Building The Business Case Hiring Peoplewith Disabiities

Presented by: Glenda Owen, Chief Workforce Presented by: Glenda Owen, Chief Workforce ServicesServices

Oklahoma Employment Security CommissionOklahoma Employment Security CommissionWorkforce Readiness Leader, OK State HR CouncilWorkforce Readiness Leader, OK State HR Council

Hiring People with Disabilities

Building the Business Case

Why Hire People with Why Hire People with Disabilities?Disabilities?

Positively impacts Positively impacts your bottom lineyour bottom line

Gives you a Gives you a competitive edgecompetitive edge

Easier than you Easier than you might thinkmight think

Positively Impacts Your Positively Impacts Your Bottom LineBottom Line

Increase employee Increase employee retentionretention

Meet or exceed Meet or exceed performance performance standardsstandards

Hire employees Hire employees with the skills you with the skills you needneed

Increase Employee Increase Employee RetentionRetention

Replacing employees is Replacing employees is expensive in tangible expensive in tangible and intangible costs.and intangible costs.

The cost of a single The cost of a single turnover ranges from turnover ranges from 93% to 200% of the 93% to 200% of the employees annual employees annual salary (Griffeth & Hom, salary (Griffeth & Hom, 2001)2001)

Employees with Employees with disabilities are loyaldisabilities are loyal

Meet or Exceed Performance Meet or Exceed Performance StandardsStandards

Employees with Employees with disabilities have disabilities have average or above average or above average average performanceperformance

Employees with Employees with disabilities get the disabilities get the job done and are job done and are able to influence co-able to influence co-workers to improve workers to improve performanceperformance

Hire Employees with the Skills You Hire Employees with the Skills You NeedNeed

Take advantage of a Take advantage of a large pool of skilled large pool of skilled applicantsapplicants

8.3% of all 8.3% of all undergraduates or undergraduates or 1.53 million students 1.53 million students have disabilitieshave disabilities

Employer success Employer success stories highlight the stories highlight the capabilities of capabilities of employees with employees with disabilitiesdisabilities

Gives You a Competitive Gives You a Competitive EdgeEdge

Attract qualified Attract qualified employees in a employees in a shrinking workforceshrinking workforce

Reduce costs of Reduce costs of employee benefitsemployee benefits

Gain insight to a Gain insight to a multi-billion dollar multi-billion dollar market segmentmarket segment

Acquire creative Acquire creative problem solving problem solving skillsskills

Attract Qualified Employees in Attract Qualified Employees in A Shrinking WorkforceA Shrinking Workforce

Some industries are Some industries are beginning to feel the beginning to feel the crunch of a shrinking crunch of a shrinking workforceworkforce

In 5-10 years, this In 5-10 years, this shrinkage is expected to shrinkage is expected to worsenworsen

Recruiting & retaining Recruiting & retaining workers with disabilities workers with disabilities is one strategy to is one strategy to counter the affects of counter the affects of the aging & shrinking the aging & shrinking workforceworkforce

Reduce Costs of Reduce Costs of Employee BenefitsEmployee Benefits

Aggressive return to Aggressive return to work program work program increases positive increases positive outcomes and outcomes and reduces cost for an reduces cost for an organizationorganization

Saves money in lost Saves money in lost time, increased time, increased insurance costs, insurance costs, replacement, & replacement, & retraining.retraining.

Gain Insight to a Multi-Billion Gain Insight to a Multi-Billion Dollar Market SegmentDollar Market Segment

54 million American with 54 million American with disabilities representing over disabilities representing over $200 billion in discretionary $200 billion in discretionary spendingspending

This does not include their This does not include their extended families and extended families and support networkssupport networks

Companies are beginning to Companies are beginning to recognize the value of this recognize the value of this target market.target market.

Acquiring Creative Acquiring Creative Problem Solving SkillsProblem Solving Skills

People with People with disabilities bring disabilities bring unique perspectives, unique perspectives, problem solving skills, problem solving skills, and perspectivesand perspectives

Add to diversity in the Add to diversity in the workforce, a factor in workforce, a factor in improved productivityimproved productivity

People with People with disabilities have to be disabilities have to be creative in their every creative in their every day lives.day lives.

It’s Easier Than You Might It’s Easier Than You Might ThinkThink

Level the Level the playing field playing field with technologywith technology

Make Make accommodations accommodations easy and cost easy and cost effectiveeffective

Free Resources Free Resources available to helpavailable to help

Level the Playing FieldLevel the Playing Field

Technology is being Technology is being used every day to used every day to increase productivity of increase productivity of employees with and employees with and without disabilitieswithout disabilities Instant messagingInstant messaging Virtual offices & MeetingsVirtual offices & Meetings Material handling Material handling

equipmentequipment

Make Accommodations Make Accommodations Easy Easy

& Cost Effective& Cost Effective Build a loyal, dedicated Build a loyal, dedicated

and productive work and productive work forceforce

Accommodations good Accommodations good for people with for people with disabilities are often disabilities are often good for all employeesgood for all employees

