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EAP vs In-House Counselling: Which Works Better for Small Companies in 2025
Last Updated 25/11/25 By Vanessa Cortez
EAP Programs @ Mindway EAP
It can be hard for small businesses to figure out how to help their employees' mental health and well-being without spreading their meager resources too thin. For many leaders, the two most common choices are to hire an in-house counselor or contract an Employee Assistance Program (EAP). Each method has its own benefits, but the best one for you will rely on your budget, the size of your team, and the kind of help your employees require.

To help you make an informed choice, this book lists what each choice has to offer, its pros and cons, and the costs that come into play in 2025.

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?

Employing a mental health expert to work specifically within your organization, either on a part-time or full-time basis, is what is meant by the term "in-house counseling." When compared to an external EAP service, an in-house counselor eventually gets ingrained in the culture of your business. This means that they are able to cultivate deeper and more continuous connections with workers.


When employees require regular and quick access to help, this style appears to be the most effective. Additionally, an in-house counsellor is able to proactively plan and execute mental health programs, workshops, and check-ins that are targeted to the specific setting of the firm. Nonetheless, the expense and commitment involved in hiring someone on a permanent basis can be a considerable obstacle for firms 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

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

When it comes to promoting employee wellbeing, the majority of small businesses in Australia may benefit from employer assistance programs (EAPs), which provide an approach that is both more practical and more financial efficient. They make it possible for employees to have access to a greater number of specialists, guarantee that confidentiality is preserved, and offer flexibility that is compatible with the changes that occur in the size of the team.

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. In spite of the fact that it is more expensive, the method that is both tailored and proactive has the potential to offer considerable cultural advantages.
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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