Staff who smoke cost companies thousands of euro more to employ. That is according to new research featured in the British Medical Journal. It shows that an average employee who smokes costs around €4,600 more a year than a non-smoker due to time off, smoking breaks and healthcare costs.
The research has been published online by US researchers in the Tobacco Control journal and found that several factors result in a greater cost to the employer for having a smoker on staff.
Previous studies have found that smoking by employees costs businesses money because of productivity losses and medical expenditures.
Now a team of researchers from the College of Public Health at the Ohio State University set out to calculate a more precise excess financial cost for private employers to have an employee who smokes compared to a non-smoking member of staff.
The researchers reviewed and analysed previous studies on the subject to estimate certain discrete costs associated with smoking employees.
They then developed a cost estimation approach that estimates the total of such costs for employers and examined absenteeism, presenteesim (lower productivity while working because of nicotine addiction), smoking breaks, healthcare costs and pension benefits for smokers.
Calculations showed that low productivity due to excess absenteeism costs employers on average €400 a year per smoking employee, smoking breaks cost €2,300 and excess healthcare came in at €1,600.
It is hoped this research can help inform workplace tobacco policies for such companies.
Less pension costs
Previous studies have found that smoking by employees costs businesses money because of productivity losses and medical expenditures, but estimates have been vague and did not distinguish between costs borne by employers and those absorbed by others - the smokers themselves, insurance companies, or taxpayers.
In addition, because smokers tend to die at a younger age than non-smokers, annual pension costs were an average of €226 less for an employee who smoked. The total estimated additional cost to the employer came to €4,445 per year.
The researchers concluded "Employees who smoke impose significant excess costs on private employers. The results of this study may help inform employer decisions about tobacco-related policies. It is important to remember that the costs imposed by tobacco use are not simply financial costs".
"It is not possible to put a price on the lost lives and the human suffering caused by smoking. The desire to help one's employees lead healthier and longer lives should provide an additional impetus for employers to work towards eliminating tobacco from the workplace" they said.
