Issue 1 : Sept, 2006  

Improving health boosts productivity and bottom line results! 

Research carried out by 2Europe has found that organisations are slow on the upturn to reduce increasing health insurance costs for employees. Smoking, other addictions, excessive weight and insufficient exercise are cited as contributors to high-risk healthcare insurance. There is also an impact on company profitability. 

For example, incidence of employee smoking increases as one progresses north with just in excess of 20% smoking in the SE, which increases to over 30% in the Midlands through to nearly 50% as we progress to parts of the North. Smokers take an average of 40 minutes of smoking breaks a day resulting in 1 lost month of productivity per year.....

	The Research Solutions Company
	Impact of Smoking on the Business

When we consider the impact of smoking on a business we need to consider three key areas of profitability, health of all employees and other people who visit our premises and company image.
Profitability is a major concern for all organisations that employ smokers:

• 34 million working days are lost to British industry each year due to smoking related sick leave. After all, there are over 50 diseases associated with smoking, so the habit provides a lot of opportunities for sick leave. The cost to the employer is not just on sick pay but also lost productivity and output.
• Professor Konrad Jamrozik of Imperial College London has estimated that exposure to second hand smoke in the workplace causes around 617 premature deaths in the UK each year.
• The average smoker takes 40 minutes per day for smoking breaks – that’s a whole month for smoking breaks each year (losing over £2,000 / year on a salary of £25,000 per annum)
• A Canadian study (Health Canada, Smoking and the bottom line, Canada, 1997) showed that the average annual reduction in productivity per employee who smokes is £1,085, increased absenteeism costs £115, additional insurance £37, and smoking areas cost £42 (figures that have significantly inflated over the last 10 years).

The cost of supporting a smoking environment is significant and many companies fail to realise how this impacts the bottom line:

• Smoking breaks cause interruptions to work flow and can account for one lost day per week.
• Smokers introduce additional costs for cleaning and redecorating.
• Cost of space for smoking rooms if used.
• Special ventilation is required if smoking rooms are used.
• Increased premiums for health and fire insurance with up to 14% of medical costs related to smoking.
• Increased litigation risks.

Legislation is now in place to prohibit smoking in workplaces in England during 2007. However, Wales, Scotland and Ireland have already banned smoking in all indoor public workplaces.

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	The Research Solutions Company
	Impact of Smoking on employees

13 million adults still smoke in the UK and whilst the overall trends show the number of smokers are declining, there is a large incidence of smoking amongst younger people. 1 in 2 of these smokers die of smoking related illnesses.

Staff morale amongst non-smokers is an issue as they consider they receive fewer breaks and have to cover for the time lost by smokers. Smokers take an average of 40 minutes each day to feed their habit and that accumulates to a working month off each year for smoking breaks. This often causes resentment towards smoker colleagues. 86% of all employees and interestingly 73% of smokers believe that smoking should be restricted at work (Lader D. and Meltzer H. Smoking related behaviour and attitudes. Office for National Statistics 2001).

Smoking affects employees on several levels as summarised below, any one of which can impact their performance at work.

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	The Research Solutions Company
	Benefits of Stopping Smoking

Corporate Benefits

Any organisation that introduces a support programme for smokers as well as initiating a no smoking policy is likely to experience significant gains in productivity and workplace attendance. These gains far outweigh the costs of any smoking cessation programme and include:

• Reduced employee sick days due to heart disease, lung cancer, aggravation of asthma, decreased coughing, and reduction of respiratory complaints.
• An additional month of work per year from smokers (or an average of about £2,000 per year per employee).
• The supportive attitude to employee welfare stimulates reciprocal positive attitudes from employees and this helps smoker morale.
• 71% of smokers want to quit (Lader D. and Meltzer H. Smoking related behaviour and attitudes. Office for National Statistics 2001) and this goal is easier for them if their employer creates a smoke free environment and particularly if the employer introduces a smoke cessation programme.
• Without the introduction of a support programme, less than 10% of employees are expected to quit (2Europe Limited, 2006)
• Recognition amongst non–smokers that they will also benefit from elimination of passive smoking and seeing increased productivity from the new non-smoking colleagues improves the moral of non-smokers.
• Creates the corporate image of a caring organisation and this opens doors with environmentally concerned customers.
• Improved company image (both internally and externally) and possible incremental business from organisations that are environmentally aware.
• Reduced risk of future legislation.

