Increasing disability confidence in SMEs Creating employment and support opportunities

Policy & Research reedinpartnership.co.uk

Key findings• Almost all SMEs (93%) report that they have an equal opportunities policy in

place and 70% say that they have a wellbeing strategy.

• Yet more than one in three (36%) SMEs say that they do not employ anyone with a disability or a limiting health condition. This increases to more than half (53%) amongst the smallest organisations (with fewer than 10 employees).

• Nearly half (48%) of SMEs say that they have not come across any challenges around in-work progression for employees with a disability or a health condition.

• Where employers have experience of employing disabled people or are disabled themselves they have positive stories to tell.

• The main challenges identified by employers were concerns about:

1. A lack of knowledge and not knowing where to start

2. Concern over the physical demands of a job

3. The cost and practicality of making adaptations

4. Employee absence

• There are many sources of advice and support available to help SMEs. We have included details of these throughout this report.

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1 INTRODUCTIONDisabled people have accounted for a third (33%) of the growth in employment since 20081, but their employment rate (52%) is still significantly below that for people without a disability (82%)2.

Despite some recent progress, there is still a long way to go. There are 7.6 million working age adults3 in the UK who have a disability, making up 18% of the working age population.

Most (99%) employers in the UK are small or medium-sized enterprises (SMEs).They account for 60% of all employment4. But our report shows that many of them are not confident about disability in the workplace.

They have concerns about their premises or the cost of adaptations, lack HR support, have a lack of knowledge about some conditions or are worried about getting things wrong.

These concerns come despite the array of advantages for SMEs in becoming more confident about

disability. For instance:

1 SMEs are more likely than large organisations to be serving a local customer base that

will include many disabled people: mirroring this diversity makes good business sense.

2 The informality of a smaller organisation can bring greater scope for flexibility around

the individual.

3 Making work more accessible to disabled people means SMEs can reach a wider talent

pool with additional skills when recruiting.

4 SMEs can benefit from free support from the many organisations that are seeking to

help improve the employment rate of disabled people, as well as the Government’s

Access to Work scheme.

The majority of people acquire their disability as adults. Given that the majority of disabilities (more than 90%) are not visible, it is very likely that all businesses - including SMEs - are employing more disabled people than they realise.

Organisations that are positive about disability and ready to support their employees can reap huge benefits from supporting their employees’ performance, productivity and retention.

What’s more, research suggests that employers that take positive steps to address and remove barriers for disabled staff often find that they benefit from some of the most committed, reliable and motivated employees in the labour market.

We carried out some research with small employers to find out more about their experience of and concerns about employing disabled people.

We hope that this research summary is useful for small employers and will give SMEs not yet fully benefitting from the talents of disabled people in their own workforce some ideas about where to start.

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2 OUR RESEARCHReed in Partnership delivers Better Working Futures - our name for the Government’s Work and Health Programme - in the North East, Yorkshire, Derbyshire and Staffordshire Moorlands.

Launched in January 2018, this service gives people who face additional barriers to finding work the

best support available. Most of the people we help have disabilities or long-term health conditions.

We carried out some research in the this area to better understand the barriers reported by

employees in employing and progressing disabled people.

Nine in ten (90%) of the employers we surveyed were small or medium-sized organisations with fewer

than 250 employees.

By size, nine out of ten (90%) employers taking part in the interviews were SMEs and 71% had

fewer than 50 employees.

This quantitative research was followed by ten in-depth interviews with small and medium-sized

employers from a range of sectors, all of which had fewer than 250 employees.

The findings in this report are based on the responses of the 90% of employers with fewer than

250 employees, as well as the in-depth interviews.

3 OUR METHODThe research was carried out by DJS Research for Reed in Partnership.

A total of 250 ten-minute interviews were carried out with key decision-makers in October and

November 2018, all based in our Better Working Futures delivery region.

This chart shows the sector profile of participants in the first phase of the research:

Transport, retail or wholesale

Health or social care

Manufacturing, construction or agriculture

Hospitality, catering or leisure services

Business & other services, finance, insurance

Public sector or education

Non-profit

Other

0% 5% 10% 15% 20% 25% 30%

Respondents by sector

Respondents by size

Fewer that 10 employees

10-49 employees

50-99 employees

100-249 employees

250 or more employees

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4 One drew attention to the positive attitude and drive of its disabled employees, stating:

“The people we have got with a disability [they] will stop at nothing.”

Another employer told us they had used a local learning disability agency to recruit two people

recently. “One is a rising star”, the employer reported. “We are helping him at the moment to get a

grant to get a bike to work as he cannot drive.”

Our findingsEmploying disabled people

More than one in three (36%) SMEs told us that they do not employ anyone with a disability or a

limiting health condition.

This increases to more than half (53%) amongst the smallest organisations (with fewer than 10

employees).

While this finding shows firms employing more disabled people than other assessments do5, we

might expect a higher proportion of organisations to have at least one disabled employee, given that

one in five of the working age population has a disability.

