Getting To Equal: The Disability Inclusion Advantage .
GETTING TO EQUAL:THE DISABILITYINCLUSIONADVANTAGEA research report produced jointly by
“Persons with disabilities present businessand industry with unique opportunities inlabor-force diversity and corporate culture,and they’re a large consumer market eager toknow which businesses authentically supporttheir goals and dreams. Leading companiesare accelerating disability inclusion as thenext frontier of corporate social responsibilityand mission-driven investing.”– Ted Kennedy, Jr., Disabilities Rights Attorney, Connecticut State Senator andBoard Chair, American Association of People with DisabilitiesGetting to Equal 2018: The Disability Inclusion Advantage2
IntroductionWhat if you found out that your company is significantly underutilizinga critical talent pool? At a time when there are more job openings inthe U.S. than workers, you’d want to know more, wouldn’t you?And, what if, by recognizing the value of that talent pool andleveraging it, your company could also realize significant gains inprofitability, value creation and shareholder returns—as well as otherbusiness benefits?New research from Accenture, in partnership with Disability:IN and theAmerican Association of People with Disabilities (AAPD), reveals thatcompanies that embrace best practices for employing and supportingmore persons with disabilities in their workforce have outperformedtheir peers.In large part, companies haven’t leveraged the talents of persons withdisabilities for three reasons: A lack of understanding of the scope of the talent available; A lack of understanding of the potential benefits; and Misconceptions about the cost versus the ROI of disability inclusion.But leading companies that are working successfully toward disabilityinclusion have also achieved tangible financial benefits. For example,the research shows that leading companies were, on average, twiceas likely to have higher total shareholder returns than those of theirpeer group.Getting to Equal 2018: The Disability Inclusion Advantage3
A Vast, Untapped MarketDespite the strength of the U.S. labormarket, persons with disabilities1 arestrikingly under-employed. As of July 2018,only 29 percent of Americans of working age(between ages 16 and 64) with disabilitiesparticipated in the workforce, comparedwith 75 percent of Americans without adisability. In 2017, the unemployment ratefor persons with disabilities was more thantwice that for those without a disability—9.2percent versus 4.2 percent.That represents a significant opportunity tostrengthen our businesses and our economy.According to other research cited withinthis report, employees with disabilitiesoffer tangible benefits, including increasedinnovation, improved productivity and abetter work environment. And, of course,workers are consumers, too. The GDP couldget a boost up to 25 billion if just 1 percentmore of persons with disabilities joined theU.S. labor force.There are 15.1 million people of workingage living with disabilities in the U.S., sothe research suggests that if companiesembrace disability inclusion, they will gainaccess to a new talent pool of more than10.7 million people.The good news, according to our analysis,is that U.S. organizations are successfullyemploying persons with disabilities andinitiating and developing their disabilityinclusion programs.Figure 1: A Wide Employment GapPersons with disabilities are much less likely to be employed.Population (between ages 16 and 64) by labor-forcestatus and disability status, July 29%DisabilityEmployedNo DisabilityUnemployedNot in WorkforceSource: Accenture analysis based on data from the Bureau of Labor Statistics, July 20181 he Americans with Disabilities Act Amendments Act (ADAAA) defines a person with a disability as someone who has a physical or mental impairmentTthat substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such an impairment. The ADAwas amended in 2008 and became effective January 1, 2009. The ADAAA requires a broader interpretation of disability by schools, testing agenciesand employers than the original law.Getting to Equal 2018: The Disability Inclusion Advantage4
Accenture’s internal disability champions network of more than 16,000 employeesworldwide helps colleagues feel included at work.A Market Worth TargetingThe U.S. Office of Disability Employment Policy categorizes personswith disabilities as the third-largest market segment in the U.S., afterHispanics and African-Americans. The discretionary income for workingage persons with disabilities is 21 billion—greater than that of theAfrican-American and Hispanic segments combined.22A hidden market: The purchasing power of working-age adults with disabilities, American Institutes for Research, April, 2018Getting to Equal 2018: The Disability Inclusion Advantage5
