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EAP vs In-House Counselling: Which Works Better for Small Companies in 2026
Last Updated 28/1/26 By Vanessa Cortez
EAP Programs @ Mindway EAP
There is a possibility that smaller enterprises are unable to contribute to the mental health and well-being of their employees without squandering the resources that they have available to them. There are a substantial number of executives who are confronted with the dilemma of whether or not to hire a counselor to work for them, or whether or not to hire an Employee Assistance Program (EAP). All of these methods come with their own set of benefits and drawbacks. Your financial resources, the number of people working for you, and the sort of support that your workers require will all be factors that will be considered when deciding which choice is the ideal one for you. This book will provide you with information on the advantages and disadvantages of each alternative, as well as the costs that will be applied in the year 2026. As a consequence of this, the decision that you make will be more well-informed.

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?

Through an Employee help Program (EAP), which is administered by a third party with integrity, employees and members of their immediate families have the opportunity to obtain confidential counseling and help for their well-being. Several initiatives have been formed in order to give employees with a safe and stigma-free way of seeking support, whether it be for personal issues or challenges connected to their job. This aid can be for either personal concerns or obstacles related to their profession. The following are examples of typical services:
  • Psychotherapy for conditions affecting mental health, such as stress, anxiety, depression, and relationship issues
  • Offering support with debt management and providing advice on financial matters
  • Assistance from the legal system with regard to private affairs
  • Counseling for those who have experienced trauma and responding to events of crucial importance

In addition to promoting wellness in the workplace, providing training and coaching for managers. Employee assistance programs (EAPs) are frequently made available to workers through the utilization of phone talks, video conferences, or in-person meetings. This ensures that workers are able to obtain support even when they are not on the clock at their place of employment. Due to the fact that they operate on a subscription or pay-per-use basis, employee assistance programs (EAPs) are popular among smaller organizations since they are scalable as the team grows. Since this is the case, businesses find them to be an appealing alternative.

What is In-House Counselling?

The action of hiring a mental health professional to work for your organization, whether on a part-time or full-time basis, is referred to as "in-house counseling." This can be done on a part-time or full-time basis. On the other hand, in contrast to an external employee assistance program (EAP) provider, an in-house counselor progressively incorporates themselves into the culture of your organization. In other words, they are able to create relationships with workers that are more solid and more long-lasting than those that are now in place. There are circumstances in which workers require constant and fast access to support, and this strategy tends to be the most beneficial in those circumstances. Counsellors who are engaged by the organization have the power to not only organize and carry out mental health programs, workshops, and check-ins, but they also have the ability to construct and carry out these programs specifically for the firm. Nevertheless, for organizations that are on the smaller side, the price and responsibility of paying someone to work full-time might be a substantial challenge to overcome.

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

Numerous benefits may be obtained via the utilization of an Employee Assistance Program (EAP) that is provided by an organization that is external to the organization. These advantages include decreased costs for teams who are either smaller or in the process of transitioning, access to a broad array of specialized services that go beyond treatment, and availability by phone or online outside of regular working hours. In addition, these advantages are available to customers outside of regular working hours. Additionally, these programs are adaptable and may be modified to fit the ever-changing demands of the organisation for which they were built. However, they might not have the same personal connection that an in-house counselor has, and some employees could be hesitant to call an external provider because they are not acquainted with dealing with them. This is because they might not have the same level of familiarity with working with them. As a consequence of this, it is possible that their degree of participation may drop.

Pros and Cons of In-House Counselling

A program that is known as an Employee Assistance Program (EAP) may be able to assist workers in becoming familiar with and trusting the organization 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 specific to issues that arise at work. Furthermore, it enables organizations to launch wellness programs that are proactive rather than merely delivering assistance in a reactive manner. This is a significant opportunity for businesses. However, even when they are not being utilized to a substantial degree, these in-house technologies might occasionally have higher fixed costs than their external counterparts. Furthermore, they have less particular competence owing to the fact that a single therapist is unable to assist with everything and that certain workers may feel less comfortable talking to someone who works for them. Both of these factors contribute to the fact that they have less specialized expertise.
"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)

For subscription-based plans, internal employee assistance programs (EAPs) normally charge between $40 and $80 per employee each year. On the other hand, pay-as-you-go solutions often charge between $150 and $250 for each session. By offering organizations flexible contracts, they make it possible for those organizations to adjust the number of sessions they want without incurring any risk or experiencing any hardship. In order to put this into perspective, the yearly compensation of an in-house therapist typically ranges anywhere from $90,000 to $120,000. This does not take into account any perks, overhead costs, or retirement benefits. Additionally, companies need to take into consideration the additional costs that are associated with the process of recruiting new employees and keeping existing employees in the event that they leave the company after they have been hired.

Choosing the Right Option

There is a possibility that the majority of small businesses in Australia may reap the benefits of employer assistance programs (EAPs), which provide a strategy that is not only more practical but also more financially efficient. Therefore, this is due to the fact that EAPs provide a strategy that is not only more profitable but also more practicable. In addition to ensuring that confidentiality is preserved, they offer flexibility that is in line with the changes that may occur in the size of the team, and they make it possible for employees to have access to a greater number of specialists. In addition, they ensure that the confidentiality of the information is still preserved. 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. Although it is more expensive than the other approach, the strategy that is both personalised and proactive has the potential to deliver significant cultural advantages. This is despite the fact that it is more expensive.
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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