healthscotland.com

Cost and benefit analysis of smoking cessation in the workplace

Summary

• Smoking in the workplace imposes a number of costs on both employers and employees.
• The purpose of this research was to examine the costs of smoking in the workplace in Scotland and the potential for encouraging smoking cessation policies.
• The four major parts of the research are: i) a literature review of the costs of workplace smoking. ii) a telephone survey of Scottish employers, iii) focus group work with six Scottish employers, iv) estimates of the cost of employee smoking in Scottish workplaces.
• The literature review identified six major categories of costs resulting from employee smoking in the workplace. i)Employees who smoke are absent from work more often than non-smokers resulting in reduced output. ii) Smokers place greater demands on health care services which results in higher insurance premiums. Insurance costs are also increased as a result of industrial fires which may result from smokers’ materials. iii) Productivity is affected by workers taking ‘smoke breaks’ or smoking ‘on the job’. iv) Passive smoking has an adverse effect on the health of non -smoking colleagues. v) In some occupations synergistic effects occur through the interaction of cigarette smoke and certain industrial chemicals. This can increase the risk of exposure to harmful materials and lead to claims for compensation for damages caused to workers’ health. vi) Cigarette smoke can also have a harmful effect on plant and machinery. Damage to wallcoverings and floors impose costs on employers, and sensitive machinery can also be seriously damaged. In addition there are costs involved when cigarette ends, ash and matches must be cleaned up.
• Estimates of the total cost of employee smoking are largely based upon studies from the USA, and these figures range from £300 to £4,500 per employee per month, depending upon the assumptions made.
• Smoking cessation policies in the workplace can help to reduce costs borne by employers. Workplace based cessation help is estimated to be 20-30% successful in stopping employees smoking which is consistent with clinic based help.
• A phone survey of 200 Scottish employers, based upon a stratified random sample, was conducted in January and February 1996 to investigate the types of smoking policy in operation.
• 26% of employers were experiencing problems with their smoking policy, including smoking in toilets and the negative corporate image portrayed when employees congregate outside the entrance to smoke.
• 29% of the firms offered cessation help to their employees, but many firms only offered cessation help for a short time, usually while introducing smoking restrictions.
• The primary reason for introducing cessation help was a concern for employees health. Employers were generally unaware, and unconcerned about, of the potential cost savings to the business.
• The cost of workplace smoking in Scotland in terms of lost productivity was estimated at approximately £293 million, with an additional £33 million from excess absence from work amongst smokers, and £81 million due to fire damage.
• The report outlines a methodology that can be applied to a business to estimate the costs of employee smoking in terms of productivity and absence from work. This methodology is then used to illustrate the cost to a hypothetical Scottish firm with 200 employees. The results show a total cost of £66,920 per annum. A smoking cessation policy with a 25% success rate could save the business a total of £16,730 per annum.
• Smoking restrictions are generally well accepted by staff, although in some companies employees did express resentment at dictatorial behaviour by management.
• Most companies were found to have little information on what cessation methods are effective or where to obtain such information. There is need for clear guidance on choosing cessation help.
• The report recommends that:

»The Health Education Board for Scotland produces guidance for companies and workplaces on the design of workplace policies.

»The Health Education Board for Scotland produces guidance for companies on how to choose and find effective cessation help. This should also highlight the potential problems which may result from each policy.

»Employers are made aware of potential savings which can result from smoking cessation programmes beyond the immediate health benefits to employees.