A number of years ago, a company adopted a drug-free workplace program to lower its insurance premium. The program included a rigorous pre-employment drug testing process. At that time, the labor market favored employers with many applicants for each position. Since that time, the labor market has changed and recruiting has become much more difficult. The HR department conducted a cost-benefit analysis and concluded that the savings in insurance premiums were considerably exceeded when the costs of recruiting and higher wages were factored in. Should the company drop the program? What factors should be considered in making the decision?
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