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Employee Assistance Program Services in the US Industry Market Research Report Now Available from IBISWorld
Date:10/31/2013

Los Angeles, CA (PRWEB) October 31, 2013

The Employee Assistance Program Services industry has experienced an increase in demand over the past five years as firms have aimed to reduce the cost of healthcare and turned to alternatives. Employee assistance programs (often called EAPs) have gained popularity as a preventative measure, allowing employees to address personal issues before they escalate into larger health problems. The more employees access their healthcare plan, the more insurance providers increase the rates. As such, companies have looked to EAPs to reduce insurance premium costs while keeping employees healthy and at work. Despite a recessionary hiccup, industry revenue has grown at an average annual rate of 2.0% over the five years to 2013 to $2.6 billion.

According to IBISWorld Industry Analyst Nikoleta Panteva, “An increase in the size of the US workforce, coupled with growing acceptance of EAPs into benefits packages, is expected to boost industry performance in 2013.” The industry has become a hospitable environment for players to expand their operations. While the number of EAP companies is not anticipated to grow strongly over the past five-year period, the number of locations has increased at 2.4% per year on average. Existing players have widened their reach to cater to previously underserved geographies. Additionally, the Employee Assistance Program Services industry has a low level of market share concentration. Companies have been seeking opportunities to expand service offerings to achieve greater economies of scale and minimize risks caused by overall changes in the economy.

As the economy continues to improve and companies generate higher profit margins and hire more employees, demand for EA
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