Employee Benefits

The most common reasons given for the lifestyle change to stop smoking are:-

• Received a severe medical warning.
• Improved health and wellbeing.
• Improved prospects of a long life.
• Improved physical appearance.
• Improved job prospects.
• Wanting to regain control and not be dependent on cigarettes.
• Improved chances of a new relationship or marriage.
• Improved chances of becoming pregnant.
• Improved sex drive and performance.
• Improved job / career prospects.
• Compliance with no smoking regulations.
• Setting a good example to children.
• Being more socially responsible.

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	The Research Solutions Company
	Introducing a Smoking Cessation Programme

Smoking policies (according to ASH) are not about whether or not people smoke, but about when and where they smoke and whether their smoke affects others. Smoking in the workplace needs to be tackled like any other management challenge. The introduction of a stop smoking programme to a company smoking policy requires clear guidelines for all parties involved and we suggest a 5-stage process to establish this:-

Employee Feedback – Pre Stage

Carry out an internal survey amongst employees to clearly establish the impact of smoking on the company (one example is shown), attitudes and opinions of both smokers and non-smokers, together with opinions (if applicable) of unions, customers and suppliers.

This survey provides a benchmark to assess the scale of the opportunities to be gained from the introduction of any stop smoking programme and also provides a yardstick against which to measure the future gains. A second analysis should establish the hard employee facts such as sick days for both smokers and non smokers.

Establish Dialogue With Employees

The survey is the starting point and the findings from this and the proposed
course of action are often discussed with employees in order to ensure recommendations meet the needs of both the company and the employees. It is normal to set up a working party with representatives of both smoker and non-smoker employees. When introducing a stop smoking programme to the smokinpolicy framework it has to be remembered that we need to comply with Section 49 of the Employment Protection (Consolidation) Act 1978, which specifies that 12 weeks notice is required of changes to working conditions.

Finalise The Stop Smoking Programme

The introduction of any stop smoking programme requires changes to the smoking policy and this is likely to go through a few iterations before it is acceptable to all parties. This time is well spent if later problems are to be avoided. The policy will be designed to comply with Section 2(2)(e) of the Hand Safety at Work ETC Act 1974 and will detail:

• General principals of the policy
• Common area where smoking is not permitted
• Work areas where smoking is not permitted.
• Any use of designated smoking rooms.
• Smoking in company vehicles.
• Unions / Health & Safety representatives
• Staff information.
• Restrictions applied
• Adequate signage.
• Recruitment policies
• Treatment programme
• Enforcement of smoking policy.
• Policy amendments.
  

Initiate The Stop Smoking Programme and
Communicate

Changes in government legislation mean that employees will no longer be permitted to smoke within working places after 2007. By introducing a programme to help employees to stop smoking, organisations comply wlegislation and demonstrate social responsibility towards employees.

Companies should use their normal methods of communication to ensure the stop smoking programme is clearly visible to all employees and visitors. Specific days and times require being allocated to the programmes.

Employee Feedback - Post Stage

It is beneficial to repeat the employee smoker survey 6 months after the
commencement of company stop smoking treatments. This will enable organisations to measure the return on their investment, establish redusick days and measure improvements in employee productivity and attitudes. It ialso beneficial PR to use the findings to communicate the environmentally friendly policy and caring attitude towards employees and visitors.

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Contact Information

- David Bacon, Editor

Wayside | Upper Bourne End Lane | Hemel Hempstead | HP1 2RR

T: 01442 831711 | E: dbacon@2europe.co.uk