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Drug-Free Workplace in the Age of Marijuana

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Advocates for the legalization of medical marijuana have had a busy year. Three states–Maryland, Minnesota and New York–passed legislation this year, while Florida, Ohio and Pennsylvania have pending legislation or ballot proposals. Additionally, in two states, Colorado and Washington, voters have approved recreational marijuana in addition to medical marijuana, with the issue pending in Oregon and Alaska.

These measures have prompted many employers to ask if there is growing societal acceptance of marijuana and other drugs and should they expect a possible increase in employees using drugs on the job.

New data suggests the answer to both of those questions may be yes. An analysis from Quest Diagnostics, which provides workplace drug testing to private and public employers, found that in 2013, the percentage of employees that tested positive for drugs increased for the first time in 10 years, fueled by a rise in marijuana and amphetamines. The analysis involved 8.5 million urine, oral fluid and hair workplace drug tests in the United States.

The cost of substance abuse, including alcohol, on businesses, in terms of employee absenteeism, occupational injury, and impaired reasoning and reaction time, is significant–more than 6 billion annually by some estimates.

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A survey sponsored by the National Institute on Drug Abuse found that drug-using employees are 2.

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5 times more likely to have absences of eight days or more, 2.2 times more likely to request early dismissal or time off, 3 times more likely to be late for work, and 5 times more likely to file a workers compensation claim.

As a result, most businesses have comprehensive drug-free workplace programs in place, and 57% of American businesses required all job candidates to pass a drug test in 2011, according to the Society for Human Resource Management. Due in part to these workplace efforts, substance abuse by workers subject to testing declined incrementally over the past decade, giving hope that the epidemic of drug use and misuse was abating.

But the Quest Diagnostics report suggests those gains may be reversing. The positivity rate for 7.6 million urine drug tests in the U.S. workforce increased 5.7% in 2013 over 2012 rates, the first time the positivity rate for combined national workplace urine drug tests has increased since 2003.

As human resources executives work to implement and maintain drug-free workplaces, additional findings in the analysis offer valuable insights into current trends in workforce drug use:

  • Marijuana continues to be the most commonly detected illicit drug, according to the Quest Diagnostics analysis of urine drug tests. Marijuana positivity in the combined U.
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    S. workforce increased 6.2%, to 1.7% in 2013 compared to 1.6% in 2012. These increased positivity rates are consistent with findings from the 2012 National Survey on Drug Use and Health (NSDUH), which showed an increase in self-reported past-month marijuana use between 2007 and 2012–both among those respondents subject to employer drug testing and those not subject to such testing.

  • Amphetamines positivity continues to increase, continuing a multi-year trend. Combined U.S. workforce data in urine showed a 10% year-over-year increase in amphetamines positivity in 2013 compared to 2012. Of note in the U.S. general workforce, methamphetamine positivity in urine drug tests increased 27%; oral fluid methamphetamine positivity increased by 50%, and the positivity rate in hair testing jumped by 55%, suggesting that the higher incidence of methamphetamine identification in drug seizures by law enforcement is starting to be reflected in workplace testing. Amphetamines positivity rates are now at their highest levels on record and methamphetamine positivity rates are at their highest levels since 2007, across all specimen types.
  • Oxycodones positivity declined for the second consecutive year. Although the rate of opioid prescribing–the amount of opioids distributed and the average prescription size–all increased markedly in the United States over the past decade, the Quest Diagnostics Drug Testing Index report showed oxycodones positivity declined 8.3% between 2013 and 2012 and 12.7% between 2012 and 2011 in the combined U.S. workforce. Four states experienced double-digit declines in oxycodones positivity rates in both 2013 and 2012: Florida, Massachusetts, New Jersey and Ohio. Hydrocodone positivity remained at 1.3% between 2012 and 2013.
  • Despite double-digit increases in marijuana positivity in the two states with “recreational” use laws–Colorado and Washington–analysts at Quest Diagnostics cautioned that it is too early to tell whether the new statutes are correlated with increased positivity. Marijuana positivity rates in Colorado and Washington increased 20 and 23%, respectively, in the general workforce between 2012 and 2013, compared to the 5% average increase among the U.S. general workforce in all 50 states. However, both Colorado and Washington experienced dramatic increases and declines in marijuana positivity rates in the years prior to legalization, suggesting that multiple dynamics are affecting testing results in both states.
  • While the Quest Diagnostics Drug Testing Index report indicates that workforce drug use increased last year, HR managers have a variety of tools at their disposal to ensure safe and healthy workplaces, including vigilant oversight, strong zero-tolerance employment policies, employee drug screening, stigma-free mental health counseling and employee assistance programs. Preventing substance abuse in the workplace keeps employees safer and healthier, and leads to higher productivity, lower costs and a healthier bottom line.

