The Importance of Hiring People with Disabilities and Solutions to Recruitment Challenges

"Even if we hire people with disabilities, they don't stay long."

"There's a lack of understanding on the ground, and the burden is increasing."

"We want to comply with the law, but it's difficult to implement."

Many business owners and HR managers may share these concerns about employing people with disabilities.

However, employing people with disabilities is not a "burden for the company". An inclusive environment where diverse talents work can generate new ideas and innovation, potentially becoming a growth engine for the entire company.

In this article, we will introduce the challenges companies face regarding the employment of people with disabilities and specific solutions, incorporating the latest examples and real experiences.

If you are looking to transform the employment of people with disabilities into an "investment for the future" and enhance your company's competitiveness, please read on.

1. Current Status of Employment of People with Disabilities

First, let's look at the current situation surrounding the employment of people with disabilities from three perspectives: system, performance, and risks.

The first is about the system. Based on the Act on Employment Promotion of Persons with Disabilities, companies are obligated to employ a certain percentage of people with disabilities according to the number of employees. This system is known as the "Statutory Employment Rate for Persons with Disabilities".

• Target Companies and Statutory Employment Rate
  As of April 2024, the statutory employment rate for persons with disabilities imposed on private companies is set at 2.5%, and companies with 40 or more regular employees are required to employ at least one person with a disability.
  
• Planned Increase in Statutory Employment Rate
  The statutory employment rate for persons with disabilities is not fixed and is regularly reviewed based on changes in social conditions and the actual employment situation of people with disabilities. It has already been decided to raise it to 2.7% from July 2026, and companies are required to prepare in advance.
  
• Method of Calculating Employment Rate
  When calculating the employment rate, the counting method varies depending on the degree of disability and working hours. Part-time workers who work 20 to 30 hours a week are counted as 0.5 people, and when employing people with severe physical or intellectual disabilities, a system (double counting) is introduced where one person is counted as two. This calculation method helps reduce the burden on companies to some extent.

Reference: About the System of Employment Rate for Persons with Disabilities｜Ministry of Health, Labour and Welfare

The second is about performance. Let's look at the achievement rate of employment of people with disabilities and the percentage of companies that have not achieved it as of 2024.

According to the Ministry of Health, Labour and Welfare, the performance of employment of people with disabilities is improving year by year. In particular, the employment of people with mental disabilities has increased significantly by 15.7% compared to the previous year, and people with various disabilities are active in the workplace.

However, challenges remain in reality. Data from 2023 shows that less than half of companies with 40 to 100 employees meet the statutory employment rate. Even if companies understand the necessity of employing people with disabilities, they struggle with actual recruitment and retention.

More serious is the issue of workplace retention rate. The retention rate one year after employment for people with mental disabilities is 49.3%, below half.

There are many cases where follow-up after hiring and mismatches in the workplace environment occur, highlighting the reality that companies face the barrier of "hiring but not retaining."

Reference: Results of the Survey on the Employment Situation of Persons with Disabilities in 2024｜Ministry of Health, Labour and Welfare

The third is about the risks of administrative guidance and payment for companies that have not achieved the target.

Companies that cannot achieve the statutory employment rate are subject to administrative guidance from Hello Work. If the situation does not improve, special guidance is provided, and ultimately, the company's name may be publicly announced. If the company's name is disclosed, it will inevitably lead to a decline in social credibility and deterioration of the company's image.

Furthermore, if companies with more than 100 regular employees do not meet the statutory employment rate, a payment of 50,000 yen per person shortfall per month is required. This payment is used as a source for adjustment and subsidy funds, but it will be an economic burden for companies.

The payment system is being considered for expansion to companies with fewer than 100 employees in the future. More companies are likely to be subject to it, and attention to the system's trends is necessary. In addition to financial aspects, reputational damage and loss of human resources are also management risks that cannot be ignored.

The statutory employment rate for persons with disabilities is an important system that requires companies to comply with laws and regulations, as well as to establish recruitment, retention, and support systems. With future increases in employment rates and system revisions in mind, early preparation and organization-wide efforts are required.

Reference: Administrative Guidance｜Ministry of Health, Labour and Welfare

2. Reasons Companies Should Actively Engage in Employing People with Disabilities

Beyond legal obligations and risk avoidance, there are various reasons why companies should actively promote the employment of people with disabilities. Here, we explain the significance of employing people with disabilities from three perspectives.

