How Wisconsin's smoke-free law can help your company


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How Wisconsin's smoke-free law can help your company reduce costs, increase productivity and improve health.

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  • How Wisconsin's smoke-free law can help your company

    1. 1. How Wisconsin’s smoke-free law can help your company reduce costs, increase productivity and improve health Brian D. Harrison, MD
    2. 2. Is your company culture finally ready to rise from the ashes?
    3. 3. Complying with the law is simple but don’t stop there! <ul><li>Add language to HR Policies </li></ul><ul><li>Place signs </li></ul><ul><li>Inform all employees </li></ul><ul><li>Give supervisors guidelines for </li></ul><ul><ul><li>Policy implementation </li></ul></ul><ul><ul><li>Conflict resolution </li></ul></ul><ul><ul><li>Referral </li></ul></ul>
    5. 5. Here’s the burden your organization has borne: <ul><li>Excess medical costs </li></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><ul><li>Who smoke </li></ul></ul></ul><ul><ul><ul><li>Who breath ETS </li></ul></ul></ul><ul><ul><li>Dependents </li></ul></ul><ul><ul><ul><li>Who smoke </li></ul></ul></ul><ul><ul><ul><li>Who breath ETS </li></ul></ul></ul>
    6. 6. And you’ve been paying for: <ul><li>Productivity loss </li></ul><ul><ul><li>Absence </li></ul></ul><ul><ul><li>Presenteeism </li></ul></ul><ul><li>Damage to facilities </li></ul><ul><ul><li>Smoke </li></ul></ul><ul><ul><li>Fire risk </li></ul></ul>
    7. 7. Cost of smoking to employer <ul><li>$3,391 per smoker per year total (CDC, MMWR 2002;51(14):300-303) </li></ul><ul><li>Average PMPM health insurance cost (ACS, 2004) </li></ul><ul><ul><li>Smoker $1,145 </li></ul></ul><ul><ul><li>Nonsmoker $762 </li></ul></ul>
    8. 8. Tobacco-related excess medical costs adding to the claims you pay <ul><ul><ul><li>Excess equals 10-25% of annual claims depending on your prevalence (Source: Javitz et al, &quot;Financial burden of tobacco Use: an employer's perspective&quot;, Clinics in Occ & Env Med , 2006, 5(1) 9-21) </li></ul></ul></ul>
    9. 9. Tobacco-related excess absence costs Adding to your cost of doing business <ul><ul><ul><li>Estimate three days excess absence per tobacco user </li></ul></ul></ul><ul><ul><ul><li>To monetize, multiply the total excess by the average daily wage of your company </li></ul></ul></ul>
    10. 10. Tobacco related lost productive time while at work Wasted wages <ul><ul><ul><li>Smoking rituals: 1% of wages paid to the percent who smoke. Estimate as total employee wages x 0.01 x smoking prevalence </li></ul></ul></ul><ul><ul><ul><li>Presenteeism: 2.5% of wages paid to the percent who smoke. Estimate as total employee wages x 0.025 x smoking prevalence </li></ul></ul></ul><ul><ul><ul><li>Together, 3.5% of wages of smokers </li></ul></ul></ul>
    11. 11. “ Our corporate tobacco burden” By typical 1,000 employee work organization <ul><li>Prevalence: 20% of employees </li></ul><ul><ul><li>200 employees in our 1000 person workforce </li></ul></ul><ul><li>Excess medical costs: 15% of total </li></ul><ul><ul><li>$450,000 of our annual $3 million health plan cost </li></ul></ul><ul><li>Excess absence costs: 3 extra days per smoker year </li></ul><ul><ul><li>3 days x $120/day average wage x 200 smokers = $72,000 </li></ul></ul><ul><li>Excess lost productive time from rituals (1%) and presenteeism (2.5%) of the wages paid to smokers (3.5% total): </li></ul><ul><ul><li>$28,800 ave. annual wage x 200 smokers x 3.5% = $201,600 </li></ul></ul><ul><li>TOTAL = $723,600 PER YEAR </li></ul>
    12. 12. Now, the opportunity: benefits of smoke-free workplaces <ul><li>Employer wins with: </li></ul><ul><ul><li>Cigarette consumption dropping 29%! </li></ul></ul><ul><ul><ul><li>15% of smokers quit- the rest smoke 12% less (Glantz, 2004) </li></ul></ul></ul><ul><ul><li>Reduced impact of ETS on non-smokers </li></ul></ul><ul><ul><li>Lower medical costs- higher productivity as smokers quit or smoke less </li></ul></ul><ul><ul><li>Maintenance costs decline, fire risk decreases </li></ul></ul>
