The most appropriate metric for evaluating the financial contribution of an EAP to the organization would be
A) calculation of return on investment for each dollar spent on the EAP.
B) the average cost of each employee visit to the EAP.
C) total cost per employee of the EAP.
D) benchmarking the per-employee cost of the company's EAP to the industry standard.

Question

Quizplus · Accepted Answer

The calculation of return on investment (ROI) for each dollar spent on the EAP provides the most precise measure of the financial contribution of the EAP to the organization. ROI considers both the total investment (including the cost of the EAP) and the net benefits or gains achieved by the organization from the program, such as lower healthcare costs, increased productivity and engagement, reduced absenteeism, and improved job satisfaction. The higher the ROI, the more significant the financial contribution of the EAP to the organization. Other metrics, such as the average cost per employee visit or the total cost per employee, do not provide a comprehensive picture of the EAP's financial impact and do not consider the potential benefits and savings that the program can generate. Benchmarking the cost of the company's EAP to the industry standard may be useful for cost control purposes, but does not necessarily reflect the effectiveness or value of the program for the organization.

The Most Appropriate Metric for Evaluating the Financial Contribution of an EAP