Total Annual Cost for EAP Services:
Estimated Annual Value of Reduction in Absenteeism:
Estimated Annual Value of Reduction in Presenteeism:
ROI from Improvement in Productivity:
The Beacon Health Options ROI Calculator provides an estimate of the return on investment (ROI) realized by employers from reductions in absenteeism and improvement in productivity that result from behavioral health treatment through Beacon Health Options’ Employee Assistance Program.
May 2015 U.S. Dept. of Labor Occupational Wage Estimates – Mean Hourly Wages
- $13.59 – Agriculture, Forestry, Fishing, and Hunting
- $30.44 – Mining, Oil, and Gas Extraction
- $24.66 – Construction
- $18.83 – Other Services
- $25.17 – Education
- $21.65 – Real Estate, Rental, and Leasing
- $38.27 – Management of Companies and Enterprises
- $17.07 – Arts, Entertainment, and Recreation
- $37.29 – Professional, Scientific, and Technical Services
- $26.02 – Federal, State, Local Government
- $15.04 – Retail Trade
- $32.40 – Finance and Insurance
- $22.20 – Transportation and Warehousing
- $24.51 – Health Care and Social Assistance
- $35.14 – Utilities
- $33.86 – Information
- $26.36 – Wholesale Trade
- $23.82 – Manufacturing
- $17.63 – Administrative and Support and Waste Management Services
- $11.70 – Accommodation and Food Services
About the Calculation for ROI from Beacon Health Options EAP
Methods Used to Calculate the Treatment-related Return on Investment
Behavioral disorders are more prevalent than is commonly realized. Epidemiological studies over the past two decades have demonstrated that behavioral disorders are far more prevalent than was previously believed. Every year more than 54 million Americans—approximately one in five—experience at least one diagnosable mental or substance use disorder. Many people have more than one behavioral disorder at a given time. Approximately one in four Americans will have a serious behavioral disorder in their lifetime. Thirty-nine million persons aged 18 through 54 living in the United States—27 percent of this population—experience at least one mental or substance use disorder each year.
The Beacon Health Options ROI Calculator provides an estimate of the return on investment (ROI) realized by employers from reductions in absenteeism and improvement in productivity that result from behavioral health treatment through Beacon Health Options Employee Assistance Program.
Average Hourly Wage Rates
Average hourly wage rates by industry were obtained from the Occupational Employment Statistics published by the United States Department of Labor, Bureau of Labor Statistics, May 2015 National Industry-Specific Occupational Employment and Wage Estimates.1
Cost of Fringe Benefits
The calculator computes total employer costs for employee compensation by adjusting average hourly wages and salaries for the cost of benefits provided to employees. The factor used to make this adjustment was calculated using data available from the Employer Costs for Employee Compensation news release for December 2015 published by the United States Department of Labor, Bureau of Labor Statistics.2 The average total employee compensation for private employers in December 2015 of $33.58 was divided by the average hourly rate of wages and salaries of $23.06 to obtain a fringe benefit cost factor of 1.45620.
Reduction in Lost Productivity Due to Absenteeism and Presenteeism in Treated Employees
Beacon Health Options has an ongoing program that examines the impact of behavioral health issues on workplace productivity. Beacon Health Options staff routinely interview adult members when they call Beacon Health Options for an outpatient behavioral health or EAP referral. Members are asked about their levels of productivity, absenteeism, as well as their overall mental health status in the 30 days prior to their call. Follow-up interviews are conducted with a sample of these members 90 to 120 days later to measure the impact of services. The Productivity Tracking Program has consistently demonstrated substantial improvement during the period between their intake survey and follow-up survey.
An analysis of results for the five-year period from January 2011 through May 2016 showed that individuals treated through the Beacon Health Options EAP experienced an average reduction in absenteeism of 0.586 days (over a 30-day period) in the sample contacted for follow-up 90 to 120 days later. The value of the reduction in absenteeism is computed by multiplying the number of employees * Beacon Health Options estimated reduction in absenteeism (days per month) * 8 hours * 12 months * hourly wage rate * fringe benefit adjustment rate * estimated EAP clinical utilization rate.
Individuals treated through the Beacon Health Options EAP also experienced an average improvement in productivity (reduction in presenteeism) of 4.076 days (over a 30-day period) in the sample contacted for follow-up 90 to 120 days later. Since presenteeism involves being at work but less productive than as usual on those days, the Calculator discounts the value employees contributed to their company on those days. The best estimates are that presenteeism reduces productivity by about one-third. The value of the reduction in presenteeism is computed by multiplying the number of employees * (Beacon Health Options estimated reduction in presenteeism (days per month) * 20%) * 8 hours * 12 months * hourly wage rate * fringe benefit adjustment rate * estimated EAP clinical utilization rate.
Estimated Return on Investment for Your Company from Using Beacon Health Options EAP
The calculator provides employers with an estimate of the Return on Investment (ROI) realized from reduced absenteeism and improved productivity for treated employees:
Return on Investment (ROI) =
(Value of Reduction in Absenteeism + Value of Reduction in Presenteeism) ÷ Total Cost for EAP Services [displayed as a ratio, e.g. $1.35 : $1.00], where
Total Cost for EAP Services = # Employees covered for EAP benefits * EAP benefit cost PEPM * 12 months
- Occupational Employment Statistics: May 2015 National Industry-Specific Occupational Employment and Wage Estimates; published by the United States Department of Labor, Bureau of Labor Statistics .
- Economic News Release: Employer Costs for Employee Compensation – December 2015; published by the United States Department of Labor, Bureau of Labor Statistics .