Industry Analysis & Industry Trends
With relatively low unemployment rates and a tight labour market in Australia over most of the past five years, many companies have implemented employee assistance programs (EAPs) for a range of reasons. Firstly, EAP services are designed to assist employees in resolving or working through a variety of personal, family and workplace issues, which can result in happier workers. Secondly, when employees have resolved stressful issues, they are more likely to have an improved sense of wellbeing and be more focused on the tasks they carry out. Finally, EAP services can increase productivity and reduce absenteeism, which leads to higher profit and lower costs. This provides client companies with an incentive to implement EAPs, to the benefit of the industry... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a low capital intensity level due to high wage costs associated with employing well-qualified and experienced psychologists and counsellors, with investment in capital inputs being relatively low. As a service industry, capital inputs are required for staff computers, telephone systems, software and vehicles. However, these account for a low proportion of industry revenue due to high average wages required for most industry staff.
To calculate the capital intensity level, IBISWorld uses data from the industry's cost structure. Depreciation is used as a proxy for capital, while industry wages are used as a proxy for labour. In 2015-16, depreciation is estimated to account for 3.7% of industry revenue, with wages estimated to make up for 37.3%... purchase to read more