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Supporting Employee Mental Health with Employee Assistance Programs

August 12th, 2024 | 4 min. read

By Patrick Sanders

mental-health-employee-assistance

Now more than ever, mental health is at the forefront of discussions within Human Resource departments worldwide. Perhaps you’ve witnessed these issues firsthand: an employee’s response to your usual “good morning” becomes less and less enthusiastic; rumors around the office surrounding a coworker’s struggle with substance abuse. Having an open conversation about how someone’s feeling can be hard enough, let alone coming up with a solution for ensuring your employees’ mental health is taken care of. Within these discussions, the term EAP (employee assistance program) has probably cropped up a time or two.

Here at Payday HCM, we understand and acknowledge the difficulty and necessity of these conversations. We’ve coached numerous businesses through the various options available for securing the proper resources for their employees’ mental health. An employee assistance program can be an integral part of crafting a thorough solution.

In this article, we’ll discuss what an employee assistance program is, its origins, and how it can be incorporated into your benefits package. We will cover all of the various components that go into integrating an EAP, including its requirements, implementation, and what’s actually included in it. By the end, you’ll be equipped with all of the knowledge to confidently present the best solution for one of today’s most complex and difficult issues.

Below you will learn:

  • What is an EAP, and why is it important
  • Requirements of an EAP
  • Methods for offering an EAP
  • How to incorporate an EAP

What is an EAP, and Why is it Important

Before implementing an employee assistance program into your company’s benefits package, it’s important to understand what exactly it is. Not only that, but it’s essential to understand the benefits an EAP can have for you and your employees.

The History of Employee Assistance Programs

Employee assistance programs have their origins in the 1940s with the development of alcohol addiction treatment programs designed to limit alcohol consumption in the workplace, according to the Social Welfare History Project. The concept would continue to develop over the years, with numerous schools adopting specific degree programs targeted at occupational social work.

These developments would lead to an expansion of the employee assistance banner: child care, elder care, legal problems, bereavement, and finally, mental health issues would all be incorporated under the banner of employee assistance.

EAPs in the Modern World

Now, employee assistance programs assist employees with a large assortment of various concerns. Specific services provided by an EAP include:

  • Counseling services
  • Financial services
  • Legal services
  • Child care support
  • Elder care support
  • Workplace crisis management

These services play an important role in ensuring that each employee feels cared for and supported through difficult times. Providing employees with an EAP can help to decrease turnover rates, unexpected leaves of absence, reduce healthcare costs, and generally improve company morale.

Requirements for an EAP to Function Well in Your Business

Proper implementation of an employee assistance program includes knowing what rules and regulations surround EAPs. Someone’s well-being, whether physical or mental, involves a lot of private and personal information that must be handled with care and precision.

Ensuring Confidentiality is a Must

Establishing trust and confidentiality with an EAP is essential for getting employees to take advantage of this valuable resource. As an employee, it’s essential to know that what you might say to an EAP-provided counselor is safe and secure so that both parties can make the most of the service.

employee-employer-EAP-confidentiality

Mental and physical health information is secured under the Health Insurance Portability and Accountability Act (HIPPA). The only exception to this rule would be in cases where workplace safety or an ongoing criminal investigation may be compromised.

Local Regulations Regarding EAPs

There may be specific local regulations regarding employee assistance programs. For example, Payday HCM’s home state of New Mexico has some laws regarding EAPs, according to the Legal Information Institute, including:

  • Administrative leave for an employee up to 240 hours to participate in an EAP
  • The cost of any counseling services received through an EAP relating to substance abuse is borne by the employee following a positive drug test result.
  • Sick leave, annual leave, or leave without pay can be used to cover any remaining time for treatment through a substance abuse-oriented EAP if needed to ensure the employee’s condition.

It is important to research your state’s local regulations surrounding EAPs and inform your employees of any specific regulations to avoid misunderstandings or miscommunication.

Methods for Offering an EAP to Your Employees

Mental health solutions are not one-size-fits-all. Finding the EAP that works best for your employees’ needs is crucial to ensuring everyone receives the help they need.

Models for Delivering an EAP

Just like any other service a company may need, such as payroll or benefits, an employee assistance program has several models for how employees can access its services. These methods include:

  • In-house
  • Outsourced
  • Blended
  • Peer-based


Each method has its advantages. An in-house EAP provides counseling services at the office and can be hired directly by the employer or contracted through a third party. 

An outsourced EAP intakes employees and refers them to local providers in the area. 

A blended EAP combines the in-house and outsourced options, giving the employees a choice between an in-house provider or one accessed through a referral network. 

Lastly, a peer-based EAP is a rigorously trained peer who provides EPA services for their fellow employees.

EAPs within Benefits Packages

An EAP is designed to connect to the health benefit structure within the larger benefits package. Unlike the traditional healthcare coverage offered within a benefits package, an EPA provides some sessions with no deductible or co-payment, according to the American Psychological Services.

How to Incorporate an EAP

Proper integration of an EAP is key to ensuring that you feel the benefit is being taken advantage of, but also so that your employees know that help is there when they need it. It’s crucial to take the proper steps when incorporating an EAP.

Communication is Key

You can include an EAP in your benefits package, but what good is it if nobody uses it or knows about it? Communication is the foundational element of ensuring your employees know what their benefits are and how to use them.

mental-health-EAP-communication

Emails, handouts, team meetings–these are all great ways to communicate the benefits that employees have available to them. Ensuring your door is always open for questions and that employees feel comfortable coming to you with those questions is also essential.

Confidentiality and Range of Services

Ensuring your employees understand an employee assistance program is just as crucial as understanding it yourself. It is vital for employees to know that their information is confidential. Some might feel scared or embarrassed to access these services, so emphasizing confidentiality is key to alleviating these fears.

Employees also need to understand what services your EAP provides. Letting everybody know about the services available–whether that’s counseling, child care services, financial problems, etc.–will ensure not only that your employees feel supported but that you feel the benefits are being fully taken advantage of.

EAPs for a Healthier Workplace

Employee assistance programs are the best step for employers looking to foster an environment of support and care for their employees. Now more than ever, it’s important for employers to take care of their employees physically and mentally.

EAPs are an excellent jumping-off point for employers looking to expand their mental health coverage for their employees. The next step is learning how to embrace mental health coverage within your health benefits package.

Patrick Sanders

Patrick has worked for Payday HCM since 2012, with a career that has spanned multiple responsibilities in the sales arena. He now maintains a 300+ client portfolio with a 98% retention rate. Patrick works diligently to determine the optimal utilization of our software, manages ongoing quality assurance, and brings best practices to Payday HCM’s clients. Patrick graduated with a Bachelor's in Business Administration, with a concentration in Finance, from the Anderson School of Management at the University of New Mexico. Having spent the decade since graduating meeting and partnering with entrepreneurs throughout New Mexico, Patrick firmly believes Payday HCM brings national Fortune-500 level service and technology to the New Mexico marketplace.