Jul
5
2016

The Bottom Line: Employing people with a disability

Most businesses ultimately are concerned with one thing: profitability, and whether they made more this year than last year and how to improve next year. Whether in a period of growth or recession, most business discourse concerns the net worth and profitability of a business; most will rarely make business decisions that may ultimately cost the business too much money for too low a potential for reward.

Employment of people with disabilities has been seen in the past – not as investment in human resources – but as a net cost; an American report in 2009 found that this was an attitude not just at the very top, but at all levels in a business’ hierarchy. Aside from being discriminatory, it is also false. Many costing myths exist regarding employment of people with disabilities.

Insurance Costs

This is the most common assumption, that there are greater safety issues when employing people with disabilities and therefore they represent a greater cost to insure. Firstly, there is the assumption here that insurance premium cost is based purely and entirely on the risk assessment portion of the insurance premium; certainly, risk of injury is one factor but it is not the only factor – the majority of a premium is calculated on likelihood of accidents based on the work the business carries out.

Even if insurance premiums were calculated purely on the risk of accident in the work place, statistics show that people with disabilities are marginally less likely to be the victim of an accident at work. The difference is slight but the common myth that they represent a greater insurance risk is unfounded either way. People with disability therefore represent a lower insurance risk and lower insurance costs.

Accessible Workplace

One of the arguments regarding the cost of employing people with disabilities is that it is either prohibitively expensive or an unnecessary expense for the employment of just a handful of people. The first is certainly not true as there are a number of regional and national schemes and funds available to either completely cover the cost of modification of the workplace or a substantial fund that they can apply to for a bursary through the Employment Assistance Fund and often represents a one off change for the future.

In the unlikely event that a business would be refused financial assistance for workplace modification, it has been calculated that the cost per person averages out at under $500. A UK based disability employment organisation quotes £184 and US statistics quote a similar figure. The investment is highly unlikely to see the business operating at a loss when we consider that people with disability have a lower attrition rate (are more likely to stay in a job) and are more productive.

Human Resource Costs

Workplace modification includes adjustments to doors, installation of ramps, lowering steps and other physical modifications. Human Resource costs come with certain extra considerations for people with disability – new computer hardware (such as a special keyboard or a mouse) software (for people with poor eyesight for example), or specialist office equipment (desk, chair etc). All of this equipment in Australia is covered under the Employment Assistance Fund.

An in depth academic study of common myths proving a barrier to more businesses employing people with disability is here (login required): http://onlinelibrary.wiley.com/doi/10.1002/hrm.20211/abstract

This one examines the relative costs and benefits of employing people with disability: http://dro.deakin.edu.au/view/DU:30001618?print_friendly=true

 

Most businesses ultimately are concerned with one thing: profitability, and whether they made more this year than last year and how to improve next year. Whether in a period of growth or recession, most business discourse concerns the net worth and profitability of a business; most will rarely make business decisions that may ultimately cost the business too much money for too low a potential for reward.

Employment of people with disabilities has been seen in the past – not as investment in human resources – but as a net cost; an American report in 2009 found that this was an attitude not just at the very top, but at all levels in a business’ hierarchy. Aside from being discriminatory, it is also false. Many costing myths exist regarding employment of people with disabilities.

Insurance Costs

This is the most common assumption, that there are greater safety issues when employing people with disabilities and therefore they represent a greater cost to insure. Firstly, there is the assumption here that insurance premium cost is based purely and entirely on the risk assessment portion of the insurance premium; certainly, risk of injury is one factor but it is not the only factor – the majority of a premium is calculated on likelihood of accidents based on the work the business carries out.

Even if insurance premiums were calculated purely on the risk of accident in the work place, statistics show that people with disabilities are marginally less likely to be the victim of an accident at work. The difference is slight but the common myth that they represent a greater insurance risk is unfounded either way. People with disability therefore represent a lower insurance risk and lower insurance costs.

Accessible Workplace

One of the arguments regarding the cost of employing people with disabilities is that it is either prohibitively expensive or an unnecessary expense for the employment of just a handful of people. The first is certainly not true as there are a number of regional and national schemes and funds available to either completely cover the cost of modification of the workplace or a substantial fund that they can apply to for a bursary through the Employment Assistance Fund and often represents a one off change for the future.

In the unlikely event that a business would be refused financial assistance for workplace modification, it has been calculated that the cost per person averages out at under $500. A UK based disability employment organisation quotes £184 and US statistics quote a similar figure. The investment is highly unlikely to see the business operating at a loss when we consider that people with disability have a lower attrition rate (are more likely to stay in a job) and are more productive.

Human Resource Costs

Workplace modification includes adjustments to doors, installation of ramps, lowering steps and other physical modifications. Human Resource costs come with certain extra considerations for people with disability – new computer hardware (such as a special keyboard or a mouse) software (for people with poor eyesight for example), or specialist office equipment (desk, chair etc). All of this equipment in Australia is covered under the Employment Assistance Fund.

An in depth academic study of common myths proving a barrier to more businesses employing people with disability is here (login required): http://onlinelibrary.wiley.com/doi/10.1002/hrm.20211/abstract

This one examines the relative costs and benefits of employing people with disability: http://dro.deakin.edu.au/view/DU:30001618?print_friendly=true

 

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