The first is about related law amendments and future developments towards 2027.

As mentioned earlier, the statutory employment rate is gradually being raised, and it is expected to be 2.7% by July 2026. This means that if a company has about 37 employees, it will need to employ one person with a disability.

Furthermore, discussions are underway to expand the scope of the payment system. Looking ahead to 2027 and beyond, the trend of urging even small companies to fulfill their social responsibilities will accelerate.

These legal amendments are likely to affect not only large companies with many employees with disabilities but all companies. Preparing for changes in advance will lead to stable management in the future.

The second is about corporate social responsibility and its impact on branding.

In modern corporate management, CSR (Corporate Social Responsibility) and ESG (Environmental, Social, and Governance) investments are essential. Active efforts in employing people with disabilities will significantly enhance corporate value.

For example, companies that promote D&I (Diversity & Inclusion) and provide opportunities for various talents to thrive are highly valued by stakeholders such as customers, investors, and business partners. This effort becomes a message that demonstrates the company's sustainability.

Moreover, the younger generation, known as Generation Z, considers a company's social contribution awareness as one of the criteria for choosing a job. In a survey, about 70% of job-seeking students answered that they want to be involved in businesses that contribute to society. Demonstrating an ethical management stance can attract highly motivated and talented individuals.

The third and final point is about the benefits that creating an inclusive workplace brings to companies.

Creating an environment to accommodate people with disabilities results in a workplace environment that is easier for all employees to work in, bringing positive effects to the entire company.

By adding various perspectives and values to the organization, new ideas that are not bound by preconceived notions are more likely to emerge. Reviewing work processes and promoting communication can lead to improved productivity and creativity across the organization.

A workplace where employees with disabilities can demonstrate their abilities is an environment where employee engagement can be expected to improve.

Furthermore, workplaces that engage in employing people with disabilities report effects such as "improved communication" and "organized and improved work." A culture of mutual respect and support enhances employee retention and organizational cohesion.

Employing people with disabilities is not just about "meeting quotas." By building an inclusive environment where people with various perspectives "work together" and "grow together," it becomes possible to achieve sustainable growth for the company.

3. Challenges Companies Face in Employing People with Disabilities

While many companies understand the significance of employing people with disabilities, they encounter various barriers during implementation. Here, we explain three common challenges companies face and their backgrounds.

The first challenge is a lack of understanding of people with disabilities.

One of the serious issues in employing people with disabilities is the mutual lack of understanding between the company and employees with disabilities. A lack of mutual understanding creates various mismatches.

• Mismatch between abilities and job content
  There are cases where a person's skills and aptitudes are not accurately understood, resulting in either overly simple tasks being assigned or excessive tasks being imposed. This can lead to decreased motivation and difficulty in performing tasks.
  
• Mismatch between disability characteristics and workplace environment
  For example, "giving verbal instructions only to an employee with a hearing impairment" or "scheduling long meetings without considering the fatigue of an employee with a mental disability" are examples of insufficient consideration. It's essential to devise not only physical facilities but also work methods and communication approaches.
  
• Mismatch between pre-employment expectations and actual job duties
  When the job description explained during the interview differs from the actual job, a gap between expectations and reality can arise. Misalignment between the company's expectations and the individual's assumptions can lead to early resignation.

Addressing mismatches in mutual understanding requires flexible responses tailored to each individual's characteristics and background, rather than judging based on a single category of disability.

The second challenge is the difficulty in setting the scope of reasonable accommodation.

The Act on Employment Promotion of Persons with Disabilities mandates companies to provide "reasonable accommodation." Reasonable accommodation involves providing support and environmental adjustments for each individual based on their request, within a range that does not impose a significant burden on the company's management.

Specific examples include equipment-related measures such as introducing screen reader software for PCs, as well as work methods and communication improvements, such as visualizing manuals, assigning tasks according to individual characteristics, allowing flexible work hours for medical appointments, and providing clear instructions and regular meetings.

Reasonable accommodation is not something that companies decide unilaterally; it is important to engage in careful dialogue with the individual to determine what support is practical.

If you want to learn more about reasonable accommodation, please refer to the following article.

Reference:

Reference: Prohibition of Discrimination and Obligation to Provide Reasonable Accommodation in Employment｜Ministry of Health, Labour and Welfare

The third challenge is the burden on costs and human resources.

