Employee mental health in the UK has suffered in recent years, prompting the need for employers to implement proper support services.

According to the UK TELUS Health Mental Health Index (April 2024), 56% of workers feel burnt out, and 33% of employees find it increasingly difficult to be motivated to do their work, with personal issues being the leading cause.

The crucial role of employee assistance programmes

Employers must ensure they allocate the appropriate resources to fulfil their duty of care and effectively protect their employees.

Given the record-high NHS waiting lists, employee assistance programmes (EAPs) play a crucial role in supporting the workforce during their most vulnerable moments. Covering over 24 million employees in the UK, it can be a lifeline for those suffering from anxiety, depression or point of crisis, making the difference between a healthy, engaged workforce and one that is not.

However, when this service fails to protect employees, the consequences can include increased absenteeism, higher turnover rates, and a further decline in overall workplace morale.

The hidden cost of low-cost EAP services

When it comes to EAPs, it can be tempting to treat them as a mere box-ticking exercise.

With some offerings costing as little as the price of a coffee, it's no surprise that a 'race to the bottom' has emerged in the UK over the years to stay competitive and appealing to employers - especially given the mounting pressure on costs.

But what value does this place on employee wellbeing? What quality of services can employers expect from such options? How are the quality and privacy of these services affected by choosing cheaper alternatives? And most importantly, what risks might organisations face if care is not delivered appropriately?

Decline in quality of care

Choosing a low-cost EAP often means a drop in the quality of care. With fewer resources, counsellors can become overworked and stressed, making them more prone to burnout. This can affect their ability to provide effective and empathetic support. Plus, the added pressure can lead to higher turnover rates among counsellors, causing disruptions and a lack of continuity for employees who need consistent support.

Limited access to counselling

Sometimes, providers don't have enough resources to meet the growing demand for counselling. To keep costs down, they might limit the number of employees who can get help, which means longer wait times and fewer available appointments. This shortage of counsellors and restricted access can leave employees without the timely support they need, ultimately falling short of the service employers are paying for.

Compromised psychological safety

Immediate counselling services are crucial to mitigate feelings of hopelessness and despair, which can profoundly affect both personal and professional lives.  When access is delayed and support is limited, stress, anxiety, and other mental health issues can worsen. This lack of timely and adequate care can hurt job performance, increase absenteeism, and lower overall job satisfaction, ultimately impacting the employee's wellbeing and the organisation's productivity.

According to Samaritans, in 2023, 74% of people who died by suicide were not in contact with health services or receiving adequate mental health support at the time of their death. Untreated anxiety and stress can increase the risk of suicide, highlighting the urgent need for timely psychological support to prevent such tragedies.

Insufficient transparency

Low-cost EAP offerings can often fall short in transparency, leaving both employers and employees in the dark about how effective the programme really is. Employers might struggle to see the true benefits and impact, while employees could feel unsure about the quality and privacy of the support they're getting. This lack of clarity can erode trust, making the service feel less reliable and potentially leading to lower utilisation of the provided solutions. Consequently, the challenges can translate into economic burdens for employers, as inadequate support services may result in employees needing more time away from work to recover.

Inconsistent utilisation rate

Many providers highlight their utilisation rate as a key success factor for their solutions. However, there is often a lack of clarity about what is actually included in this rate. Some providers may count individuals who call the service but do not reach a counsellor, while others may include only actual counselling sessions. This ambiguity can lead to inflated numbers, which are then used to demonstrate the effectiveness of their solutions rather than focusing on actual employee outcomes.

Cheaper EAP services often don't provide employees the support they need, leaving problems unresolved and harming their wellbeing. When employers prioritise cost savings over employee support, they end up facing long-term issues like lower productivity, increased absenteeism, and presenteeism. Additionally, inadequate support can harm the organisation's reputation and hinder its talent acquisition and retention strategies, as employees perceive a lack of commitment to their wellbeing.