As an employer, below are some of the costs and benefits that affect a company:

Financial Costs when Employees Smoke

Employers with Smoke-free policies experience:

Decreased absenteeism among non-smoking employees.
Decreased housekeeping and maintenance costs.
Decreased insurance costs and smoking-related fires.

(Source from:

How Much Does Tobacco Cost Employers?

Determining an employer’s smoking-related costs is difficult because many factors and variables can influence the calculation. Based on the CDC’s estimate that each smoker costs employers $3,400 per year, the following formula may provide a useful starting point in determining the cost of smoking to your business.

Step 1:
Multiply the total number of employees times the estimated percentage of employees who smoke. To calculate the percentage of employees who smoke, enter either the percentage of adult Missourians who smoke (26.4%) or the percentage of smokers within your occupation. The resulting number provides an estimate of the total number of smokers in your workplace.

Step 2:
Multiple the total number of smokers times the CDC estimate of the cost ($3,400) per smoker: