#FIRMday Oct 22nd London - Employing disabled people is good for business
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Transcript of #FIRMday Oct 22nd London - Employing disabled people is good for business
Employing Disabled People is
Good for Business
– the Evidence
A collection of research, studies and reports on the business
benefits of employing disabled people
Evenbreak 2014
(updated September 2015)
1
Contents
Introduction page 2
Productivity page 3
Tapping into a Wider Pool of Talent page 4
Retention page 5
Sickness Absence page 6
Education and Qualifications page 7
Reputation page 8
Corporate Social Responsibility page 9
Understanding and Attracting Disabled Customers page 10
Staff Morale page 11
Additional Skills page 12
Weighing up the Cost page 13
Building a Business Case page 14
Sources page 15
2
Introduction
There are, of course, many moral, ethical and legal reasons why organisations should
consider employing disabled people. The employment rate of disabled people in the UK is
30% lower than that of non-disabled people (source 25). However, unfortunately, many
employers still see employing disabled people as an expensive risk. What about productivity
levels? Sickness absence? The cost of adaptations? Health and safety issues?
Increasingly employers are recognising that there are commercial benefits to be gained by
employing people from a wide range of backgrounds, including disabled people. The
challenge occurs when trying to put forward an evidence-based business case to prove this.
There is evidence out there, but it is published at different times, in different countries, and
is often difficult to find.
This document has been compiled for those who understand the commercial benefits of
employing disabled people, but may be required to put forward a business case to other
stakeholders.
Whilst not exhaustive, we have tried to bring together, under various headings, a collection
of studies, research and information which comments on aspects of the business benefits of
inclusion and accessibility in employment practice. Alongside the benefits of good practice
go the disadvantages of poor practice, and the risks that organisations run by not being
inclusive and accessible to disabled candidates, employees and customers.
Employing a disabled person is not an act of charity, it is potentially a wise business
decision, and this document aims to demonstrate that. It examines a range of aspects of
business in turn, and quotes from a range of studies on that aspect. There is a section on
how to put a business case together, and then a list of all the sources used in the document.
We’ve also thrown in a few quotes from inclusive employers for good measure!
We hope you will find the document useful, and add to it as new studies are published.
Please feel free to use the information however you like in putting your business case
together.
I employed a lad with
autism last year. He
does his job thoroughly
– never cuts corners. I
wish all my staff were
like him!
Our customers love
Shirley. She may
have Down
Syndrome, but she is
always cheerful and
smiling
3
Productivity
There is a common misconception that disabled people will automatically be less productive
than their non-disabled colleagues. Of course, every individual is unique, and it is wrong to
make sweeping statements that don’t take into account individual difference. However, the
sweeping generalisation that disabled people as a whole are less productive than non-
disabled people has been shown to be inaccurate and misleading by a range of studies
conducted at different times and in different places.
There is a perception, sometimes reinforced by politicians and some of the media, that
disabled people are workshy, lazy and would prefer to live on benefits than work. No
wonder some employers are wary of employing a group thus described! However, evidence
does not bear this out. A 2012 study (Source 3) stated that:
“All participants in the research wanted to work and emphasised the importance of work to
them. They unanimously agreed that their quality of life was (or would be) much better in
work than out of work. In part this was a function of the financial benefits of working, but
individuals were keen to stress that the value of work extended well beyond this because of
its ability to deliver balance, perspective, structure and mental stimulation.”
The same study found that “many disabled people feel that they need to work harder and
perform better to prove themselves in their job role”, hence why productivity levels can
often be higher from disabled employees (albeit for the wrong reasons).
Findings that “disabled employees are as productive and as reliable as non-disabled
employees and the majority of employees do not require adjustments at work” are found in
a range of studies (source 10), “Regardless of sector, participants with and without
disabilities had nearly identical job performance ratings” (source 13)
Similarly in America, national job studies, including a 30-year analysis by DuPont de
Nemours, show that people with disabilities have equal or higher performance ratings,
better retention rates and less absenteeism (source 17).
In addition to generally being equally as productive as non-disabled people, disabled
employees can also bring with them additional beneficial skills:
“Professionals living with health conditions or disabilities can bring creativity, resilience and
flexibility to bear in their work. They also bring significant value to their organisation
through empathetic people skills and transformational ability.” (source 10)
Additional innovation is another potential benefit. When more disabled people are
employed, an additional potential effect may be increased innovation due to the
diversification of staff in the workplace (source 12).
4
Tapping into a Wider Pool of Talent
Overall one in every five people in the UK has an impairment, with around 15% of people of
working age being disabled (Source 2). Excluding this number of people means that their
talents cannot benefit your organisation.
