Building The Business Case Hiring Peoplewith Disabiities


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Hiring workers with disabilities is good for business. This power point presentation tells you why.

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  • Building The Business Case Hiring Peoplewith Disabiities

    1. 1. Presented by: Glenda Owen, Chief Workforce Services Oklahoma Employment Security Commission Workforce Readiness Leader, OK State HR Council Hiring People with Disabilities Building the Business Case
    2. 2. Why Hire People with Disabilities? <ul><li>Positively impacts your bottom line </li></ul><ul><li>Gives you a competitive edge </li></ul><ul><li>Easier than you might think </li></ul>
    3. 3. Positively Impacts Your Bottom Line <ul><li>Increase employee retention </li></ul><ul><li>Meet or exceed performance standards </li></ul><ul><li>Hire employees with the skills you need </li></ul>
    4. 4. Increase Employee Retention <ul><ul><li>Replacing employees is expensive in tangible and intangible costs. </li></ul></ul><ul><ul><li>The cost of a single turnover ranges from 93% to 200% of the employees annual salary (Griffeth & Hom, 2001) </li></ul></ul><ul><ul><li>Employees with disabilities are loyal </li></ul></ul>
    5. 5. Meet or Exceed Performance Standards <ul><li>Employees with disabilities have average or above average performance </li></ul><ul><li>Employees with disabilities get the job done and are able to influence co-workers to improve performance </li></ul>
    6. 6. Hire Employees with the Skills You Need <ul><li>Take advantage of a large pool of skilled applicants </li></ul><ul><li>8.3% of all undergraduates or 1.53 million students have disabilities </li></ul><ul><li>Employer success stories highlight the capabilities of employees with disabilities </li></ul>
    7. 7. Gives You a Competitive Edge <ul><li>Attract qualified employees in a shrinking workforce </li></ul><ul><li>Reduce costs of employee benefits </li></ul><ul><li>Gain insight to a multi-billion dollar market segment </li></ul><ul><li>Acquire creative problem solving skills </li></ul>
    8. 8. Attract Qualified Employees in A Shrinking Workforce <ul><li>Some industries are beginning to feel the crunch of a shrinking workforce </li></ul><ul><li>In 5-10 years, this shrinkage is expected to worsen </li></ul><ul><li>Recruiting & retaining workers with disabilities is one strategy to counter the affects of the aging & shrinking workforce </li></ul>
    9. 9. Reduce Costs of Employee Benefits <ul><li>Aggressive return to work program increases positive outcomes and reduces cost for an organization </li></ul><ul><li>Saves money in lost time, increased insurance costs, replacement, & retraining. </li></ul>
    10. 10. Gain Insight to a Multi-Billion Dollar Market Segment <ul><li>54 million American with disabilities representing over $200 billion in discretionary spending </li></ul><ul><li>This does not include their extended families and support networks </li></ul><ul><li>Companies are beginning to recognize the value of this target market. </li></ul>
    11. 11. Acquiring Creative Problem Solving Skills <ul><li>People with disabilities bring unique perspectives, problem solving skills, and perspectives </li></ul><ul><li>Add to diversity in the workforce, a factor in improved productivity </li></ul><ul><li>People with disabilities have to be creative in their every day lives. </li></ul>
    12. 12. It’s Easier Than You Might Think <ul><li>Level the playing field with technology </li></ul><ul><li>Make accommodations easy and cost effective </li></ul><ul><li>Free Resources available to help </li></ul>
    13. 13. Level the Playing Field <ul><li>Technology is being used every day to increase productivity of employees with and without disabilities </li></ul><ul><ul><li>Instant messaging </li></ul></ul><ul><ul><li>Virtual offices & Meetings </li></ul></ul><ul><ul><li>Material handling equipment </li></ul></ul>
