The employee assistance program (EAP) category is expected to grow at a CAGR of 5.6% from 2023 to 2030. The growing demand for recognition of the importance of employee well-being and mental health and the need for employers to attract and retain top talent as if they do not have access to support employees who are dealing with personal or professional challenges are more likely to quit their positions. The importance is also increasing in industries where job stress and burnout are common such as healthcare and social services. The rise of remote work and the need for virtual support services is also driving growth in this category. An organization chooses EAPs to boost employee productivity. An employee can handle all of their challenges such as difficulties at work, monetary assistance, or disputes inside the workplace with the aid of these programs.
The Centres for Disease Control and Prevention estimates that productivity losses due to stress-related absenteeism would cost companies USD 223 to 227 billion a year, or USD 1,500 to 1,750 per employee. Workers with severe mental health issues may, in the worst situation, be dangerous to both themselves and others. In addition, mental Health continues to be a growing topic in the world. Mental illness affects worker productivity, the bottom line, workplace culture, and more. As a result, a lot of businesses are now offering EAP services as an additional benefit to their employees.
This category makes use of technologies like telemedicine and cloud-based systems. For instance, Cloud-based solutions used by 1to1Help, an EAP service provider, enable them to reach a greater spectrum of employees, regardless of their geography. Employees can more easily access EAP services with the help of these platforms because they can offer from any device with an internet connection. Employees can communicate with EAP counselors like Talkspace on the phone or video chat through telehealth. If an employee is unable to leave work or go to an EAP office, these technological advancements are a practical alternative.
Order your copy of the Employee Assistance Program Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
This category is highly fragmented with a large number of companies that offer this program, and many companies have different areas of focus and expertise. For example, some companies specialize in mental health counselling services, while others may focus on financial counseling or legal services. There are many small and mid-sized companies as well as large companies that have a national or global presence.
Businesses typically employ a fixed fee pricing model, where a fixed price is charged for a certain set of services such as counselling, training, and other services. Payment is based on the overall number of employees in the organization, regardless of whether the employees use the services. The provider is incentivized to execute the work fast and efficiently, which helps to increase productivity and efficiency. The main cost elements are service costs, which cover things like financial planning and counseling sessions, administrative costs, which cover things like enrolment, billing, and reporting, and training and support costs, which cover things like hiring therapists, counsellors, and other professionals to help with services for employees.
The demand for EAP services has been rising in recent years due to greater awareness of mental health concerns and increasing focus on preventive care, making the US and Canada the global leaders in this area. Ensure and assess the service provider's reputation and experience, as well as their proven track record of delivering high-quality EAP services, while sourcing this category. Take into account the tools and technology provided by the supplier, which provides online resources that can assist staff in swiftly and conveniently accessing support and information. Finally, take into account the provider's range choice of services that fit the employee's needs.
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Employee Assistance Program Procurement Intelligence Report Scope
• Employee Assistance Program Category Growth Rate: CAGR of 5.6% from 2023 to 2030
• Pricing growth Outlook: 6% - 7% (Annually)
• Pricing Models: Fixed-fee pricing model
• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence
• Supplier selection criteria: Business needs, technical specifications, operational requirements, security compliance, reliability, experience, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.
• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Key companies
• 1to1Help
• Homewood Health
• Talkspace
• ESI Employee Assistance Group
• Laya Healthcare
• Modern Health
• Uprise Health
• Magellan Healthcare
• Spring Health
• Human Dynamic
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions