Why Is Drug Testing Important for Employers?

Employee drug testing is both a precautionary measure and a strategic investment. Although some employers may shy away from drug testing due to perceived high costs, the benefits of such a program can significantly outweigh these initial expenses. Drug testing can help employers mitigate risks and liabilities associated with negligent hiring practices and save on healthcare costs, lost productivity, or absenteeism.

Interested in how drug testing can help your business? This blog article covers why it can be more expensive not to drug test.

Health Street offers a wide variety of drug testing services. Register online or by calling (888) 378-2499.

Diana Vaculova
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How Much Does It Cost to Drug Test an Employee?

While the cost of employment drug testing can vary depending on how many substances are screened for, the investment is minor compared to the cost of potential risks and liabilities. Smaller panels typically target the most commonly abused substances, providing a cost-effective solution for many businesses. In contrast, larger panels often include less frequently abused drugs for a more comprehensive screening.

The Costs of NOT Conducting Drug Testing

So, why is drug testing important? Ignoring the need for drug testing can lead to significantly higher costs down the line. Based on the National Survey of Drug Use and Health, over 133 million people aged twelve and older drank alcohol in 2021, while 66 million individuals used illicit drugs. Alcohol and drug abuse costs employers billions yearly, and untreated substance use disorder can cost employers an average of $8,817 annually.

Lost Productivity

Substance abuse in the workplace can severely hinder employee performance, leading to reduced productivity, quality of work, and, in some cases, serious accidents. Drug addiction costs the United States more than $700 billion yearly in crime-related costs, healthcare expenses, and lost workplace productivity. Implementing drug testing for businesses can help to reduce these costs.

Healthcare Costs

Among 162 million people eligible for health insurance provided by their employers, 2.3 million struggled with substance use disorders (SUD). The annual healthcare cost for each person with SUD reached $15,640 in 2018. This tells us that addressing substance use issues in the workplace might help lower these big healthcare bills—whether through preventative measures like drug testing for businesses or through employee wellness programs.

Absenteeism

Employees who struggle with drug or alcohol use disorder miss 50% more days in a year than individuals who do not have this disorder. While average workers miss about ten days of work per year due to illnesses, injuries, or other legitimate reasons, people who struggle with substance use disorder miss 15 days per year on average. Implementing drug testing can help in early identification and intervention, reducing absenteeism rates and increasing overall productivity.

Employee Replacement

The turnover cost associated with recruiting, onboarding, and training due to drug-related issues can be expensive. The cost of hiring and retaining workers is around 33 percent of a job's annual salary. Try drug testing for businesses to reduce turnover costs and retain employees.

Increased Liability

Drug-related workplace accidents endanger lives and expose businesses to legal liabilities and compensation claims. Drug testing programs can significantly reduce the risk of accidents, protecting both the workforce and the company's financial health.

Drug Testing Helps Keep Your Workplace Safe and Professional

Pre-employment, post-accident, and reasonable suspicion drug testing can all help to keep the workplace safe and professional. Take some time to determine which type of drug testing is best for your business. Some employers only test during pre-employment, while others test in all three. Keep in mind that all companies must comply with state workplace drug testing laws when conducting drug testing.

Health Street Provides the Best All-in-One Employment Drug Testing Solution

No matter the size of your business, Health Street can help manage all your employee drug testing needs. We provide several types of employee drug tests and deliver all results through a secure, confidential online portal. To learn more about our employment drug testing, register online or give us a call.

Frequently Asked Questions

How much do drug tests cost employers?

The cost of employment drug testing can vary depending on the type of drug test employers select.

Can you drug test employees?

Employers can conduct drug tests following federal and state workplace drug testing laws.

Why drug test employees?

Are you wondering why employers should drug test their employees? The answer is simple. Drug testing can save money on healthcare, liability, and absenteeism, while also increasing productivity.

How do you set up drug testing for employees?

With Health Street, the process is straightforward for how to set up drug testing for employees. Simply register online or give us a call.

Citations

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Key substance use and mental health indicators in the United ... - samhsa. (n.d.-ag). https://www.samhsa.gov/data/sites/default/files/reports/rpt35325/NSDUHFFRPDFWHTMLFiles2020/2020NSDUHFFR1PDFW102121.pdf
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New Analysis: Employers Stand to save an average of $8,500 for supporting each employee in recovery from a substance use disorder: NORC at the University of Chicago. New Analysis: Employers Stand to Save an Average of $8,500 for Supporting Each Employee in Recovery from a Substance Use Disorder | NORC at the University of Chicago. (n.d.). https://www.norc.org/research/library/new-analysis--employers-stand-to-save-an-average-of--8-500-for-s.html
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Ltd., C. I. I. Pvt. (2023a, August 21). Importance of drug test before hiring an employee. LinkedIn. https://www.linkedin.com/pulse/importance-drug-test-before-hiring-employee/
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Impact of drug-testing programs on productivity - under the influence ... (n.d.-af). https://www.ncbi.nlm.nih.gov/books/NBK236244/
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What to know about employment drug testing policies. (n.d.-bk). https://www.indeed.com/career-advice/starting-new-job/employment-drug-testing
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Published by Chris Carberg, & by, P. (2023, June 14). Addiction statistics - data on addiction in the United States. AddictionHelp.com. https://www.addictionhelp.com/addiction/statistics/
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Goplerud, E., Hodge, S., & Benham, T. (2017, November). A substance use cost calculator for US employers with an emphasis on prescription pain medication misuse. Journal of occupational and environmental medicine. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5671784/
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Otto, N. (2017, August 10). Avoidable turnover costing employers big. Employee Benefit News. https://www.benefitnews.com/news/avoidable-turnover-costing-employers-big?brief=00000152-14a7-d1cc-a5fa-7cffccf00000&utm_content=socialflow&utm_campaign=ebnmagazine&utm_source=twitter&utm_medium=social
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Mengyao Li, P. (2023, January 24). Medical cost of substance use disorders in the US employer-sponsored insurance population. JAMA Network Open. https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2800719
Diana Vaculova
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