Robert M. Stutman, former top agent of the Drug Enforcement Administration, tells employers that to control employee substance abuse, they must look beyond the obvious.
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.
"I never realized how the problem of drug abuse dominates the workplace. . . . It had to become part of our risk management program."
--Scott Addis, President, The Addis Group
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 non-abusers.
* 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.
"Of course, industrial employees such as heavy equipment operators and manufacturing line workers are the likely prospects for substance abuse problems. The same is true for transportation industry workers. Anyone who works in a safety-sensitive job is suspect and more likely to be tested in a post-accident situation.
"But what about white collar workers such as sales representatives? What about other employees who work outside an office? They work in unsupervised settings where drugs and alcohol may be available. They are often traveling between appointments. How many traffic accidents are the result of drug or alcohol abuse but are never investigated for those causes?" he asks.
Lawsuits could also be a negative outcome from unnoticed, untested drug and alcohol abuse. Professional liability, personal injury complaints and negligence charges could be the result of a substance abuse issue.
"Too often, an employer's first awareness of the problem is an expensive lawsuit," he says.
Stutman has a special message for independent agents. Certain agency employees may be particularly prone to drug and alcohol problems. Like many other sales representatives, producers work mostly outside their offices, conducting business during meals and social events where alcohol is served. They can work long hours and travel in the worst conditions, fatigued and possibly impaired.
"Agents and agency owners need to be on guard, not only for their customers, but for their own employees and colleagues," he says. "No one is immune."
Stutman advises employers to examine their substance abuse policies and revise them according to real business objectives that incorporate measurements beyond accident statistics and workers compensation costs. Train supervisors to recognize the symptoms of substance abuse in everyday work activities, not just reportable on-the-job incidents. The result will be a more productive work force and greater profitability.
Addis agrees. That's why he's adopted the gospel according to Stutman and preaches it wherever he encounters his clients. Part of the Addis Group risk management analysis is a comprehensive review of management procedures and suggestions for measuring performance.
Addis recommends that his clients identify real, measurable objectives such as lower absenteeism and accident rates and then evaluate the progress of a program with key evaluators such as the per-day cost of absenteeism and the total medical costs associated with accidents.
Employers will notice the improve-ment in the bottom line, he says. *
Are you and your clients dealing with drug and alcohol abuse in the workplace? Many employers think they have potential abuse problems under control with pre-employment testing and post-accident investigation, says Robert Stutman, chairman of Employee Information Services, Inc., and founder of Interactive Drug Education in Boca Raton, Florida.
But even the best-intentioned companies make more than one of the most common drug and alcohol abuse control mistakes, Stutman cautions. Here are a few of the top employer bloopers and what you can do to avoid them.
1. Do you spend the majority of your drug-testing dollars on pre-employment testing without examining alternatives?
"There may be better ways. While pre-employment testing is a valuable tool for deterrence, it is the least efficient form of testing. Why spend the vast majority of your testing on a practice that gives you a low return on positives? You can spend far less money and get better results," Stutman says.
He advocates random pre-employment drug testing which generates more positives for lower costs. Also, the specter of an unpredictable test is a stronger deterrent.
2. Do you always conduct an alcohol test and a drug test in a post-accident situation?
Alcohol accounts for over 70% of substance abuse-related accidents, Stutman notes. "To conduct only drug testing ignores the biggest piece of the problem. Most employers focus on drug testing in these situations but ignore the most abused workplace drug--beer. Very few employers do post-accident alcohol testing."
Post-accident drug testing may also miss one of the most commonly abused drugs--marijuana. Stutman notes that while a marijuana buzz may fade in a few hours, the drug's effect on depth perception may last much longer, from one to two days. Abusers who use marijuana on the weekend may still be a workplace danger on Monday or Tuesday, and not test positive after an accident.
3. Is your post-accident testing biased against the injured party?
"Big mistake," Stutman says. "If you've ever wondered why your post-accident positive tests are low, here's why. In over 70% of injury accidents involving drugs and alcohol, the injured person is not the substance abuser."
If an employer conducts only post-accident testing, the investigation should include all individuals involved in the accident, he says.
4. Your policy bans alcohol. But do your employees consume alcohol at company functions, conferences, conventions and while entertaining clients?
These situations may all be considered work-related, Stutman says. "The potential for a lawsuit involving punitive damages could be significant if you don't have clear-cut rules involving alcohol," he says.
5. Does your policy have clear rules about the use of adulterants and dilutents, substances not usually considered "illegal drugs"?
"Substance abusers can be resourceful. There are numerous products and methods to beat a drug test. If you do not directly address this issue in your policy, you can do nothing about catching an employee willfully cheating on his or her drug test," he says.