From October this year, the Disability Discrimination Act will apply to all UK companies, including businesses which employ fewer than 15 people. For larger UK companies, already governed by the Act, these legislative changes provide an ideal opportunity to review best practice.
In March, key industry leaders and experts from the public, private and voluntary sectors met to discuss imminent changes to the Disability Discrimination Act (DDA) within the wider context of the current and future disability policy agenda. The event was hosted by New Beginnings, a multi-sectoral coalition of stakeholders who believe in the principles of placing and keeping disabled people in employment.
Currently, there are one million disabled people in the UK who want to work but cannot find employment. As its key mandate, New Beginnings aims to help a quarter of these ‘missing million’ into work by 2010. Support from UK companies is a vital component for change because, although larger companies are already subject to the DDA, smaller companies are to follow later this year. There is a lot more work which could be done by businesses, especially the major corporations, to improve work prospects for disabled people.
This is not a question of simple altruism. The business case for employing disabled people and improving return-to-work outcomes for employees who are off work due to illness or injury is compelling. Less than 50% of disabled people have a job and 2.3 million are receiving Incapacity Benefit.
Despite this, one in three UK companies complain about a shortage of skilled labour. Recent research by UnumProvident revealed several barriers for disabled people seeking employment. Out of 200 company directors surveyed, one in five believes that disabled job applicants are less likely to be offered the position, even if they have the same skills and experience as a non-disabled candidate.
The research also shows that the longer people are out of work due to ill health or disability, the longer they are likely to stay unemployed. For example, after six months off work due to back pain, there is about a 50% chance of returning to work. This figure falls to 25% after one year and 10% after two years.
For employers, this trend represents a significant loss of expertise and skill, especially when, in many cases, early intervention could have greatly improved the likelihood of a return to the workforce. The financial benefit of retaining staff is obvious. One large employer found that the average cost of retiring an employee on medical grounds was £160,000. We are all now aware that diversity in the workforce creates a more productive and efficient business. There is even evidence that disabled people have lower absenteeism rates.
In summary, the onus lies on employers and their human resources departments to help better manage absenteeism with the aim of job retention and earlier return to work. In hiring new staff, businesses need the confidence to employ candidates solely on the merit of what they can achieve, rather than focusing on what they may not be able to do.
Corporate Citizenship Briefing, issue no: 75 – May, 2004
Joanne Hindle is corporate services director for the disability insurance company UnumProvident.
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