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EAP vs In-House Counselling: Which Works Better for Small Companies in 2025
Last Updated 5/8/25 By Vanessa Cortez
EAP Programs @ Mindway EAP
Small companies often face a challenge: how to provide mental health and wellbeing support without stretching resources too thin. The two most common options are contracting an Employee Assistance Program (EAP) or hiring an in-house counsellor. While both approaches can be effective, the best choice depends on your budget, team size, and the type of support your employees need. This article compares the two so you can make an informed decision.

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?

An Employee Assistance Program provides confidential, third-party counselling and wellbeing support for employees and their immediate family. Services often include mental health counselling, financial advice, and legal guidance, all accessible via phone, video, or in-person sessions. EAPs operate on a contract basis, typically charging per employee or per session, making them flexible for small companies.

What is In-House Counselling?

In-house counselling involves hiring a dedicated mental health professional to work within your organisation. This could be a part-time or full-time employee, depending on company needs. They are integrated into your culture, available on-site, and can build strong relationships with staff over time. However, they require a consistent workload to justify the cost, which can be a challenge for smaller teams.

Pros and Cons of EAPs for Small Companies

Pros:
  • Cost-effective for small teams
  • Wide range of services and expertise
  • Employees can access support outside work hours
  • Scalable as the company grows
Cons:
  • Less personal connection with a dedicated counsellor
  • Employees may be hesitant to contact a third-party provider

Pros and Cons of In-House Counselling

Pros:
  • Builds familiarity and trust with employees
  • Immediate availability for urgent issues
  • Tailored support to company culture and challenges
Cons:
  • Higher ongoing costs, even during quiet periods
  • Limited scope — depends on the counsellor’s specialisations
  • May feel less confidential for some employees

Cost Comparison in 2025 (Australia)

  • EAP: Typically $40–$80 per employee annually for subscription-based models, or $150–$250 per session for pay-as-you-go.
  • In-House Counselling: $90,000–$120,000 annually for a full-time counsellor, plus superannuation and benefits.

Choosing the Right Option

For most small companies in Australia, EAPs offer more flexibility, cost-effectiveness, and access to a broader range of specialists. In-house counselling may work well for larger SMEs or those with highly stressful roles that require constant support.
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.
"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
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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