How to Select the Right EAP for Your Small Business

As an HR Party of One, you know that working doesn’t always feel like a party– especially when you're going through a difficult time outside of work. No matter how hard you try, it’s nearly impossible to completely separate work and life.

Statistics show that HR professionals understand the value in supporting mental well-being in the workplace. According to SHRM’s 2022 Mental Health Workplace Benefits Study: 

• 94% of HR professionals believe that EAPs improve overall employee health.
• 88% say EAPs can boost productivity.
• 86% agree EAPs help increase employee retention.

Despite these benefits, only 32% of HR pros report that mental health benefits are a high priority at their organization. That gap presents a big opportunity—especially for small employers looking to build a better workplace culture. 

 

 

What Is an Employee Assistance Program (EAP)? 

An employee assistance program— or EAP— is an employee benefit that assists workers with personal or work-related problems that may impact their job performance and physical or mental health. EAPs generally offer free and confidential mental health assessments, short-term counseling, referrals, and follow-up services for employees. In essence, EAPs are critical work-based support tools that help employers show they care about the well-being of their workforce. EAPs can support employees through the following: 

• Substance abuse
• Financial difficulties
• Addiction treatment and recovery
• Legal difficulties
• Family conflict
• Workplace conflict 
• Overall mental health
• Stress management 
• Elder care help 

While most mid- to large-sized companies offer EAPs, only about 4% of employees use them annually (Mental Health America). And the number of small businesses offering EAPs is even lower—around 66% for companies with 100–499 employees. This low usage may be due to a lack of awareness or internal promotion.

 

 

Choosing the Right EAP for Your Small Business

Before selecting an EAP provider, evaluate your team’s unique needs. Consider industry-specific stressors, company culture, and employee demographics. There are three common types of EAP models for SMBs:

1. Fixed-Fee EAP
You pay a predictable, flat fee based on employee count. This model offers broad access to services, regardless of how many employees use them.

2. Contract-Only EAP
You pay only when employees access the services. It’s a usage-based model with no fees if no one uses it.

3. Consortia EAP
Multiple small businesses share the cost and access to a provider. This can be cost-effective for very small teams.

Pro Tip: If your current benefits plan doesn’t include an EAP, ask your broker or health insurance provider. Some offer EAPs bundled with existing coverage—or can help you add a standalone option.

 

What to Look for in an EAP Provider

When evaluating potential providers, consider the following questions:

• Reputation: How long has the provider been in business? Do they have solid references?
• Service Scope: Do they cover a wide range of mental health and personal issues?
• Access Options: Are services available remotely, on-site, or off-site?
• Availability: Do their hours work for employees with non-traditional schedules?
• Referral Capabilities: Can they connect employees with long-term care if needed?
• Follow-Up Services: Do they offer continued support?
• Credentials: Are counselors and staff professionally trained and certified?

 

Affordable EAP Options for Small Employers

An article published by The U.S. Chamber of Commerce highlights six affordable programs small businesses can offer to help their employees thrive personally and professionally:

• Ginger: text-based behavioral health coaching, therapy, psychiatry, and self-care resources. 
• Talkspace: app-based mental health support.
• Lyra: Guided self-care and therapy app.
• Thrive: assistance with legal and financial issues. 
• Ulliance: helps employees experiencing substance abuse or emotional difficulties. 
• BetterHelp: helps employees measure mental health progress. 

 

How to Promote EAPs

Offering an EAP isn’t enough—it needs to be visible, understood, and trusted. Many employees avoid using EAP services due to fear or stigma. That’s where HR plays a critical role.

Here’s how to drive awareness and engagement:

• Educate employees on what EAPs offer and how to access them
• Train managers to speak confidently and empathetically about EAP availability
• Reinforce confidentiality—reassure employees their privacy is legally protected

Organizational psychologist Melissa Doman shares that during her time as an EAP counselor, most clients asked, “Are you going to tell my boss?” Breaking down these fears is essential to helping employees feel safe using the service.

 

 

Additional Resources

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• Resource Library—essential guides covering a comprehensive list of HR topics
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• Community—the HR Party of One Community forum, a place devoted to HR professionals to ask questions, learn more, and help others