Cutting costs and increasing revenue
are common goals for which companies strive. Downsizing and increased productivity are often used to achieve these
goals. However, Sally Stephens, president
of Spectrum Health Systems, suggests
employers begin to take notice of those
employees who are costing them the most.
The Centers for Disease Control and
Prevention calculate the average cost of
smoking as $3,383 per smoker per year.
This breaks down to an estimated $1,760 in
lost productivity and $1,623 in excess medical expenditures.
Smart Business asked Stephens how
employees that smoke affect company
costs and the options employers have to
take action.
What are the health effects of smoking?
Some of the irreversible health effects are
permanent changes in the structure or function of organ systems. Coronary artery disease is the No. 1 cause of death in the
United States and stroke is No. 3. There is a
strong link between smoking and both diseases. Smoking also leads to an increased
risk of certain cancers, heart attacks, diabetes and ulcers. It reduces lung function
and can develop into obstructed pulmonary
disease.
There are significant benefits for a person
who quits smoking. Within five to 10 years
after quitting, a former smoker’s health risk
is no different than that of a nonsmoker.
Why should employers worry about having
employees who smoke?
Smokers cost companies money. Smoking
can cause the development of costly medical conditions and often companies end up
footing the bill. Smokers tend to see physicians more often and simple conditions,
such as the common cold, often develop
into more serious respiratory problems.
A smoker may need more time off work
after having surgery because healing time is
delayed, and smokers are more susceptible
to incurring infections. Also, smokers have
an overall lower survival rate after surgery.
Smokers are at a higher risk for a multitude of health problems as compared to nonsmokers that, in turn, result in higher
medical costs, increased absenteeism and
lost productivity.
How can smoking affect an employee’s work
performance?
Smoke breaks are a major issue regarding
a worker’s performance. If workers leave
their desks to smoke, they are not working.
In turn, there is a loss in productivity.
Absenteeism is a large piece of the burden
in the cost to an employer. Companies are
paying smokers for days they are absent
from the job as well as for medical bills they
are accruing.
A smoker’s level of concentration and
ability to interact with others decreases as
the level of nicotine in his or her system
drops. The exact results of such a drop in
nicotine primarily depend on the habit of
the smoker and the frequency in which he
or she smokes.
How can employers curb employee smoking
or help employees quit?
A common trend for many employers is to
become more involved in employees’
health. One way is to implement a no-smoking policy. This policy differs among companies. Employers may prohibit employees
from smoking anywhere on company
grounds. Some companies even enforce the
rule that employees are not allowed to
smoke in their cars in the parking lot.
Now, we see some executives offering
incentives, such as leave time. They are also
implementing certain programs that help
their employees quit smoking. Employers
are trying to get very aggressive about helping their employees improve their health by
using incentives, such as cash and health
insurance premium discounts, to encourage employees.
Employers should realize smoking is a
tough habit to break and should be considerate of the challenge. Executives of companies could offer smokers help to quit,
such as covering the cost of nicotine
replacements or offering smoking cessation programs. Stopping smoking used to
be a costly venture; however, today, there
are more options at reasonable prices from
which employers can choose. Employees
who quit could save their employer around
$3,000 a year. Medical costs will decrease as
the employees’ overall health improves.
Are there any legal considerations regarding
no-smoking policy programs of which executives need to be aware?
An employer must be cautious of the discrimination laws. For example, one must
be careful when offering a smoker a monetary incentive to quit. This is considered a
form of discrimination against a nonsmoker because a nonsmoker does not qualify
for the incentive. If incentives are offered,
they must be offered in a way that all
employees are eligible.
The American Civil Liberties Union warns
against the use of discrimination against
lifestyle choices, such as smoking. It fears
that the use of such discrimination might
then go deeper into an individual’s lifestyle
choices and violate privacy.
SALLY STEPHENS is the president of Spectrum Health Systems. Reach her at (317) 573-7600 or at [email protected].
