Employers think the wrong way about disabled workers
by Owain Emslie
Australian employers are thinking the wrong way about workers with disability.
Many worry that employing people with an intellectual or other significant disability will be costly, or that these workers can’t do valuable work. Those employers are failing to understand the value that more inclusive workplaces can deliver.
Governments, too, are often blind to the potential economic upside from increased work opportunities for people with disability. In today’s tight labour market, people with disability are an untapped resource.
Getting people with high support needs into work is too often seen as a charitable endeavour, a way to keep people with disability occupied.
Disabled-only workplaces are allowed to pay people far below the minimum wage, and usually trade at a loss, while being propped up by profits derived from selling disability support services.
Low employment expectations are often ingrained in young Australians with disabilities by the time they leave school, including through the assessment they undergo at age 16 for the Disability Support Pension.
This is a missed opportunity. Evidence from Australia and overseas shows that with the right approach, combining personalised job matching, ongoing workplace support, and tailored support to employers, people with intellectual or other significant disabilities can sustain productive and fulfilling work and add value in the open labour market at full award wages.
The numbers add up for employers. Clever job design and customisation can free up other employees to work more productively, offer a new service to customers, or address unmet needs in the workplace. Co-workers and employers also benefit from the experience of working with colleagues intellectual disabilities.
Employer perceptions of the costs and challenges of employing disabled workers remain barriers to doing so. But these barriers are surmountable, and governments can help.
The JobAccess service provides free advice to employers on workplace adjustments and inclusive hiring. And funding for workplace adjustments is available through the Employment Assistance Fund.
The numbers add up for the government, too. More people with disabilities earning full award wages means lower Disability Support Pension payments and higher income tax receipts. And the ongoing costs to support a person with a disability in open employment will probably be lower than the cost of supporting them at a disabled-only employer.
Grattan Institute estimates that an upfront investment of about $1.1 billion over four years in improved employment supports for disabled people with high needs would lead to a positive budget impact for the federal government within a decade.
All this also adds up for the economy. About 350,000 Australians with disabilities are able to work and want a paid job. And many more already in work want to work more hours.
Those in disabled-only workplaces are unlikely to be working at their highest possible productivity. Unlocking the potential of these workers could be a gold mine.
And of course, all this adds up for people with disabilities. Open employment – through jobs in the mainstream labour market – generally provides the strongest opportunities for economic and social participation. Evidence shows that people with intellectual disability who work in open employment tend to have more control over their lives and higher wellbeing and self-esteem than people working in sheltered settings.
Governments should fund and encourage evidence-based practices in employment services for people with high needs. Effective support services require highly trained specialists spending the time to understand a person’s strengths, interests, and preferences, working with employers to design a job, and then providing ongoing support to the person and their family, employer, and co-workers. Current provider contracts and payment structures do little to encourage quality in employment assistance.
Government should also do more to engage directly with employers, especially large employers with the capacity to create many jobs. It can provide tailored, long-term support to employers and workplaces to adopt practices and policies that create safe and inclusive working environments.
But engagement and awareness-building need to be complemented by policies that create incentives for employers to engage. Large employers should be required to report publicly on the number of people with disability they employ, and the number receiving sub-minimum wages.
As one of the country’s largest employers, government should lead, implementing specific targets, reporting, and employment pathways to lift disabled employment in the public sector. And government procurement policies could do more to support disabled employment, by requiring firms to make contract-specific, time-bound commitments – such as the proportion of roles filled by people with disability or the number of new hires supported – and assessing these competitively as part of the tender process.
Expanding pathways into open employment for people with high support needs would be good for the workers, employers, and the economy. With the right policy direction from government, Australia can build a more effective disability employment system that makes work pay for all disabled Australians.