Workplace Wellness

What Organizations Need to Know About Substance Use in the Workplace

Substance use disorder is one of the most prevalent and most underestimated workforce challenges facing employers today. Here are four things every organization needs to understand and what to do about it.

Pensive man representing the quiet struggle of substance use disorder in the workplace
The short answer: Nearly 48.4 million Americans had a past-year substance use disorder in 2024, according to SAMHSA's 2024 National Survey on Drug Use and Health. For HR teams, that number shows up in absenteeism reports, healthcare claims, and turnover data every quarter. Four things every organization needs to understand about substance use in the workplace and what to do about it.

It's More Common Than Most Employers Realize

Substance use disorders don't discriminate by industry, role, or income level. Around 20% of full-time employees in the U.S. have a substance use disorder, yet most go unidentified and unsupported at work. Employees struggling with alcohol or drug use are rarely absent in obvious ways. They show up, just impaired, distracted, or disengaged.

The scope of the problem continues to grow. According to SAMHSA, the rate of drug use disorder among Americans aged 12 or older increased from 8.7% in 2021 to 9.8% in 2024. Meanwhile, 80% of people who needed treatment for a substance use disorder in 2024 did not receive it. That gap between need and access lands squarely in the workplace.

It's Often a Private Struggle

Stigma remains one of the biggest barriers to employees seeking help. Many workers fear that disclosing a substance use issue will affect their job security, their reputation, or their relationships with coworkers. So they stay quiet, and the struggle continues beneath the surface.

Research shows that confidentiality concerns and fear of negative judgment prevent a significant share of people from accessing care, even when treatment is available. This is compounded by the fact that substance use and mental health are deeply linked: in 2024, one in three adults with a substance use disorder also had a co-occurring mental illness, according to SAMHSA.

Creating a culture where employees feel safe enough to ask for help isn't just the right thing to do. It's a prerequisite for any wellness intervention to actually work.

It Has a Direct Impact on Your Bottom Line

The financial case for addressing substance use is now impossible to ignore. A 2025 CDC study published in the American Journal of Preventive Medicine found that substance use disorders cost the U.S. economy nearly $93 billion in lost productivity in 2023, approximately $3,703 per affected worker.

$93B
Lost productivity attributed to substance use disorders in the U.S. in 2023, per CDC research published in the American Journal of Preventive Medicine

That total breaks down across four categories employers feel directly: inability to work ($45.25 billion), absenteeism ($25.65 billion), presenteeism ($12.06 billion), and household productivity loss ($9.68 billion). The presenteeism figure is particularly important. Employees who are physically present but cognitively impaired represent a cost that rarely shows up in standard HR reporting.

$45.25B Inability to work
$25.65B Absenteeism
$12.06B Presenteeism
$9.68B Household productivity loss

Substance use disorders also cost employer-sponsored health plans an estimated $35.3 billion annually, according to a JAMA Network Open study, hitting benefits budgets regardless of company size.

It's Not a Lost Cause and Employers Are Uniquely Positioned to Help

The workplace is one of the most powerful intervention points available. Employees spend more waking hours at work than almost anywhere else, which means employers have both the access and the opportunity to make a real difference.

Common Questions About Substance Use in the Workplace.

Answers for HR leaders navigating this workforce challenge.

How prevalent is substance use disorder among working adults? +

Roughly 1 in 5 full-time employees in the U.S. has a substance use disorder, according to national research. Most go unidentified at work because employees fear disclosure will affect their jobs or reputation. It's a challenge that cuts across industries, income levels, and roles, making it a workforce issue every HR team needs a strategy for.

What does substance use disorder actually cost employers? +

A 2025 CDC study found substance use disorders cost the U.S. economy nearly $93 billion in lost productivity in 2023, about $3,703 per affected worker. Costs hit employers through absenteeism, reduced on-the-job performance, higher healthcare claims, and increased turnover. Employer-sponsored health plans alone absorb an estimated $35.3 billion annually in substance use-related costs, according to JAMA.

Why don't more employees seek help for substance use issues? +

Stigma is the primary barrier. Many employees fear that disclosing a problem will jeopardize their job security or reputation. Confidentiality concerns and fear of judgment prevent a significant share of people from accessing care even when treatment is available. Building a psychologically safe workplace culture is a necessary first step before any support program can be effective.

What can employers do to support employees with substance use disorder? +

Start by building a culture that normalizes conversations about mental health and substance use, reduces stigma, and makes clear that seeking help is supported. Back that with structured tools like Avidon's Substance Use Recovery program that give employees a private, accessible way to address the underlying thoughts and triggers driving their behavior. Organizations that take a proactive approach consistently see improvements in productivity, absenteeism, and retention.

Support Starts Here.

Give your employees a private, science-backed way to address substance use and build habits that last.

Author

  • The Avidon Health logo.

    Avidon Health is transforming how organizations promote healthier lifestyles through behavior change science and technology-driven coaching. Our mission is to empower individuals to achieve better health outcomes while driving measurable business success for our clients.

    With over 20 years of expertise in health coaching and cognitive behavioral training, we’ve built a platform that delivers personalized, 1-to-1 well-being experiences at scale.

    Today, organizations use Avidon to reimagine engagement, enhance health, and create lasting behavior change—making wellness more accessible, impactful, and results-driven.

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