Making a Business Case for Disability Management

In order to demonstrate the financial benefits of sound disability management programs,
practitioners draw upon data collected from their own organization or findings from the
research and cost-benefit analyses of others. Obviously, data from one's own
organization is the most effective, but is not available before the program is in place or in
its early stages. At these stages, practitioners may find the experience of other
organizations, especially those in related industries, useful. During the implementation of
a disability management program, it is important to collect data on program effectiveness,
so that the financial benefits of the program may be determined.

In addition to the financial benefits that arise from a workplace-based disability
management program, there are many intangible benefits such as an improved productive
relationship with disabled employers and unions that accrue from providing return to
work support. However, a positive cost-benefit ratio is essential to gaining and
maintaining the support of senior management. The costs and benefits that should be
taken into consideration include the following:

Costs

The following are costs incurred by having a disability management program:

Salary and benefits for RTW coordinator (if not full-time, then the portion
attributable to RTW functions) and/or cost of disability management and return-to-
work services provided by an external provider
General administrative costs such as space, equipment, supplies, accounting and other HR services attributable to RTW
Program administration costs for such items as brochures, disability management
information packages for workers, supervisors and community service providers
Total cost of time spent by joint labour-management committee, supervisors and
others in planning return to work either at a policy level or for individual workers
Costs paid by employer to outside providers for such services as functional capacity
evaluations, ergonomics or assistive technology expertise
Assistive devices or special equipment purchased by the employer
Renovations to the work station or the work area
Training costs borne by the employer

Benefits

Generally the benefits of disability management are the cost savings that result from a
managed early return to work versus the likely period of work absence without such a
program. Employers save money because:

Less funding is needed due to reduced claims duration
The need to pay overtime to get work normally performed by workers who are absent
is reduced
The costs of recruiting and training new employees to replace injured/ill workers are
reduced
Lost productivity due to the absence of experienced workers is minimized
Fewer employees end up on long-term disability

In addition, overall insurance costs may decrease or rebates may be obtained as a
company reduces the benefits paid out by insurance providers for workers compensation
and short or long-term disability programs. In some jurisdictions and organizations,
failure to accommodate workers with disabilities has also resulted in grievances and
litigation. Another area of cost savings for an organization results from avoiding either
of these potentially expensive processes.