The economic and business benefits of employing people with disability

1. Overview

This factsheet provides information on the:

• benefits of employing people with disability for the economy
• benefits of employing people with disability for businesses and organisations.

2. Benefits for the economy

In 2011, Deloitte Australia conducted research into the economic benefits of increasing employment for people with disability in Australia.^[1]

The economic modelling presented in the Deloitte report indicated that closing the gap between labour market participation rates and unemployment rates for people with and without disabilities by one-third could result in a cumulative $43 billion increase in Australia’s gross domestic product (GDP) over the next decade in real dollar terms.^[2]

The modelling also suggested that GDP would be around 0.85% higher over the longer term, which was equivalent to an increase in GDP in 2011 of $12 billion.^[3] These estimates only account for the direct impact on GDP, and do not include indirect effects from improved government fiscal balances and increased employment opportunities for carers.^[4]

While this report was released almost ten years ago, the rates of employment for people with disability have not improved in this time.^[5]

Employment can also provide increased income for people with disability to support their individual financial independence and capacity to contribute to the economy as consumers.

3. Benefits for businesses and organisations

Employing people with disability has many business benefits.

People with disability have diverse perspectives, experiences, skills and talents. Evidence demonstrates that people with disability have a positive work attitude and work ethos, and that hiring people with disability can boost productivity and morale in the workplace.^[6]

Research published in 2018 demonstrates that the benefits of hiring people with disability extend across the organisation or business.^[7]

The systematic review of 39 international studies showed four key improvements including:

A diverse workforce, which includes people with disability, will better reflect a business’s surrounding community and customer base. It may also enhance a business’s image and brand among its staff, community and customers.^[8]

People with disability often have very good problem-solving skills because they have regular experience adapting to challenges and finding creative solutions.^[9] Hiring people with disability may support businesses to find innovative solutions to challenging problems, and create new, more efficient processes.

A business which values and employs people with disability benefits from a more inclusive and positive work environment. This can include increased staff morale, improved co‑worker relationships and productivity across the organisation.^[10]

Employing people with disability has also been shown to increase awareness of the skills and experience that people with disability bring to the workplace.^[11] This contributes to building disability-positive workplaces and communities.

Studies have shown that people with disability take relatively fewer sick days than other employees, and are involved in fewer work, health and safety incidents.^[12] In one study, people with disability accrued less than half the amount of ‘sick leave’ (now commonly referred to as personal leave) compared to the average employee.^[13] While some people with disability have chronic conditions which require them to attend regular medical appointments, this is no different from other obligations in a person’s life, such as family responsibilities. In addition, the number of reported work, health and safety incidents was six times lower for people with disability, and the number of workers compensation incidents was four times lower for people with disability in comparison to that of an average employee.^[14] Businesses have also reported that employees with disability are more punctual, reliable and conscientious in their work.^[15]

Recruitment costs, such as hiring, advertising, training, and induction may also be reduced, given the lower turnover rate for people with disability.[16]

The following case study demonstrates the broad benefits for businesses if they take an active role in attracting and recruiting people with disability to join their workforce.