The value equation.

We in the employee assistance profession regularly talk about the impact of our services on employee-related costs. We use cost arguments to sell the EAP concept, and we are always on the lookout for research that demonstrates how EA services lower the costs of health care, disability, absenteeism, employee distraction or disengagement, and other workplace concerns.

But cost reduction, especially work-force-related cost reduction, is only one piece of the puzzle in the eyes of organizational decision makers. Their fundamental focus typically is on margin, profitability, and organizational value. If we want their attention, our arguments have to address more than cost reduction alone.

Value and profitability in an organization result from maximizing or leveraging the use of assets as well as from minimizing liabilities and costs. Historically, the most important assets were tangible items, such as cash, property, and equipment. Over the last two decades, however, the relative contribution to organizational value of tangible assets has declined, while the contribution of intangible assets--including product and process designs, patents, and human capital--has increased significantly

Employers around the globe are learning that, in today's knowledge-based economy, leveraging the value of their human capital assets holds the greatest potential for improving organizational value and profitability. With that understanding, employers are moving from human resources management to human capital enhancement--from a focus on people as costs to be managed to a focus on assets to be leveraged and developed.

What does all this have to do with the theme of this issue of the Journal? The aging of the workforce in most of the developed nations of the world offers the EA profession an opportunity to contribute visibly to both sides of the organizational value equation.

Over the next several years, most developed countries around the world will experience an increasing worker shortage. A key reason for this impending shortage is the aging of the baby boom generation. If the baby boomers retire from the workforce at close to the same age as previous generations, the much smaller cohort immediately following the boomers will be unable to fill organizations' needs for skilled workers. Forward-thinking employers are beginning to look for ways to retain and motivate skilled older workers.

These older workers are less likely than their younger co-workers to be motivated by promises of future raises or promotions. In fact, adult developmental theory suggests that they will be motivated most by the opportunity to find personal meaning in their work. EA professionals who are knowledgeable about adult development and motivation will find themselves in growing demand to help employers maintain and enhance their skilled older human capital assets.

For example, an important way to help older employees find personal meaning in their work is to provide them structure and opportunity to teach and mentor younger workers. EA programs that can promote and assist with the development of effective mentoring programs will be providing a valued and needed service.

Organizational mentoring programs also would help address a related workforce trend. As more skilled older workers stay in the workforce, the need will grow for intergenerational communication training and facilitation. Recent research suggests that fewer than 20 percent of companies today offer any training on cross-generational communication or understanding. Developing and delivering this kind of training and offering consultation services related to cross-generational issues represent significant growth opportunities for the EA profession.

There is little question that the aging of the workforce will increase the demand for cost-reduction solutions. In general, older workers generate higher healthcare costs than younger workers. In response, EAPs will continue to find ways to integrate with disability management, disease management, and other cost-focused programs.

But the real future of the EA profession, I believe, lies on the "asset" side of the value equation. The more we as EA professionals focus on identifying ways that we can contribute to leveraging and enhancing the value of human capital in the workplace, the more demand we will generate for our services.

John Maynard is chief executive officer of the Employee Assistance Professionals Association. Contact him by e-mail at [e-mail].