Cost-benefit analysis of an employee assistance program for a geographically dispersed workforce in South Australia

Abstract

The South Australia Department for Education employs approximately 30,000 people (40.2% outside the major city, Adelaide). This study conducted a cost-benefit analysis of its employee assistance program from the Department’s perspective, focusing on remoteness. The employee assistance program utilization rate outside the major city was 13% below that in the major city. Based on improved absenteeism and presenteeism, measured fiscal benefits per user (1,365.79 Australian dollars [AUD] or 1,021.48 US dollars [USD]) were 3.34 times the costs (409.27 AUD or 306.09 USD), indicating a highly favorable return. Our sensitivity analysis found that if the increase in student lifetime earnings, worth about 76,000 AUD (57,000 USD) yearly, had been included, it would have increased the total benefits by 5.3% and raised the benefit-cost ratio to 3.51. Although telephone sessions were available, the average number of sessions per participant was 49% higher for the in-person only modality (2.82) compared to the telephone-only modality (1.89). This apparent preference for in-person sessions indicates a challenge for regional and remote areas, where access is difficult. The study recommends proactive measures to increase utilization outside its major city.

Keywords:

• Employee assistance program
• cost-benefit analysis
• Australia
• education
• public sector
• teachers
• remoteness
• major city

Acknowledgements

The authors acknowledge the South Australia Department for Education for facilitating this study and the Australian-American Fulbright Program for support to Donald S. Shepard. They thank Lucia Avellaneda, Anne Chivunde, Ning Ma, Maria Rutilo, Marina Swinnen, and Kotaro Yamaguchi (all CMU-A) for insights during a related mini-course and Clare L Hurley (Brandeis University) for editorial assistance.

Disclosure statement

No potential conflict of interest was reported by the authors.

Data availability statement

Public data are available from the SA Department for Education (https://www.education.sa.gov.au/department/research-and-data/statistics-reports-and-publications) and the Australian Bureau of Statistics (www.abs.gov.au). Nonpublic data may be requested from the respective agencies.

Additional information

Funding

DSS received support through the Australian-American Fulbright Program.