Promoting the employment of people with disabilities involves realistic burdens. The main burdens are as follows:

• Economic burden
  Implementing barrier-free measures and introducing support tools incur costs. However, the government provides subsidy programs to alleviate these costs.
  
• Burden on human resources
  Implementing reasonable accommodation and providing daily support require the cooperation of surrounding employees. A system where the entire organization supports each other is necessary to prevent the burden from being concentrated on specific individuals.
  
• Management burden
  Appropriate management that considers the characteristics of employees with disabilities requires specialized knowledge and skills from managers. Instead of leaving it to the field, it is effective for the HR department to take the lead in organizing training and support systems.

Do not consider the burden of employing people with disabilities as merely a cost. It is an "investment for the future" to create an environment where all employees can work comfortably. Changing this mindset can lead to solving the challenges of employing people with disabilities.

4. Introducing Real Experiences of People Working under Disability Employment

So far, we have explained the current situation and challenges of employing people with disabilities from the perspective of systems and companies. But what do individuals working under disability employment feel and face in their daily work? Here, we introduce a real experience.

This individual joined an insurance company about five years ago with the support of a support agency and is currently thriving as a contract employee. Although steadily building a career, the journey has not been smooth.

The first challenge faced upon joining was the lack of understanding of disabilities among management on the ground. Even if the system for employing people with disabilities is in place within the company, direct supervisors may not necessarily understand the characteristics of disabilities correctly.

Especially with regular transfers, every time a supervisor changes, the individual had to explain their disability characteristics from scratch and rebuild human relationships. This is a significant mental burden for someone with a mental disability.

More serious was the mismatch in job content. In the initially assigned department, the individual with a mental disability was given the role of coordinating the work of several colleagues with intellectual disabilities. This was a typical placement mistake, considering different disability characteristics as a single category.

Many people with disabilities experience physical and mental health issues due to unsuitable work environments. In this individual's surroundings, there were colleagues who repeatedly took leaves of absence in the same workplace, even if they did not leave the job.

This individual improved the situation by bravely requesting a department transfer from the supervisor. However, not everyone can raise their voice in this way.

Unfortunately, there are cases where individuals continue to work while bearing physical and mental burdens without being able to express the necessary considerations, eventually leading to resignation.

From hearing this real experience, it became clear that companies need to face the characteristics of each employee with a disability and establish a system to provide appropriate work and environment through continuous communication.

5. Consider Utilizing Companies that Support Employment of People with Disabilities

Many companies face mismatches and retention challenges in promoting the employment of people with disabilities. Solving these issues with only internal resources may have limitations. Utilizing external support services with specialized knowledge is an effective means to lead disability employment to success.

Here are five key points:

• Solutions Provided by External Support
  Disability employment support services stand between companies and individuals with disabilities, providing multifaceted support to achieve favorable matching and stable employment continuity for both parties.
  
• Resolving Mismatches Based on Expertise
  Support agencies are well-versed in disability characteristics, legal systems, subsidy systems, communication methods, and more. They comprehensively evaluate the company's desired profile and the skills and preferences of individuals with disabilities, preventing mismatches during recruitment.
  
• Consistent Support from Recruitment to Retention
  Support is not limited to personnel introduction but extends to retention. For example, job coaches are dispatched to assist with job guidance and smooth internal communication. Regular interviews help identify concerns early and reduce the risk of resignation.
  
• Proposals for Diverse Work Styles
  Recently, flexible work style proposals tailored to company situations and disability characteristics have expanded. Options include farm-type work with support from specialized staff and satellite office-type work that reduces commuting burdens.
  
• Promoting Internal Understanding
  A common challenge in disability employment is the lack of understanding among existing employees. Support services plan and conduct internal training on disability understanding, fostering an inclusive culture in the workplace.

Schools are also effective for enabling employees with disabilities to demonstrate their abilities. Please refer to the following articles.

Reference:

If a company cannot actively communicate its positive stance on employing people with disabilities to society, opportunities to meet talented individuals with disabilities will be limited. To address these challenges, we at the General Incorporated Association Ayumi are developing new support measures using advertising.

Specifically, through "UD (Universal Design) Escalator Belt Decorations" displayed on escalators at stations, we widely promote the company's diversity management and social contribution stance. By visually conveying the company's initiatives in public spaces, we enhance the brand image and attract sympathetic talent.

Alongside solving recruitment and retention challenges, actively promoting the company's appeal and expanding recruitment opportunities through "recruit