Employment among individuals with disabilities has reached a historic high, with 22.5 million employed Americans with disabilities in 2023, according to the Bureau of Labor Statistics (BLS). This milestone reflects a growing recognition of the contributions of employees with disabilities. However, disparities persist. Workers with disabilities are still twice as likely to be unemployed compared to those without disabilities, highlighting significant challenges that remain in fostering equity in the workplace.
One area where employers can make a meaningful impact is in workplace benefits. For employees with disabilities, benefits like health savings accounts (HSAs), voluntary insurance options, and employee assistance programs (EAPs) are more than perks—they are essential tools for financial stability and well-being. Yet, as Harvard Business Review reports, only 20% of employees with disabilities feel their workplaces are fully committed to their success. Moreover, 76% have not disclosed their disabilities at work, often due to fear of stigma or a lack of trust in their employers.
Challenges in Navigating Workplace Benefits
Employees with disabilities often face unique barriers when trying to understand and use their workplace benefits. These challenges can range from dense, jargon-filled materials to difficulty finding in-network providers who meet their specific needs.
As Jennifer Du Toit from Gallagher explains, “Benefits jargon is confusing to most people, and benefits material can be dense and very technical. Employers can help by making benefits information readily accessible and presented in a meaningful, relevant way.”
This lack of clarity can lead to underutilization of critical benefits. For example, tax-advantaged accounts like HSAs and flexible spending accounts (FSAs) allow employees to allocate pre-tax dollars for medical expenses.
Yet many workers, particularly those with disabilities, may be unaware of how these tools can help offset costs or prepare for future medical needs. Similarly, voluntary benefits like hospital indemnity insurance and critical illness insurance, which provide financial support during health-related crises, are often overlooked due to poor communication.
For caregivers, the challenges can be even more pronounced. Nearly half of caregivers surveyed by Voya Financial reported that caregiving responsibilities severely impacted their ability to save for retirement. Carole Mendoza, VP of Benefits at Voya, notes that many caregivers might not realize they already have workplace benefits that can help them prepare for retirement, such as life and disability income insurance with reduced or zero out-of-pocket costs. Additionally, EAPs often offer wellness and mental health services at little to no cost, freeing up resources that could be redirected to long-term savings.
The Role of Employers in Closing the Gap
Employers have a significant opportunity to address these gaps and demonstrate their commitment to employees with disabilities. Proactive outreach is a critical first step. As Luanjiao Hu, a Postdoctoral Research Fellow at Brandeis University, explains, “Employers need to step up and proactively reach out to disabled employees, offering reasonable accommodations and making benefits information more disability-inclusive.” This can include offering materials in accessible formats, such as screen-reader-compatible documents, videos with transcripts, and easy-to-read guides.
Providing a single point of contact for benefits-related questions can also make a substantial difference. Concierge-like services that help employees navigate the complexities of benefits, from identifying in-network providers to resolving claims issues, are invaluable. For instance, finding a specialized therapist for a child with autism can be overwhelming, but having a dedicated resource simplifies the process and alleviates stress.
Leadership and HR teams play a pivotal role in fostering a culture of trust and openness. Andrew G. Simon, an employment law expert at Cole, Scott & Kissane, emphasizes that inclusive communication is essential. “Employees with disabilities must know and feel that their employer is actively listening,” he says. Establishing employee resource groups (ERGs) or councils focused on the needs of employees with disabilities can provide a direct line to decision-makers, ensuring that their concerns are heard and addressed.
Fostering Inclusivity Through Leadership and Training
For employees with disabilities to feel comfortable disclosing their needs, they must trust that their employer will respond with empathy and action. However, building this trust requires more than policies; it demands an inclusive workplace culture. As the Centers for Disease Control and Prevention (CDC) reports, over one in four adults in the United States lives with some form of disability. Yet many employees remain silent about their challenges due to fears of stigma or discrimination.
Du Toit highlights the importance of creating an environment of trust. “HR and leadership set the tone for tolerance and acceptance, ensuring employees feel safe disclosing their needs,” she says. This involves equipping managers with training to recognize and support the diverse needs of their teams, as well as ensuring hiring practices are equitable and inclusive.
Employers can also model inclusivity by showcasing diverse disabled leaders within their organizations. As Hu observes, the presence of disabled role models sends a powerful message about the value placed on diversity. Leadership must actively advocate for accessibility in all aspects of the workplace, from physical spaces to virtual platforms.
Tailoring Benefits to Meet Unique Needs
Tailored benefits are another way employers can demonstrate their commitment to employees with disabilities. Research from Voya Financial also revealed that more than seven in 10 workers are willing to accept a slightly lower salary for better health care coverage, including lower premiums and out-of-pocket costs.
Similarly, nearly six in ten employees would trade salary for employer contributions to HSAs or access to mental health resources.
Benefits like hospital indemnity insurance and critical illness insurance can provide a safety net for employees facing significant medical expenses. When these options are coupled with employer-sponsored retirement plans, particularly those offering matching contributions, they create a comprehensive package that addresses immediate needs while promoting long-term financial stability.
Mendoza underscores the importance of integrating these benefits into recruitment and retention strategies. “Employers that prioritize traditional workplace benefits coupled with specific caregiver resources have an opportunity to foster loyalty, reduce turnover, and enhance productivity,” she says.
Moving Toward a More Inclusive Future
The rise in employment among people with disabilities reflects progress, but there is still work to be done. To create truly inclusive workplaces, employers must go beyond compliance and actively support the unique needs of their employees. This includes simplifying benefits navigation, fostering a culture of trust, and tailoring offerings to address specific challenges faced by the disability community.
By taking these steps, companies can not only empower their employees but also strengthen their organizations. As Mendoza points out, “Employers have an opportunity to create environments that foster employee loyalty, reduce turnover, and enhance overall productivity.”
Through comprehensive benefits, employers can unlock this untapped potential, providing meaningful support to a vital segment of their workforce. It’s a strategy for building a stronger, more resilient workforce.