• The retail industry is a "total exposure" employer. Its sales force handles customers, products, and cash. Human resource issues are significant in the retail trade, and they are becoming even more so: the greatest employment gains have been in the retail and services industries.¹

• The retail industry is made up largely of small companies. Unfortunately, small companies are particularly vulnerable to workers who abuse alcohol and other drugs. A recent government survey indicated that 71 percent of illegal drug users are employed;²60 percent are with companies that employ 500 or fewer workers.³

• Small businesses may be particularly vulnerable to problems of drug abuse among their employees because drug abusers will seek work at smaller firms where the likelihood of drug testing is slim.⁴

• The retail industry traditionally draws heavily from the pool of 18- to 34-year-old job seekers, a segment of the American population that is at the heart of a nationwide increase in illegal drug use. Among young adults age 18-20, 18 percent are current illicit drug users; 12 percent of those age 21- 25 and 8 percent of those age 26-34 are also current drug users.⁵

• The future work force is also at risk for alcohol and other drug abuse. Substance abuse among American teens is increasing at an alarming rate—up 33 percent in the past year; up 78 percent in the past three years.⁶

• In the retail industry, approximately 11 percent of full-time employees admit to using illegal drugs within the past 30 days. Nearly 20 percent indicate that they have used illegal drugs sometime during the past year and almost 9 percent admit to heavy alcohol use.⁷

• Employees in specific retail industries reported the use of alcohol and other drugs at the following levels:⁸

• Substance abusers do not make good employees. A study conducted by the U.S. Postal Service of workers who had tested positive in pre-employment tests, but were hired anyway, revealed the following:

• nearly 70 percent were involuntarily discharged in less than two-and-a-half years;

• almost 60 percent were more likely to be heavy users of leave; and

• by the 33rd month, those testing positive were absent about 66 percent more often than those who had tested negative.⁹

• Many small retail businesses have looked closely at the cost of substance abuse in their workplaces versus the cost of setting up a prevention program. A partner in a Los Angeles law firm told dealers at a National Automotive Dealers Association conference, "You have a choice; You obviously don't need to [put a drug policy in place]. The question is, what are the costs for a company not having a policy? If you put a dollar figure on what it costs you in terms of one workers' compensation injury, that could be worth about $40,000.¹⁰

• Some sectors of the food service industry have experienced the benefits of workplace substance abuse programs. According to a survey of 400 Hardee's fast-food establishments, 23 percent said they had initiated substance abuse prevention programs. Of those, 57 percent reported a positive financial impact, including reduced employee turnover and absenteeism.¹¹

• From large international corporations to relatively small establishments, more and more retail companies are implementing and maintaining substance abuse programs to ensure that their work forces are productive, their workplaces are safe, and the success of their businesses are not hindered by substance abuse.

• Available from Working Partners are sample case studies of retailers that have effectively addressed workplace substance abuse.

Company Success Stories

Grand Prize Retailer of the Year Puts Employees First With Caring EAP

Capitol Ford

Southern Lincoln-Mercury

Kwik King

Endnotes:

¹SBA Report to the President, 1994.

²1995 National Household Survey on Drug Abuse, U.S. Department of Health & Human Services, 1996.

³Drug Strategies, Washington, D.C., 1996.

⁴"Mangan, D. "An Rx for Drug Abuse." Small Business Reports 17, no. 5 (May 1993):1,32.

⁵1995 National Household Survey, 1996.

⁶Ibid.

⁷"Drug Use Among U.S. Workers: Prevalence and Trends By Occupation and Industry Categories," U.S. Department of Health & Human Services, 1996.

⁸Ibid.

⁹"An Empirical Evaluation of Pre-Employment Drug Testing in the United States Postal Service: Interim Report on Findings," Drugs in the Workplace: Research and Evaluation Data. National Institute on Drug Abuse, 1989.

¹⁰"Mooney, M. "Drugs in the Workplace." Automotive Executive (September 1991): 27-28.

¹¹Boddie-Noell Enterprises. "Just Say No" Survey. Rocky Mount, North Carolina, 1990.