Safety

The Business Case for a Drug-free Workplace Program

Statistics regarding substance abuse within the construction industry are startling - and they translate to real-world costs in terms of lost time, personnel costs to rehire and healthcare and workers’ comp premiums.
By Patti Maluchnik
April 22, 2019
Topics
Safety

Numbers don’t lie, and the statistics regarding substance abuse within the construction industry are startling. According to a 2015 Substance Abuse and Mental Health Services Administration (SAMHSA) report, construction industry workers reported the second highest rate of heavy alcohol use. Their reported illicit drug use was 11.6%, while the national average across all industries was 8.6%. Notably, CNA found an even higher percent from its survey, stating that 15.1% of construction worker respondents admitted engaging in illicit drug use.

These statistics translate to real-world costs in terms of lost time on the job, personnel costs to rehire and healthcare and workers’ compensation premiums. A substance use calculator offered by the National Safety Council and its partners estimates that the combined cost of substance abuse in the workforce of a construction firm with 100 employees in Washington, DC would be $62,785 per year. The costs are incalculable when it comes to ruined lives and families.

WHY THE CONSTRUCTION INDUSTRY?

With some 10 million employees, the sheer size of the construction industry can account for part of the statistics. Then, there is the nature of the work. Construction work is physical and puts stress on the body, sometimes resulting in injury and chronic pain. Workers may turn to legal prescription drugs to function on the job. But all too often, addiction results – and gender seems to play a role. Women represent less than 10% of the construction industry workforce and, according to one source, males are twice as likely to abuse prescription drugs than females. Plus, NIH reports that when it comes to using illegal drugs, males are more prone than women to use almost all types of illicit drugs. Taken together, these facts create the perfect storm for employers in the construction industry.

HOW CAN A DRUG-FREE WORKPLACE PROGRAM HELP?

Employees’ use and abuse of substances can pose an expensive problem for employers. But real, tangible benefits can be realized by implementing a drug-free workplace program. Drawing from the example above, with just 10% of the firm’s employees engaged in a wellness program with treatment options, the company would avoid $5,724 in costs per year. NSC adds that workers in recovery help employers avoid $1,626 in turnover and replacement costs and gain back five workdays on the job each year. A recovered employee saves more than $3,200 per year.

WHAT IS A DRUG-FREE WORKPLACE PROGRAM?

SAMHSA provides guidance on how to develop a drug-free workplace program. Five basic components are:

  1. Written Policy. Employers must have a formal written policy in place that employees can review and use as a point of reference. The policy should address the program’s rationale, applicable laws and regulations, compliance expectations, support and assistance options available, and consequences for policy violation.
  2. Employee Education. All employees must understand the policy and what it encompasses. Prior to rolling out the program, every employee should be briefed on the policy, why the program is being created and how the entire company will benefit from a drug-free work environment. New hires should receive similar training during the onboarding process.
  3. Supervisor Training. Supervisors, managers and even the executive team need to champion the program within the organization. They must be familiar with the policy, understand how the program works, know what to look for in staff and be acquainted with the appropriate protocols. It’s important to stress the necessity for both confidentiality and employee sensitivity. Establishing systematic, uniform and fair procedures – and following them without bias – will help companies lower the odds of lawsuits and legal claims.
  4. Employee Assistance Programs (EAPs). All drug-free workplace programs should have EAPs in place for employees who might be struggling with personal issues. Often, these issues precipitate substance or drug abuse and distract employees while on the job. EAPs can include internal and external resources to help staff work through their problems, ultimately improving their job performance.
  5. Testing. It’s impossible to have an effective drug-free workplace program without instituting testing. Simply put, tests are the only way to assure compliance. It’s important to have a uniform testing program in place and verify that it aligns with all state, local and federal laws.

MORE BENEFITS OF A DRUG-FREE WORKPLACE PROGRAM

Everyone benefits from a well-designed and properly enforced drug-free workplace program. Benefits include:

  • A safer work environment for all employees. Substance and drug abuse are leading factors in workplace accidents. It’s particularly important for employees who work in high-risk industries, such as construction, where workers operate heavy and/or dangerous equipment, use scaffolding or ladders, dig trenches and so on. Construction requires teamwork and communication; one individual’s inattention can create unsafe conditions for all.
  • Improved morale. Substance and drug abuse are often linked to poor work performance, tardiness and absenteeism. One worker’s poor behavior can influence other employees’ demeanor, leading to a toxic environment. Beyond helping to prevent toxicity, a drug-free workplace program demonstrates an employer’s commitment to providing a safe and healthy work environment.
  • Workers’ compensation cost savings. A drug-free workplace program can help reduce the number of workplace accidents and injuries. This, in turn, reduces the number of workers’ compensation claims. Many states offer a discount for employers with drug-free workplace programs in place. For example, Maryland employers can realize savings of up to 4% off their workers’ compensation premiums, while an even higher level, up to 5%, is available in Virginia.

AN EVOLVING LANDSCAPE

As marijuana laws across the country evolve, employers must keep abreast of federal and state-specific changes. Since medical marijuana is now legal in many states, employers often question the need to alter their drug-free workplace programs.

For example, medicinal marijuana is now legal in Maryland and Washington, DC. However, the laws surrounding medical usage do not address employee protections. Employers can still legally terminate employees for marijuana use at work or positive test results. Other states, such as New York and Pennsylvania, have adopted differing levels of employee protection surrounding medicinal usage. At the federal level, all use remains illegal. Across all 50 states, employers do not have to accommodate employees under the influence on the job or attempting to use while on duty regardless of medicinal status.

A drug-free workplace program is a worthwhile investment for both employers and employees. As with all programs, it’s critical to reevaluate and refine them on a regular basis to ensure compliance with new laws and regulations. If a company needs help developing a drug-free workplace program, SAMHSA and the company’s insurance agent can be invaluable resources.

by Patti Maluchnik

Patti Maluchnik, CIC, CBIA, joined Georgetown Insurance Service in 1993. She earned a Bachelor of Science degree in Business from West Virginia Wesleyan College in 1984 and earned her Certified Insurance Counselor designation in 2003. She is an expert in working with accounts in the construction, manufacturing and technology fields. She is a 2019 graduate of Leadership Frederick County, is active in The Rotary Club of Frederick, CREW (Commercial Real Estate Women) and is an Ambassador to the Frederick Chamber of Commerce which she received the award for Ambassador of the Year in 2017.

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