Facing facts about workplace substance abuse

Rough Notes, May 2001 by Strazewski, Len

Impact of on-the-job drug & alcohol abuse is far-reaching

Sometimes the symptoms are obvious: slurred speech, staggered walk and a general clumsiness and disorientation. But more often the symptoms of employee drug abuse are more subtle, says independent agent Scott Addis, president of The Addis Group in King of Prussia, Pennsylvania.

High absenteeism, poor productivity, higher than ordinary medical costs signal what may be one of your clients' biggest risk management problems, he says. But few employers want to deal with the problems of drug and alcohol abuse directly. Most prefer to ignore the problem.

"I've been in business 20 years and I discussed a wide range of issues with my clients-insurance coverage, claims management, premium costs. But no one wants to discuss the big issues that may underlie many of their other problems," Addis says. "Drug and alcohol abuse is one of those issues."

Addis founded his agency in 1990 based on a premise that education and advanced risk management resources would take his customers beyond simple insurance coverage to improved profitability and safety while reducing their overall exposure to risk.

"We really believe we are in the business of education, not sales," he explains. "When we talk to new clients, we begin by analyzing their total exposure to risk, including the human resource management situations that may be creating exposures. Then we address those problems with training and loss control programs as well as insurance."

The philosophy has paid off well, as the firm has grown to 28 employees, 750 commercial clients and a premium volume of more than $50 million. But the motivation for Addis's crusade against drug and alcohol abuse became part of this risk management consulting strategy only five years ago as the result of an inspirational presentation by drug warrior Robert Stutman. A former top agent of the Drug Enforcement Administration, Stutman is one of the nation's most sought-after speakers on the problems of drug abuse in the workplace.

"He really opened my eyes. The facts were startling. I never realized how the problem of drug abuse dominates the workplace. I learned then that I had to address the problem with my customers for their own good and the good of their employees," he says. "It had to become part of our risk management program."

Addis learned the gospel according to Stutman, a litany of dazzling research and personal observations that characterizes the immensity of employee drug abuse.

"Employers have many misconceptions about drug and alcohol abuse. They don't realize the enormity of the problem and they avoid dealing with it directly Statistically, about 17% of all individuals are drug or alcohol abusers-that's about one in six employees. How is it that none of them are your employees?" asks Stutman, during a wide-ranging Rough Notes interview.

Stutman learned his lessons firsthand. As a special agent in charge of the DEA New York office, he was responsible for a workforce of more than 1,000 employees and administered a budget of more than $50 million. After 25 years of government service, in 1990 he founded a management consulting company which designs and implements substance abuse prevention programs.

In 1996, he became chairman of Employee Information Services, Inc., in Boca Raton, Florida, that conducts employee background screening and conducts drug testing and other occupational health services. He is also the founder of Interactive Drug Education, Inc., a new media publisher on drug abuse issues.

Stutman's own personal mission focuses on revealing employers' misconceptions about what works and what doesn't to prevent drug abuse. He's seen it all, and that includes a lot of employer mistakes. One of the biggest is ignoring the problem of alcohol abuse. (See sidebar to the left.)

"Drug abuse has gotten much of the employer attention, but the problem of alcohol abuse on the job is at least as significant and probably more so. Any substance abuse program needs to include the problems of one of the most common drugs-beer," he says.

Of course, employer programs designed to deal with drug and alcohol abuse aren't new. Many programs go back decades, Stutman notes. Industrial employers, in particular, have been sensitive to the impact of drug and alcohol abuse and their link to on-the-job accidents and workers compensation costs. Nearly 50% of all workers compensation claims involve alcohol or drugs.

However, workers compensation costs and traditional job safety are just the tip of the iceberg.

Few employers realize that:

* Substance abusers are the cause of 40% of all industrial accidents and fatalities.

* Substance abusers are five times more likely to injure themselves.

* Substance abusers incur 300% more medical costs and use benefits eight times more often than nonabusers.

* Substance abusers account for more than 40% of all employee theft.

* Substance abusers perform at only about 67% of their potential and are 16 times more likely to be absent.

The problem costs real money, more than $7,000 per abuser per year and creates real employee safety situations. The problems are not limited to industrial companies, he adds.