Why A Drug Free Workplace Policy Is Worth It's Weight In Gold

During a meeting with a client of mine this past week, we reviewed their 5% drug free workplace (DFWP) credit on their upcoming 2010 policy. The person I was meeting with expressed some frustration with the fact that the credit amount of $1,000 barely covered their annual cost for implementing their DFWP program. Keep in mind that this company has an aggressive zero tolerance policy that goes above the state of Florida minimum standards of having a certified program and conducting pre-hire and post accident testing. They also do three random tests a month and require a supervisor to accompany the employee to the testing site each time. So in addition to the cost of the tests, the company also bears the cost of lost time and production for two employees, three times a month.

I encouraged my client to look at all of the other benefits of their DFWP program. In addition to providing their work comp carrier the ability to deny a claim if an injured worker tests postive for an illegal drug that contributed to the accident, here are some other reasons to become (or continue to be) a Certified Drug Free Workplace.

>> Employer expenses related to substance abuse are increasing and may exceed $250 Billion per year, based on the following expenses:

1. Workers' Compensation: Substance abusers register 50% of all claims and 5X more claims than average.

2. Health Benefits: Abusers utilize 8X greater health benefits and spend >300% more on healthcare than peers. [US Department of Labor]

3. Absenteeism: Substance abusers account for 35% of all work absences and are 6X more truant than colleagues. [US Department of Labor]

4. General: Substance addicted employees are responsible for much higher rates of workplace turnover, theft, accidents, deaths and violence. [Special Congressional Report on Alcohol and Health; US Department of Labor] The Substance Abuse and Mental Health Services Association reports that more than 75% of substance addicted persons work. The rate of substance addicted workers in the average workplace is about 13%.

If you do not have a Certified Drug Free Workplace Program in place, what is holding you back? If you have one, when was the last time it was reviewed by an expert to ensure it is up to date and in compliance? If you would like assistance implementing a program or having yours reviewed at our cost, feel free to contact me at kostovar@workcompspecialists.com

by Kian Ostovar of Work Comp Specialists Agency

"The Offer"

I'm reading a great book, The Referral Engine by John Jantsch, and wanted to share this story from it along with a few questions to ponder.

Zappos, the mega-successful online shoe retailer has a unique way to ensure that their employees are the type that will help them continue to grow. They call it "The Offer". When they hire a new employee, they go through four weeks of paid training and are immersed in the company's strategy, culture, and obsession with customer service. After one week on the job, Zappos makes "The Offer" in which they tell each employee that if they quit that day, they will be paid for the week of work plus $1,000 to quit. What Zappos discovered was that if any employee took them up on the offer, they were never going to be the kind of customer focused, high energy employee so important to their brand. It turns out that less than 10% of the new employees take the money and quit. One could figure that the cost of keeping uncommitted folks far exceeds the offer cost in letting them go.

How many of your employees would cash in on "The Offer"? Are they the ones that you want to continue to build your company around? What steps have you taken to ensure your employees are committed to your company's (and their) success?