A Chaplaincy Assistance Program is more than just a good idea; it’s a business strategy that is almost guaranteed to generate a return on investment. The financial case for a CAP centers on three areas of measurable impact: reduced “presenteeism” (low productivity) and absenteeism, reduced employee turnover, and reduced health and disability claims. When you look at chaplaincy as an alternative to other corporate investments, considering opportunity costs, it’s hard to beat.
Reduced Presenteeism and Absenteeism
The majority of productivity improvements associated with EAPs tend to be seen in the reduction of “presenteeism” and absenteeism. Presenteeism—coming to work with your body but leaving your heart and mind at home—accounts for the highest productivity losses in the workplace at 80 percent. Absenteeism accounts for the other 20 percent.14
The most common mental health problem in the workplace is depression; it is also the disease that has the most overall impact on job performance. In 1990, depressive disorders were estimated to cost employers $43 billion per year.15 Data from a national survey of workforce disability leave also indicated that workers with depression take 10 percent more days off of work than their non-depressed counterparts.
EAP programs have dramatically reduced both presenteeism and absenteeism. In one study of 7,000 employees, 88.5 percent of the employees who used an Employee Assistance Program reported an improvement in their problems. The study found that over 403 workdays were saved with the EAP.
EAP programs have also had a dramatic impact on reducing absenteeism, even in smaller companies. In one example, a company of only 30 people calculated the absenteeism cost avoidance to be $100,000.18
Reduced Employee Turnover
Estimates vary, but most agree that the costs associated with employee turnover can be 50 percent to 150 percent of an employee’s annual salary.19 A Chaplaincy EAP can improve employee retention through direct intervention by a chaplain for employees at risk of voluntary or involuntary termination.
Mark Scott, a former vice president of marketing for HomeBanc Mortgage Corporation, attributed his company’s low turnover (14 percent, versus the 20 percent industry average) to employing a Chaplaincy EAP.20 Similarly, a large regional Pizza Hut/Taco Bell franchise, previously known as Austaco, credited its Chaplaincy EAP with a reduction in annual employee turnover from 300 percent to 125 percent, which is unheard of for fast-food companies. 21 Allied Systems Holdings, one of the largest trucking companies in the U.S., attributes its low employee turnover to its Chaplaincy EAP as well: less than 10 percent a year, compared to the industry average of 100 percent.22 Finally, Tim Embry, CEO of American Lubefast, reported that since he implemented the chaplaincy program, his employee turnover rate and product shrinkage (losses due to theft) declined dramatically. He described the Chaplaincy EAP as “an employee assistance plan on steroids.”23
Reduced Health and Disability Claims
When people are able to resolve stress and emotional problems through either a Traditional or Chaplaincy Employee Assistance Program, they file fewer health claims. A U.S. Department of Health and Human Services (DHHS) report compiled data from several studies and concluded that EAP programs are cost-effective for the reduction they bring about in sickness and accident benefits, mental healthcare costs, absenteeism, lost wages, and medical costs.24 Similarly, a study at McDonnell Douglas indicated that their EAP was effective in lowering costs associated with medical claims as well as reducing issues such as absenteeism and employee turnover.25 A large-scale study by Abbott Laboratories also reported lower total healthcare costs for employees who used their EAP compared to those who did not.26
The International Foundation of Employee Benefit Plans surveyed 185 benefit plan administrators about substance abuse services used by employees through an EAP.27 The results for those using an EAP speak for themselves:
- Reduced health plan costs for 66 percent of respondents
- Reduced disability costs for 49 percent of those surveyed
- Reduced workers’ compensation costs for 41 percent of the respondents
Benefits That Can’t Be Measured
There are many benefits that cannot be as easily measured as ROI—benefits that can make or break a company.
Saved marriages and lives. Corporate chaplains have played a role in saving countless marriages from divorce. They have also been there to help save lives from planned suicides. These are services no one can put a price tag on.
Better customer service. When your customer service employees are struggling with life’s issues, it can negatively affect their ability to provide the best possible service to your customers. Chaplaincy helps employees keep their morale up while they process the stresses of life. As a result, their frustration over their issues is not directed at your customers.
Reduced conflict. How many hours are lost to employee conflicts each month? What if there was someone from outside the organization who, when invited, could coach staff and management to relate to and communicate with one another in a healthier way? How much more work could get done?
Decreased risk of litigation. A chaplain can help reduce the risk of litigation by diffusing heated situations and helping the employees involved respond in an emotionally healthy way.
Decreased risk of violence in the workplace. Over 10 percent of deaths in the workplace are murders, and nearly two million people a year are victims of violence or threats in the workplace.28 Chaplains play a key role in preventing workplace violence by helping people work through their stresses, depression, and/or workplace conflicts.