Disability Inclusion andthe Bottom LineWe took a closer look at DEI results overthe past four years to unearth best-inclass companies—those that stood out forleadership in areas specific to disabilityemployment and inclusion. We identified anelite group of 45 companies that excelledin these key categories, which we arecalling Disability Inclusion Champions (or“Champions”). They make up 32 percent of the140 U.S. companies that are part of this study.(See “About the Research” for more details.)Our analysis focused on two importantmeasures of financial performance amongrespondents: profitability (revenues and netincome) and value creation (economic profitmargin).Across all the dimensions of the DEI that weanalyzed, Champions are, compared withother companies in the sample, performingabove-average financially. Championsachieved – on average – 28 percent higherrevenue, double the net income and 30percent higher economic profit margins3 overthe four-year period we analyzed.Figure 2: A Deep Dive into the DEIA new independent scoring system developed by Accenture Research identifiesDisability Inclusion Champions for their unique leadership in disability inclusion.DisabilityInclusionChampions35Number of ce: Getting to Equal 2018: The Disability Inclusion Advantage, Accenture70-8080-9090-100N 140 (unique respondents to DEI survey 2015-2018)The Disability Equality IndexDisability:IN, in partnership with theAmerican Association for People withDisabilities, produces the DisabilityEquality Index (DEI)—an annual transparentbenchmarking tool that gives U.S. businessesan objective score on their disabilityinclusion policies and practices. It measuresand weighs a wide range of criteria across3key best practice categories: culture andleadership; community engagement andsupport service; employment practices;enterprise-wide access and supplier diversity(not included in this analysis). Companiesparticipating in the DEI are typically large,with annual revenues of the total sampleaveraging 43 billion.Economic profit margin (or economic value add margin) is a measure of profitability that compares net operating profit to total cost of capital.Getting to Equal 2018: The Disability Inclusion Advantage6
Figure 3: Champions Outperform on Profitability and Value CreationOverall scores show a significant difference. 60 50 6.0 28% 502x 5.718%16% 5.014% 40 30 4.0 2.7 3.0 20 2.0 10 1.0Percentage 39US (Billion)US (Billion) 30%16%12%12%10%8%6%4%2% 0 0RevenueChampionsOthers0%Net IncomeChampionsOthersEconomic Profit MarginChampionsOthersAll results are significant at 1 percent. Test was based on panel data regression model toaccount for temporal and industry variation; see Appendix for more detail on methodology.Source: Getting to Equal 2018: The Disability Inclusion Advantage, AccentureMoreover, Disability Inclusion Championswere, on average, two times more likelyto outperform their peers in terms of totalshareholder returns compared with the restof the sample.Whether or not a company qualifies as aChampion, strengthening its commitment topersons with disabilities makes a difference:2xChampions were twice as likelyas others to have higher totalshareholder returns than those oftheir peer groupAccenture research shows that companiesthat have improved their DEI score overtime (“Improvers”4) were four times morelikely to have total shareholder returns thatoutperform their peers, compared to nonimprovers. On average, Improvers’ totalshareholders returns outperform industrypeers5 by 53 percent, while other companiesoutperform their peers by only 4 percent.4xCompanies that have improved theirinclusion of persons with disabilities overtime were four times more likely thanothers to have total shareholder returnsthat outperform those of their peer groupImprovers were identified as the top 25 percent of DEI study participants based on the ratio between their annual DEI score change and the maximumnumber of points they could gain to reach 100.4 In our TSR models, we compared survey respondents with the top 10 company peers. The peer group is defined by S&P Capital IQ’s proprietaryalgorithm, which is based on five main components: (1) Revenue within similar ranges; (2) Industry (based on S&P Capital IQ classification derivedfrom SIC code); and (3) Amount of common equity analysts’ coverage; (4) Available information on recent financial data; and (5) Company locationbased on macro-regions (e.g. Europe) and country GDP.5 Getting to Equal 2018: The Disability Inclusion Advantage7