It is important to remember that many disabled people will not have shared their disability or condition

with their employer for a number of reasons. They may consider it irrelevant to their ability to do

their job, be concerned about discrimination or stigma or unsure, as yet, how a new condition

affects them. But our findings also reflect the fact that disabled people are under-represented in the

workforce, with only around half of disabled people in employment.

The benefits for your business

If your organisation does not employ any disabled people, it is missing out. Employing

and retaining disabled people can:

• Enable access to a wider pool of potential recruits - especially at a time of record

employment - bringing a better chance of finding the right individual for the job.

• Make your organisation more representative of the local community and enhance its

reputation. One study found that 87% of consumers agreed that they would prefer to give

their business to companies that hire people with disabilities.6

• Bring new skills to your organisation, such as thinking in a different way.

• Help your organisation improve the ways it develops services or products and better serve

disabled people (and non-disabled people) as customers.

• Improve employee engagement and productivity. More than three-quarters (77%) of

employers signed up to the Government’s Disability Confident scheme agreed that the

recruitment or retention of an employee who is or has become disabled has a positive impact

on staff morale.7

A positive experience

Almost half (48%) of SMEs say that they have not come across any challenges around in-work

progression for employees with a disability or a health condition, our research found.

A number of employers suggested that experience of disability - whether on a personal level or

through employing disabled people - has been positive for their organisation and brought greater

confidence in employing more people with a disability.

“I don’t see them as challenges.

We provide reasonable adjustments for

candidates and staff as a disability

employer.”“We are an equal opportunity

employer. We would try and accommodate

anyone.”

“They just need to be given the chance.”

“We try to accommodate everybody the best we can.”

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Personal experience

A number of employers said that they had a disability themselves. Addressing challenges Many employers identified particular challenges that they thought might arise in employing a disabled person in their organisation.

The four main themes we found are summarised below, with some key facts and sources of advice

and help.

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“Nothing stands in the way. We have epileptics, chronic asthma sufferers,

nothing holds them back. I have

epilepsy and am a manager.”

“I have a hearing disability

myself, so I do not see any challenges

here.”

“No challenges at all, as I have a disability

myself.”

One interviewee runs a small company of four people and describes himself as autistic. He has

recently recruited a younger employee with autism. He spoke about the challenges and prejudice

facing disabled employees, despite the high level of skills people with autism may bring to a job, such

as, in his words, “attention to detail, timekeeping, caring about your job.”

He considers that one of the biggest barriers is the “pigeonholing” of disabled people and a lack of

interest in the talents they bring. “They’re seen as someone who’s taking from the system instead of

giving… there are a lot of people with disabilities out there who want to work.”

CHALLEN

GE 1

“We don’t employ anyone with a disability - I wouldn’t know where to start.”

With an ageing population and the likelihood of someone developing a disability at some

point during their employment as they get older, disability-inclusive employers can reap the

benefits of both improved employee retention and a richer talent pool when recruiting.

While it is up to an individual to tell their employer about a disability, a disability-positive

approach can help encourage employees to do so and enable the employer to provide

appropriate support, where necessary.

Many employers do not feel that they have the confidence or knowledge to recruit and

manage disabled people, including making any reasonable adjustments that might be

needed.

There are many sources of free support and advice to help employers with this. For example

they can:

• Sign up to the Government’s Disability Confident scheme, designed to help employers

recruit and retain disabled people and people with health conditions. It has published a

practical guide for line managers.

• Look up information and advice from organisations representing disabled people, such as

Disability Rights UK and the many different organisations representing people with specific

disabilities.

• Learn how to become more comfortable in communicating by looking up Scope’s End the

Awkward campaign.

• Contact the Business Disability Forum, a not-for-profit membership organisation that

makes it easier and more rewarding to do business with and employ disabled people.

These are just some examples of the many sources of advice and information

available. Signing up to the Disability Confident campaign is a great place to start.

KEY FACT: More than three quarters (77%) of the organisations that have signed up to

the Government’s Disability Confident scheme are SMEs, with just over one third (34%)

being microbusinesses.8

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“A disabled person wouldn’t be able to do the job.”

A number of the employers we spoke to thought that a disabled person would not be able

to do certain jobs at their organisation and were concerned about risks.

For example, one employer said: “Physical disability would stop [the] ability to do this job.”

Another said: “There are things such as heavy lifting which would be a challenge.” Others

had concerns about driving or lone working.

But it is important to treat every potential recruit or employee as an individual rather than

making assumptions.

As a guide from the Business Disability Forum9 states, “You might be surprised. The term

‘disabled people’ covers a wide range of disabled people with different impairments which

may or may not affect how they do their job. Disabled people work in all types of jobs.”

Many comments from employers in our research made the assumption that a disabled

person’s impairment would be physical and affect mobility. But the key point is made by one

employer in our research: “You can’t say beforehand. You’ve got to see what their disability

is. There are so many forms of disability.”

There are many sources of good practice on adapting a job, with the disabled employee and

the employer together redesigning a role to serve both serve business needs and maximise

the contribution of the individual.

This is sometimes referred to as job redesign or job carving10. It has been shown to be a

useful technique for all employees (for example, in promoting part-time work in job roles that

are usually done on a full-time basis).

