The Oregon business case for inclusion of people with disabilities in the competitive workplace and consumer base

 

Overview

People with disabilities in the competitive workforce and marketplace represent a larger number of individuals with each census, now topping 20% of the American population and a higher percentage for African Americans and Native Americans.  At the interface between the business environment and trends that will affect Oregon business in the next 5 – 15 years, there are some unique challenges and opportunities immediately ahead.  The skill dearth as aging boomers begin leaving the workforce, the cost of lost days from injury on the job, the emergence of a new consumer market expanding faster than any other, and a growing pool of skilled workers traditionally undervalued by business all share a common characteristic: this is the profile of people with disabilities in the workplace and as consumers between the years of 2004-2020.

In August 2004, 15 leading Oregon employers in technology, manufacturing, utilities, energy, health care, design, and government representing 100,000 employees looked at the trend information, their business strategies, metrics, and bottom lines.  They had come together with state leaders in a CEO forum to craft the business case for people with disabilities in the competitive workplace and consumer base.  These are their findings and recommendations to Oregon employers and government as the business case for disabilities:

 

Disability nation: the demographics of baby boom America

Between 1990 and 2000, the number of Americans with disabilities increased 25%, outpacing any other subgroup of the U.S. population.  About 1 in 5 people in America now have a disability the leading causes of which are arthritis (17.5%), back problems (16.5%), and heart trouble (7.8%): marks of an aging society.  Currently, 35% of Oregon's workforce is 45-64 years old.  This is an age group that has a 15% chance of developing a significant disability according to the census.  Disability rates also vary among prominent ethnic groups including African Americans and Native Americans at 24.4%, Latinos at 20.9%, European Americans at 18.3% and Asians at 16.6%.

 

 

Leading Causes of Disability Among U.S. Adults, 1999.

Source: Prevalence of Disabilities and Associated Health Conditions Among Adults — United States, 1999. MMWR 2001

 

Ability and disability in the Oregon job force.

In 2002, there were 408,304 people with disabilities of working age in Oregon, 41.5% of whom are employed for wages.  People with disabilities are as likely to attend college and win degrees or advanced degrees as their non-disabled counterparts: a rate of 27% in Oregon, and as likely to be self employed at 13.3%.  However, in the job market, Oregon citizens with disabilities are 30% less likely to successfully land jobs than people without disabilities.  They are also more likely to wish they were employed.  63% of unemployed people with disabilities would prefer to work compared to 42% of unemployed people without disabilities.  In a market where talent and work ethic are what employers seek most, a recent survey by the American Federation of Small Business revealed that 27% of employers reported difficulty in filling positions.

A 2002 Oregon study of employed people with disabilities that gauged their work place experiences found that, of those employed, 27% said that they had been refused a job interview because of their disability, 31% said they were refused a job because of it, and 21 % said they had been denied a workplace accommodation.

 

Buying power: An emerging American market

In a recent segment on CNN's "Maverick of the Morning," marketer Carmen Jones recently addressed the emergence of the consumer market of people with disabilities as one of the biggest new areas for American commerce.  "People with disabilities want the same products and services as non-disabled people," she told CNN Anchor, Rhonda Schaffler. "And it's not just people in wheelchairs. It's people with hearing impairments, and visual impairments. And also cognitive disabilities. And also people with mobility impairments. It is broader than just physical access. It's making sure the staff can take care of the people with disabilities coming in to patronize their business."

The 2000 Census data indicates that there are 50 million Americans living with a disability.  Collectively, they represent $200 billion to spend in aggregate income, are larger than the teen market, and are prominent users of the internet for on-line shopping.  Asked about corporate perceptions of this market segment, Ms. Jones summarized, "I often see that companies try to place people with disabilities in the "foundation", or "charity" model. Once I share the demographic information with them, and make it a business imperative, and then try to eradicate any perceptions that people have of disabled people, we then begin to see great advances."

 

The Return On Investment of capturing talent while accommodating disability

In the experience of the Oregon employers who gathered in August of 2004 to craft the business case for inclusion, there are 4 major areas where business and people with disabilities mesh:

1.  As talented job seekers (27% of whom have degrees) or new hires, and as long time skilled employees who have developed a disability over time (about 15% of the age 45+ workforce),

2.  From having been injured on the job and received a short or long term disability (affecting 22,000+ Oregon workers annually and costing business $85 million in lost time in 2003),

3.  As workers who never identify themselves as having a disability but who are working effectively in a disability friendly environment, or

4.  As customers (a $220 billion market segment) or business partners
     (1 in 5 Americans). 

In each of the 4 areas, accommodation was identified as the leading strategy used by Oregon business to maximize the benefits of recruiting and retaining a talented workforce and reducing costs of lost time, litigation, and lost talent.  With most accommodation costing less than $500, and 67% costing less than $1000, it is a powerful tool against the high costs associated with extended absence due to injury ($3,800 per incident in timeloss dollars in Oregon in 2003), lost skills, and rehiring (averaging $6,000 per hire in HR and training costs.)

