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EAP vs In-House Counselling: Which Works Better for Small Companies in 2025
Last Updated 19/9/25 By Vanessa Cortez
EAP Programs @ Mindway EAP
Small companies often face a big challenge: how to support employee mental health and wellbeing without stretching limited resources too thin. For many leaders, the two most common options are either contracting an Employee Assistance Program (EAP) or hiring an in-house counsellor. Both approaches have their advantages, but the best fit will depend on your budget, team size, and the type of support your workforce needs.

This guide breaks down what each option offers, their pros and cons, and the cost considerations in 2025 to help you 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 (EAP) provides confidential, third-party counselling and wellbeing support for employees and their immediate family members. These programs are designed to give staff a safe and stigma-free way to access help, whether for personal issues or work-related challenges.

Typical services include:
  • Mental health counselling (stress, anxiety, depression, relationships)
  • Financial advice and debt management support
  • Legal guidance for personal matters
  • Critical incident response and trauma counselling
  • Manager coaching and workplace wellbeing training

EAPs are usually offered via phone, video calls, or in-person sessions, ensuring employees can access help even outside standard work hours. For small businesses, EAPs are appealing because they operate on a subscription or pay-per-use basis, which makes them scalable as the team grows.

What is In-House Counselling?

In-house counselling involves hiring a mental health professional directly within your organisation, either part-time or full-time. Unlike an external EAP provider, an in-house counsellor becomes embedded in your workplace culture, meaning they can develop stronger, ongoing relationships with employees.

This model works best when employees need frequent, immediate access to support. An in-house counsellor can also proactively run workshops, check-ins, and mental health initiatives tailored to the company’s unique environment. However, for small businesses, the cost and commitment of employing someone permanently can be a significant hurdle.

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

Pros:
  • Cost-effective for small or fluctuating teams
  • Wide range of specialist services beyond just counselling
  • Accessible outside normal work hours via phone or online
  • Flexible and scalable as the business grows
Cons:
  • Less personal connection compared to an in-house counsellor
  • Employees may hesitate to contact an external provider due to stigma or lack of familiarity

Pros and Cons of In-House Counselling

Pros:
  • Builds familiarity and long-term trust with employees
  • Immediate availability for urgent issues
  • Support tailored directly to company culture and workplace challenges
  • Can drive proactive wellbeing initiatives, not just reactive support
Cons:
  • Higher fixed costs, even when usage is low
  • Limited expertise, one counsellor can’t cover every specialist area
  • Some staff may feel less comfortable speaking with someone directly tied to their employer
"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 2025 (Australia)

EAPs:
  • $40–$80 per employee annually for subscription-based models
  • $150–$250 per session for pay-as-you-go models
  • Flexible contracts allow scaling up or down with minimal risk
In-House Counselling:
  • $90,000–$120,000 annually for a full-time counsellor
  • Plus superannuation, benefits, and overhead costs
  • Additional recruitment and retention costs if turnover occurs

Choosing the Right Option

For most small companies in Australia, EAPs provide a more practical and affordable way to support employee wellbeing. They give staff access to a broader range of specialists, maintain confidentiality, and offer flexibility that aligns with changing team sizes.

In-house counselling may be the right fit for larger SMEs, high-stress industries (such as healthcare or emergency services), or businesses with a consistent demand for daily mental health support. While more expensive, the personalised and proactive approach can create strong cultural benefits.
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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