Ravi
Diamond Member
Oops...I must have had unemployment insurance on my mind...I meant to say the average worker's comp...so sub it in. My point was only that a 5% reduction on workers comp is pretty meaningless because you aren't saving money by requiring the drug tests. Some jobs, sure...it absolutely makes sense to drug test your employees. But on AVERAGE it isn't cost effective.I knew you couldn't do it soggy.
Unemployment averages about 1.25% of salary. A $40,000 employee would cost around $500 in unemployment insurance per year. A 5% savings on that $500 would be a whopping $25...the average cost of a pre-employment drug test and subsequent random testings is $44 each time. The 5% savings doesn't even pay for one drug test.
And you want us to believe you work in HR...your poor employer.
I am not trying to beat you up Ravi, or anything of the sort. However, it appears you are either misinformed or uninformed about this issue. Exactly what does unemployment insurance have to do with Workmen's Comp? The rate is set by the State for unemployment insurance (suta) and is calculated by the number of claims you had in the previous year. It affords some income if a person is laid off work or becomes unemployed for reasons other than simply quitting. Workmen's Comp is medical insurance among other things if you are hurt on the job. However, the two are entirely separate entities. In both instances the employer bears 100% of the cost.
With 30 or so field personel, Workmen's Comp can run anywhere from 100 to 120 K a year or more. Granted, a 5% discount from WC will not entirely off set the cost of monthly drug testing. However, if you know drug testing is required you build the cost into your bid or pricing structure, whichever the case. Besides, as I posted. It can save lives.
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