    14. 14. Make Accommodations Easy & Cost Effective <ul><li>Build a loyal, dedicated and productive work force </li></ul><ul><li>Accommodations good for people with disabilities are often good for all employees </li></ul><ul><li>Cost offset by savings from increased productivity & retention </li></ul><ul><li>Cost is most often nothing or less than $500 </li></ul>
    15. 15. Cost 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 on accommodations Source: Job Accommodation Network 71% of companies spent $500 or less
    16. 16. Accommodation Examples Good for Everyone <ul><li>Flexible work schedules </li></ul><ul><li>Software that allows an individual to more efficiently manipulate data </li></ul><ul><li>Ergonomic chairs to alleviate back pain </li></ul><ul><li>Wrist supports to reduce the effects of cumulative trauma disorders </li></ul><ul><li>Telecommuting to reduce stress or other issues associated with getting to work. </li></ul>
    17. 17. Take Advantage of Resources <ul><li>Free Services can help: </li></ul><ul><ul><li>EARN (1-866-EARN-NOW) answer questions about employing people with disabilities </li></ul></ul><ul><ul><li>JAN (800-526-7234) get information about cost-effective accommodations and the ADA. </li></ul></ul><ul><li>Department of Labor’s Office of Disability Employment Policy (ODEP) - guidance and programs to help employers recruit, hire, and retain workers with disabilities (866-633-7365) </li></ul><ul><li>EEOC - information to assist employers understand requirements under the ADA (303-866-1300/1301) </li></ul><ul><li>DBTAC - local information & resources for employers (800-949-4232) </li></ul>
    18. 18. Tax Incentives for Employers <ul><li>Small Business Tax Credit: IRS Code Section 44, Disabled Access Credit </li></ul><ul><li>Architectural/Transportation Tax Deduction, IRS Code Section 190, Barrier Removal </li></ul><ul><li>Work Opportunity Tax Credit (WOTC) </li></ul>
    19. 19. Disabled Access Credit <ul><li>Small businesses earning in previous year : </li></ul><ul><ul><li>Maximum $1 million in revenue – or </li></ul></ul><ul><ul><li>30 or fewer full time employees </li></ul></ul><ul><li>Credit is 50% of expenditures over $250 </li></ul><ul><li>Expenditures cannot exceed $10,250 </li></ul><ul><li>Maximum benefit of $5,000 </li></ul><ul><li>To compute tax credit, the credit amount is subtracted from the total tax liability. </li></ul>
    20. 20. Disabled Access Credit Types of Expenses Covered <ul><li>Sign language interpreters for employees or customers who have hearing impairments </li></ul><ul><li>Readers for employees or customers who have visual impairments </li></ul><ul><li>The purchase of adaptive equipment or the modification of equipment </li></ul><ul><li>The production of print materials in alternate formats (e.g., Braille, audio tape, large print.) </li></ul><ul><li>The removal of barriers in buildings and transportation that prevent a business from being accessible to or usable by individuals with disabilities. </li></ul>
    21. 21. Barrier Removal Tax Deduction <ul><li>Annual deduction for removal of physical, structural, and transportation barriers for people with disabilities in the work place. </li></ul><ul><li>All businesses eligible </li></ul><ul><li>Tax deduction of up to $ 15,000 a year for expenses to remove barriers </li></ul><ul><li>Amounts in excess of $15,000 maximum annual deduction can be depreciated. </li></ul><ul><li>Available to businesses annually </li></ul>
    22. 22. Barrier Removal Expenses Covered <ul><li>Providing accessible parking spaces, ramps and curb cuts </li></ul><ul><li>Providing telephones, water fountains, and restrooms that are accessible to persons in wheel chairs </li></ul><ul><li>Making walkways at least 48 inches wide. </li></ul>
