Everything You Need To Know About Employee Assistance Programs

There’s really no such thing as a full separation between work and home life. Unfortunately, that can be a quick recipe for burnout and other mental health conditions.
And that’s not something you want to ignore. Mental health conditions cost more than $280 billion annually, and mental-health-related absences increased 300% from 2017–2023—and 33% in 2023 alone. Unsurprisingly, mental health is a top reason many employees (35%) leave an employer.
With more than one in five US adults experiencing mental illness, mental and emotional wellbeing should be top priorities as you plan your compensation strategies, retention plans, and employee engagement initiatives.
The reality is that work affects life and life affects work, both for better and for worse. Whatever your employees are experiencing—whether it’s due to factors in or outside your company’s walls—an employee assistance program is an amazing resource to improve employees’ quality of life.

In this article, we’ll cover everything you need to know about EAPs, from benefits, education, and support for employees, to their impact on company culture and wellness holistically. Here’s an in-depth dive into what employee assistance programs are and why they’ve become a critical HR function.

What is an employee assistance program (EAP)?

An employee assistance program, or EAP, is a kind of employer benefit intended to help employees lower stress through free, voluntary counseling sessions and other mental health resources. These resources are handled through a third party, so employees who use the service remain anonymous, and employers get anonymized information like whether employees are using the service.

Examples of employee assistance programs

EAPs provide assistance for various concerns, such as:

• Workplace conflicts: Coworker conflicts and large workloads are among several stressors in the workplace that can create challenging experiences for employees. EAPs can provide support and solutions in managing conflicts.
• Personal or family issues: Though there are various potential stressors in the workplace, sometimes it’s personal situations outside of the office, like divorce, domestic abuse, and/or life transitions, that make it extremely difficult to fulfill our professional and personal responsibilities.
• Mental health issues: The challenges employees face ultimately affect their mental health. Depression, anxiety, and low self-esteem can rise, influencing the way they interact and manage conflicts and relationships both in and outside the workplace. Therefore, EAPs can help employees navigate through these difficult times.
• Compulsive or regular substance use: This involves employees who struggle with alcohol or drug use, or need help coping with the impacts of another’s substance use. EAPs can offer employees resources, such as treatment options, which can encourage them to live drug-free and be more engaged at work.

Is an employee assistance program mandatory?

No, EAPs aren’t mandatory. However, it’s in both the company’s and the employees’ best interest to have one. A report from SHRM showed that 82% of surveyed employers offered an EAP. That number is even higher for mid- and large-sized companies, 98% of which offer EAPs.

While an employee assistance program isn't required, it’s definitely a good idea. If your company doesn’t offer one, you could be putting yourself at a significant disadvantage when it comes to recruiting and branding.

Benefits of an employee assistance program

An employee assistance program is a win-win situation for both the company and for employees. Here are some of the advantages of employee assistance programs for everyone.

Benefits for employees

Connections to resources. EAPs connect employees to expert referrals, community services, and specialized providers that may be hard to find on their own—whether for mental health, legal advice, or caregiving needs.

Prevents burnout. By offering early support for stress, anxiety, or emotional exhaustion, EAPs help employees address challenges before they escalate into full burnout or long-term disengagement.

Positive work environment. One coworker’s mental health can impact others’. The more people who have access to support, the better the overall environment becomes—leading to stronger collaboration, improved employee engagement, reduced tension, and better morale across teams.

Improved wellness. With support for mental, emotional, and even physical wellbeing, EAPs help employees take a more proactive approach to their overall health.

Gain life skills. Many EAPs offer classes that teach life skills that aren’t directly related to your work duties. Some common examples are financial literacy classes or seminars on your legal rights as a homeowner or renter, giving you tools to handle real-world challenges with more confidence.

Benefits for employers

Reduced absenteeism and disability leave. When employees can get support early, they can avoid crises that end up leaving the company short-staffed or costing the company money.

Mitigated risks. More mental health support means less risky behavior at work. Similarly, more physical support, like physical therapy, can reduce on-site injuries and workers’ compensation instances.

Improved employee retention. It costs $7,500–$28,000 in hard costs to find and onboard a new employee. If you can improve your workplace culture with EAPs, you can improve employee retention and need to train fewer new hires.

Increased productivity. When employees feel safe and engaged, they can do their best work and collaborate more effectively.

Enhanced reputation. Offering an EAP shows that your company genuinely cares about employee wellbeing, which can boost your reputation and help attract top talent. In a competitive job market, benefits like EAPs set you apart and signal that your organization values people, not just performance.

How to set up an employee assistance program

Rolling out an employee assistance program is a great way for companies to show they truly care about their people—and it’s easier to get started than you might think.

First, take a look at what your employees need most. Are they feeling overwhelmed? Could they use help balancing work and life, or managing finances?

Once you’ve got a sense of the challenges they’re facing, you can choose an EAP provider that offers the right mix of services, from counseling and legal support to wellness resources and life skill training. Many providers offer flexible plans that scale with your team and can be tailored to fit your company culture.

After you’ve picked a provider, spread the word with an energetic internal communications strategy. Announce the program with a kickoff email, share flyers, host a quick info session, and encourage managers to talk about it with their teams. Most importantly, make sure employees know the program is confidential, free, and there to support them and their families.

Keep the momentum going by weaving it into onboarding, newsletters, and wellness initiatives throughout the year. When employees know their company has their back, it builds trust, loyalty, and a culture where people feel safe, supported, and ready to thrive.

Costs of implementing an EAP

Implementing an employee assistance program does come with a cost, but it’s often far more affordable than many companies expect. Most EAPs are priced on a per-employee, per-month basis, typically ranging from $10 to $100 per employee per year, depending on the services included and the size of the organization.

While there's a cost to offering an EAP, the cost of not having one can be much greater. When employees are struggling without support, it directly impacts engagement, morale, and the bottom line.

In contrast, an EAP helps employees stay focused, supported, and ready to perform, making it a smart, proactive investment in your people and your business. In the long run, the ROI often speaks for itself.

Making your EAP part of your work culture

An employee assistance program isn’t just a benefit—it’s a reflection of your company’s values. When you offer support that goes beyond the workplace, you’re showing employees that they matter not just as workers, but as whole people with real lives, challenges, and goals.

An EAP is one powerful piece of a bigger picture: a work culture built on empathy, trust, and wellbeing.

That’s why, at BambooHR, we take pride in offering an EAP as one of many of the benefits of working at our company. By investing in your people in meaningful ways, you build a stronger, more resilient organization—one where everyone can thrive.

Want a vibrant workplace that supports employees and helps your organization achieve its goals? Our guide offers a step-by-step plan for leveling up your company culture.