29 Mar Small Business Benefits; Why Choose an EAP
There are over 30 million small businesses in the United States, employing nearly 60 million people. Traditionally, small businesses have been more vulnerable to workplace issues. According to the EAPA, “Historically speaking, small businesses – disproportionately represented by service-oriented companies – have lacked access to EAP and other benefits while also illustrating an increased incidence of substance use and mental health concerns.” It’s been harder for small business benefits to keep up with what larger businesses can offer.
EAPs are proven to improve businesses bottom lines by increasing productivity as well as reducing absenteeism and other employee related expenses
Some small business statistics
- There are over 30 million small businesses in the USA
- Any organization under 500 employees is defined as a small business by the Small Business Administration (SBA)
- According to Oberlo, in 2020 “Over 70 percent of US small businesses shut down in March, when the U.S. became the new epicenter of the virus. More than 60 percent of these small businesses that closed were due to government or health authority orders, as large parts of the country went into lockdown in a bid to curb the spread of the virus.”
As the small businesses that have weathered the storm of Covid-19 are beginning to reopen, it may be time to evaluate the cost effectiveness of their benefits packages. Before we get into the return on investment of an EAP, let’s discuss some more general information around small business benefits. Entrepreneur.com provides this concise list of required employee benefits:
“The law requires employers to provide employees with certain benefits. You must:
- Give employees time off to vote, serve on a jury and perform military service.
- Comply with all workers’ compensation requirements.
- Withhold FICA taxes from employees’ paychecks and pay your own portion of FICA taxes, providing employees with retirement and disability benefits.
- Pay state and federal unemployment taxes, thus providing benefits for unemployed workers.
- Contribute to state short-term disability programs in states where such programs exist.
- Comply with the Federal Family and Medical Leave (FMLA).”
Additionally, under the Affordable Care Act, businesses which employ more than 50 full-time employees have to provide health insurance or face a per-employee fee. However, businesses are not required to provide things like dental or vision insurance, retirement, life insurance, or vacation time, though many businesses find that to stay competitive as an employer, they end up offering these benefits anyway.
Now that we’ve taken a look at required and recommended benefits, we’ll discuss how EAP’s work and why an EAP should be a part of your small business benefits package.
How an EAP works
When considering small business benefits, many owners or entrepreneurs have never even heard of an Employee Assistance Program. How do they work? In short, employee assistance programs are work-based programs which help employees with problems such as alcohol abuse, stress, family issues, mental issues, and more that may be negatively impacting their personal and professional lives. Some EAPs also offer legal, financial, eldercare, and childcare consultations, along with wellness programs, telehealth, and more.
Additionally, some Employee Assistance Programs also provide Management Assistance Programs (MAP), wherein they partner with your organization’s Management and Human Resources Department, and provide them with the tools they need to manage risk, and effectively deal with their employees needs, all while feeling supported in the process.
Why Small Businesses need an EAP
As a small business owner, you need to balance providing your employees with the kinds of benefits that help to retain and grow an effective team, while also growing and maintaining profitability. EAPs are proven to improve businesses bottom lines by increasing productivity as well as reducing absenteeism and other employee related expenses.
Ultimately, small businesses need an EAP because while the cost of an employee assistance program is a very small percentage of a company’s total budget, if it is effectively utilized, it can have a sizable impact on improving your organization’s bottom line.
Small business benefits have often come with big business price tags, making it harder for small businesses to provide their employees with the same level of assistance as their larger counterparts. As times have changed, though, not only have EAPs become more affordable for small businesses, but studies have shown that the return on investment from an EAP can be extremely high. You can read more about EAP ROI here.
Care Plus EAP provides small business benefits starting at just $270 per year for ten or fewer employees.
Care Plus Solutions is America’s first EAP and is headquartered in New York and has offices in New Jersey. Over the course of the company’s 46 year history, their brand has remained firmly rooted in the rich history of the EAP field, never losing sight of the fundamental purpose of the EAP; delivering personal and quality services to those in need. It is fair to say that Care Plus Solutions is the gold standard in the field of Employee Assistance.
An Untapped Market. https://www.eapassn.org/AnUntappedMarket
10 Small Business Statistics Every Future Entrepreneur Should Know in 2021. https://www.oberlo.com/blog/small-business-statistics
The Basics of Employee Benefits. https://www.entrepreneur.com/article/80158