1. Home
  2. > Healthcare Market Trends
U.S. Employee Assistance Program Services Market - Industry Outlook and Forecast 2022-2027

U.S. Employee Assistance Program Services Market - Industry Outlook and Forecast 2022-2027

  • August 2022
  • 281 pages
  • ID: 6316314
  • Format: PDF
  • Arizton

Summary

Table of Contents

Search Inside

The U.S. employee assistance program services market is expected to grow at a CAGR of over 11% from 2022 to 2027

MARKET ANALYSIS

Employee Assistance Program (EAP) is a confidential program that assists employees in overcoming various life difficulties that may negatively impact job performance, health, or personal well-being to maximize an organization’s success. Employees with personal and work-related concerns include stress, financial, legal, family, workplace conflicts, and alcohol and substance use disorders. EAP services majorly include assessments, counseling, and referrals. EAPs also frequently collaborate with upper management and supervisors to provide prior planning for organizational changes, legal issues, emergency preparedness, and traumatic event reaction.

EAPs refer to employees or resources that help with mental health challenges, substance abuse, financial planning, and work issues. Over the past year, EAP vendors have streamlined the referral process for counseling benefits. Many employers have increased the number of free counseling sessions for employees and their family members. EAPs also offer assistance with financial concerns and caregiving—two of the most common sources of stress in employees’ lives. It has been witnessed that 95% of large employers now provide access to virtual mental health counseling, or teletherapy, up from 69% in 2020 in the US. Allowing participants to meet with counselors in the most convenient ways—video, text, or via phone—removes a massive barrier to getting care.

The following factors are driving the market growth

• Growing Focus on Improving Employee Wellbeing
• Rise of the Information Economy
• Increase in Number of Working Hours
• Broad Shift in Assistance Perspectives
• Hike in Attrition in the US

COVID-19 IMPACT ANALYSIS

• It is no surprise that the COVID-19 pandemic has taken a toll on the workforce’s mental, physical, and financial health. The pandemic has increased the need to address employees’ mental and physical health issues in an already challenged system. While businesses have found ways to physically protect their employees by providing tech support and introducing new leave policies, the disruption it has caused in mental assistance is expected to continue. The uncertainty around family, finances, health, and other concerns has created an environment brewing behavioral health issues.
• Health issues such as migraine and depression contribute to around 13% of the losses caused due to ill health at work, and there are high chances that it is caused due to mental pressure and stress. Owing to such factors, employers in the US face significant difficulties, such as lack of productivity and the need to hire, which eventually results in huge costs incurred for employers. As a result, employers in the country have become concerned about reducing these costs by providing assistance programs. This concept witnessed a significant boost by the end of 2020 when the economy started to rise again and offices began to open.
• Financial, mental, and physical assistance are directly linked. Financial stress, aggravated by COVID-19, is the leading cause of lost productivity, unplanned absences, lower job performance, and more significant distractions among employees. Financial stress impacts emotional and physical well-being. A financial literacy program is considered suitable for the company’s bottom line. Improving financial literacy increases productivity boosts job satisfaction, and saves health care costs and turnover. Several vendors have introduced a financial assistance program due to the pandemic, coupled with modern digital solutions and human support, thus boosting the EAP services market.

OPPORTUNITIES & CHALLENGE ANALYSIS

Mental & Physical Health Awareness via Social Media Platforms

Several social media platforms are fit for various purposes and people. If Snapchat is widely popular amongst youngsters, LinkedIn can connect to a clan of professionals. Nevertheless, specific topics are relevant to the entire population irrespective of profession, background, interests, or culture, such as assistance, be it mental, physical, or both. Given the popularity amassed and the amount of time an average individual spends in a day scrolling through social media, it has perhaps become the best and the fastest way to spread awareness regarding mental wellness and physical assistance. Using relevant hashtags can turn a discussion into a trending topic, thus gaining popularity and the necessary attention from EAP service providers.

Constant Struggle for Employee Engagement and Participation

While assistance programs have been well-intentioned efforts by employers to create a better quality of life for their employees, there has been significant debate on whether they work due to largely unsuccessful assistance outcomes. This is either because participation is low or the level of engagement is negligible. Moreover, lack of awareness among employees is a significant issue. It is evident that even if there is a program in place for the betterment of employees, it does not guarantee employee participation if there is a lack of interest among the workforce. While incentives have solved the problem of involvement to a certain degree, these programs still seem superfluous as they do not necessarily improve employees’ well-being due to lack of engagement.

Rising Demand for Financial Assistance

Often, employees are not motivated to fix their finances since it drains their energy. For such employees, incentives are a documented success in spurring behavioral change. To combat the well-behind lag of participation, corporates are ratcheting up the incentives offered in combination with assistance programs. They were unheard of half a decade ago but are now gaining popularity rapidly. Vendors are designing incentive programs that are in sync with the goals and objectives of the company. Modest financial incentive programs are mainly effective.