Executive Focus Shifting to Operational Risks in 2015, Study Finds

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Board members and C-suite executives across industries perceive the global business environment in 2015 as somewhat less risky for organizations than in the past two years. In “Executive Perspectives on Top Risks for 2015,” consulting firm Protiviti and the Enterprise Risk Management Initiative at the North Carolina State Univeristy Poole College of Management found that this is far from bad news for risk managers, as organizations are actually more likely to invest additional resources for risk management. Internal challenges like succession, attracting and retaining talent, regulation and cybersecurity are drawing the most attention, according to the report.

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“Our survey findings indicate that operational risk issues are keeping many senior executives up at night,” said Mark Beasley, Deloitte Professor of Enterprise Risk Management and NC State ERM Initiative director. Indeed, for the third consecutive year, regulatory changes and heightened regulatory scrutiny ranked as the number one risk on the minds of board members and corporate executives, with 67% indicating that it will “significantly impact” their organizations. More than half of global survey respondents indicated that insufficient preparation to manage cybersecurity threats is a risk that will “significantly impact” their organizations in 2015, pushing cyberrisk up three spots from last year to the third-greatest risk.

The Top 10 Risks for 2015

The top 10 risks identified in the annual risk survey, along with the percentages of respondents who identified each risk as having a “Significant Impact” on their business, were:

1. Regulatory changes and heightened regulatory scrutiny may affect the manner in which our products or services will be produced or delivered (67%)

2. Economic conditions in markets we currently serve may significantly restrict growth opportunities for our organization (56%)

3. Our organization may not be sufficiently prepared to manage cyber threats that have the potential to significantly disrupt our core operations and/or damage our brand (53%)

4. Our organization’s succession challenges and ability to attract and retain top talent may limit our ability to achieve operational targets (56%)

5. Our organization’s culture may not sufficiently encourage the timely identification and escalation of risk issues that have the potential to significantly affect our core operations and achievement of strategic objectives (51%)

6. Resistance to change may restrict our organization from making necessary adjustments to the business model and core operations (49%)

7. Ensuring privacy/identity management and information security/system protection may require significant resources for us (52%)

8. Our organization may not be sufficiently prepared to manage an unexpected crisis significantly impacting our reputation (46%)

9. Sustaining customer loyalty and retention may be increasingly difficult due to evolving customer preferences and/or demographic shifts in our existing customer base (48%)

10. Our existing operations may not be able to meet performance expectations related to quality, time to market, cost and innovation as well as our competitors (46%)

The survey also identified differing perceptions of the current risk environment between boards of directors and members of the executive team. CEOs and boards of directors reported more optimism about risk issues, while CFOs and chief audit executives perceived a more risky business environment.

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“Given encouraging signs in the economy, we’ve observed an overall shift in focus from macroeconomic risks to operational risks, which had the greatest increase in risk scores from 2014.

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Notably, however, CEO respondents remained extremely focused on macro trends affecting their business,” Beasley said.

Check out the infographic below for more of the study’s key findings:

Protiviti Top Risks for 2015

Tenn. Legislators Introduce Workers Comp Option Bill

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A bill that would give companies in Tennessee a free market alternative to state-mandated workers compensation insurance was introduced yesterday by Sen. Mark Green (R-Clarksville), a physician and vice-chair of the Senate Commerce and Labor Committee, and Rep. Jeremy Durham (R-Franklin), House Majority Whip.

The Tennessee Option draws from the best practices of Texas nonsubscription and the Oklahoma Option, according to the Association for Responsible Alternatives to Workers’ Compensation (ARAWC). The Option is designed to provide Tennessee employers an alternative for funding and responding to occupational injuries while still protecting employees and their families. The key components are employee accountability, medical management, employee-employer engagement, and free-market competition.

“The core focus of the Tennessee Option is to help injured employees get back to work faster,” Sen. Green said in a statement. “Making that happen requires good benefits, strong communication, and will lead to higher employee satisfaction. An Option will also give job creators a way to save more than 50% on workers’ comp costs, so they can invest in growth and more employees.”

ARAWC spokesman, Brent Buchanan told the Monitor that the bill has been in the works for about six months and the next step is a committee hearing. Because of its strong sponsorship, there is a good chance it will pass this legislative session, he said.