    23. 23. Barrier Removal Expenses Not Covered <ul><li>Cost of new construction </li></ul><ul><li>Complete renovation of a facility or public transportation vehicle </li></ul><ul><li>Normal replacement of depreciable property </li></ul><ul><li>Can take the tax credit and deduction together if expenses qualify. </li></ul><ul><li>Example: A business spent $12,000 for access adaptations, it would qualify for a $5,000 tax credit and a $7,000 deduction. </li></ul>
    24. 24. Work Opportunity Tax Credit (WOTC) <ul><li>Provides a tax credit for employers who hire targeted groups </li></ul><ul><ul><li>Vocational rehabilitation referrals </li></ul></ul><ul><ul><li>Former AFDC recipients </li></ul></ul><ul><ul><li>Veterans </li></ul></ul><ul><ul><li>Ex-Felons </li></ul></ul><ul><ul><li>Food stamp recipients </li></ul></ul><ul><ul><li>Summer youth </li></ul></ul><ul><ul><li>SSI recipients </li></ul></ul>
    25. 25. WOTC Tax Credit <ul><li>Employer can take a tax credit of up to 40% of the first $6,000 –OR- </li></ul><ul><li>Up to $2,400 in wages paid during the first 12 months for each new hire </li></ul><ul><li>Program subject to yearly congressional renewal </li></ul><ul><li>Tax credit extended to Dec 31, 2005 </li></ul><ul><li>Credit is retroactive to Dec 31, 2003 </li></ul>
    26. 26. WOTC Tax Credit <ul><li>Eligible employees must work 180 days or 400 hrs. </li></ul><ul><li>Summer youth must work 20 days or 120 hours </li></ul><ul><li>Partial credit of 25% for WOTC certified employees who worked at least 120 hours but the employer may claim less than 400 hrs. </li></ul><ul><li>WOTC certification is provided by the local state employment security agency (SESA) </li></ul>
    27. 27. Additional Information on Tax Incentives <ul><li>Disabled Access Credit or Barrier Removal Tax Deduction, contact: </li></ul><ul><ul><li>IRS, Office of Associate Counsel, Pass Through & Special Industries, 1111 Constitution Ave., NW Washington, DC 200224 202-622-3110 </li></ul></ul><ul><li>WOTC, contact: </li></ul><ul><ul><li>DOL Employment & Training Administration; 202- 693-2786; TTY 877-889-5627 </li></ul></ul>
    28. 28. Myths & Facts Hiring People with Disabilities Overcoming Concerns
    29. 29. Concern <ul><li>Myth </li></ul><ul><li>People with disabilities are less productive. </li></ul><ul><li>Fact </li></ul><ul><li>People with disabilities perform at average to above average levels when compared to people without disabilities </li></ul><ul><li>Source: DuPont survey of 811 employees, 1990 </li></ul>
    30. 30. Concern <ul><li>Myth </li></ul><ul><li>People with Disabilities have more accidents, and will increase my insurance rates. </li></ul><ul><li>Truth </li></ul><ul><li>The safety record of people with disabilities are as good or better when compared to employees without disabilities. Modifications made to accommodate employees with disabilities often increase the safety of all employees, and may LOWER insurance rates. </li></ul><ul><li>Source: DuPont Study, 1990 </li></ul>
    31. 31. Concern <ul><li>Myth </li></ul><ul><li>People with Disabilities have more attendance problems </li></ul><ul><li>Truth </li></ul><ul><li>The attendance records of people with disabilities is the same or better than those without disabilities </li></ul><ul><li>Source: DuPont Study, 1990 </li></ul>
    32. 32. Concern <ul><li>Myth </li></ul><ul><li>I’ll spend a fortune on accommodations for an employee with disabilities. </li></ul><ul><li>Truth </li></ul><ul><li>Most employers paid nothing or $1 to $500 in accommodations, and had a average return of $28.69 in benefits for every dollar invested in making accommodations. Many discovered that the accommodations were offset by attractive tax incentives, and also made life easier for employees without disabilities. </li></ul><ul><li>Source: Job Accommodation Network </li></ul>
    33. 33. Summary Why Hire People with Disabilities? <ul><li>Positively Impacts Your Bottom Line </li></ul><ul><li>Gives You a Competitive Edge </li></ul><ul><li>Support Resources Make it Easy </li></ul>