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Substance abuse can be a big drag on the bottom line
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Friday, July 01, 2005
ADVICE
By MICHAEL LEVY, D.O., FASAM
Drug and alcohol abuse is by no means a new problem. Neither is it a problem that can be isolated from business. New data shows substance abuse is harmful not only to workers, but also to the enterprises that employ them, with serious repercussions in terms of workplace productivity and liability.
Some 10 percent of the U.S. workforce, approximately 14.9 million full- and part-time employees, regularly abuses or dependent on alcohol or drugs, according to the 2003 National Survey on Drug Use and Health, released by the Substance Abuse and Mental Health Services Administration.
The U.S. Department of Health and Human Services found, in an analysis of workplace drug use, that 50 percent of employees reporting illicit drug use were construction workers (15.6 percent), sales personnel (11.4 percent), food preparation, wait staff and bartenders (11.2 percent), handlers, helpers and laborers (10.6 percent). Clearly, Southern Nevada has room for concern, as the construction and service industries lead the state in employment numbers.
From a business perspective, one can certainly see the effects of addiction on the bottom line. Substance abuse in the workplace often leads to increased absenteeism, on-site accidents, errors in judgment and higher legal expenses, as well as decreased productivity and employee morale.
In 1995, the Substance Abuse and Mental Health Services Administration reported that alcohol and drug abuse cost American businesses an estimated $81 billion in lost productivity in just one year. The National Association of Treatment Providers estimated alcoholism to cause 500 million lost workdays annually.
Medical science has proven that addiction is a disease of the brain. A negative stigma is still attached, however, to drug abuse and alcoholism. While most employers may not want to admit addiction is an issue in his or her business, a majority of people that abuse alcohol or illicit drugs are employed. Findings of the 2002 National Household Survey on Drug Abuse showed 76 percent of illicit drug users are employed either full- or part-time, as were 80 percent of heavy drinkers.
Hazelden Foundation's Addiction in the Workplace Survey found more than 60 percent of adults know someone who has reported for work under the influence of alcohol or other drugs. Additionally, more than one-third (36 percent) of employees admitted at least one coworker had been distracted, less productive or missed work because of alcohol or drug abuse.
Despite the results of these recent studies, or perhaps because of them, executives can take steps within a business to aid in the treatment of addiction and, as a result, limit workplace liability and insurance costs, as well as improve productivity and decrease absenteeism. Some strategies a company can take to improve the workplace include:
- Establish an Employee Assistance Program and remind employees about it on an ongoing basis. Ensure employees have easy access to the program.
- Make sure the company health care package covers addiction treatment. Try to avoid insurance plans that place limits on visits for addiction treatment. A few more cents in a good policy now could save thousands of dollars down the line.
- Create a forum for learning about drug abuse and available treatment.
- Create an organizational environment that supports employees. Establish policies that treat addiction like other chronic illnesses.
- New treatments and medications allow employees to maintain work and family responsibilities while undergoing medical therapy.
Educating managers, human resource representatives and employees is a strong tool in significantly reducing the financial harm addiction may bring to a business. Today's outpatient treatment programs often allow individuals to undergo confidential, successful treatment while maintaining job responsibilities. New drug therapies and intensive outpatient programs provide treatment outcomes for addiction similar to those of other chronic diseases, such as diabetes, hypertension and asthma, according to the American Medical Association.
The cost of addiction treatment often costs less than replacing an employee, especially one in a high-level position, as replacement incurs costs for recruitment, advertising and staff time, not to mention the loss of company knowledge.
A business stands to benefit substantially by addressing addiction in the workplace and getting good medical treatment for employees who need it. Results include increased job performance, motivation and morale. A company's commitment to alcohol and drug abuse treatment also helps reduce accidents, employee theft and fraud, insurance claims and workers' compensation costs. Indeed, addiction treatment has a great impact not only on an employee, but also on the bottom line.
Dr. Michael Levy established the Center for Addiction Medicine, the only private medical practice in the Southern Nevada specializing in addiction medicine, in 1995. He also oversees Living in Balance, an intensive outpatient treatment program. He can be reached at 702-873-7800.