What’s HoldingCompanies Back?Some companies are not taking advantage of the benefits ofdisability initiatives. While many are concerned about the costs ofaccommodating persons with disabilities, these are actually minimaland fruitful investments.According to employers participating in a recent study by JobAccommodation Network, a service from the U.S. Department ofLabor’s Office of Disability Employment Policy, a high percentage(59 percent) of accommodations cost absolutely nothing to make,while the rest typically cost only 500 per employee with a disability.6CEOs and investors need to know the strong qualitative andquantitative business case for robust disability inclusion programs.If we make companies aware of the potential gains, share successstories and demonstrate how to build these programs, we can quicklyget more persons with disabilities into the workforce, where they canthrive.“Deafness is just a wayof life, a lifestyle. I tell mycolleagues all the time,just because someonehas a disability, it doesn’tprevent them fromdelivering great work.”– Joaquin Ortiz, Consultant, ng to Equal 2018: The Disability Inclusion Advantage8
“Being honest about where youstand can be a hard—yet crucial—first step toward becoming a moreinclusive company. Accountabilityand creating an environment of trustwhere employees feel comfortable selfidentifying as having a disability are truemeasures of inclusion.”– Chad Jerdee,General Counsel & Chief Compliance Officer andPersons with Disabilities Sponsor,AccentureGetting to Equal 2018: The Disability Inclusion Advantage9
How can companies build an inclusiveworkplace and reap the benefits?The Four Key ActionsAccenture’s in-depth interviews with leaders from DEIparticipating companies reveal four key actions for attracting,hiring, retaining and advancing diverse talent.12EmployEnableOrganizations must ensure that persons withdisabilities are represented in their workplace.Beyond hiring, employers should implementpractices that encourage and progresspersons with disabilities.Leaders must provide employees withdisabilities with accessible tools andtechnology and/or a formal accommodationsprogram. Consider cultivating greaterawareness through formal training programsfor those without disabilities to learn aboutthe tools and accomodations available forbetter integration across teams.Recruiting in Fresh Ways“In the case of people with autism,the knowledge base and technicalaptitude of individuals can bevery high, so we had to figure outwhy we weren’t placing them.We discovered the problem—theinterview process. We changedour approach to what the processshould look like. Now we work witha local group to bring candidates infor a week-long academy. We offerteam work and technical exercises,and a lot of training. At the end ofthe week, we have an idea of thosewho will receive a job offer.”Making it Work“We have a support services teamthat is made up of 300 people withintellectual disabilities. They workin four different locations in theU.S., and do fulfillment services andexternal client engagement. Thathelps the individual, the community,and us. They service all customers –those with and without disabilities;both internal and external.”– Wil Lewis,SVP of Diversity and Inclusion,Bank of America– Jenny Lay-Flurrie,Chief Accessibility Officer,MicrosoftGetting to Equal 2018: The Disability Inclusion Advantage10
34To foster an inclusive culture throughoutthe organization, companies must generateawareness-building through recruitmentefforts, disability education programs andgrass-roots-led efforts (for example, anemployee resource group) and events.Companies must offer mentoring andcoaching initiatives, as well as skilling/reskilling programs, to ensure that persons withdisabilities continue to grow and succeed.Persons with disabilities should occupy roles atall levels, including top leadership positions.Building the Pipeline“Four years ago, we started sponsoringthe National Wheelchair BasketballAssociation. Their youth tournamentsare a blast! But we are there for morethan the fun. The events allow us totalk to youth about what it means towork at T-Mobile. These conversationsare pivotal because many of thesekids have never considered that theyhave an option for an independentlife. My favorite part is seeing their selfconfidence improve, and the inspirationthat comes from these events.”Getting the Best“People with disabilities tend tobe some of the most creative,innovative and, quite frankly, mostloyal employees. A person witha disability wakes up every daythinking about being innovative– that is a skill set. That ability toproblem solve is innate to them.Our training programs quickly wentfrom philanthropy to skill search.”EngageEmpower– David Casey, VP, Workforce Strategies &Chief Diversity OfficerCVS Health– Bri Sambo, Senior Program Manager,Military & Diversity Sourcing, T-MobileGetting to Equal 2018: The Disability Inclusion Advantage11
