The Business Case for Diversity Management

Key facts about employment and people with disabilities
• 65% of people with a learning disability would like a job (1)
• 48% of people with disabilities are in employment (2)
• 6.8% of adults with learning disabilities known to Social Services are in any kind of paid employment (3)
• As many as 2.5 million disabled men and women are without work in Britain (4)
• Research conducted by the Department of work and Pensions concluded that it would not be possible to support oneself on earnings alone if a person is working less than 16 hours per week (5)
• 3.4% of people with a serious mental health need are in paid employment (3)
• Nearly one in five people of working age (7 million, or 18.6%) in Great Britain has a disability (6)

Discovering the ‘hidden workforce’
It is clear that a large number of people with disabilities are unemployed but would like to work. Many employers and organisations could be missing out on a wider opportunity to recruit from an additional source of labour with previously undiscovered skills and abilities.

Defining disability
The definition of disability – Disability Discrimination Act (1995) and (2005): "a physical, sensory or mental impairment which has a substantial and long-term (more than 12 months) effect on normal day to day activities"
• Some people are born with a disability and are often supported throughout their life to participate in society and be valued in society.
• Some people acquire a disability during their working life as a result of ageing and are incapable of doing the work that they have been trained to do for most of their working life.
• Some people acquire a disability as a result of being involved in an accident or a victim of warfare.
• Some people experience life changing situations that have a devastating effect on their mental capacity to carry out day to day activities.
• Some people acquire disabilities as a result of dependence on alcohol, drugs and other substances
• Some people have caring responsibilities for a person with a disability

Whatever the disability or situation of disability, everyone in society should examine their attitude to disability, understand their responsibilities under legislation and treat all people as individuals with dignity, respect and understanding. Society makes people disabled. People with disabilities are people first; society has to learn how to accommodate for the different disabilities.

The business case for employing a person with a disability and engaging with a supported employment agency
The average cost of recruitment across the UK is estimated to be £5-7k per vacancy. This figure includes advertising the vacancy, preparing and processing applications, screening candidates, interviewing candidates and going through the induction and training process. These figures can be substantially increased if at the first attempt to recruit, the wrong candidate is selected for the job.

Supported employment agencies across the UK are funded in a variety of ways to provide a professional recruitment service to employers and people with disabilities. This service is provided with no fees attached offering an additional and valuable source of available labour.

A supported employment agency analyses the organisations recruitment needs, providing a selection service designed to accurately match the right person to a job improving staff retention rates.

The legal case
Since the introduction and implementation of the Disability Discrimination Act in 1995 and subsequent amendments over the years all organisations have a legal duty to comply with the law and not discriminate against people with disabilities. One of the main duties of the act is ‘making reasonable adjustments’. If a person has declared a disability or the organisation was likely to know that the person has a disability the organisation would be required to consider making an appropriate adjustment to ensure that they are able to receive services, products and fair treatment in employment.

Making a reasonable adjustment simply means accommodating for the specific needs of the individual to ensure that they are not placed at a disadvantage in society. Recruitment and retention is probably the most challenging area for employers to consider applying reasonable adjustments. This is largely due to employers complying with equal treatment duty and making sure that policies and procedures are designed to treat everyone equally.

People in society are not all equal and in particular people disabilities. In order to correct this it may be necessary to make a reasonable adjustment to provide them with a fair chance to participate and compete. A high number of cases of discrimination that are presented to courts and employment tribunals are as a result of an organisation failing to comply with the duty to make a reasonable adjustment. Cases that are brought before the courts and are successful can lead to the organisation being fined considerable sums of money and court costs.

The reputation of the organisation can be seriously damaged due to widespread negative publicity. This can lead to a loss of customers or failure to succeed in bidding for contracts to provide service. Other financial implications can include increased insurance premiums or difficulty in securing cover.

The moral case
Organisations are becoming more aware of their reputation in the communities they share and serve. Boards of directors are involved with developing a corporate vision and producing statements that present an image to the public of being a caring organisation and caring employer. Most statements will usually prioritise on managing and providing for people first, closely followed by caring for the environment and finally profitability.

The organisations that are recognised for ‘fair’ and ‘equal’ policies for moral and social reasons rather than just the business case for ‘doing the right thing’ are often seen as outstanding. However it is essential to ensure that the vision, values and statements transfer into tangible practice and that they are not just a board ‘vision’. The image of the organisation can have a very positive impact on the customers and the employees.

Customers are more likely to do business with a caring company and employees are also more likely to want to work for a caring employer. It is also highly likely that employees who are content and happy with their conditions of employment are more productive and dedicated to the organisation. This leads to improved staff retention and a reduction in recruitment costs.

Disabled people as consumers
Understanding the impact of disability on an organisation makes good business sense. Preparing to deliver appropriate services and create new products that attract a wider and more diverse customer base will improve the competitive edge, becoming the provider of choice and the employer of choice.
• There are 10 million people with disabilities in the UK with a combined annual spending power of £80 billion (7)
• There are 33% of people aged 50 – 65 that have a disability and 42% of people over 65 have a disability (8)
• In the next 25 years the 50 – plus generation is estimated to grow by more than 6 million. Consumer spending for the 50 – 69 was £300 billion a year purchasing designer fashions, premium cars and other expensive goods at a higher rate than any other age group. The average spend for 50 – 69 households is £213 per week compared with £135 per week for all other age groups (9)

Professional advice, guidance and practical support
Supported employment offers a comprehensive package of advice, guidance and support. This includes conducting employee specific risk assessments in the workplace, practical hands-on 1:1 support and, where required, specialised instruction for the employee to be trained to carry out the tasks of the job to meet the expectations of the employer.

Support is ongoing and gradually tapers away as the employee adapts to the workplace and gains the confidence to work independently of support. Support can be called on to deal with any unforeseen issues that may arise requiring the professional expertise of the support worker. The availability of long term support is a key factor in the success of supported employment.

Financial support
Some supported employment initiatives can offer initial financial support to the employer during the early stages of employing a person with a disability. There can be funding available for the cost of accredited training and qualification working with vocational training providers. There is also financial assistance available where adaptations are required to support the employee with a disability to carry out their work successfully. Supported employment agencies will make every effort to identify and secure any available funding on behalf of the employee and their employer.
Realising the benefits of recruiting a diverse workforce

Effectively managing the diverse profile of a workforce makes good business sense. Organisations that are committed to ensuring that the workforce matches the profile of the community they share and serve are more likely to maintain a competitive edge. This can be achieved by a diverse workforce informing, influencing and improving the range and quality of services they provide and the design and variety of products they manufacture for the customer.

References
(1) Adults with learning difficulties in England 2003/04, Eric Emerson (2005)
(2) Labour Force Survey, Office for National Statistics (2008)
(3) NHS Social care indicators http://www.ic.nhs.uk/pubs/socmhi08-09
(4) DWP Working Paper 58: The Impact of Disability Benefits (Richard Berthoud)
(5) DWP Working Paper 58: The Impact of Disability Benefits (Richard Berthoud)
(6) Office for National Statistics Labour Force Survey, Jan - March 2009
(7) DWP December 2004
(8) Labour force survey – Autumn 2005
(9) Mintel research quoted in the Guardian