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Substance abuse is costing companies dearly: Here’s what they can do about it

Substance abuse wrecks lives and destroys families. But what many don’t consider is the impact it has in the workplace. The intellectual, emotional, and behavioural impairment that results from drug or alcohol use affects productivity, morale, and the safety of co-workers.
Substance abuse is costing companies dearly: Here’s what they can do about it

Studies conducted by the International Labour Organisation (ILO) on the abuse of alcohol and drugs in the workplace have revealed some concerning statistics:

  • Absenteeism of employees with alcohol and drug problems was three times higher than for other employees.
  • Employees with chemical dependence problems claimed sick benefits three times more than other employees and made compensation claims five times more than other employees.
  • 20% to 25% of injuries in the workplace involved employees under the influence of alcohol, and
  • Drugs and alcohol supplied at work amounts to 15% to 30% of all accidents at work.

These impacts translate to costs to companies, and they can be significant. A US National Safety Council survey found that, on average, employees with untreated substance use disorders cost employers more than R165 000 per worker each year.

So, what can companies do to help employees with substance misuse problems while also helping themselves mitigate costs?

Siobhan Alford, hospital manager at Harmony Addiction and Psychiatric Clinic Cape Town says that, ideally, employers should strive to create a supportive workplace environment that discourages substance misuse, reduces stigma, and encourages treatment and sustained recovery. ‘It's equally important to offer programmes that support those employees suffering from addiction. In the workplace context, this would include offering employee assistance programmes (EAPs), which are work-based initiatives that offer free and confidential assessments, in or out-patient programmes at a registered addiction facility, referrals, and follow-up services to employees.

Alford explains that, as a registered and certified addiction clinic, Harmony works alongside EAPs in multiple organisations. ‘Substance abuse is not selective – we treat people from all industries, demographics and income brackets. However, in our experience, there does appear to be a higher risk in the hospitality, education, and police services.’

Employees referred to Harmony undergo a comprehensive admission process, which includes the necessary scans and tests, and interviews with and assessments by an interdisciplinary team. Based on these findings, patients are admitted for either an inpatient or outpatient programme, depending on their unique needs. ‘For many people, recovery programmes are unreachable due to the perceived high cost of inpatient care in particular,’ says Alford. ‘This is because most people aren’t aware that the treatment and programmes offered at facilities like Harmony are fully covered by most South African medical aids. Which is good news for the patient, and for the companies referring them, as they don’t need to budget for the treatment these employees so desperately need.’

Patients undergo a detox process in Harmony’s highly specialised detox unit – one of a handful in South Africa that offers a medically managed detox with 24-hour care – while embarking on a comprehensive recovery programme. This programme encompasses a 12-step recovery programme, one-on-one and group therapy sessions, and holistic therapies. Patients are also introduced to mindfulness through meditation, daily beach walks and mountain hikes. Patients are supported by a broad and diverse team including psychiatrists, psychologists, experienced detox GP’s, occupational therapists, addiction counsellors, social workers and registered nurses.

Alford says that Harmony is a dual diagnosis facility, which is a critical success factor because these facilities help clients to live a much-improved life without the constant fear of failure. This is because dual diagnosis recognises that clients invariably have more than one disorder needing treatment at the same time. "Addiction is often linked to trauma, while substance abuse over the long term can lead to mental illness because of how the drugs alter brain function and response. It is vital that each illness is treated in conjunction with each other as one will always impact the other."

"Effective treatment of substance abuse disorders and addictive behaviours do not end when the patient walks out of the door," adds Alford. "Which is why our therapists and clients work together to develop a continuous care programme that connects them with support groups and other resources within and outside Harmony. We also find the best chance of success comes from a work environment that provides workplace accommodations and other return-to-work assistance, and promotes a work culture that is supportive of individuals in recovery."

From medically managed detox and inpatient treatment to trauma-informed therapy at Harmony Clinic and Ixande, acute psychiatric support at Palm Tree Clinic, and structured sober living through The Living House, our integrated services are designed to meet individuals wherever they are in their recovery journey. At Harmony Health Care Group, we don’t just treat patients – we restore hope, dignity, and a future. Your journey to recovery begins with us.

Harmony Clinic
Harmony Clinic is a rehab facility in Hout Bay offering personalised, holistic addiction treatment in a peaceful, restorative setting to support lasting recovery and overall well-being.
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