Beyond Revenue:Countless Benefits of InclusionA large body of previous research shows that disabilityinclusion efforts are a boon to employers, specifically acrosssix key areas of “inclusion incentives.”Increased InnovationPersons with disabilities have to be creative to adapt to the worldaround them. As such, they develop strengths such as problemsolving skills, agility, persistence, forethought and a willingness toexperiment—all of which are essential for innovation.7Having employees with disabilities across departments helps ensurethat the products and services that go to market are truly inclusive.And making things more accessible for persons with disabilities cantranslate into products and services from which everyone benefits—for instance, home devices using natural voice recognition, drivingsales and growth.8Improved Shareholder ValueBusinesses that hire persons with disabilities and foster inclusivecultures report bottom-line benefits that show proven ROI.9Regulators and the investor community increasingly monitor companyculture and diversity. Disability inclusion is a key component of thesemetrics, and mandatory reporting on them will be enforced for somefederal contractors starting in 2019.107 illennials with Disabilities: A Large, Invisible Talent Cohort with Innovative Potential, Inc. Magazine, November 2017, -with-innovative-potential.html.8Break down disability barriers to spur growth and innovation, Financial Times, September ide-Business-Case.pdf10 g to Equal 2018: The Disability Inclusion Advantage12
Improved ProductivityAll workers benefit from a more diverse workplace. Studies show that workingalongside employees with disabilities makes non-disabled individuals moreaware of how to make the workplace more inclusive and better for everyone.Staff turnover is also lower —by up to 30 percent—when a well-run disabilitycommunity outreach program is in place.11Work environments that are more inclusive of persons with disabilitiesoften see improved productivity levels. For example, Microsoft has builta successful disability hiring program specific to people on the Autismspectrum. More organizations are discovering that employing personswith disabilities is not as expensive or challenging as is often assumed. ADuPont employee survey found that when employees with disabilities aregraded on the same scale as other employees, 90 percent of them receiveperformance ratings of “average” or above average.”12Access to the Supplier EcosystemBusiness leaders have discovered that a diverse supply base is a competitiveadvantage.13 Hackett’s 2016 Supplier Diversity Study, for instance, found thatcompanies allocating 20 percent or more of their spend to diverse suppliersattributed 10 to 15 percent of their annual sales to supplier diversityprograms. According to the WeConnect report on global supplier diversityand inclusion, the advantages of inclusive sourcing are: A ccess to new suppliers, innovative solutions and cost savings throughincreased competition; A wareness of diverse customer needs, increased market share andshareholder value; and B rand enhancement and recruitment/retention of employers who wantmeaningful work.Government incentives to contract diverse suppliers also benefitbusinesses. In addition to the “set-asides” in federal contracts, disabilityowned businesses are eligible for preferred purchase programs run byvarious state governments.14 1511 Disability Employment and Inclusion: Your Guide to Success — Business Case, Workplace Initiative, 2017,12 Untapped talent Pool: The Opportunity in Employing People with Disabilities, National Governors Association, November ing-people-with-disabiltiies-77be9f76339c13 upplier Diversity and Competitive Advantage: New Opportunities in Emerging Domestic Markets, Graziadio Business ities-in-emerging-domestic-markets/14Advancing Economic Opportunities for Business Owners and Jobseekers with Disabilities, Employee Assistance and Resource docs/stateprocurement.pdf15 et-asides are a procurement preference that may be total or in part where the contract is “set aside” for bidding only by a designated and identifiedSgroup of firms (e.g., small business, small minority-owned business, environmentally “green” firms, etc.).Getting to Equal 2018: The Disability Inclusion Advantage13
Improved Market SharePersons with disabilities represent a significant portion of the consumermarket. The U.S. Office of Disability Employment Policy categorizes personswith disabilities as the third-largest market segment in the U.S., after Hispanicsand African-Americans. This market expands when family members, caregiversand others who prioritize goods and services that are inclusive of persons withdisabilities are counted.A study by the American Institutes for Research (April 2018) reveals that thetotal after-tax disposable income for working-age p
strikingly under-employed. As of July 2018, only 29 percent of Americans of working age (between ages 16 and 64) with disabilities participated in the workforce, compared with 75 percent of Americans without a disability. In 2017, the unemployment rate for persons with disabilities was more than twice that for those without a disability—9.2
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