Getting ROI Out Of Your Drug Testing Program
Many employers understand the significant benefits of incorporating a drug and alcohol testing program on a pre-employment, random, and post-accident basis; however, many don’t understand that there is substantial financial return on investment (ROI) from incorporating one. For most employers, implementing a testing program is the right thing to do to enhance overall employee safety and/or mandated to comply with DOT regulations. The truth is an employer can take their Drug-Free Workplace Program directly to the bank, especially if your company operates in an industry that is susceptible for injuries and accidents, such as manufacturing, construction, agriculture and mining. By knowing the facts and understanding the state incentives programs available, your company can save thousands of dollars.
A previous Cornell study titled “An Evaluation of Drug Testing in The Workplace - A Study of the Construction Industry” proved that employers that incorporated a comprehensive pre-employment and post accident drug and alcohol testing program significantly reduced injury rates shortly after incorporating the program. In addition, workers’ compensation experience ratings, provided by the National Council on Compensation Insurance, showed a significant reduction in this same surveyed group over a five-year period.
Here are a few overwhelming results from the study:
On average, construction companies responding to the study that tested job applicants and workers for drugs realized a 51% reduction in injury rates within two-years of implementing a drug-testing program;
As a result of fewer job related accidents and injuries, these firms realized an 11.41% reduction in overall workers’ compensation premiums.
72% of the respondents within the study stated that the benefits of drug testing outweighed the costs.
Respondents also stated that their general belief was that their company’s drug testing program had a positive impact in virtually every aspect of the company, which included better overall safety, reduction in workers’ compensation costs, and improved quality of job applicants. Larger companies saw the greatest benefit, as many drug abusers seek smaller employers with the hopes of not being detected.
Currently, there are over twelve states that provide some type of workers’ compensation premium discounts to employers that establish a drug-free workplace program: AL, AZ, AR, FL, GA, ID, KY, MS, OH, SC, TN, and WY. On average, participating states offer a 5% discount for enacting such a program. The state of Ohio offers a higher percentage (up to 20%) if you follow strict rules and reporting guidelines imposed by the state. Many states require a written substance abuse policy, employee notification, employee education and supervisor training programs to qualify for a reduction. Some states require the use of random testing to qualify for premium reduction benefits, and can even deny workers’ compensation benefits to those that are injured or even killed if they are intoxicated or under the influence of a controlled substance while causing an accident. Even refusing a test in some states creates a rebuttable presumption of impairment. There are state and federal regulations that impact drug and alcohol prevention programs at both the DOT and non-DOT levels, so always consult your legal counsel and your state specific drug testing laws for full compliance.
EBI offers a wide variety of options when it comes to drug and alcohol testing programs, from pre-employment, random, post accident and mobile collection options. With vast expertise and knowledge, EBI can help you develop a drug testing program to meet you specific needs, whether lab based or instant solution. We utilize a network of over 15,000 collection sites to make it convenient for your candidate. No matter if it is a Regulated (DOT) or Non-regulated (Non-DOT) managed program, we offer SAMHSA certified laboratory analysis and MRO review to meet the strictest of governmental regulatory requirements. In addition to our expansive network of clinics, we offer the most state of the art technology through our proprietary software RandomTrac ™, FormServ ™ and CNet-Link ™ to keep your program cost-effective, efficient and compliant. Let EBI show you how to maximize your ROI by incorporating the right drug and alcohol testing program to meet your needs.
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All information contained herein is provided by Employment Background Investigations solely for the convenience of its clients. EBI is not providing legal advice or counsel and nothing provided on this document should be deemed as legal guidance or advice. Readers should consult with their own legal counsel to determine their legal responsibilities or if they have questions on any information provided by EBI.