When it comes to the bottom line, this can make a huge difference.

Employee Savings
Employee Assistance Program Savings go more in depth than just financial. In a report from The Substance Abuse & Mental Health Services Administration (SAMSHA), EAP's created:


  • 75% reduction in inpatient alcohol and substance abuse treatment costs
  • 33% decline in utilization of sickness benefits
  • 65% decline in work-related accidents
  • 30% decline in workman's compensation claims
  • 66% reduction in absenteeism when alcohol abuse is identified and treated



Company’s who take advantage of these programs also see an increase in employee productivity, reduction in attrition, fewer grievances filed, and less disciplinary problems.

Real Examples of Savings

Consider the proven savings data from a sampling of large corporations that have reported tremendous savings using the Employee Benefits Program. Here is how a few businesses credited EAP’s savings in their bottom line:

  • Firestone Tire & Rubber has estimated that its EAP saves $ 1.7 million or $2,350 per person involved.
  • Scoville Manufacturing noted that its EAP created an annual cost savings of $186,550.

  • McDonnell-Douglas credited its EAP with a 44% reduction in missed days, a 81% reduction in attrition rates, a 14% improvement in employee productivity and $7,300 on average less in filed health care claims by those utilizing EAP services.

  • General Motors found that the EAP has resulted in a 40% decrease in lost time, a 60% decrease in sickness and accident benefit, a 50% decline in filed grievances, and a resulting $ 3.7 million savings in annual health care costs.

  • Warner reported an average savings of $1,750 per employee in lowered workman's compensation costs.

  • Oldsmobile noted that its health care costs decreased overall by 29%, grievances by 78%, disciplinary problems by 63%, absenteeism due to inpatient treatment by 49%. 
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