
Bottom Line
Assessment Calculation:
This chart is based upon national statistics and a study conducted at Arizona State University. Your company's situation may vary, but this guide will help you to approximate the cost of substance abuse to your company.
A. ______ Number of full-time employees
B. ______ Total annual wage and benefit costs
C. ______ Average wage and benefit cost per employee (B divided by A)
D. ______ Number of employees impaired by substance abuse (10% of A)
E. ______ At best, an employee operates at only 75% of the expected norm; therefore, calculate the lost of productivity (D Times ? times 25%)
F. ______ In addition, 20% of health insurance benefits are paid to cover substance abuse related claims, so calculate the increased health insurance cost (20% of total annual claims)
G. ______ With a Drug Free Workplace Program your company can receive 5 to 10% Worker's Compensation Reduction.
H. ______ Lack of a Drug Free Workplaces Program can cost your company an annual minimum of (E+F+G)
** This estimate is only a minimum and does not take into account theft nor the cost of damages to company property or customer good will.
Benefits of drug testing
- 5-20% discount on Workers Compensation premium
- 4% minimum improvement in employee-related costs
- Eligibility for Federal contracts of $25,000 or more
- Inclusion on state preferential bid lists
- Lowered absenteeism
- Reduced accidents
- Reduced employee theft
- Decreased employee turnover


