10.2 The Business Case for Disability Management

Risk assessment is an important part of operations management. One risk to an organization includes the failure to develop and implement a disability management program. Three areas of risk associated with disability management include legal, corporate image and financial.

Legal Compliance

It is important that an employer recognize and follow legislation surrounding disability management. For example, in Ontario, an employer is expected to comply with AODA (Accessibility for Ontarians with Disabilities Act) legislation and the Ontario Human Rights Commission legislation. Both pieces of legislation provide helpful definitions of disability, clearly outline the ways in which individuals with disabilities are to be accommodated in the workplace and provide the employer with useful resources to assist with implementation.

Organizational Reputation

Every organization wants to be known as a responsible corporate citizen. Should an employer develop a reputation for failing to support individuals that have suffered a workplace injury, illness or disability, the impact on the organization may be costly.  With the ease of use and popularity of social media, it is easy for employees and former employees to share information about their employer, including disability management and return to work practices. From a morale standpoint, most would agree that a good employer takes care of their employees by introducing disability prevention strategies and return to work programs. Job candidates research potential employers online prior to applying for a job or attending a job interview. What will this potential employee find out about the employer’s safety record and culture? Lastly, every organization needs to be concerned about their reputation within their industry as the competition for sales is fierce in a global economy.

Financial Consideration

What is the cost to an organization if they fail to follow good disability management practices? There are direct costs such as the premium costs associated with Workers Compensation. In Ontario, an organization’s WSIB (Workplace Safety and Insurance Board) premiums are partially based on the number of lost time accident days an employer incurs. If an injury is deemed to be a  lost time accident it typically means the employee is absent from work on the day(s) following their injury. Employers need to use their implement their disability management program to minimize their lost time incident rating. When an injured employee is off work, there are also indirect costs associated with these absences such as productivity issues and the cost of hiring and/or training an employee to cover for an injured employee. Other indirect costs to an employer may include the negative impact on morale and engagement when an employee is off work due to a workplace injury, illness or disease.