The $100,000 Question
How much does addiction cost your company?Addiction may be costing your company more than you realize, but investing in your employees’ recovery generally makes much smarter financial sense compared to outright termination. Do the math below to see how much your company can save by sending your employee to treatment.
MATERIAL IMPACT OF ADDICTION
- Termination, Recruiting, Rehire and Training
- Production Loss and Workers' Compensation
- Safety, Litigation and Exposure
TERMINATION, RECRUITING, REHIRE AND TRAINING
- According to SHRM (Society for HR Management) it takes 42 days to fill open position
- 1.75x/hr Cost of Open Position
- Overtime for Coverage
- Recruiting
- Interviewing, Selecting, BG check, Two-Week Notice
- Training
- Ramp Up
SAMHSA AND CDC ADDICTION DATA
25%
of your workforce are dealing with addiction in some capacity.
15%
of people struggling with addiction will self-report or take FMLA to get treatment.
10%
of your workforce will experience issues with addiction but will not seek help or self-report.
PRACTICAL IMPACT
- Rehire cost is $5k in lost production (Based on $74k avg salary)
- 1.75x/hr Cost of Open Position
- Loyal Employee, Increased Production, Fewer Missed Days, Increased Customer Satisfaction
- Annual cost is $.25M per five thousand employees
- Employee Termination
- Replacing staff is at a cost of $22,638 (Based on $74k avg salary)
- 1.75x factor of overtime, lost production and training over 42 days
- 50% of those individuals re-enter in same industry
- Annual Cost is $1.1M per five thousand employees
EMPLOYMENT IN RECOVERY
Recovery can significantly improve employees’ performance, attitude, reliability and enthusiasm.
ADDICTION & LEGAL TROUBLES
Addiction-related legal issues can seriously impact candidates’ search for quality employment