“Organisations with the ability to accommodate the needs of disabled staff are able to
access a wider pool of applicants from which to recruit. This is particularly important for
highly skilled/knowledge driven roles where there may be a shortage of labour supply.”
(source 4)
The business case for embracing diversity means you have access to talent that others may
overlook and you retain talent you might otherwise lose (source 11)
Many employers have found that by encouraging applications from disabled people, they
are able to extend the pool of high quality applicants available to them (source 14).
Another view is expressed here: “Employing disadvantaged co-workers, actually welcoming
them into work teams, and understanding their individual needs (often surprisingly easy)
cannot be taken as merely ‘superficial’ compliance with the law on meeting quotas. It is the
unforced and voluntary fulfilment of the social dimensions of internal relations within the
company, which paves the way not only to improving these internal relations, but to also
having a clear economic impact.” (source 24)
Organisations that are attractive to disabled people are also more likely to be attractive to
non-disabled people. A PwC survey of more than 4,000 university graduates in 2011,
otherwise known as “millennials”, reveals that this generation are looking for strong
diversity policies from employers (source 11).
I did have some
concerns about
employing someone
with visual impairment,
but he’s turned out to
be brilliant!
Our disabled staff
stay much longer in
their roles than
other staff – pretty
good for a call
centre!
5
Retention
Many organisations struggle with high staff turnover. This is expensive in many ways – the
cost of constantly recruiting and training new staff, the gaps when a vacancy is being filled,
the lack of continuity. High staff turnover also affects productivity, work quality, workplace
morale, and lost institutional knowledge (source 26). How is this relevant to employing
disabled people? Perhaps surprisingly, very relevant.
Much research suggests that disabled employees have a greater tendency to stay with an
organisation longer (source 4), echoed here - “Participants with disabilities from the retail
and hospitality sectors stayed on the job longer than participants without disabilities.”
(source 13). Companies report that employees with disabilities have better retention rates,
reducing the high cost of turnover, says a 2002 U.S. study (source 22). Other American
surveys reveal that after one year of employment, the retention rate of persons with
disabilities is 85 per cent (source 16).
The other important issue around retention is retaining staff who acquire a disability whilst
in employment. Only 17 out of every 100 disabled people were born with their impairment
(source 2), meaning that 83% of disabled people acquired their impairments as adults. The
issue for employers isn’t just about employing disabled candidates, but also about how to
accommodate existing employees who acquire an impairment, or whose impairments
become worse. The ability to implement effective reasonable adjustments can enhance an
organisation’s staff retention (source 4), who go on to say:
“A proportion of people who develop impairment while at work are forced to resign, this
inflicts a cost on the employer who must recruit and train a new member of staff.
Organisations with the motivation and knowledge to implement a sound reasonable
adjustment will be able to retain an experienced employee and avoid replacement costs.”
Research in 2007 (source 8) found that 92% of their respondents who had left work as a
result of disability or long-term health issues felt they could have stayed in their jobs had
reasonable adjustments been offered, but they weren’t.
Retaining employees who become disabled clearly has huge cost savings. The loss of trained
and experienced staff prematurely moving onto benefits and pensions is expensive. The UK
Post Office has estimated that each early retirement on health grounds costs in the region
of £160,000 (source 7).
As far back as 2002 improved retention was being cited as a business benefit of employing
disabled people. “Companies report that employees with disabilities have better retention
rates, reducing the high cost of staff turnover” (source 22).
6
Sickness Absence
This is another issue which can be very costly for organisations. Again, individuals will vary,
but on average, disabled people tend to have significantly less time off sick than their non-
disabled colleagues (source 4). This can be up to 30% less:
“Managers and supervisors who become disability-smart gain technical skills in areas such
as people management, accessibility and usability and complex change management
programmes. The organisations in the Best Place to Work ranking have sickness absence at
30% lower than the national average.” (source 10)
Many independent and unrelated studies agree that on average disabled employees have
lower sickness absence rates than non-disabled employees. Here are some examples:
Retail participants with disabilities had fewer days of unscheduled absences than those
without disabilities. (source 13)
In Australia it was found that an astounding 86 % of employees with disabilities had an
above average attendance rate (source 19)
A United Nations report found that “Empirical evidence shows that persons with disabilities
have high performance ratings and retention rates, as well as better attendance records
than their colleagues without disabilities” (source 20).
Alicia came to us straight
from special school, five
years ago, and I don’t
think she’s ever had a day
off sick, or even been late!
We’re all learning
sign language –
it’s great!
7
Education and Qualifications
It is true to say that historically children who were born with impairments tended to be
educated separately from other children, and that often that education was considered
inferior. This needs to be taken into account when reading CVs of some disabled people.
