BEST PRACTICES BY TIM THOELECKE, INOUT LABS What Is the Cost of a Bad Hire?


Thirty Percent. In today’s world, where the news is saturated with stories of fentanyl overdoses, opioid addiction, exploding meth labs and legal marijuana, much of the public is numbed to the problems associated with drugs in the workplace.


As of this writing, the national unemployment rate is the lowest in decades and employers are tempted to lower their standards just to find warm bodies to employ. Relying on drug use as a disqualifying factor for someone who otherwise meets employment criteria has become a frustration for some employers. Many need a reminder of why they drug test in the first place.


The following is a recent newsletter/ blog post that received a lot of positive feedback. Perhaps you can use parts of it in your messaging as well.


H


iring the wrong employee costs at least 30 percent of the employee’s first-year earnings. But the true


cost of a bad hire is more than financial. Some costs are measurable, but collateral damage like lost productivity, reduced efficiency, damaged morale, and lack of employee engagement caused by a bad hire are immeasurable.


What IS a bad hire? A bad hire is an employee who is unfit for the position for which he is hired. It could be because the person lied about his qualifications, has a relevant criminal background, is a cultural misfit, or worse still, causes health and safety concerns resulting from substance abuse. Hiring the wrong individual—


whatever the reason—can result in theſt, embezzlement, sexual harassment, violence, lost productivity, and absences. And, of course, your other employees are affected, too. When you discover you hired the


wrong person, the stress and disruption of the situation affects your own well- being. Termination is no fun, and then you have to hire and replace—and then train the replacement. Te more you do to vet a new hire, the


lower your chances of making a mistake. Many problems can be avoided by not


hiring drug abusers. Consider these alarming numbers


regarding substance abuse and the workplace: • Failed workplace drug tests are at a 12-year high.


• 9% of illicit drug users are employed and active in the workplace.


• Te National Council on Alcoholism and Drug Dependence (NCADD) finds that


drug abuse costs employers an estimated $81 billion a year. $81 BILLION!


Some signs of possible substance abuse: • Consistently poor performance • Frequent absences and tardiness • Frequent small accidents that result in injuries or damage


• Health problems that your health plan may get to pay for Tese all cost companies money. And


the stakes are even higher if your business is subject to mandated drug-testing requirements, such as those regulated by the U.S. Department of Transportation. If you hire a truck driver, for example, not only are you required to perform a pre-employment drug test, but you are also required to inquire about that driver’s drug- testing history. If you hire a regulated employee who


failed a drug or alcohol test in the past, and has not completed the return-to-duty process, you are responsible for making sure he completes that process, or you could face DOT fines of tens of thousands of dollars. Many employers reduce risk with


background checks and drug tests. Background checks and pre-employment


drug testing are the standard for most employers. Employers can mitigate the risks and costs of substance abuse in the workplace, and achieve compliance with industry regulations, by conducting drug testing as part of their employment screening process. By partnering with an experienced drug-


testing provider, employers benefit from professional expertise and resources to help them effectively implement the screening process and promote non-discriminatory random testing.


18


datia focus


summer 2018


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