    13. 13. Benefits of smoke-free workplaces <ul><li>Employee wins with: </li></ul><ul><ul><li>Clear, consistent policy </li></ul></ul><ul><ul><li>Safe, healthy environment </li></ul></ul><ul><ul><li>Accommodation of ETS-sensitive health problems </li></ul></ul><ul><ul><li>Support for smokers who are trying to quit </li></ul></ul>
    14. 14. Smoke-free workplace meets the needs of different types of people <ul><li>Contemplative smokers: supportive workplace </li></ul><ul><li>Pre-contemplative smokers: motivation </li></ul><ul><li>Former smokers: relapse prevention </li></ul><ul><li>Nonsmokers: ETS protection </li></ul>
    15. 15. Why hadn’t it happened already? <ul><li>Employees have wanted it </li></ul><ul><ul><li>90% of nonsmokers </li></ul></ul><ul><ul><li>40% of smokers (about the same number as will make a quit attempt within the year) </li></ul></ul><ul><li>Unions usually agree or are neutral </li></ul><ul><li>Customers have looked for it </li></ul><ul><li>But the culture wasn’t ready for it </li></ul>
    16. 16. Now We Have a SMOKE FREE WORKPLACE LAW You Need Tobacco Free Company Cult ure
    17. 17. Incorrect corporate culture regarding tobacco use <ul><li>It’s a personal right, an individual choice </li></ul><ul><li>It’s cool and sophisticated and shows independent thinking </li></ul><ul><li>“ All things in moderation.” The best of both worlds is to smoke now and then </li></ul><ul><li>It’s a normal part of growing up and is a rite of passage </li></ul><ul><li>Tobacco helps socializing, recreation, work breaks and enjoying life in general </li></ul><ul><li>Tobacco is part of some people’s identity </li></ul><ul><li>Taxes paid by tobacco users support society </li></ul>
    18. 18. Reality-based corporate culture <ul><li>Every member of this organization is an important and valuable human being; there are no disposable people </li></ul><ul><li>Ours is a healthy work organization, committed to the safety, health and well-being of each of us individually and all of us together </li></ul><ul><li>Tobacco use is an unhealthy addiction, promoted by those who stand to gain financially from it </li></ul><ul><li>Every tobacco user in our organization is a valued and honored member, whom we all support—We will assist them when and if they choose to free themselves from tobacco </li></ul>
    19. 19. Reality-based corporate culture continued… <ul><li>Every ex-tobacco user in our organization is a Tobacco Free Hero, and an essential mentor and role model for others </li></ul><ul><li>No one wants their children to become tobacco users; the need to be at work cannot be allowed to subtract from that obligation </li></ul>
    20. 20. But, the smoke-free law won’t fix: <ul><li>Smoking at entrances </li></ul><ul><li>Smoking underneath company sign </li></ul><ul><li>Smoking in cars in company parking lot </li></ul><ul><li>Smokeless and spit tobacco use </li></ul><ul><ul><li>On company grounds </li></ul></ul><ul><ul><li>In company vehicles </li></ul></ul><ul><ul><li>Indoors </li></ul></ul><ul><li>Electronic cigarettes </li></ul>
    21. 21. The smoke-free workplace law may not help: <ul><li>Tobacco-using employees who cannot stop or who relapse </li></ul><ul><li>Non-smoking employees exposed to ETS at home from family members who smoke </li></ul><ul><li>Family members who cannot quit </li></ul><ul><li>Non-smoking family members exposed to ETS at home from employee who still smokes </li></ul><ul><li>Children who remain at risk for: </li></ul><ul><ul><li>ETS related health effects </li></ul></ul><ul><ul><li>Initiation of tobacco use </li></ul></ul>
    22. 22. Prepare to be confronted by users of the electronic cigarette
    23. 23. So why ban e-cigarettes? Not intended for use in smoking cessation or for any Therapeutic use
