There are plenty of reasons why employers consider drug testing in their employment screening practices. For decades, organizations have relied on drug testing to ensure a drug-free workplace, aiming to promote safety and efficiency. Each of these reasons resonates with organizations in a variety of ways. For employers more focused on the bottom line, the calculated cost of drug use may be a key factor to consider when deciding whether to implement a drug testing program for their employees.
According to a study conducted by the National Council on Alcoholism and Drug Dependence (NCADD), drug abusers cost organizations nearly $81 billion annually. Where does that cost come from? This post will highlight several of the most common negative impacts of drug abuse on an organization’s bottom line.
The Cost of Drug Abuse
Drug abuse has a unique effect on each organization that it impacts. For example, a manufacturer with heavy machinery operators will not experience the same issues that an insurance underwriter would. However, both organizations can experience tangible and intangible monetary losses from drug abusers in their organization.
Loss of Productivity
There are several forms of lost productivity that can be linked to drug abuse problems. According to drug testing expert, Bill Current, drug abusers usually have substantial absenteeism, lack of focus, carelessness, and inconsistent work quality. These factors combined can lead to loss of efficiency and monetary losses for an organization. Other issues, such as carelessness and lack of focus, can have more serious consequences.
Health and Legal Liabilities
Employees struggling with drug abuse can not only lead to financial losses through decreased productivity but also contribute to higher costs due to preventable workplace accidents, injuries, and increased healthcare expenses. If an employee has an accident at work due to drug use and their organization isn’t drug testing post-accident, they could have to pay for worker’s compensation claims and other healthcare costs. Also, if others were injured or property damage occurred (such as an accident while driving on company time), there could be significant legal liabilities to address as well.
Occupational Fraud
In many cases, employees dealing with drug abuse often face related financial struggles as well. These financial issues can lead to employees looking to seek monetary relief through occupational fraud. This frequently takes the form of time theft, like unreported absences or claiming hours or overtime that wasn’t worked. These employees may resort to other forms of theft as well such as embezzlement, theft of sensitive information (ID Theft), or inventory.
Employee Turnover
One of the biggest expenses tied to drug abuse is the employee turnover that comes from the issues mentioned earlier or from an employee testing positive on a drug test. According to the Center for American Progress, a nonprofit advocacy organization, employee turnover typically costs an organization 15-20% of an employee’s salary, with higher costs for more senior positions.
The reason turnover is so expensive is as varied as the reasons drug abuse costs organizations money. Between the costs of recruiting, screening, hiring, onboarding, and training, bringing in a new employee can be costly, both in labor hours and external vendor fees. Additionally, it usually takes 1-2 years for a new hire to reach the same productivity level as the person they replace. Of course, if the employee being let go was already underperforming, that productivity gap may not apply.
Beyond the financial costs, employee turnover can also negatively impact the organization’s culture. Terminations can lower overall morale, and new hires can shift the office dynamic – sometimes for the better, sometimes not. Most often, it can take people time to adjust.
Lowering the Cost of Drug Abuse Through Deterrence
Due to the costs linked to employee drug abuse, you might consider introducing a drug testing policy to identify employees struggling with substance use. While this may be a good first step, it doesn’t necessarily fix the issues with drug abuse, like employee turnover and lost productivity. Instead, deterrence is the most effective means to lower the cost of drug abuse within your organization.
How to Deter Drug Use
One of the most effective ways to deter drug use among employees is through an impending drug test. When employers have drug testing as part of their pre-employment screening practices, it commonly encourages applicants to temporarily stop using drugs long enough to pass the test. Those who tend to fail a pre-employment drug test are either too dependent on the drug to temporarily stop, or those who were caught unaware didn’t give themselves enough time to sober up.
While pre-employment drug testing is an effective way to screen habitual users from the applicant pool, it is not as effective as a deterrent for those who sober up long enough to make it through the screening process. For this group of individuals, the more effective means of deterrence comes from employment drug testing programs like random and “for cause” drug testing. These methods help periodically screen those who are drug abusers and (if managed properly) create an environment where employees are less likely to use drugs because of the risk.
Conclusion
A drug testing program isn’t a fool proof system for removing drug users from your organization. However, if your program is well-managed, it will help minimize the cost of employee drug abuse while simultaneously promoting a healthier and happier organizational culture.
