Invest in Value, Not Just Cost: Why Cutting Corners on EAPs Can Backfire

Invest in Value, Not Just Cost: Why Cutting Corners on EAPs Could Cost More in the Long Run

As Canadian employers grapple with a projected 7.4% increase in health benefits costs in 2025 [1], it's no surprise that many are scrutinizing every line item in their benefits budgets. But when it comes to Employee Assistance Programs (EAPs), the temptation to go with the cheapest option may be a false economy—with real consequences for employee well-being and organizational health.

According to a recent survey, 73% of employers now cite rising benefits costs as one of their top challenges [2]. In this context, EAPs are often treated as a checkbox—selected for cost, not impact. The result? Programs with low session limits, poor clinical standards, and minimal follow-up that don't truly meet the complex mental health and psychosocial needs of today’s workforce.

But it doesn’t have to be that way.

A proactive, high-quality EAP does more than just respond in crisis—it helps prevent burnout, reduce absenteeism, and support retention, all of which carry measurable cost benefits. When effectively implemented, EAPs can act as a financial multiplier—reducing claims on extended health benefits and disability insurance by providing early, meaningful support [3].

As mental health challenges continue to grow and benefit costs climb, the real risk is not spending too much on EAPs—it’s spending too little on a program that doesn’t work.

Sources:

[1] Benefits Canada. "Canadian health benefits cost trend increasing to 7.4% in 2025"

[2] Benefits Canada. "73% of employers say rising benefits costs a top issue in 2025"

[3] Forbes. "Harnessing the Financial Power of a Proactive EAP"