The True Cost of Hiring Disabled People
Is it expensive to hire disabled people? This is a question that’s often considered by employers, even those who consider themselves committed to equity, inclusion and diversity. Consciously or not, it’s probably something you’ve thought about at least once.
The short answer is, no. Disabled employees do not cost your business any more than their non-disabled counterparts.
However, it’s worth examining the question more closely in order to provide a more convincing response. Why might employers be worried about the costs of disabled employees?
Concerns usually relate to one of two areas. Most obviously, there are the perceived direct costs of supporting a disabled employee, in the form of reasonable adjustments. Secondly, employers commonly wonder whether disabled employees are likely to be less capable in terms of productivity and quality of work, costing money as more employees need to be hired to achieve the same work. Let’s investigate each issue in turn to see how much truth is behind the worries.
Are there significant direct costs to hiring a disabled employee?
As you will know, employers have a legal duty under the Equality Act 2010 to make reasonable adjustments to any part of a job that may place a disabled person at a substantial disadvantage compared to non-disabled people.
This might include anything from physical changes to the workplace to changes to equipment or standard procedures - anything that enables an employee to access work on a level playing field with their non-disabled counterparts. While not all disabled employees will request adjustments, this is one potential cost linked to hiring many disabled people.
However, it may surprise you to understand that majority of reasonable adjustments actually have little to no financial cost. For example:
Allowing an employee to work from home
Allowing flexible hours
Giving an employee a fixed work station rather than hotdesking
Making sure an employee’s desk is on the ground floor, or near a toilet, or in a quieter area
Reserving a car parking space close to the office
More regular check-ins with a line manager
None of these adjustments are particularly difficult to implement, or have any meaningful cost to you as the employer. And although there are of course a huge range of other accommodations an employee might need, most of those are similarly simple and low-cost. In fact, it’s estimated that around 70% of reasonable adjustments are entirely free. Some may have a small cost, but the average price tag on a reasonable adjustment is only £75 - with most costing far less.
It’s often the simplest changes that can have the biggest impact on a disabled person’s ability to work in a particular role. Moreover, the added value to your company of employees that are fully supported to maximise their productivity and achieve their potential is likely to outweigh any financial cost.
It’s also important to remember that you will only be required to meet ‘reasonable’ costs. This includes a consideration of affordability - so expectations of smaller employers will be lower, and you’ll never be expected to be out of pocket for providing support.
For requirements that may be more costly, financial support is often available. Employees can apply for Access to Work, a government scheme that provides funding to disabled workers. This scheme can provide funding for various kinds of practical support. This might include BSL interpretation, a support worker, mental health support, or help with transport into work. They can also provide funding towards specialist equipment and adaptations to premises, although these costs may be split with the employer. Consider signposting this source of support to your employees, and offer to support with applications. Employees can start applications through the online portal here.
Overall, it seems that the direct costs associated with hiring a disabled employee are likely to be minimal in most cases. Most reasonable adjustments are low- or no-cost, and can make a big difference to employee productivity and wellbeing - and financial support is available for any more costly requirements. Hiring disabled people, and ensuring you meet their support needs, actually makes great business sense!
The indirect costs of hiring disabled people
The same also appears to be true in relation to any more indirect costs. Common misconceptions suggest that disabled people might be unreliable, frequently ‘off sick’, or less able to perform key tasks to a high standard. However, this is a myth; research has shown that there is no notable difference in attendance, task engagement, efficiency or effectiveness between disabled and non-disabled employees.
In fact, disabled people are actually likely to be more loyal to employers and stay in jobs for longer, reducing the costs of re-hiring and re-training. Disabled people are often creative problem solvers, and their diverse perspectives and approaches can improve innovation to make your business more efficient and effective.
It’s clear that hiring disabled people does not have to be expensive. In fact, the cost is likely to come in failing to do so! Over 20% of the working age population has a disability - excluding one in five potential employees - either deliberately or through a lack of support - will leave a huge pool of potential talent untapped. Especially at a time when 75% of businesses globally are reporting a talent shortage, it’s essential to open your doors to all potential employees.
Not only will you miss out on talent, researchers agree that a failure to employ disabled people is likely to actually disadvantage your company, leaving you missing out on skills, losing employees who could provide innovative approaches to problem-solving, and restricting your ability to engage with disabled customers effectively.
This translates to a clear negative impact on economic performance; one study in the US found that companies who were committed to disability employment and inclusion had an average of 28% higher revenue, double the net income and 30% higher economic profit margins than their competitors across the four-year study period.
Hiring more disabled people - and committing to support them properly - should not be seen as an unnecessary expense but rather a win-win solution. Disabled jobseekers gain meaningful employment with a supportive company, and you get a supply of reliable, hard-working talent to help fill vacancies and improve company performance. So, no, hiring disabled people isn’t expensive, and it’s something you should be doing more of. Not only is it the legal and ethical choice, but it also makes great economic sense for you and your business.
Want to find out more about how your business can tap into disabled talent, or how to better support your disabled employees to achieve their potential? Check out our consulting services.