Janine Kral, president of ARAWC and vice president of risk management at Nordstrom said in a statement, “The Tennessee Option is a local effort driven by the bill sponsors with the support of Tennessee employers and associations. ARAWC will serve as a resource to this local group that is focused on providing a free-market alternative to workers’ compensation insurance.”

Oklahoma passed Option legislation in 2013. Texas has allowed alternative injury benefit programs for more than 100 years, ARAWC said, adding that Texas employers using the Option have saved billions of dollars while increasing return-to-work rates.

According to ARAWC:

Private employers can elect the Tennessee Option. Current Tennessee law allows cities, counties and school districts to opt out of the workers compensation system and several have elected to do so. Tennessee law already exempts employers with less than five employees from the requirement to provide workers compensation insurance. The Tennessee Option legislation will not amend those current exemptions. The Option will not be available to construction or coal mining companies due to their unique industry requirements.

By removing various third parties from between the true stakeholders – employees and employers – the Tennessee Option will encourage more collaboration between the parties. At least a mandated level of benefits must be paid. Many Option employers will pay higher wage replacement benefits than workers’ compensation. The employer must prove that financial security is available to pay the benefits, and a guaranty fund will be established. Stringent appeal rights are included in the Option to provide employees due process. Due to disclosure requirements, employees in an Option will be more aware of their injury benefits and the processes for procuring them. And more employee accountability will lead to better medical outcomes, which is good for all parties.

 

Creating a Meaningful Code of Conduct

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Codes of conduct have gone from a “nice-to-have” item to a corporate standard and even legal requirement for many businesses. Unfortunately, when creating their codes many companies focus solely on satisfying the legal requirements.

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Consequently, their codes are bogged down with complex legal jargon and company rules. These codes fail to make a meaningful connection between the organization’s objectives and its ethics and compliance management, and as a result, remain largely ineffective.

However, leading firms see the code of conduct as an opportunity to communicate and drive company values and expectations. They view the code as a tool for promoting a more ethical company culture. But making a truly effective and engaging code of conduct is easier said than done. Below are some best practices for creating a more meaningful code.

Content and Readability

No one wants to read a list of “thou shalt nots.” Instead, center your code’s content around issues employees face on a day-to-day basis and the organization’s values. Try presenting information by high-level topics or behaviors instead of by law. Also keep in mind that the code should relay high-level principles, not detailed operational guidelines.

Similarly, ditch the legal jargon and write in a clear, concise language that employees will understand. The tone should reflect your organizational culture and employee demographics. Remember that the code is there to help employees make the right ethical decisions, so make sure there are no grey areas.

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Presentation and Accessibility

Although strong and clear-cut content is essential, the code’s presentation and accessibility are equally so. Interesting, eye-catching design can dramatically improve your code’s usability and retention. Try using a mix of various design techniques like call-out boxes to highlight essential information, pull-quotes for added emphasis, and company-specific question and answer sections that ensure employees know how to apply the code’s guidance.

If you haven’t already, transform the print version of your code into an interactive, digital version. Incorporate multimedia, interactive elements such as video, quizzes, games, etc. directly into your digital code. These elements not only break up written content, but they also help bring concepts to life and promote retention. Consider requiring employees to complete these activities as a way to blur the lines between your code and training. Additionally, many digital programs can easily capture and analyze user data, which can assist in measuring and proving your code’s effectiveness.

It is also easier for users to search for topics in a digital version than it is a print version. Make access to other compliance resources just as easy by inserting one-click links to more detailed company policies, reporting tools and contact information. Going digital also makes it possible for employees to access your code of conduct from anywhere at any time. Provide employees with a direct link to the code from the company intranet.

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If a considerable amount of the company workforce travels often or works on tablet devices, you may want to consider creating a mobile-friendly version of the code.

Be mindful of local laws and cultures that may vary in your areas of operation. If your organization is international, be sure to provide a localized version of the code that is in the native language, sensitive of cultural differences and reflects country-specific information, legislation and regulations. Sometimes company practices and standards of behavior may be inconsistent with practices of that local culture. In these cases, additional explanations may be needed for proper guidance.

Soliciting Feedback and Certification

Adding code certification tracking gives an added layer of due diligence, allowing an organization to verify the receipt and review of the code by every employee. Afterwards, gather feedback to find out what aspects or areas of the code resonated with them and what areas could be improved or clarified. Identify common questions employees still have and address them in the next update.

Making changes based off employee comments will help make your code as effective and engaging as possible. However, it is also important to periodically update your code of conduct to reflect changes in the work environment and regulation requirements.

Companies that create a code of conduct only to satisfy a legal requirement will not gain much value. However, those that take the time to create an engaging code that drives company values and expectations will reap the benefits.