Support varies in terms of what disabled students can access. “Disabled undergraduate
students supported by the Disabled Student Allowance are least likely to drop out, while
disabled students lacking such support are most likely to drop out.” (Source 1)
However, “Those that graduate achieve similar degree and labour market outcomes overall
compared with those of nondisabled students. There is little difference between disabled
and non-disabled first degree qualified students in terms of degree classification” (Source 1)
Disabled Non-disabled
2005/06 56% 59%
2006/07 56% 59%
2007/08 58% 61%
2008/09 58% 62%
2009/10 59% 63%
2010/11 60% 64%
This shows the numbers of students gaining a first class or an upper second class degree. As
you can see, there is very little difference between disabled and non-disabled students
(source 23).
8
Reputation
Corporate reputation can have a large influence on customer loyalty and the bottom line.
“Developing an ethical corporate image can be fundamental to business success in a
consumer market driven by brand image. A business with a reputation for being socially
responsible can gain a significant competitive advantage in the market place and also
enhance its staff morale. Embracing diversity is a major facet of corporate responsibility, so
the ability to accommodate the needs of disabled staff and consumers is an essential
process in building a positive image. Instances of bad disability practices or discrimination
can cause substantial damage to an organisation’s reputation.” (source 4)
A study in America in 2006 found that 87 percent of consumers prefer to patronise
companies that hire people with disabilities (source 18), and that 92% of consumers felt
more favourable towards companies that hire individuals with disabilities.
A United Nations report in 2007 stated that “Studies have shown that there are other
benefits to employers of persons with disabilities, such as improved workforce morale and
increased customer goodwill” (source 20).
Sokolovský (2013) states “Suffice it to say that a more inclusive recruitment policy is not just
about making an irreversible and usually short-term investment of available funds into the
company’s image, but it also entails a gradual adaptation of the environment, relationships
and mentality of people (long-term and recurring). This can indeed be used for marketing
and image building (long-term), but also for well thought-out means for opening up a vital
segment of human resources. These people can not only be productive and useful, but also
extremely loyal” (source 24).
We found it difficult
to attract disabled
candidates, but once
the first two started it
got much easier.
I was a bit apprehensive
about employing
disabled people, to be
honest. But it turned out
to be the best thing we
ever did!
9
Corporate Social Responsibility
There is a view that good practice in the workplace can influence the values of society.
Disabled participants in a 2012 study (Source 3) stated:
“Many people feel that more positive attitudes to disabled people in the workplace can only
come from more general progress towards equality in wider society; they also saw a role for
employers in promoting inclusion and respect. Participants felt that attitude change would
be most likely to occur where disabled people and people with health issues were afforded
the opportunity to demonstrate their capabilities at work, and show colleagues in the
organisation the contribution that they could make.”
Apart from the obvious corporate benefits of Corporate Social Responsibility, employing
disabled people helps the economy. Research in 2007 suggested that improving the
employment rate of persons with disabilities would boost the UK economy by £13 billion
(source 21).
Sokolovský (2013) states “A relatively neglected part of the social pillar of CSR is the
inclusion of disadvantaged-disabled or otherwise handicapped people into the
organizational culture of the company. Here, I refer to aurally (hearing) and visually
impaired people, as well as people with physical disabilities. Prejudice plays its role in this
neglect, whether consciously or subconsciously, as well as fear of unforeseeable problems
at the workplace or a lack of necessary knowledge and information.
Physical and communication barriers are rapidly disappearing in the modern labour market,
which should have a favourable and positive effect on the inclusion of disadvantaged
employees. At the same time, however, psychological barriers based on patterns of thought
and the nature of today’s individualistic society, where diversity, selflessness and solidarity
are somehow not ‘in’, are growing. Pragmatist managers are inclined to plead, ‘no more
problems, please!’” (source 24).
We’ve actually won some awards
for our diversity policies, but the
real rewards come from working
with such talented people.
10
Understanding and Attracting Disabled
Customers
A third of people in the UK are disabled or close to someone who is. 10 million disabled
people live in the UK with a combined annual spending power in excess of £80 billion
(source 10).
Disabled employees can promote the organisation’s knowledge surrounding disabled
customers' needs and help deliver a better service (source 4).
Employing disabled staff can lead to an organisation increasing its understanding of this
market, and avoiding situations like this that were discovered in a survey carried out by
Business Disability Forum:
“83% of disabled people had 'walked away' from making a purchase, unable or unwilling to
do so. The most important factor was inaccessible premises. Other important factors that
discouraged disabled consumers from spending were poorly designed products and staff
that were not disability confident, rude or appeared prejudiced.”(source 10).
