The need for comprehensive support in addressing substance use disorders (SUDs) among employees has never been greater. According to Robert Poznanovich, the Chief Business Growth Officer at the Hazelden Betty Ford Foundation, 2025 could be the year that more employers begin sponsoring workplace substance use disorder programs. As the impact of substance use continues to rise in the workforce, employers are being urged to recognize their role in not only supporting their employees’ health but also investing in solutions that can create a more productive, healthier, and cost-effective workforce.
Poznanovich, who will be a featured speaker at the Behavioral Health Business’ inaugural Autism & Addiction Treatment Forum in Chicago on July 18, will participate in a panel discussion titled “SUD Payment Landscape: Emerging Revenue Opportunities.” This discussion will focus on the rapidly changing landscape for employers when it comes to providing care for employees struggling with substance use, including the growing role of workplace substance use disorder programs. In his view, the rise in SUDs among employees has reached a tipping point, one that is causing employers to take on increasing expenses related to the issue.
The Growing Challenge of Substance Use Among the Workforce
Substance use has always been an issue, but in recent years, the scope and scale of the problem have deepened. The COVID-19 pandemic created a ripple effect that is still being felt, especially in the workforce. According to Poznanovich, employees returning from COVID are not in the same physical or mental state they were in before. The impact of the pandemic, including isolation, stress, and economic pressures, has had a lasting effect on individuals’ mental and physical well-being.
“Employees that have returned from COVID aren’t in the same condition they were before. They’re much sicker,” Poznanovich shares. “We know that substance use is at the highest levels ever. There’s been more deaths from alcoholism in the last couple of years than before.” These statistics paint a grim picture of a growing crisis that employers can no longer afford to ignore.
The workplace, once seen as a safe haven for those looking to provide for their families, is now a source of significant stress for many individuals struggling with substance use. Employers have begun to recognize that the issue is much more widespread than previously thought. In fact, many employees who are battling addiction are still going to work every day, often hiding their struggles from colleagues and managers.
The Financial Burden of Substance Use on Employers
One of the most significant reasons for employers to begin addressing substance use is the financial burden it places on businesses. The direct costs—such as healthcare expenses and treatment for employees—are often coupled with the indirect costs, such as reduced productivity, absenteeism, workplace accidents, and lower overall employee morale. These factors contribute to a substantial economic toll that can impact an organization’s bottom line.
Poznanovich argues that upstream interventions—early treatment and prevention programs—could play a vital role in helping to reduce these costs in the long term. “We’ve learned that early intervention is key,” he says. By offering treatment options and support for employees before they reach a crisis point, employers can mitigate the more significant costs associated with workplace violence, injuries, accidents, and hospitalizations that often accompany severe substance use issues.
In his view, employers that proactively invest in workplace substance use disorder programs will not only create a healthier workforce but will also save on long-term costs by reducing the need for more expensive crisis care. This shift could lead to a more sustainable approach to employee health, one that promotes wellness while also controlling costs.
Stigma and the Hidden Cost of Substance Use
Stigma has long been a significant barrier to addressing substance use in the workplace. For years, employers have overlooked the issue, assuming that their employees were not in need of addiction treatment because they weren’t utilizing traditional programs like Employee Assistance Programs (EAPs). However, as Poznanovich points out, the fact that employees aren’t seeking out help doesn’t mean they aren’t struggling.
“Don’t forget about substance use because it’s very much a big hidden cost that is still a stigma issue,” he says. “The amount of people who are struggling in the workplace, with substance use particularly, has never been higher. And 70 to 80% of the people who are using drugs and alcohol are employed full or part-time.”
This statistic is a wake-up call for employers, as it highlights the extent of the problem and emphasizes the need for workplaces to evolve their approach to employee health. Many individuals struggling with substance use are still working—often in silence—making it all the more challenging for employers to identify those who need help. However, Poznanovich stresses that ignoring this issue can have serious consequences for both employees and employers alike.
As the stigma surrounding substance use slowly diminishes, it is becoming clearer that addiction is not just a personal issue but one that affects the broader workforce. It’s no longer enough for employers to turn a blind eye; they must take a proactive role in supporting their employees and providing the resources necessary to address substance use effectively.
Digital Solutions vs. Traditional Care: Finding the Right Fit
In the digital age, many employers are turning to online solutions as a potential fix for addiction-related issues in the workforce. Digital tools like online counseling services, apps, and virtual support groups are becoming increasingly popular as employers look for cost-effective and convenient ways to support employees dealing with substance use. These digital solutions offer a certain level of accessibility, but Poznanovich cautions that they may not always be appropriate for every employee.
“I think a lot of people would like the problem to go away with a click through a website,” Poznanovich says. “In some cases, depending upon the right patient, it would meet their needs… but by definition, those who have reached that level of acuity where they’re getting hospitalized, creating workplace violence, injuries and accidents, are more acute, and are going to still need traditional care.”
Digital solutions can be incredibly beneficial for individuals with lower levels of substance use, or for those in the early stages of recovery. However, when the addiction reaches a more severe level, traditional care—such as inpatient treatment, counseling, and more intensive therapeutic interventions—becomes necessary. This is where the distinction between digital solutions and traditional care becomes important. Employers must be prepared to offer both types of solutions, depending on the severity of the employee’s substance use disorder.
Evolving Workplace Policies and Training Programs
As awareness of substance use and its impact on the workforce continues to grow, employers are beginning to change their policies to better address this issue. Workplace policies are becoming more supportive, with an increasing number of employers offering programs and resources to help employees who are struggling with addiction. Additionally, training programs are being developed to equip managers and HR professionals with the tools they need to identify and address substance use issues in the workplace.
Employers are also working with benefit consultants, payers, and treatment providers to create more comprehensive ecosystems of care. By pooling resources and ensuring that employees have access to the appropriate care, employers can create an environment where employees feel supported and encouraged to seek help when needed.
Poznanovich highlights the growing trend of employers working together to create a “steerage” system, which helps guide employees toward the right treatment providers. “What I’m seeing with employers, payers and benefit consultants is they’re creating some form of steerage and resources, and bringing together the ecosystem of their solutions together to help steer patients towards legitimate providers,” he says. This ecosystem approach ensures that employees are directed to the right level of care, whether it’s outpatient services, inpatient treatment, or other resources.
A Healthier, More Productive Workforce
As more employers recognize the need to address substance use disorders in their workforce, the landscape of workplace addiction care is evolving. Employers are beginning to take a more active role in supporting employees who are struggling with substance use, and this shift is not only improving the lives of employees but also benefiting the companies themselves.
By investing in both upstream interventions and comprehensive treatment programs, employers can help create a healthier, more productive workforce. This approach not only reduces the financial burden on employers but also creates a culture of care and support that fosters employee loyalty, engagement, and overall well-being.
2025 could be the year that more employers begin sponsoring workplace substance use disorder programs, and as the landscape continues to shift, we can expect to see a significant transformation in how addiction is addressed in the workplace. With the right resources, policies, and support systems in place, employers can lead the way in helping their employees find the care they need and create a more positive, healthy, and productive workforce for years to come.
