CALCULATION
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Objectives:

  Mathematical support for Employers Dollar Loss Calculator
 

Please note: The numbers used to calculate these results are a very conservative. The actual cost may vary depending on the individuals and companies. The pay rate dollar amount does not include any other employer-provided healthcare costs, paid vacations, holidays, benefits, incentives, bonuses and/or any other employee-related expenses. This calculation is solely based on a flat, average hourly pay rate.

  Variables:
  Number of employees who smoke = 1
Average hourly pay rate = $15
Average number of smoking breaks in a day = 25
  Math:
 
  • Average hourly pay rate = $15
    Adding 5 different levels of hourly pay rates to arrive at an average pay rate:
    $7 + $10 + $15 + $20 + $25 = 77 / 5 = $15.40 or ~ $15.00 average hourly pay rate
  • Average number of cigarettes smoked/smoking breaks in a day = 25
    Adding four different levels of smokers, 10 + 20 + 30 + 40 (cigarette-a-day habit) / 4 = 25
  • Average time per cigarette breaks = 10 minutes
    Since the smoker has to leave his/her work area to go outside/designated smoking area to smoke, 5 minutes was allowed for traveling to and from work area and 5 minutes to smoke a cigarette = 10 minutes.
  • Average number of cigarettes breaks per 8-hour shift = 9
    Although the average awake time is 16 hours a day with 8 hours of sleep time, due to the employee's work schedule, the same four different levels of smoking habits were used to arrive at this number:

    16 / 10 (cigarette-a-day habit) = 1.60 hours = 1 cigarette every 1.60 hour
    16 / 20
    (cigarette-a-day habit) = 0.80 hours = 1 cigarette every 0.80 hour
    16 / 30
    (cigarette-a-day habit) = 0.53 hours = 1 cigarette every 0.53 hour
    16 / 40
    (cigarette-a-day habit) = 0.40 hours = 1 cigarette every 0.40 hour
    or 3.33 / 4 (levels) = .8325 x 60 (minutes) = 49.95 minutes = ~ 50-minute intervals
    An 8-hour shift x 60 (minutes) = 480 minutes
    480 / 50 (minute intervals) = 9.6 cigarette breaks per 8-hour shift or ~ 9 cigarette breaks

9 X 10 = 90 minutes time spent smoking in an 8-hour shift per smoker, or

90 ÷ 60 Minutes = 1.5 hours a day

1.5 x $15 (avg. hourly pay rate) = $22.50 loss to employer per day per smoker

$22.5 x 5 (work days in a week) = $112.50 loss to employer a week per smoker

$112.50 x 50 weeks = $5,625 loss to employer a year per smoker

$5,625 x 10 years = $56,250 loss to employer for 10 years per smoker

$5,625 x 20 years = $112,500 loss to employer for 20 years per smoker

$5,625 x 30 years = $168,750 loss to employer for 30 years per smoker

-End-

   
   
 
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