Entrepreneur Expo Spotlight – What’s The ROI on a Drug Free Workplace?

Thanks to Entrepreneur Expo exhibitor, USA Mobile Drug Testing, for an insight into the ROI on a Drug Free Workplace!  Check out their website at www.usamdt.comatlanta

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 shown that companies save money with a drug free workplace program.  Savings come from a variety of sources:  reductions in workers’ comp premiums & claims, reduced absenteeism, improved productive, lower turnover, etc.  With nearly 75 percent of drug abusers in the workforce, all companies must take steps to eliminate drug abuse among their employees.

The most immediate benefit of becoming a Georgia Drug-Free Workplace is a 7.5% reduction in workers’ compensation premiums.  This savings usually pays for establishing the drug testing program in the first year.  After that, the savings go straight to the bottom line.

Other savings are more difficult to evaluate but are no less real.  Since drug abuse ( of illegal drugs or prescription drugs) among employees can cause expensive problems, ranging from lost productivity, absenteeism, injuries, fatalities, theft and low employee morale, to an increase in health care and workers’ compensation costs, a comprehensive analysis is required to quantify the savings.  Fortunately, some organizations have done just such studies.

Karen Tinker, a DATIA Certified Professional Collector (CPC) for USA Mobile Drug Testing recently reported:

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 affected

80 x $6,600 = $528,000

That is over half a million dollars a year that an employer may be wasting on injuries, lost productivity, absenteeism, poor morale and workers’ comp claims.

Beyond these costs already taking profit out of the business, the exposure to liability of having employees who use illegal drugs is huge.  A car accident alone can easily cost a company tens of thousands of dollars.

An employee abusing drugs is not just a liability waiting to slam into a company, drug abuse is a liability already draining profits.  From a purely financial standpoint, establishing and maintaining a workplace free of drug abuse is the only rational choice.