Created by the Institute for Employment Studies (IES) on behalf of the Employee Assistance Professionals Association (EAPA), the tool responds to a lack of evidence for the cost-effectiveness of workplace health initiatives, as identified by the Stevenson-Farmer, Thriving At Work report.
An interim study report highlights that, despite evidence of the business case for investment in employee mental health promotion, previous data have not sufficiently related to the conditions of UK small- and medium-sized businesses – data are from large businesses in the United States.
Therefore, this tool aims to capture data of sufficient quality to demonstrate cost-effectiveness and workforce health benefits. IES drew on analysis from the field of human capital to calculate reliably the organisational productivity gains associated with improved wellbeing as a result of the use of EAPs.
In order to estimate the direct and indirect costs of sickness absence to an employer, the tool adds realism to cost estimates borne from the human capital approach, by making assumptions about the balance between direct and indirect costs.
Early indications from the data collected from the tool suggest that the ROI of EAPs is positive, even with lower absence and utility figures. IES will publish core findings of the study later in 2019.
Zofia Bajorek, IES research fellow and co-author of the report, is available for comment.