 

Tying accommodation strategies to business plans

The business leaders attending the CEO forum on crafting the business case for inclusion agreed that for reasons of skill retention and competitiveness Oregon business can neither afford to lose the opportunity to hire skilled workers with disabilities nor lose workers to disability or injury for long periods.  Oregon business has long had an entrepreneurial spirit that makes the most of resources and opportunities in the marketplace.  Of the industries present on that day, each had a best practice to share in the area of accommodation, or was looking to improve their ability to tie their accommodation strategies to their business plan and its associated metrics.

Looking ahead, Oregon business and the expertise represented in the state's considerable investment in accommodation tools and training has the potential to lead the nation in disability accommodation in the market place.  This has implications for Oregon business prosperity over the next 15 years as the nation begins the loss of 30% of its most skilled level of workers through the retirement of baby boomers and sees the growth of the largest consumer market of people with disabilities ever experienced.  As other states shed boomers "forced" into early retirement from disability (potentially 15% of the boomer workforce), Oregon business is poised to take significant action to slow this trend while allowing it to further open its ranks to skilled new workers with disabilities by using cost effective accommodation as its key strategy.*

 

* Statistics cited in the Oregon Business Case are part of 10 Key Statistics about Disability and Oregon Business, a PowerPoint presentation available for viewing or download  at 10 Key Statistics.  The OBLN is a business-led, tax exempt organization whose board and members share an interest in recruitment, hiring, and retention of people with disabilities in the competitive workforce and as consumers.

 

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Acknowledgements

The OBLN Board of Directors and Honorary Co-Chairs gratefully acknowledge the business and government leaders that came together to draft the Oregon business case for inclusion of people with disabilities in the competitive workplace and as consumers.  Following broad review of the initial document, we are pleased to share this Oregon Business Case with employers, policy makers, government leaders and others interested in the bottom line around workers with disabilities in the competitive workplace and their economic importance to Oregon business.

Jilma Meneses, OBLN Board President
Oregon Health Sciences University

Keith Fuller, OBLN Vice President/Treasurer
Fred Meyer Stores

Leanna Woodall, OBLN Board Secretary
Intel Corporation

Lisa Goodall, Board Member
Portland General Electric

Jennifer Messenger-Heilbronner, Board Member
Metropolitan Group

Representative Brad Avakian, OBLN Honorary Co-Chair

Dr. Peter Kohler, OBLN Honorary Co-Chair

 

Bonneville Power Authority
Godfrey C. Beckett, Director, HR/Diversity/EEO Section

Hewlett-Packard Company
Angela Guess-Westbrooks, Diversity Consultant

Intel Corporation
Timothy Mueller, Oregon FSM HR Manager

Kaiser Permanente, Oregon
John Nagelmann, Director, Education & Workforce Planning

LiveBridge
Pat Hanlin, CEO

Neil Kelly, Inc
Julia Spence, Vice President, HR and Communications

Oregon Health Sciences University
Lois Davis, Vice President, Public Affairs & Marketing

PCC Structurals
Eileen Drake, Vice President, Administration. & Legal Affairs

Portland Community College
Jan Coulton, Director, Public Affairs

Portland General Electric
DeAngeloa Wells, HR Operations Director

Portland Trail Blazers/Oregon Arena Corporation
J.E. Issacs

Providence Health System-Oregon
Baruti Artharee, Director, Diversity Initiatives

Tri-Met
Bob Nelson, Executive Director of Operations
Bruce Watts, Senior Director of Diversity

Urban League of Portland
Vanessa Gaston, Director/CEO

US Bank, Oregon
Brenda Harvey, Senior HR Generalist

ValueCAD
Sal Kadri, CEO

 

Office of the Governor
Lita Colligan, Workforce Policy Advisor
April Lackey, One Stop Coordinator
Peggy C. Ross, Affirmative Action Director

Oregon Commission for the Blind
Linda Mock, Administrator

Oregon Department of Human Services
Marita Baragli, Diversity Devel. Coordinator

Oregon Office of Vocational Rehabilitation Services
Lynnae Ruttledge, Policy & Program Manager

Oregon Employment Department
Jan Dean, Assistant Dir., Business Employment Services