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Drugs & Alcohol in the Workplace

What does Drug & Alcohol use cost Employers?

The most comprehensive statistics we have on workplace drug & alcohol usage come from 2002. Studies (conducted by CCSA (Canadian Centre on Substance Abuse); NIDA (National Institute on Drug Abuse); and NIH (National Institute of Health)) in both Canada and the United States represented 10% of the entire working population use illicit drugs - including white-collar industries and non-industrial industries such as government, insurance, etc. These statistics did not include the use of alcohol, which tends to be higher than drug use. Manufacturing was broken out at about 17% and construction was broken out at roughly 24%. These percentages correlated closely between Canada and the United States.

The US studies went one step further and assigned a direct cost to illicit drug use. Each employee using illicit drugs costs an employer roughly $10,000 per year. As expected, workplace incident rates were higher, but overall lost productivity contributed greatly to this cost.

Lost productivity can be broken out as:

  • Workplace incidents 50% +
  • Employee Turnover 3x +
  • Absenteeism 10x +
  • Inventory Shrinkage / Theft 30-70% Higher
  • Worker Compensation 5x Claims & Higher Premiums
  • Health Care Benefit Utilization 300-400% Higher
  • Workplace Violence 2/3 of Arrestees test Positive (US Stat)

It is very important to note that these statistics are from 2002. The use of illicit drugs has increased dramatically since that time. This is in part due to the rise of the abuse/misuse of prescription painkillers. Using the statistics above, an average company with 1000 employees, assuming the illicit drug use rate is 10%, will have a lost productivity cost of about $1,000,000 per year.

So what's a comprehensive substance abuse policy about? It's about deterrence, not "catching" workers. Testing is only one small piece of an effective policy. In the example above, an effective policy is about deterring illicit drug use from 10% to 5%, resulting in a lost productivity savings of $500,000. It not only saves money and mitigates risk; it creates and contributes to a better safety culture.

What is an Effective Policy?

How does my company develop and implement an effective substance abuse policy? There is no single or right answer. There are a number of very important considerations and questions to ask - especially in Canada. OH&S legislation, human rights and privacy have competing agendas, and all need consideration. It's a perfect storm in Canada - safety, human rights & privacy.

Case law in Canada regarding substance abuse testing is still "unsettled" and varies in direction across the country. At the same time, the hazards and business risk associated with drug & alcohol use in the workplace are significant and not going away. So what is a company to do? Companies can address the hazards and business risk through comprehensive policy. No two policies will be the same, but critical elements must be in place. Additionally, a policy needs to be well documented, well communicated and consistently applied. Demonstrated below, testing is only one element of an effective policy.

  • Assessed Hazards - What are the identified hazards and overall risk for the company?
  • Policy Statement - Demonstrate management's commitment & leadership to a safer workplace;
  • Responsibilities - Management, supervisors, workers, contractors & policy administrators;
  • Education & Training - It is very important everyone understands drug & alcohol issues in the workplace;
  • Prescribed Testing - When, Where & How? This includes POCT & laboratory testing, and MRO services;
  • Accommodation - What do we do when a worker tests positive?

Developing and implementing an effective substance abuse policy is a process that requires all stakeholders and needs to be conducted for the right reasons - in good faith. If a company is willing to go through the process, ask the tough questions, properly address all concerns, and involve the right people, an effective policy can be achieved. Ultimately, a safer and more efficient workplace can be achieved.

Enter Oral Fluid Testing Technologies

As mentioned above, prescribed testing is only one piece of an effective substance abuse policy. Traditionally when a policy called for a prescribed test, conventional urine testing has been the only viable option. In recent years, oral fluid technologies have advanced significantly, particularly in Point of Collection Test devices.

Integrated OH&S's commitment to Oral Fluid Testing Technologies