The good news is that “Over a third of disabled people said that good disability service was
the primary reason for choosing a provider or product. Two thirds choose businesses where
they have received good customer service related to their disability. Companies that tell
disabled people about the accessibility of their products attracted those consumers.”
(source 10).
For an average business, 20% of their customers are disabled people. A workforce that
reflects the diverse range of customers it serves, and the community in which it is based, is
good for business. (source 14).
Similar benefits have been found in America. “Disabled employees relate better to
customers with disabilities, who represent $1 trillion in annual aggregate consumer
spending” (source 17).
Watching Steve grow in
confidence and competence is
so rewarding. He’s one of our
best customer service people
now.
11
Staff Morale
“Employers of Choice” tend to be those employers who value and nurture their employees.
An employer who values their disabled staff is likely to be appreciated more by all staff,
disabled or otherwise, and attract and retain the best talent. A 2012 study states:
“[Disabled] participants felt that in many cases, the adjustments that they would like to
enhance their wellbeing and efficiency could also be positive for other staff. Giving all
employees the opportunity to say what they need to work better, even if these cannot be
implemented, will help foster an environment where asking for adjustments is more
normalised and people can feel more comfortable coming forward.” (source 3).
Also, employing disabled people can promote the benefits of inclusion amongst other staff
members:
“Disabled employees can become positive role models to challenge misconceptions
surrounding disabilities which may be harboured by some members of the organisation.
Consequently, disabled employees can raise disability awareness and help develop a more
inclusive culture in the organisation.” (sources 5 and 6).
Additionally, by observing that newly disabled workers are retained, co-workers may be
more confident that they could retain their job if they develop health limitations. They may
also have a greater sense that the employer cares about the workers and is willing to show
flexibility when accommodating a worker’s needs, regardless of whether it arises due to
health issues or other reasons (source 12).
By employing workers with disabilities, the hardware chain B&Q found that it had gained a
number of benefits, including increased overall employee satisfaction and better retention
and productivity rates (source 16).
He thinks differently from
most people – he’s come
up with some amazingly
creative ideas!
She took a little bit longer
to train than other staff,
but as she’s been here
for over 20 years, it was
fantastic value!
12
Additional Skills
Some disabled people can offer specific skills over and above non-disabled people. Most
disabled people, whether their impairment is physical, sensory, neurological, mental health
related or developmental (or a combination of a number of impairments) have had to
develop skills to manage the additional barriers they face every day. For example, creativity
and innovation in finding new ways of completing tasks. Creativity, determination and
persistence in finding different solutions to problems. Resilience in terms of constantly
having to find new ways of managing situations most people take for granted. Project
management in planning everyday activities. All of these skills are beneficial to employers.
Some disabled people have additional skills to offer over and above even these. For
example, people with dyslexia and dyspraxia may have a heightened ability to analyse
information objectively. GCHQ recognise this, and employ many dyslexic and dyspraxic
'neuro-diverse' spies to harness their analytical skills (source 27).
People on the autism spectrum tend to think differently from “neuro-typical” people,
meaning they can bring specific qualities to the workplace. Whilst it would be wrong to
make sweeping statements about any group of people (every person with autism is
individual and unique), they can share some traits which can be very useful to employers:
1. Intense focus
2. Working without supervision
3. Creativity
4. Passion leading to productivity
Global software company SAP are actively targeting recruitment advertising to people with
autism (source 28).
A study carried out by McKinsey (source 29) showed that people with Down Syndrome tend
to have characteristics that foster positive reactions in the workplace, which can contribute
to better organisational health. Qualitative and quantitative analyses show that having
people with Down Syndrome in the work environment can positively impact on five of the
nine dimensions that comprise McKinsey’s Organisational Health Index. These are
leadership, external orientation, motivation, culture & climate, and coordination & control.
These are just a few examples of advantages that people with specific impairments can
bring to the workplace. There are many more.
Please see some examples on a short film here (http://www.evenbreak.co.uk/resources-for-
employers) of ways in which some employers have gained business benefits by employing
disabled people.
13
Weighing up the Cost
Hopefully we have demonstrated that there are often many commercial benefits to be
gained by employing disabled people. However, in a small number of cases, these need to
be weighed against the cost of providing reasonable adjustments in the recruitment or
employment process. In most cases, the cost of making reasonable adjustments to
accommodate people is low, very often funded partly or wholly by the government, through
Access to Work (source 14).
Whilst employers might be concerned about the costs of reasonable adjustments, the
reality is that two-thirds of the reasonable adjustments made for disabled people cost
nothing at all and for the remaining third the average cost is just £75.
