The tobacco epidemic kills more than 8 million people annually—yet, unlike COVID-19, it hasn’t spurred urgent global prevention efforts. According to WHO, over 7 million of these deaths are due to direct tobacco use, while 1.3 million result from second-hand smoke. With 80% of the world’s 1.3 billion tobacco users living in low- and middle-income countries, the burden is especially severe where healthcare systems are already strained.

So, why does this larger, deadlier epidemic continue to be overlooked, especially in the workplace?

The use of tobacco in the workplace carries a host of hidden costs, ranging from increased healthcare expenses and insurance premiums to reduced productivity, absenteeism, and a demotivated workforce. As organisations increasingly focus on employee well-being and cost efficiency, addressing tobacco use becomes more than just a health initiative—it’s a strategic imperative.

“Workplace smoking involves a chain of usually undervalued costs that impact the health, productivity, and organisational expenses of the workforce,” says Sagar Bhamrah, HR Head, Merch Matters.

He points out that tobacco users typically take more breaks and face higher incidences of illness, resulting in extended recovery periods. “Smoking-related illnesses, including respiratory and cardiovascular diseases, lead to higher absenteeism. Tobacco-using employees also tend to incur substantially higher medical costs, which translate into increased insurance premiums for employers. Research shows that smokers cost their employers approximately $6,000 more annually than non-smokers.”

Dinesh Agrawal, Principal Consultant at Sashakt Development & Empowerment Foundation, highlights another hidden cost: workplace disruption.

“Regular smoke breaks interrupt workflow and can create resentment among non-smoking colleagues, impacting team morale and productivity. A tobacco-free workplace is not only a health-centric move—it also boosts equity, engagement, and long-term cost savings.”

Secondhand smoke is also a major concern, affecting non-smokers’ concentration, comfort, and overall morale," Bhamrah notes.

The Employer's Role in Creating Tobacco-Free Workplaces

Employers are uniquely positioned to drive change by fostering healthier workplace environments.

“At our organisation, we enforce strict no-smoking policies across all locations,” says Agrawal leader. “We also run regular awareness programs, provide access to quitting tools, and reward employees who prioritise healthy habits, such as remaining smoke-free and maintaining active lifestyles.”

Bhamrah agrees, “Creating smoke-free workplaces leads to healthier workers, improved productivity, and reduced healthcare expenses. Effective strategies include structured quitting programs, nicotine replacement therapy, and supportive counselling.”

Agrawal adds that policy enforcement must be paired with support.

“We’ve found that the best results come from multi-pronged approaches—on-site cessation training, integrating tobacco education into wellness programs, and encouraging practices like yoga to manage cravings and stress.”

Some organisations even bring in employees who’ve successfully quit to share their journeys, making the message more relatable. “Training managers to support, not stigmatize, employees who are trying to quit is essential to building a culture of shared wellness,” Agrawal emphasises.

On World No Tobacco Day, the message is clear: tackling tobacco use in the workplace isn’t just a CSR checkbox—it’s a business-critical decision. Reducing costs, enhancing team morale, and fostering a healthier, more inclusive culture make going tobacco-free one of the most impactful investments an organisation can make.