Employee Retention Workgroup Issue Brief #1 I - Purpose To provide a brief overview of the issue of employee retention in general, as it relates to people hired with disabilities, and as it relates employees who have become disabled or have a chronic or progressive disability. II - Overview of Employee Retention in General Retaining employees is a critical issue for many organizations. Research indicates that the cost of turnover, recruiting and training a new employee can be as high as one to two times the individual's salary. It is not unusual for corporations to see the cost of replacing departing workers to be 10% or more of operating income. In an effort to identify trends in employee turnover, organizations use tools such as job satisfaction surveys and exit interviews. (Reference: Corporate Executive Board (1998) Workforce Turnover and Firm Performance) Some of the key reasons people leave jobs include the following: Poor management relationships Job dissatisfaction Lack of career development opportunities Need for additional performance feedback More challenging work opportunities Inequities in salary Limited recognition Work environment   There are both "hard landscape" and "soft spots" issues that need to be addressed in order to retain qualified employees. The "hard landscape" involves the interaction with employees including the hiring process, use of job specifications and the process of performance appraisals. The "soft spots" include areas such as coaching, mentoring, motivation and leadership. (Reference: Anchors of Employee Retention, Deliver The Promise Website, Volume 6 Issue 1) The decision to discontinue employment may be made by the employee or the employer. Typical reasons why employees leave are noted above. Employers may make discontinuation decisions for a variety of reasons such as poor job performance, disruptive behavior, downsizing and dishonest practices. III - Overview of Retention for Employees Hired with Disabilities According to the National Organization on Disability 2000 Harris Poll Survey, approximately 71% of adults with disabilities are unemployed which is dramatically higher than people without disabilities. Among the people with disabilities who are employed, satisfaction with working was found to be impacted by having a disability. Of those who are employed either full or part-time, people with disabilities are less likely than people without disabilities to say that their jobs require them to use their full talents and abilities. In addition, people with disabilities say that they have encountered some form of discrimination in the workplace due to their disabilities, the most prevalent of which is not being offered a job for which they are qualified. More than half of those who have experienced discrimination say they have been refused a job due to their disabilities. Other forms of discrimination identified include: being denied a workplace accommodation, being given less responsibility than co-workers, being paid less than other workers with similar skills in similar jobs, being refused a job promotion and being refused a job interview. The participants in the Rhodes to Independence People with Disabilities Focus Group shared related points of view regarding the impact discriminatory actions have on their employment situations. (Reference: Rhodes to Independence Focus Groups Findings, October, 2003) The reasons noted earlier for an employer's or employee's decision to discontinue employment also apply to employees with disabilities. As discussed, there may be additional discontinuation reasons that affect employees with disabilities including absence of appropriate accommodations, impact of the disability, discontinuation of benefits and lack of employer awareness of disability laws and employee rights. * In addition to the legal requirements, there are a variety of different policies that are individual to an organization that may impact the retention of people with disabilities. These may include paid time off, short and long term disability programs, leave of absence, virtual work environment, part time employment and flexible work hours. IV- Retention of Employees Who Become Disabled or Have a Chronic or Progressive Disability Research on job retention outcomes for vocational rehabilitation clients demonstrates the challenges people with disabilities often encounter in retaining employment. In research reviewed in the Rehabilitation Counseling Bulletin, approximately 50% of rehabilitation clients were not working because of inadequate job performance or work adjustment. Further research demonstrated that out of approximately 2,500 successfully rehabilitated clients, 25% were no longer employed at 3 months and 50% were no longer employed at 12 months following closure. (Reference: Rehabilitation Counseling Bulletin, Volume 45, Number 4, 2002) When an employee has a progressive disability, long term job solutions for potential challenges should be addressed before a crisis situation arises. (Rehabilitation Counseling Bulletin, Volume 45, Number 4, 2002) In a review of literature on employment of people with spinal cord injuries, of the individuals who returned to work post-injury, more people with disabilities started at a new employer rather than returning to work with their former employer (Reference: Yasuada, et.al (2002). Return to work after spinal cord injury: A review of research. NeuroRehabilitation , 17, 3) One successful strategy that has been utilized to assist people with disabilities in adapting to barriers within the workforce is the 3M model of job retention. This model places emphasis on match (person to job), maturity (meeting post match challenges such as career development) and mastery (how people with disabilities adjust to job related responsibilities as a result of their disability). (Reference: Rehabilitation Counseling Bulletin, Volume 45, Number 4, 2002) When job retention is not achieved through effective accommodations it results in costs to both the employee through the loss of employment and income reduction and the employer through personnel and benefits costs and the loss of an experienced employee. (Habeck, R. (1999) Job Retention through Disability Management: Abstract) In a national study of Human Resource professionals, employers agreed strongly that their organizational policies reflected a commitment to returning workers after temporary disability and retaining workers with disabilities. However, the respondents felt that the policies did not provide opportunities for career development and advancement for employees with disabilities. (Human Resource Professionals and Employment of People with Disabilities: A Business Perspective) Many companies use Organizational Disability Management as an internal tool. In addition, Return to Work Programs assist employees who become disabled to transition back into the workforce using accommodations, modified job responsibilities and sometimes assignments in other areas of a company. The appropriate accommodations are critical to provide an environment that supports and retains employees. Some of the key factors in determining accommodations include the job tasks, the functional limitations of the employee and whether the proposed accommodation(s) will result in hardship to the employer. (U.S. Department of Labor Office of Disability Employment Policy Job Accommodations Network) The US Department of Labor Office of Disability Employment Policy recommends the following for the facilitation process of return to work for ill or injured employees: Companies need to comply with all relevant State and Federal laws that apply to the workplace (e.g., ADA, FMLA, OSHA, Worker's Compensation). Companies should maintain open lines of communication and provide any information or assistance that will assist the employee in applying for health insurance or worker's compensation benefits. Provide accommodations for reintegration into work such as modified work areas, technology or hours. Modifications should be discussed with the employee and rehabilitation professional working with the employee. The employee should be involved in all modification decisions. Companies should be flexile and offer options such as returning on a part time schedule or using conference calls (length of time to be determined by the company). Federal laws protect the privacy of the employee. If the worker's abilities are restricted or she or he needs accommodations, this information can be provided to supervisors/managers. Provide continued support to enhance a successful reintegration to the work environment. Employers Home