    24. 24. Sample tobacco policy <ul><li>&quot;Because the tobacco-free policy is intended to promote our culture of health and safety, non-therapeutic nicotine delivery devices and products are not allowed on the premises. Only nicotine products that have FDA approval for treatment of tobacco addiction may be used.&quot; </li></ul>
    25. 25. Fewer people still smoke, but those who do are more likely to be heavy smokers
    26. 26. Will you be paying me later? Corporate tobacco targets your future employees! <ul><li>80% of adult smokers start before they enter the workforce </li></ul><ul><li>Every day, 4,000 children under 18 try their first cigarette </li></ul><ul><ul><li>Half will become daily smokers (2,000) </li></ul></ul><ul><ul><li>Half of them won’t be able to quit (1,000) </li></ul></ul><ul><ul><li>Half of those will eventually develop a chronic smoking related illness (500) </li></ul></ul><ul><ul><li>Employer-purchased health care will pay for most of the cost of that illness (64.1%, US Census 2001 ) </li></ul></ul>
    27. 27. What are your kids watching in movies? <ul><li>Tobacco use occurs frequently, but it takes up little screen time </li></ul><ul><ul><li>Removing it would affect only 5% of the movie </li></ul></ul><ul><li>Cigarette brands appear often </li></ul><ul><ul><li>Increasingly endorsed by actors </li></ul></ul><ul><ul><li>The most highly advertised brands account for most brand appearances (advertising motive) </li></ul></ul>
    28. 29. The problem <ul><li>Smoking in the movies can more than triple the rate of smoking among adolescents </li></ul><ul><li>Responsible for 52% of starters </li></ul><ul><ul><li>After controlling for parent and sibling smoking, age, gender, etc. </li></ul></ul><ul><ul><li>Stronger effect than cigarette advertising </li></ul></ul><ul><li>1,070 kids start a day as a result of smoking in movies </li></ul><ul><ul><li>340 will die prematurely as a resu lt. </li></ul></ul>
    29. 30. Medical savings in < 1 year after tobacco cessation <ul><ul><li>TAKE all maternal and newborn costs (to 6 months) </li></ul></ul><ul><ul><li>TIMES estimated smoking prevalence (such as 20%) </li></ul></ul><ul><ul><li>TIMES proportion reduced by smoking cessation which is 21% </li></ul></ul><ul><ul><li>This is the potential savings, or “opportunity” in the first year </li></ul></ul>
    30. 31. Medical savings in 2-10 years of tobacco cessation <ul><li>TAKE total health care costs </li></ul><ul><ul><li>TIMES tobacco-related proportion, which is: </li></ul></ul><ul><ul><ul><li>10% if prevalence is low (say, less than 15% of employees) OR </li></ul></ul></ul><ul><ul><ul><li>10-25% if prevalence is high (say, 15-30%) </li></ul></ul></ul><ul><ul><li>Because this takes about 10 years to be abolished, figure about 10% decline per year </li></ul></ul><ul><ul><ul><li>This is the potential annual savings, or “opportunity” </li></ul></ul></ul>
    31. 32. Absenteeism savings after tobacco cessation <ul><ul><ul><li>Modifiable in 1-2 ½ years: </li></ul></ul></ul><ul><ul><ul><ul><li>25% of excess is reduced </li></ul></ul></ul></ul><ul><ul><ul><li>Modifiable in 2 ½ - 5 years: </li></ul></ul></ul><ul><ul><ul><ul><li>75% of excess has been reduced </li></ul></ul></ul></ul><ul><ul><ul><li>In either case, reduction of excess absence happens more rapidly in women than men </li></ul></ul></ul><ul><ul><ul><li>This is the potential annual savings, or “opportunity” </li></ul></ul></ul>
    32. 33. Productivity Savings After Tobacco Cessation <ul><li>Time lost due to rituals: modifiable immediately after tobacco cessation </li></ul><ul><li>Time lost due to presenteeism: improves at same rate as absenteeism (gradually over 5 years) </li></ul>
    33. 34. This won’t happen if you have: <ul><li>A company culture of tobacco acceptance </li></ul><ul><li>A company culture that doesn’t tell employees you value them and their families </li></ul>
    34. 35. Affinity Occupational Health can help <ul><li>For more information on setting up a tobacco-free environment at your company, contact Affinity Occupational Health, 1-800-541-0351 </li></ul>
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