In the current business climate, it's not only common to hold meetings in bars, it's common to see bars in business offices.
It seems that alcohol and business go hand in hand — but do the numbers add up? What are the hidden costs of our alcohol-centric business culture? What is the financial toll on these organizations and their employees?
We decided to take a closer look.
Many business deals have been struck with a drink in hand. Advertising agencies pride themselves on their drinking culture, which are often fueled by free booze from the accounts they represent.
From magazines to law practices and accounting firms, happy hour is an institution among the staff. Do alcohol and business really mix, though? Or does it actually dig into profits and productivity?
The numbers don't lie
As we dug into the research and data compiled over the years, the effect of alcohol on businesses was startling.
The impact of a corporate drinking culture is far greater than we had even imagined. It can be ignored no longer: alcohol contributes to a litany of financial fallouts.
Increased risk of injury and death
Based on numbers from the Occupational Safety & Health Administration (OSHA), over 74% of heavy alcohol users hold regular jobs. In approximately 10% of the cases where employees were involved in deadly accidents at work, the victim tested positive for drugs or alcohol.
Employees impaired by drugs or alcohol are 3.6 times more likely to be involved in workplace accidents and five times more likely to file a workers' compensation claim.
This leads to increased costs to the business in the form of higher insurance premiums, retaining legal representation, and hiring additional personnel to compensate for the losses.
Absenteeism and tardiness
Alcohol use also contributes to an increase in missed days at work or tardiness. This costs organizations business due to missed deadlines, lackluster performance and a loss of credibility with clients.
How much more work do drinkers miss? Heavy alcohol users tend to be absent from work 3.8 to 8.3 times more often than typical employees.
The financial toll isn't limited to heavy drinkers, though. Even those who only imbibe occasionally contribute to missed days and tardiness. They cause 60% of late arrivals, absenteeism and poor work performances.
Lost productivity
Workers who are impaired or suffering from the after-effects of a night of drinking — namely, a hangover — contribute to what could be the most significant cost to companies.
Lost productivity costs organizations nearly $90 billion annually. Lack of concentration, fatigue, mental slowness and feeling physically unwell are all contributors to poor productivity.
Employee morale and relations
Employees who drink tend to pull down or butt heads with those around them. They are more likely to be negative, depressed and aggressive, leading to an increase in workplace conflicts.
No one likes to have a team member who is always the black cloud in the room, or who is unable to conduct a conversation without arguing. These people not only lead to low employee morale, but can also contribute to high employee turnover due to unfavorable work environments — both by the difficult employee and those who work with them.
Administrative costs
Employee alcohol use also incurs administrative costs through time spent on disciplinary procedures, increased usage of health benefits leading to higher premiums for the company and its employees, and, for those companies that support it, the cost of the alcohol that they themselves provide.
If the numbers don't lie and alcohol costs the economy over $200 billion dollars annually, why do we still insist that alcohol and business mix well?
What can we do to downplay its role in organizations? How can we better support and encourage employees to be successful without it?
First and foremost:
Don't provide the alcohol. Stop allowing alcohol at company functions or on expense reports.
If questioned, companies can assert that it is part of a health and wellness initiative. Downplaying the role of alcohol in the organization demonstrates that the business is concerned with the welfare of its employees and clients.
For clients who expect alcohol to be provided, host breakfast meetings or choose meeting locations that don't serve alcohol. By not endorsing the use of alcohol, organizations will send a distinct message about its place in the company.
Share the burden. There's no denying that workplaces lead to stress. Employees want to be successful and they feel the pressure to perform.
If the only option a company offers for employees to let off steam is Happy Hour or Friday Afternoon Club, then that's what employees will choose.
With alcohol removed from the budget, companies can look at redirecting those funds to healthier stress relievers like yoga classes, a running club, gym memberships or in-office massages.
Offer support. If employees do have a problem with alcohol, organizations need to have a support plan in place.
Regularly let employees know about the resources available to them, such as employee assistance programs, mentors or paid time off. Their success at overcoming heavy alcohol use is more likely if they do not have the added stress of losing employment on their mind.
Alcohol and business have no business being together. Companies will be pleasantly surprised to see the increase in the bottom line once corporate-sponsored alcohol use is replaced by healthier, better options for their workforce.
Annie Grace is the author of “This Naked Mind: Control Alcohol, Find Freedom, Discover Happiness & Change Your Life.” Learn more at: thisnakedmind.com. Connect with Annie on Twitter.com and Facebook.com.
Read originally published article here: http://nydn.us/2ePTcW1
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