Take a look at some of the jobs that our Better Working Futures service has supported

disabled people to secure at betterworkingfutures.co.uk/peoples-stories

KEY FACT: Fewer than 8% of disabled people use a wheelchair and the proportion amongst the working population is lower still. In contrast, more than 90% of disabilities are not visible.

CHALLENGE 2

“We wouldn’t be able to make the adjustments required.”

Employers have a duty under the Equality Act 2010 to make reasonable adjustments for

disabled people if there are aspects of a job or workplace which put them at a disadvantage.

A number of employers we spoke to assumed a disability would be likely to affect mobility

and thought that making adjustments - particularly when it came to physical premises -

would pose challenges in employing a disabled person. For example, one employer said:

“The building is old and has three storeys and no lift.”

In reality, any adjustments will depend on the particular person, employer and situation.

The Business Disability Forum’s line manager guide to reasonable adjustments explains

the types of adjustment needed might include changes to recruitment practices, working

arrangements or hours, equipment or the working environment.

As one of the employers interviewed in our research noted, “We look at the tasks, the day-

to-day and the working patterns and we find out what sort of adjustments that we can

make.”

He continued: “What we’ve done in the past is change working hours; we’ve had some

individuals who find the mornings harder, so we’ve had later starts and a later finish and

accommodate it that way. If it’s a physical condition then we try and look at what tasks we

could swap with others and what other adjustments we could make there. Those are the

kinds of things that we’ve done, we’ve always found options… it depends on the individual.”

As the Disability Confident guide for line managers11 states: “Most adjustments cost

nothing or very little.” One survey of more than 2,000 employer records found that 65% of

adjustments were cost-neutral.12

The Government’s Access to Work scheme provides funding for adaptations to the

workplace both on recruitment and during employment.

This can include specialist equipment, alterations to premises, assistance travelling and

some personal support. Where there are some instances where the employer pays some of

the costs, this is not applicable to the smallest employers (with fewer than 50 employees)

who do not have to share the costs.13

Find out more about Access to Work by reading the Government’s

Access to Work guide for employers.

KEY FACT: : Government research14 found that almost three-quarters of employers that

had made adjustments for a disabled employee had found it easy or quite easy, with

only 11% finding it difficult - a finding that did not vary significantly by the size of the

organisation.

CHALLENGE 3

“I would be worried about employee absence.”

A small number of employers taking part in our research mentioned absence as a potential

challenge associated with employing a disabled person.

One employer that did not report employing any people with a disability or health condition

commented: “Absence levels would inhibit hiring people falling into that category.”

However, another one of the employers, who estimated that there were seven employees

out of 28 at his organisation with a disability, pointed out that absence was not a problem:

“I’ve [not had] a high sickness rate here.”

As the Government’s Disability Confidence guide15 states: “Don’t assume that team

members with a disability or health condition will have more sickness absence than any

other team members - this is often not the case.”

One study cited by Mencap found that there were higher costs from employee lateness,

sick leave and absence incurred by non-disabled workers than employees with a learning

disability16.

There are many sources of advice on good absence management at work, including

Acas, the CIPD and the Health and Safety Executive.

KEY FACT: When we carried out a survey of 300 employers at the end of 2016 with Disability Rights UK, very few employers (12%) thought that higher absence rates would pose a challenge to their organisation in employing disabled people.

CHALLENGE 4

Next steps Reed in Partnership are hand to support all employers to make more accessible for disabled people.

Our Better Working Futures service is bringing local jobseekers together with employers who have work

opportunities available.

Speak to us to find out more about what we can do for you:

betterworkingfutures.co.uk/employers

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Notes1 Setting the record straight: How record employment has changed the UK, Resolution Foundation

2019.2 People with disabilities in employment, House of Commons Library 2019.3 Ibid.

4 Business statistics briefing paper, House of Commons Library 2018.5 For example, Government figures cited in a recent report by the Federation of Small Businesses

suggest that only 11% of small firms employed someone with a disability. See Small business, Big heart: Bringing communities together, Federation of Small Businesses 2019.

6 Good for business: the benefits of employing people with a learning disability, Mencap, 2017.7 Disability Confident Scheme: Summary findings from a survey of participating employers,

Department for Work and Pensions 2018.8 Small business, Big heart: Bringing communities together, Federation of Small Businesses 2019.9 Line manager guide: making adjustments, Business Disability Forum.10 See How job carving can help disabled employees and the organisation at

https://www.evenbreak.co.uk/blog/ 11 Recruiting, managing and developing people with a disability or health condition, Disability

Confident and the CIPD 2018.12 A systematic review of the literature on the benefits for employers of employing people with

learning disabilities, Beyer and Beyer (for Mencap) 2017.13 See Small business, Big heart: Bringing communities together, Federation of Small Businesses,

2019 and Access to Work: Factsheet for employers, DWP.14 Work, Health and Disability Green Paper data pack, Department for Work and Pensions and

Department of Health 2016.15 Recruiting, managing and developing people with a disability or health condition, Disability

Confident and the CIPD 2018.16 Good for business: the benefits of employing people with a learning disability, Mencap 2017.

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