Do you know how much alcohol is costing your company? It will vary according to the sector you’re in (particularly bad news, I’m afraid, if you’re in hospitality, insurance, the law or advertising/marketing). But I guarantee you that booze is having a detrimental impact on your business performance. Let’s look at some of the ways this is happening:
Absenteeism
Very conservative, pre-pandemic research indicates that at least 5% of all absence is due to alcohol. It is likely to be way higher than this, as problematic drinking rose significantly during the pandemic (with deaths wholly attributable to alcohol rising by 33% from 2019-2022). Looking at cause-of-absence data will be misleading as recent research which I commissioned through IPSOS showed that 94% of people off work with a hangover give a false reason for their absence.
Presenteeism
Research indicates that 9% of the workplace have been drunk or hungover at work at least once in the last six months. Those individuals assess that they are 39% less effective on these occasions – that’s a massive loss of productivity, which costs British businesses £1.4bn a year. The impact is even greater if we factor in the negative impact on the productivity and morale of a team when someone shows up unfit for work.
- Alcohol has a detrimental effect on people’s mental health and contributes to the three most common mental health issues of stress, anxiety and depression. This is because of the unavoidable chemical processes that happen in the body once alcohol gets into the bloodstream, and the severity is influenced by the amount and frequency of consumption. Many people drink in the belief that it helps alleviate stress, but it is biologically impossible for alcohol to do that.
- Alcohol has a detrimental effect on the quantity and quality of sleep, contributing to tiredness and irritability.
- Alcohol is increasingly seen as an inclusivity issue. A pro-alcohol workplace will be off-putting to non-drinkers such as many Gen Zs, certain religions and cultures, people who are pregnant or planning a pregnancy, anyone in the early stages of addiction recovery, anyone who dislikes being around drunk people, as well as anyone wanting to lead a healthy and mindful existence. Employers with alcohol-centric cultures risk losing good people to organisations with a greater focus on employee wellbeing, resulting in poor retention rates and additional recruitment and training costs.
- Most businesses are unaware of the multitude of ways that alcohol is baked into their culture.
Awareness is key if we are to improve the situation
Wellness programmes within businesses should include education on the impact of alcohol on physical and mental health, as well as signpost what help is available and where. And most importantly, organisations need to change the culture and destigmatise problematic drinking, so that people don’t feel they are risking their career if they ask for help.
So how do we achieve that culture change?
Workplace social events should never solely revolve around alcohol, and when alcohol is offered it should be limited, and accompanied by a good range of low and no alcohol options – asking staff to nominate their favourites is a good way of signalling an intention to be more inclusive. Recent research published this month on employee happiness and productivity showed that fewer than a quarter of UK employees even want alcohol at workplace social events these days, while six in ten favour games-based events instead.
Senior leadership teams should review all the ways that alcohol has soaked into their corporate culture, addressing areas like management attitudes, staff and client entertainment, employment contracts, corporate gifting and expense policies. The Bottling Up Trouble assessment will help them do this.
Leaders also need to demonstrate that asking for help will enhance rather than damage career progression. This requires at least one senior and respected individual to be open about how they overcame their own issues with alcohol, and become a mentor for others. This will help break down the stigma around problematic drinking.
Finally, appropriate and qualified help (and funding) must be available for anyone who is struggling, but it is important to understand that one size does not fit all, and that choice is essential.
