We have come a long way from the 1970s and 1980s when those of us in the military can remember our senior NCOs disappearing to lunch at the Sergeant’s Mess and not returning. Beery lunches put them to sleep or sent them home. But alcohol and drugs remain a pervasive problem in the workplace, impacting productivity and creating safety problems. On productivity alcohol and drug use in the workplace costs the Australian economy billions of dollars each year. The National Centre for Education and Training on Addiction (NCETA) (Flinders University) reports the cost of alcohol-related absenteeism alone was over AUD 1.6 billion annually, and drug use contributes significantly to workplace costs.

According to the US National Safety Council, jobs in construction, mining, and some service industries have higher rates of alcohol and substance use disorders, medical conditions characterised by an uncontrollable use of alcohol or other substances despite the negative consequences. On the other hand, educators, healthcare professionals, and individuals who work in protective services exhibit the lowest rates of substance use disorders. Additionally, many individuals with safety-sensitive jobs—such as truck drivers and air traffic controllers—have high rates of substance use disorders. Depending on the profession, factors like loneliness, work stressors, long hours, and pain put some individuals at a greater risk for drug and alcohol misuse.

1. Productivity Loss

Decreased efficiency: Workers under the influence of drugs or alcohol may experience reduced focus, slower reaction times, impaired judgment, and decreased cognitive function, which lowers overall productivity.

Increased absenteeism: Employees with substance abuse issues often have higher rates of absenteeism, which leads to lower overall workforce participation and increases the burden on other employees. Those military leaders we used to report to were absent for 50% of every week.

Presenteeism: Some workers may work under the influence of substances, which leads to reduced effectiveness even when they are physically present.

2. Safety Risks

Higher accident rates: Alcohol and drugs impair coordination, decision-making, and awareness, leading to an increase in workplace accidents, particularly in industries such as construction, manufacturing, and transportation where safety is critical. In the US some statistics point to 65% workplace accidents being directly linked to drugs and alcohol.

Workplace injuries: Substance use increases the risk of injury not only to the user but also to coworkers. This is particularly concerning in safety-sensitive industries where the margin for error is small.

Legal liabilities: Employers may face legal consequences if an employee under the influence of drugs or alcohol causes an accident or injury.

3. Financial Costs

Increased workers’ compensation claims: Substance abuse leads to more workplace accidents, which results in higher insurance premiums and workers’ compensation claims.

Lost productivity: The Australian economy loses billions annually due to lost productivity associated with drug and alcohol use. Some estimates point to AUD9bn a year.

Rehabilitation and treatment: Companies may need to invest in programs to assist employees with substance abuse issues, such as Employee Assistance Programs (EAPs), drug testing, and rehabilitation.

4. Workplace Culture and Morale

Decreased morale: Substance abuse can lead to conflicts between coworkers, lower team morale, and a negative workplace culture. It can erode trust and create tensions among employees. Sadly one of those lunch time Sergeants was a man held in poor regard, carried no authority and created an environment with no direction or purpose. Even when he was in the workplace he was hungover and had his mind on other things.

Disciplinary issues: Employees with substance abuse issues may be more prone to workplace misconduct, including tardiness, inappropriate behaviour, or poor decision-making, which can lead to disciplinary actions.

Negative public perception: If substance abuse issues are prevalent in a company, it may harm its reputation, making it harder to attract and retain quality employees.

5. Health and Well-being

Mental health issues: Drug and alcohol use is often linked with mental health problems such as anxiety, depression, and stress. This can further affect employees’ overall health and ability to perform their jobs. The 2022–2023 National Drug Strategy Household Survey (NDSHS) found that, compared with adults without a mental illness, those with a mental illness were:

  • More likely to drink alcohol at risky levels (37% compared with 32%)
  • Twice as likely to smoke daily (15% compared with 7.4%)
  • 1.8 times as likely to use any illicit drug (29% compared with 16%)

Increased healthcare costs: Substance abuse often leads to chronic health conditions, increasing healthcare costs for employers, particularly in industries that provide health insurance or other benefits to employees.

6. Regulatory and Compliance Issues

Drug testing and compliance: Many Australian workplaces, especially in high-risk industries, implement drug and alcohol testing to ensure compliance with workplace safety standards and reduce the risk of accidents. These tests can be expensive and add to the cost of operations.

Work Health and Safety (WHS) obligations: Under Australia’s Work Health and Safety Act 2010, employers have a responsibility to maintain a safe work environment, and addressing substance abuse is often a part of this responsibility. Failure to manage these risks can lead to penalties.

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