Strict Conduct Policy Results In Low Loss Ratio

'I expect all my employees-from ditch diggers to comptrollers-to conduct themselves as professionals,' says Chuck Mitchell, president of Mad Dog Design and Construction Co. in north Florida. Mitchell put this another way, saying 'It's my way or the highway,' which is how he describes his company's stringent drug and alcohol policy. Mitchell, a general contractor widely recognized for historic preservation efforts, employs 60 workers. He took a strong stand for a drug-, and alcohol-free workplace after he realized the huge impact that impaired workers could have on his business.

'There is no question in my mind that if prospective customers see a drunk or stoned worker on one of my worksites, there is no way they will call me to build something,' he explained. Mitchell said that the construction industry has to acknowledge the high visibility of its workers. Knowing that fact is what compelled him to establish the philosophy of conduct that is the standard for Mad Dog.

Beyond the image his workers leave in the minds of prospective clients, Mitchell is also concerned about safety. 'In my business an impaired worker can kill someone a whole lot easier than someone behind the counter of a bank [can]. We have to have a lower tolerance for substance abuse in my business,' he said.

Mitchell first articulated Mad Dog's policy about five years ago. The written statement, which also addresses racism and sexism, is a point on which Mitchell will not budge. All employees, even those hired for just one day, must read and sign the policy. Mitchell even imposes the guidelines on subcontractors with which he deals. 'I didn't want people to think [the subcontractors] represented Mad Dog if their workers acted in a way that was contrary to what I expected from my own employees,' he explained.

Spotting substance abuse has not been difficult. 'The impaired worker shows up pretty readily in my business,' Mitchell said, 'All I have to do is watch and listen.' His vigilance has paid off. Mad Dog has had the lowest loss ratio in north Florida for the past five years. Mitchell is also convinced that his strict conduct policy helps suppress his workers' compensation rates.

Looking to the future, Mitchell added, 'It's not a bad guess to surmise that a lot of drug users who are shut out of jobs elsewhere end up in my business. This is an issue the building industry can't really ignore. The lines are being drawn tighter, and it will continue to impact our industry even more.' Mitchell noted that because there is currently no worker shortage, management can continue to dictate demands for higher worker performance and stricter conformity to desired behaviors.