The Growing Problem of Opioid Use Disorder and Its Impact on Businesses

Opioid Use Disorder

Rising Healthcare Costs Due to Opioid Epidemic

One of the major costs businesses are facing due to the opioid epidemic is rising healthcare costs for employees. Opioid use disorder is a chronic brain disease that is highly addictive and relapsing in nature. According to the National Safety Council, prescription opioid overdoses alone cost the U.S. economy over $79 billion in 2015 due to factors like increased medical costs, lost productivity, and criminal justice expenses. A large portion of these costs eventually fall on businesses in the form of increased health insurance premiums. Studies show the total economic burden of prescription opioid misuse alone is over $78.5 billion a year in the U.S., including the costs of healthcare, lost productivity, addiction treatment, and criminal justice involvement. As opioid addiction continues affecting a rising number of employees, businesses are struggling with the high costs of treatment and managing employee absenteeism and lost productivity.

Rising Rates of Employee Absenteeism

Another major way the opioid epidemic impacts businesses is through rising rates of employee absenteeism. Opioid Use Disorder makes it difficult for individuals to maintain a normal work schedule due to issues like withdrawal symptoms, doctor appointments, or court dates related to their addiction. Studies show employees struggling with a substance use disorder like opioid addiction miss an average of 5.6 more days of work per year compared to those without such issues. They are also more likely to be late, leave early or be generally less productive at work on the days they do show up. This leads to significant losses in revenue and productivity for employers. Large employers report drug and alcohol issues among staff cost their business over $2,000 annually per affected worker due to factors like more frequent absences, decreased productivity and higher medical claims. The toll of opioid addiction on the workforce is a growing challenge for businesses of all sizes.

Rising Workplace Accident Rates

Impaired thinking and slowed reaction times caused by opioid use also raise the risks of accidents and injuries at the workplace. Studies find commercial drivers misusing prescription opioids are over 23 times more likely to be involved in a motor vehicle accident than non-misusing drivers. Construction workers, especially those involved in dangerous machinery operation, have reported high rates of opioid addiction as well which raises risks. Even for office workers, performing tasks under the influence of opioids could cause issues like data entry errors or mistakes that harm productivity and business operations. The Center for Disease Control estimates the medical costs, lost earnings and lost workplace productivity due to nonfatal injuries from opioid overdoses cost the U.S. $20.4 billion annually. In addition to harming employees, higher accident rates result in losses like insurance claims, fines, reduced quality and delays that negatively impact businesses.

Declining Customer Service and Sales

Opioid addiction also takes a toll on customer service levels and sales productivity for businesses. Employees struggling with opioid use disorder tend to have mood swings, lack focus and energy and reduced interpersonal skills - all qualities important for maintaining positive customer interactions. Studies show substance use disorders are the second leading cause of reduced customer service ratings after only absenteeism. Customers notice and appreciate associates who provide caring interactions and timely problem solving. Unfortunately, the impaired thinking and low motivation caused by addiction often results in mistakes, delays, attitude problems or missed sales opportunities that hurt business performance. Industries like healthcare, transportation and customer service oriented jobs are especially impacted by declining customer satisfaction ratings due to staff opioid issues. This leads to reduced repeat business, loyalty and ultimately lower sales volumes for employers.

Increasing Turnover and Training Costs

Frequent absenteeism, accidents and deteriorating job performance caused by opioid addiction are also leading to rising turnover in many workplaces. Employees struggling with addiction have significantly higher rates of being fired, quitting or facing disciplinary action than others. The costs of high employee turnover, including the expenses of recruiting, background checks, training and lost productivity during the training period add significant indirect costs to businesses that in turn impacts their profitability. Studies find the average cost to replace an employee ranges from 16-20% of that employee’s annual salary. With the high turnover rates and payroll dollars spent on recruiting and training new hires who end up relapsing, employers impacted by the opioid crisis bear heavy replacement costs hard to recoup. These costs impose a heavy financial burden, especially on small businesses with tight operating margins.

Rising Legal and Liability Exposure

The disruptive behaviors exhibited by employees struggling with opioid addiction like impaired performance, absenteeism and accidents also increase legal and liability risks for employers. Businesses could face lawsuits, fines or penalties for negligence if an opioid-addicted worker’s impaired condition is found to have contributed to an accident, injury or policy violation. They also face compliance issues if an employee’s opioid use is not addressed properly regarding the Americans with Disabilities Act or health privacy laws. Employers are now required to make reasonable work accommodations for those in recovery from addiction as well. This increases compliance costs. Businesses are also at risk of legal issues if they terminate an opioid-addicted worker without following due process or if a former employee later alleges they were fired due to their addiction status rather than performance. All these legal costs, fines, penalties and liability risks add hidden burdens on many businesses struggling with the impacts of the opioid crisis.

The escalating costs arising from rising healthcare claims, lost productivity, higher accident rates, legal risks and difficulty hiring and retaining talent pose significant challenges for businesses battling the opioid epidemic. The economic costs of prescription opioid addiction and overdose have reached hundreds of billions annually according to various estimates. While efforts are ongoing to curb overprescribing and curb abuse, businesses are also urging policymakers to help expand treatment options and provide workplaces better tools to manage this issue. More support services could aid in mitigating the massive.

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