SEGMENT ANALYSIS

Insights By Service Type

The U.S. employee assistance services market is dominated by the demand for personal & work stress services, followed by mental health services. However, demand for financial wellness assistance is anticipated to grow significantly in the coming years. The consistency and success rate of these programs vary widely. With organizations grappling with rising health costs, standard programs are no longer sufficient to change the course of the growth trajectory.

• Service Type
o Personal & Work Stress
o Mental Health
o Substance Abuse
o Family Relationship
o Health Education Services
o Others

Insight By Delivery Model

Internal or external EAP models are the most common, with combination or blended models containing both components in variable proportions. Hybrid models give employees more options, adding to the richness rather than diluting the purity. EAPs are dynamic and uniquely adapted as a workplace resource to meet the needs of the current work organization it serves. There has been much discussion regarding the advantages of various EAP models. Still, it is widely agreed that the "workplace is too complicated for pure counseling models," due to which hybrid models are gaining substantial market traction. In 2021, delivery by external vendors accounted for over 66% of the U.S. employee assistance services market share.

• Delivery Model
o External Vendor
o Internal Vendor
o Hybrid

Insight By Interaction Platform

In 2021, the U.S. EAP services market was dominated by face-to-face interaction holding almost 90% share in the market. However, owing to the recent trend of working from home due to the COVID-19 pandemic, video and telephonic EAP services have gained significant traction in the last two years. Moreover, since WFH has become a new trend globally and in the US, the video & telephonic employee assistance program services market is anticipated to grow at a significant CAGR during the forecast period.

• Interaction Platform
o Face-to-Face
o Video & Telephonic
o Mixed

Insight By Gender

In 2021, the EAP services market was dominated by women accounting for over 66% of the market share. This can be attributed to increased stress levels in women being reported more likely than in males. Moreover, when comparing married and single women, there appear to be differences in how they deal with stress. Women aged 35 to 54, who are more likely to be juggling many jobs such as mother, caregiver for elderly parents, homemaker, and occasionally earner, are more stressed than men. Furthermore, as a result of all of these circumstances, it has been observed that women generate a more significant demand for EAP services.

• Gender
o Men
o Women

Insight By Industry

Employee assistance spending based on industries depends on the volume of the workforce, corporate profits, and the degree of deployment of programs, among other factors. Funding and time are considered the significant barriers to implementing these programs, irrespective of the industry’s size. The outlook for corporate wellness assistance programs differs as well. While smaller businesses and non-profit organizations look at it more from a luxury, good-to-have perspective, more prominent end-users are implementing it as a necessity.

• Industry
o Government
o Media & Technology
o Healthcare
o Manufacturing
o Colleges
o Others

REGIONAL ANALYSIS

The US people pay more excellent prices from workplace stressors, in terms of health costs and perhaps mortality, than do workers in comparison to OECD countries in Europe. Expanding health insurance coverage, increasing awareness about workplace stress costs, and adopting family-friendly work policies more widely could considerably benefit US workers. Doing so could assist in lower exposure to workplace stressors, enhance the nation’s work climate, and lessen the health burden levied by U.S. workplaces. Midwest U.S. EAP services market accounted for the largest share in 2021

• Region:
o South US
o West US
o Midwest US
o Northeast US

COMPETITIVE LANDSCAPE

The EAP services market in the US is highly fragmented, with several small vendors operating. However, the market is witnessing consolidation, albeit at a slow pace.

Vendors are also looking at new ways to deliver corporate assistance programs using the potential of digital technology to host virtual screenings and offer information via company portals. Moreover, it is increasingly being guided by the roots of CRM as employers look to dynamically tailor their programs and provide an experience that is personal and individualized. For instance, targeting offerings based explicitly on employee health risks and conducting feedback surveys.

Over the past couple of years, however, the market has witnessed the entry of many external players, such as in-house services by large businesses and other entities in the health and fitness space that offer membership discounts to drive up their share in the market. Mergers and acquisitions are expected within the industry as players look to expand and become more comprehensive in their offerings. A trend witnessed among vendors in a landscape where consolidation is taking place is the focus on merging two platforms. As prominent players join hands, resources are spent on connecting rather than innovation.

The leading market players include:
• ComPsych Corporation
• Canopy
• Continuum
• Empathia
• AllOne Health Resources
• KGA
• McLaughlin Young
• New Avenues
• SWEAP Connections
• LifeWorks
• Beacon Health Options
• Ceridian HCM
• My Secure Advantage
• Novant Health

KEY QUESTIONS ANSWERED

1. What will be the size of the U.S. EAP services market in 2027?
2. What is the growth rate of the U.S. employee assistance program services market?
3. Which segment accounted for the largest share of the U.S. EAP services market in 2021?
4. Which region is projected to have the highest growth rate in revenue generated from the EAP services market?
5. What are some of the latest trends that will shape the future of the EAP services market in the U.S.?

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Grace helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at [email protected] to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - [email protected] or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

ref:plp2022

Reportlinker.com © Copyright 2022. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on