Last updated: March 30, 2020
Compliance specialists at USA Mobile Drug Testing often get asked about the return on Investment (ROI) on a drug free workplace program. Study after study has show that companies save money with a drug free workplace program. Remembering that nearly 75 percent of drug abusers are employed, companies can easily justify the cost of drug testing.
Drug use, abuse, or addiction among employees and their family members can cause expensive problems for business and industry, ranging from lost productivity, absenteeism, injuries, fatalities, theft and low employee morale, to an increase in health care, legal liabilities and workers’ compensation costs.
Karen Tinker, a DATIA Certified Professional Collector (CPC) and Territory Manager for USA Mobile Drug Testing recently reported for SHRM Atlanta:
Research shows that a full 8% of the working population has admitted to doing drugs! The US Coast Guard did a study stating each drug user cost them, on average, $6,600/year. The Dept. of Labor did a similar study and states it costs them $7,000/year. Other industry studies show each drug user in the workplace can cost an employer $11,000 to $13,000 per year because of health care costs, loss of productivity, turnover, injuries and damage to equipment. Let’s do the math with the lowest figure from the Coast Guard:
1,000 employees – assuming 8% average drug use = 80 employees effected
80 x $6,600 = $528,000
That is over half a million dollars a year that an employer may be wasting on workers’ comp claims, injuries, lost productivity, absenteeism and poor morale.
The exposure to liability with having employers who use illegal drugs is huge. The ROI increases tenfold with appropriate post accident testing which can lead to the denial of a workers’ comp claim. The greatest financial benefit from drug testing comes from post-accident testing. Post-accident drug testing puts you in position (or better position) to defeat a workers’ compensation claim. A major reason to implement a drug testing program is to make money by defeating workers compensation claims when an employee is positive. Most days, but especially in this economy, it is incredible that any employer would ignore a practice that will save money. Drug testing can help to return money to the company’s bottom line.
Contact USA Mobile Drug Testing for a FREE report on the “Intoxication Defense in Workers’ Compensation” for your particular state – see how a post accident test can save you money.
