The real cost of impairment at work
Why drug and alcohol testing can save you money
Impairment in the workplace from alcohol and/or drugs can carry a significant financial and non-financial cost. For Australian businesses, the impact goes far beyond the individual. That’s why proactive drug and alcohol testing is not just a compliance measure; it’s a smart business move.
Alcohol and drug use affects more than just the health of the employee. It can compromise concentration, reaction time, judgment, and coordination which are essential in any role, but particularly critical in safety-sensitive industries like transport, construction, healthcare and manufacturing. For employers, this translates to increased risk of accidents, near misses, and serious injury.
The financial cost is equally concerning. A 2023 report by the National Drug and Alcohol Research Centre estimated that workplace alcohol and drug misuse costs Australian businesses billions annually in lost productivity, absenteeism, and turnover. There’s also the hidden costs of reputational damage, regulatory penalties and increased workers compensation claims to take into consideration.
Drugs in the workplace
Our data shows that there is a surprisingly high amount of methamphetamine used in Australian workplaces.
Illicit and prescription drug use can seriously compromise an employee’s ability to perform safely and effectively. Stimulants like methamphetamine may increase alertness in the short term but often lead to unpredictable behaviour, fatigue, and impaired decision-making.
Depressants such as opioids and benzodiazepines can slow reaction times and reduce concentration, which creates significant risk in high-hazard environments (such as construction sites, mining operations, transport and logistics, aviation, manufacturing plants, and healthcare settings). Even cannabis, which is now legally prescribed in some cases, can cause impairment for hours after use. The effects are not always visible, making
regular and random drug testing a vital part of any workplace safety strategy.
Employers should also be aware that misuse of legally obtained medications can be just as dangerous as illegal drug use. Drug testing provides a reliable way to detect and manage these risks before they result in incidents or injury.
Alcohol in the workplace
Alcohol remains one of the most widely used and socially accepted substances in Australia but its impact on the workplace can be far from harmless. In the past year,’…one in 37 Australian workers have worked under the influence of alcohol.’
Even low levels of alcohol can impair coordination, judgement, and decision-making. In safety-sensitive roles, this can lead to dangerous errors, equipment misuse, or failure to follow protocols. 11% of workplace accidents has been due to alcohol use.
What’s alarming is that ‘…a third of Australian workers have experienced negative effects from a colleague’s use of alcohol.’
The effects of alcohol also extend beyond the day of drinking. Hangovers can significantly reduce productivity, increase absenteeism, and contribute to presenteeism (this is where employees are physically present but not functioning effectively). It costs Australia nearly $4 billion each year in lost productivity due to absenteeism.
What can your workplace do about it?
Routine alcohol testing, especially in safety-critical industries, helps employers manage risk and maintain standards. But not just standards, a safer and healthier workplace for all. Clear policies around alcohol and drug use, especially during work-related social events or functions, are also highly recommended in setting expectations and promoting a culture of responsibility.
Implementing a structured drug and alcohol testing program is one of the most effective ways to identify and manage impairment risks. This can be done through pre-employment screening, random testing or post-incident assessments, regular testing serves both as a deterrent and a safeguard. It can help employers detect issues early, support affected employees, and ensure a safer work environment for everyone.
Importantly, drug and alcohol testing doesn’t need to be punitive. Framing it as part of a broader health and safety strategy can help build trust and cooperation among employees. When combined with clear policies, training, and access to employee assistance and wellbeing programs, drug and alcohol testing can contribute to a workplace culture that prioritises health and accountability.
At the end of the day, drug and alcohol testing helps save money and improve safety. By investing in a proactive approach, businesses can reduce incidents, protect their people, and support long-term productivity. In today’s competitive and regulated environment, it’s not just the right thing to do—it’s the smart thing to do.