Hiring people with disabilities can have a positive impact on your bottom line. Many companies are discovering that the decision to hire or retain people with disabilities is like striking gold. Companies are enjoying increased employee retention, gaining a competitive edge, and are taking advantage of lucrative tax incentives to offset costs. Companies across the nation are discovering that hiring people with disabilities is much easier and less expensive than they ever imagined, and the benefits are far exceeding the costs.

Increase Employee Retention, Reduce Turnover

Replacing employees is expensive in terms of tangible and intangible costs. The cost of a single turnover can range from 93% to 200% of the employee’s annual salary. (Griffeth & Hom, 2001).  Many companies are finding that hiring people with disabilities can be an effective solution to high turnover.  Consider the following examples.

·         After a 18-month initiative resulting in the hiring of 170 people with disabilities, Kathy Egan, President of Hire Potential discovered that workers with disabilities were more committed to the job and were retained on average 50% longer than traditional workers. Clients were often more pleased with the quality of their work, and typically kept them on a job longer.

·         Marriott’s “Pathways to Independence,” a program that promotes the hiring and retention of employees with disabilities showed a 6% turnover among Pathways participants versus a 52% overall workforce turnover between 1999 and 2003.

·         Employees with disabilities at Pizza Hut have retention rates from four to five times higher than that of people with disabilities, saving over $8 million through reduced turnover.

·         Frank Coombs, owner of an IHOP restaurant, discovered employees with disabilities are loyal, long-term workers in an industry where high employee turnover is the norm. Training costs for each new employee is about $1,00 according to Coombs.

Exceed Performance Standards-Hire People with Needed Skills

Employers are finding that employees with disabilities have average to above average performance. Many employers were surprised to find that employees with disabilities were not only able to get the job done, but were able to influence co-workers to improve performance. Consider these facts:

·         A Virginia Commonwealth University Survey of 250 Supervisors in 43 businesses indicates that supervisors are satisfied with the performance, and place them on par or above their peers without disabilities

·         A survey conducted by DuPont conducted in 1990 revealed that managers reported average or above average performance for employees with disabilities.

Reduce Costs of Employee Benefits

Many employers are finding that aggressive return to work programs for employees experiencing a disabling life event are yielding positive outcomes. These companies have offset their losses from increased insurance costs, lost time, replacing and training employees. One manufacturer discovered that instead of spending $327,000 in long-term disability benefits, he was able to return a 28-year old employee to work at a cost of approximately $6,800, for savings of $321,200!

In addition, the evaluation of risk for a returning employee with a disability often uncovers hazards for all employees. This information can doubly benefit an organization by accommodating a returning employee as well as preventing disability for all employees.

Attract Qualified Employees in a Shrinking Workforce

Some industries are beginning to feel the crunch of a shrinking workforce. The Bureau of Labor statistics estimates that between 2002 and 2012 thirty five million people will leave their occupations and need to be replaced as baby boomers retire. Between 2010 and 2030, the American workforce is expected to shrink by 10% (Segal, 2003). Many companies are finding that recruiting and retaining workers with disabilities is one strategy to counter the effects of a shrinking workforce.

Gain Insight into a Multi-Billion Dollar Market Segment

Did you know there are 54 million Americans with disabilities representing over $200 billion in discretionary spending? This does not include their extended families and support networks that you will also attract to your business if you are able to serve people with disabilities.  More and more, companies are beginning to recognize the value of this target market.  Employees with disabilities can provide greater insights into the needs of older customers and those with disabilities. One positive effect of having individuals with disabilities as employees is that you can learn about their needs, and as a result are able to develop products and services that are friendlier for persons with disabilities.

Acquire Creative Problem Solving Skills

People with disabilities bring unique perspectives and problem solving skills to the work place. This is a factor in improved productivity and creativity. “People with disabilities are very creative and knowledgeable about a variety of issues, because they have to be in their everyday lives,” says Britta Strohmeyer, Pillsbury Winthrop Shaw Pittman LLP.  Expanding recruiting strategies to include people with disabilities has made it possible for Veronic Villova of Embassy Suites to better fill open positions. The Society for Human Resource Managers (SHRM) provides a compelling business case for diversity that directly links success to a diverse work force.

Take Advantage of Tax Incentives to Offset Costs!

While accommodating people with disabilities typically costs nothing or less than $500, companies have begun cashing in on the lucrative tax incentives offered to businesses to hire and retain people with disabilities. The three tax incentives include:

·         Small Business Tax Credit: IRS Code Section 44, Disabled Access Credit

·         Architectural/Transportation Tax Deduction, IRS Code Section 190, Barrier Removal

·         Work Opportunity Tax Credit (WOTC)

Click here to learn more about these tax credits.

Take Advantage of Free Resources

If you’re interested in taking an aggressive position on hiring people with disabilities, you may be wondering how you get started. Here are some free resources that will help.

• EARN 1-866-EARN-NOW answers questions about employing people with disabilities. Call 1-866-EARN-NOW or click here for more information.

• JAN answers questions about cost-effective accommodations, and provides information on the Americans with Disabilities Act (ADA). Call  800-526-7234 or click here for more information.

• Department of Labor’s Office of Disability Employment Policy (ODEP) provides guidance and programs to help employers recruit, hire, and retain workers with disabilities. Call 1-866-633-7365 or click here for more information.

• EEOC provides information to assist employers understand requirements under the ADA. Call 1-800-669-4000 or click here for more information.

• DBTAC provides local information and resources for employers. Call 800-949-4232 or click here for more information.