Cost offset by savings Cost offset by savings from increased from increased productivity & retentionproductivity & retention

Cost is most often Cost is most often nothing or less than nothing or less than $500 $500

Cost of AccommodationsCost of Accommodations

Cost Percentage$0 20%$1 - $500 51%$501 - $1,000 11%$1,001 - $1,500 3%$1,501 - $2,000 3%$2,001 - $5,000 8%$5,000 + 4%

Return of $28.69 in benefits for every dollar spent onaccommodations

Source: Job Accommodation Network

71% of companiesspent $500 or less

Accommodation Accommodation ExamplesExamples

Good for EveryoneGood for Everyone Flexible work schedulesFlexible work schedules Software that allows an individual to Software that allows an individual to

more efficiently manipulate datamore efficiently manipulate data Ergonomic chairs to alleviate back painErgonomic chairs to alleviate back pain Wrist supports to reduce the effects of Wrist supports to reduce the effects of

cumulative trauma disorderscumulative trauma disorders Telecommuting to reduce stress or other Telecommuting to reduce stress or other

issues associated with getting to work.issues associated with getting to work.

Take Advantage of Take Advantage of ResourcesResources

Free Services can Free Services can help:help: EARN (1-866-EARN-EARN (1-866-EARN-

NOW) answer NOW) answer questions about questions about employing people employing people with disabilitieswith disabilities

JAN (800-526-7234) JAN (800-526-7234) get information get information about cost-effective about cost-effective accommodations and accommodations and the ADA.the ADA.

Department of Labor’s Department of Labor’s Office of Disability Office of Disability Employment Policy (ODEP) Employment Policy (ODEP) - guidance and programs to - guidance and programs to help employers recruit, help employers recruit, hire, and retain workers hire, and retain workers with disabilities (866-633-with disabilities (866-633-7365)7365)

EEOC - information to assist EEOC - information to assist employers understand employers understand requirements under the requirements under the ADA (303-866-1300/1301)ADA (303-866-1300/1301)

DBTAC - local information DBTAC - local information & resources for employers & resources for employers (800-949-4232)(800-949-4232)

Tax Incentives for Tax Incentives for Employers Employers

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

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

Work Opportunity Work Opportunity TaxTax Credit Credit (WOTC)(WOTC)

Disabled Access CreditDisabled Access Credit Small businesses earning in Small businesses earning in

previous year :previous year : Maximum $1 million in revenue – orMaximum $1 million in revenue – or 30 or fewer full time employees30 or fewer full time employees

Credit is 50% of expenditures over Credit is 50% of expenditures over $250$250

Expenditures cannot exceed Expenditures cannot exceed $10,250$10,250

Maximum benefit of $5,000Maximum benefit of $5,000 To compute tax credit, the credit To compute tax credit, the credit

amount is subtracted from the amount is subtracted from the total tax liability.total tax liability.

Disabled Access CreditDisabled Access CreditTypes of Expenses CoveredTypes of Expenses Covered

Sign language interpreters for Sign language interpreters for employees or customers who have employees or customers who have hearing impairmentshearing impairments

Readers for employees or customers Readers for employees or customers who have visual impairmentswho have visual impairments

The purchase of adaptive equipment The purchase of adaptive equipment or the modification of equipmentor the modification of equipment

The production of print materials in The production of print materials in alternate formats (e.g., Braille, audio alternate formats (e.g., Braille, audio tape, large print.)tape, large print.)

The removal of barriers in buildings The removal of barriers in buildings and transportation that prevent a and transportation that prevent a business from being accessible to or business from being accessible to or usable by individuals with disabilities.usable by individuals with disabilities.

Barrier Removal Tax Barrier Removal Tax DeductionDeduction

Annual deduction for removal of Annual deduction for removal of physical, structural, and physical, structural, and transportation barriers for transportation barriers for people with disabilities in the people with disabilities in the work place.work place.

All businesses eligibleAll businesses eligible Tax deduction of up to $ 15,000 Tax deduction of up to $ 15,000

a year for expenses to remove a year for expenses to remove barriersbarriers

Amounts in excess of $15,000 Amounts in excess of $15,000 maximum annual deduction can maximum annual deduction can be depreciated.be depreciated.

Available to businesses annuallyAvailable to businesses annually

Barrier RemovalBarrier RemovalExpenses CoveredExpenses Covered

Providing accessible parking spaces, Providing accessible parking spaces, ramps and curb cutsramps and curb cuts

Providing telephones, water Providing telephones, water fountains, and restrooms that are fountains, and restrooms that are accessible to persons in wheel chairsaccessible to persons in wheel chairs

Making walkways at least 48 inches Making walkways at least 48 inches wide.wide.

Barrier RemovalBarrier RemovalExpenses Not CoveredExpenses Not Covered

Cost of new construction Cost of new construction Complete renovation of a facility or Complete renovation of a facility or

public transportation vehiclepublic transportation vehicle Normal replacement of depreciable Normal replacement of depreciable

propertyproperty Can take the tax credit and deduction Can take the tax credit and deduction

together if expenses qualify.together if expenses qualify.

