Employee Assistance Programs Procurement Category Market Research Report from IBISWorld has Been Updated
Los Angeles, CA (PRWEB) January 31, 2015 -- Employee assistance programs (EAPs) have a buyer power score of 3.6 out of 5. The above-average score suggests that buyers have more power over suppliers during the negotiation process. The negative stigma associated with mental health services has slowly declined, making EAPs more widely accepted and demanded. The increasing number of businesses and employees in the workforce has also boosted the need for these services. “When procuring services, buyers benefit from low market share concentration among suppliers and from a moderate level of substitutes,” says IBISWorld procurement analyst Jordan Weinstein. “However, moderate product specialization and switching costs may negatively impact the purchasing process.”
Low market share concentration allows buyers to pit more vendors against one another and compare prices. Some suppliers will attempt to increase their share of revenue by merging or acquiring firms; other suppliers will enhance their service offerings to attract a wider range of buyers. The moderate level of substitute goods also helps buyer power. “Buyers have other service options to select from if they find employee assistance programs unsatisfactory,” adds Weinstein. “Before choosing a substitute, though, buyers should ensure that it is a practical alternative.”
The moderate level of product specialization may hinder buyer power. Not all suppliers offer highly specialized services, while others charge a premium for unique service offerings. Some services require highly skilled and experienced workers, causing suppliers to charge more. A moderate level of switching costs also proves difficult, especially if the buyer's employees are invested in the EAP. The buyer should carefully consider whether it is worthwhile to switch suppliers if employees are invested and comfortable with the current supplier because employees often must be persuaded and reminded to use services otherwise.
Before making a purchase, buyers should ensure that they reduce the stigma of seeking help in the workplace so employees feel comfortable to use these programs and so money is well spent on the EAP. To lock in lower prices, buyers should sign long-term contracts to avoid future price spikes. For more information, visit IBISWorld’s Employee Assistance Programs procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of employee assistance programs (EAPs). EAPs help employees and their family members handle personal problems that may adversely impact their work performance, health and well-being. Such programs focus on substance abuse, workplace issues, mental health, personal problems and traumatic events. EAPs generally include short-term counseling and referral services for employees and their household members. These programs are also called member assistance programs (MAPs) or employee and family assistance programs (EFAPs). This report excludes other healthcare services and healthcare insurance.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]
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