Access to Work can provide practical and financial help in the following ways:
� Special aids and equipment
� Travel to work
� Travel in work
� Support worker
� Communication support at interview
� Adaptations to premises and equipment
� Mental health support service
(source 15)
As a social firm, we only employ
disabled people. It’s not a decision I
have ever regretted!
14
Building a Business Case
Although most of the research in this document will apply to most organisations, the
emphasis and relevance will be different, and a tailored business case needs to be built for
each organisation.
� Review the business benefits
� Which are particularly relevant to your organisation? Are there specific issues your
organisation is trying to address? For some it may be high staff turnover, for others it
maybe a lack of disabled customers, or maybe too few disabled employees.
� Do you have evidence to back this up? Do you have measurements in place so that you
can measure progress?
� What impact would these benefits have on your organisation? Reducing sickness
absence, or staff turnover? Gaining more disabled customers? Improving your
reputation?
� How would you measure them?
� What will you do in order to gain those benefits? What needs to happen? Who do you
need to engage with and get on board?
� Do you now have enough evidence to put a business case forward? If so, when will you
do that? If not, how will you gain that evidence?
15
Sources
Source 1: Disability, Skills and Employment: A Review of Recent Statistics and Literature on
Policy and Initiatives. Riddell. S et al. Equality and Human Rights Commission, 2010
Source 2: Disability 2012: Facts and Figures. Scope, 2012
(http://www.scope.org.uk/sites/default/files/Scope-disability-stats-2012.pdf)
Source 3: Opening Up Work: The views of disabled people and people with long-term health
conditions. Adams, L. and Oldfield, K. Equality and Human Rights Commission, 2012
Source 4: The Business Case of an Inclusive Workforce. The Higher Education Academy
(http://www.usemyability.org.uk/resources/Business-Case-for-Inclusion.html)
Source 5: Stanley, K.et al. The Missing Million: Supporting disabled people into work,
Institute for public policy research, Emphasis, London, 2003
Source 6: Waterman, I. et al. Disabled Access to Facilities, A practical and comprehensive to
the service provider’s duties under Part III of the Disability Discrimination Act 1995,
Butterworths Trolley Lexis Nexis, London, 2003
Source 7: Vocational Rehabilitation: the business case for retaining newly disabled staff and
those with long-term health conditions. RNIB, 2011
Source 8: Ready for Work. DWP, 2007
Source 9: Marsden S. et al. The development of case studies that demonstrate the business
benefit of effective management of occupational health. HSE, 2004
Source 10: Business Disability Forum (http://businessdisabilityforum.org.uk)
Source 11: Employing People with Disabilities Boosts Business. Raconteur, 2013
Source 12: Economic and social costs and benefits to employers of retaining, recruiting and
employing disabled people and/or people with health conditions or an injury: A review of
the evidence. DWP, 2006
Source 13: Exploring the Bottom Line: A Study of the Costs and Benefits of Workers with
Disabilities. Economic Impact Study, 2007
Source 14: Employing disabled people and people with health conditions. DWP, 2013
Source 15: Access to Work (https://www.gov.uk/access-to-work)
Source 16: United Nations, Employment of persons with disabilities: Fact sheet 1, 2010
16
Source 17: Wall Street Journal, The Next Great Hiring Frontier, 2005
Source 18: Center for Social Development and Education, University of Massachusetts,
2006.
Source 19: Hall, H. (2002) cited by EEO Trust, Employing Disabled People, 2005.
Source 20: Decent Work for Persons with Disabilities. United Nations, 2007
Source 21: The Social Market Foundation, Disability, Skills and Work: Raising our
Ambitions, 2007
Source 22: Unger, D. Employer's attitude toward persons with disabilities in the
Workforce: myths or realities, Focus on Autism and Other Developmental Disabilities,
2002
Source 23: Office for Disability Issues (http://odi.dwp.gov.uk/disability-statistics-and-
research)
Source 24: Sokolovský, T. Corporate social responsibility and employing the disabled -
marketing, PR or untapped reserve? LLinE, 2013
Source 25: State of the Nation: Developing and Retaining Employees with Disabilities.
Business Disability Forum, 2015
Source 26: Center for American Progress. Nov 2012
Source 27: GCHQ employs more than 100 dyslexic and dyspraxic spies. Telegraph, 21
September 2014
Source 28: 4 Qualities of People With Autism That Could Benefit Your Business.
Entrepreneur, 23 April 2014
Source 29: The value that employees with Down Syndrome can add to organizations.
McKinsey, March 2014
For further information on how to attract disabled candidates, please see
www.evenbreak.co.uk