Example:Example: A business spent $12,000 for A business spent $12,000 for access adaptations, it would qualify for a access adaptations, it would qualify for a $5,000 tax credit and a $7,000 $5,000 tax credit and a $7,000 deduction.deduction.

Work Opportunity Tax Work Opportunity Tax Credit (WOTC)Credit (WOTC)

Provides a tax credit for employers Provides a tax credit for employers who hire targeted groupswho hire targeted groups Vocational rehabilitation referralsVocational rehabilitation referrals Former AFDC recipientsFormer AFDC recipients VeteransVeterans Ex-FelonsEx-Felons Food stamp recipientsFood stamp recipients Summer youthSummer youth SSI recipientsSSI recipients

WOTC Tax Credit WOTC Tax Credit

Employer can take a tax credit of up Employer can take a tax credit of up to 40% of the first $6,000 –OR-to 40% of the first $6,000 –OR-

Up to $2,400 in wages paid during Up to $2,400 in wages paid during the first 12 months for each new hirethe first 12 months for each new hire

Program subject to yearly Program subject to yearly congressional renewalcongressional renewal

Tax credit extended to Dec 31, 2005Tax credit extended to Dec 31, 2005 Credit is retroactive to Dec 31, 2003Credit is retroactive to Dec 31, 2003

WOTC Tax CreditWOTC Tax Credit

Eligible employees must work 180 days or Eligible employees must work 180 days or 400 hrs.400 hrs.

Summer youth must work 20 days or 120 Summer youth must work 20 days or 120 hourshours

Partial credit of 25% for WOTC certified Partial credit of 25% for WOTC certified employees who worked at least 120 hours employees who worked at least 120 hours but the employer may claim less than 400 but the employer may claim less than 400 hrs.hrs.

WOTC certification is provided by the local WOTC certification is provided by the local state employment security agency (SESA)state employment security agency (SESA)

Additional Information on Additional Information on Tax Incentives Tax Incentives

Disabled Access Credit or Barrier Disabled Access Credit or Barrier Removal Tax Deduction, contact:Removal Tax Deduction, contact: IRS, Office of Associate Counsel, Pass IRS, Office of Associate Counsel, Pass

Through & Special Industries, 1111 Through & Special Industries, 1111 Constitution Ave., NW Washington, DC Constitution Ave., NW Washington, DC 200224 202-622-3110200224 202-622-3110

WOTC, contact:WOTC, contact: DOL Employment & Training DOL Employment & Training

Administration; 202- 693-2786; TTY 877-Administration; 202- 693-2786; TTY 877-889-5627889-5627

Myths & FactsMyths & Facts Hiring People with Hiring People with

DisabilitiesDisabilitiesOvercoming Concerns

ConcernConcern

MythMyth

People with disabilities are less People with disabilities are less productive.productive.

FactFact

People with disabilities perform at People with disabilities perform at average to above average levels when average to above average levels when compared to people without compared to people without disabilitiesdisabilities

Source: DuPont survey of 811 employees, 1990Source: DuPont survey of 811 employees, 1990

ConcernConcern

MythMythPeople with Disabilities have more accidents, People with Disabilities have more accidents, and will increase my insurance rates.and will increase my insurance rates.

TruthTruthThe safety record of people with disabilities are as The safety record of people with disabilities are as good or better when compared to employees without good or better when compared to employees without disabilities. Modifications made to accommodate disabilities. Modifications made to accommodate employees with disabilities often increase the safety employees with disabilities often increase the safety of all employees, and may LOWER insurance rates. of all employees, and may LOWER insurance rates.

Source: DuPont Study, 1990Source: DuPont Study, 1990

ConcernConcern

MythMyth

People with Disabilities have more People with Disabilities have more attendance problemsattendance problems

TruthTruth

The attendance records of people The attendance records of people with disabilities is the same or better with disabilities is the same or better than those without disabilitiesthan those without disabilities

Source: DuPont Study, 1990Source: DuPont Study, 1990

ConcernConcern

MythMythI’ll spend a fortune on accommodations for I’ll spend a fortune on accommodations for an employee with disabilities.an employee with disabilities.

TruthTruthMost employers paid nothing or $1 to $500 in Most employers paid nothing or $1 to $500 in accommodations, and had a average return of $28.69 in accommodations, and had a average return of $28.69 in benefits for every dollar invested in making benefits for every dollar invested in making accommodations. Many discovered that the accommodations. Many discovered that the accommodations were offset by attractive tax incentives, accommodations were offset by attractive tax incentives, and also made life easier for employees without and also made life easier for employees without disabilities.disabilities.

Source: Job Accommodation NetworkSource: Job Accommodation Network

SummarySummaryWhy Hire People with Why Hire People with

Disabilities?Disabilities? Positively Impacts Your Bottom LinePositively Impacts Your Bottom Line Gives You a Competitive EdgeGives You a Competitive Edge Support Resources Make it Easy Support Resources Make it Easy