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EAP vs In-House Counselling: Which Works Better for Small Companies in 2026
Last Updated 9/1/26 By Vanessa Cortez
EAP Programs @ Mindway EAP
It's possible that smaller businesses don't know how to contribute to the mental health and well-being of their employees without wasting the resources they have available. A significant number of executives are faced with the decision of whether to employ a counsellor to work for them or to employ an Employee Assistance Program (EAP). Each approach has both advantages and disadvantages. Your budget, the size of your staff, and the kind of assistance your employees require will all play a role in determining which option is your best option. You will learn about the benefits and drawbacks of each alternative, as well as the fees that will be applicable in the year 2026, from this book. Your decision will be more informed as a result of this.

What You’ll Learn in This Article
  • The key differences between EAPs and in-house counselling
  • The benefits and drawbacks of each option for small businesses
  • How cost and flexibility factor into your choice
  • Real-life examples of how each approach works in practice
  • Tips for deciding which solution suits your team best

What is an EAP?

Employees and their immediate family members can receive private counselling and assistance for their welfare through an Employee Assistance Program (EAP), which is provided by a third party with integrity. In order to provide employees with a secure and stigma-free means of obtaining assistance, whether it be for personal concerns or obstacles connected to their profession, several initiatives have been established. Services that are typical include:
  • Counselling for disorders of mental health (including stress, anxiety, depression, and relationships)
  • Providing assistance with debt management and financial advise
  • Guidance from the law about personal matters
  • Providing counselling for trauma and responding to critical incidents

Providing training and coaching for managers and workplace wellness. EAPs are often provided to employees through the use of phone conversations, video conferences, or in-person meetings, ensuring that they are able to receive assistance even outside of their regular work hours. EAPs are popular to small organisations since they work on a subscription or pay-per-use basis, which makes them scalable as the team expands. This makes them an attractive option for enterprises.

What is In-House Counselling?

The process of employing a mental health expert to work for your organisation, whether on a part-time or full-time basis, is referred to as "in-house counselling." In contrast to an external employee assistance program (EAP) provider, an in-house counsellor gradually integrates themselves into the culture of your company. In other words, they have the ability to cultivate relationships with workers that are more robust and long-lasting. This approach appears to be most effective in situations in which workers require consistent and prompt access to assistance. Counsellors who are employed by the organisation have the ability to not only plan and execute mental health programs, classes, and check-ins, but also to create and implement these programs expressly for the company. However, the expense and responsibility of employing someone to work full-time can be a significant obstacle for organisations that are on the smaller side.

Employee:
I’m not sure if we should invest in a counsellor or just use an EAP.
You:
If your team is under 50 people, an EAP will likely give you more value and variety for less cost. You can always reassess as the company grows.

Pros and Cons of EAPs for Small Companies

The utilisation of an Employee Assistance Program (EAP) that is offered by an external organisation provides numerous advantages. These advantages include reduced expenses for teams that are either smaller or in the process of transitioning, access to a wide variety of specialised services that go beyond therapy, and availability via phone or online outside of regular working hours. Additionally, these programs are flexible and may be expanded to accommodate the ever-changing needs of the organisation for which they were designed. On the other hand, they might not have the personal connection that an in-house counsellor does, and some workers could be reluctant to contact an external provider owing to the fact that they are unfamiliar with working with them. This might result in a decrease in their level of involvement.

Pros and Cons of In-House Counselling

A program known as an Employee Assistance Program (EAP) may assist workers in becoming familiar with and trusting the organisation over the course of time, providing assistance with urgent issues, and providing guidance that is specific to the culture of the company as well as issues that arise at work. In addition to this, it enables businesses to initiate wellness programs that are proactive rather than only offering help in a reactive manner. However, even when they are not being utilised to a significant degree, in-house systems sometimes have greater fixed costs. Additionally, they have less specific expertise due to the fact that a single therapist being unable to assist with everything and the fact that some employees may feel less comfortable talking to someone who works for them.
"The best mental health program is one that employees will actually use, whether that’s an external EAP or someone they see in the office every week." - Australian HR Institute

Cost Comparison in 2026 (Australia)

Internal employee assistance programs (EAPs) often charge between $40 and $80 per employee per year for subscription-based plans, while pay-as-you-go options typically charge between $150 and $250 each session. They provide organisations with flexible contracts that allow them to modify the amount of sessions they require with no risk or inconvenience. To put that into perspective, the annual salary of an in-house therapist is normally anywhere between $90,000 and $120,000, and this does not take into account benefits, overhead, or retirement. Additionally, businesses need to take into consideration the additional expenses that come with recruiting new employees and retaining existing employees in the event that they depart.

Choosing the Right Option

It is possible that the majority of small firms in Australia may benefit from employer assistance programs (EAPs), which offer a strategy that is not only more practical but also more financially efficient. This is because EAPs give an approach that is both more practical and more profitable. They ensure that secrecy is maintained, provide flexibility that is consistent with changes in the size of the team, and make it possible for employees to have access to a higher number of specialists. In addition, they guarantee that confidentiality is maintained. It is possible that larger small and medium-sized businesses (SMEs), high-stress industries (such as healthcare or emergency services), or businesses that have a continual demand for daily mental health assistance may discover that in-house counselling is the approach that is best fit for their requirements. The strategy that is both personalised and proactive has the potential to deliver significant cultural advantages, despite the fact that it is more expensive than the other way.
Key Takeaways
  • EAPs Are Flexible
    Ideal for smaller teams needing affordable, scalable support.
  • In-House Builds Relationships
    Offers trust and immediate access, but at higher cost.
  • Cost Is a Major Factor
    EAPs can be a fraction of the cost of in-house counselling.
  • Employee Preference Matters
    Choose the option employees feel most comfortable using.
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