1. Introduction and context
The welfare/community services sector as a whole (and the disability service sector in particular) has undergone significant change in recent times, particularly since 1996−97 when the Disability Employment Assistance Reform agenda was announced. The aim of the reform was to improve services and options available to jobseekers with disabilities. Four key initiatives form the basis of the reform agenda:
- an independent eligibility assessment and referral processes for jobseekers;
- a new quality assurance system;
- funding linked to individual needs and outcomes; and
- contestability for rehabilitation services.
The economic and social benefits of people with disabilities being involved in employment have been recognised for many years. These benefits relate not only to the individual, but also to their families, employers and the community at large. In recent times, the employment options for people with disabilities have been enhanced. Many people with disabilities are now seeking and retaining employment in the open market, in addition to the traditional 'sheltered workshop' model of employment. Sheltered workshops themselves have changed significantly in the past decade or two. They are now seen as a competitive industry and are thus referred to as Business Services.
1.1 Wages for people with disabilities
There has been a considerable amount of research and development focused on the assessment and payment of 'fair' wages for people with disabilities. Until recently, this work concentrated on people with disabilities in open employment settings. Previously, Business Services had tended to pay wages to employees based on historical arrangements, or ad hoc assessment processes, and in many circumstances, this practice remains.
There is a large number of wage assessment and payment strategies that have been developed for workers with disabilities in Business Services. The content, structure and rationale for these processes have varied significantly. For example, some wage assessment processes are rigorously researched, tested and published as organisational policies, whereas other systems are much less sophisticated and structured. There is an identified need to develop wage assessment processes for people in Business Services that are:
- fair and equitable;
- appropriate to the worker, industry and the employer;
- use valid and flexible assessment techniques;
- reflect contemporary industry practices; and
- comply with relevant legislation and standards.
1.2 Scope of this project
In December 2000, Health Outcomes International was commissioned by FaCS to undertake research into pro-rata wage determination in Business Services. The primary questions of interest to the consulting team are presented overleaf.
The key requirements of the project (as stated in the project brief) are as follows:
The consultancy
FaCS seeks Consultant/s to undertake a research project on competency and productivity-based assessment tools leading to the development of a handbook that will be made available to Commonwealth funded Business Services. The information contained in this handbook is intended to assist Business Services to make informed choices on assessment tools for determining pro-rata award wages for people with disabilities employed in Business Services.
Expected deliverables
The Consultant will prepare a handbook, in plain English, on competency and productivity-based assessment tools available to, or developed by, Business Services. The following points are indicative of the contents the handbook will include but the Consultant should be prepared to identify other information on competency tools in discussion with the Department, arising from the research, that would be relevant to Business Services in considering the use of competency tools:
- Whether the competency tool would comply with the requirements of the Disability Services Standards developed under the DSA;
- Whether the competency tool would comply with the requirements of the Disability Discrimination Act 1992 and equivalent State/Territory disability discrimination legislation;
- Whether the competency tool would be the most equitable and fair means of assessing wage levels for employees with disabilities;
- Provide a comparison to productivity-based assessment tools (such as the Supported Wage System (SWS) assessment tool);
- Identify possible links/opportunities for people with disabilities assessed using a competency tool to undertake further education and training.
1.3 Project methodology
Health Outcomes International's approach to the project is briefly described below:
- review of existing policy documentation and literature relevant to the sector and this project, with particular reference to the principles of assessment (including the Supported Wage System) and competency-based assessment;
- data discovery, including intensive consultation process with a select sample of Business Service operators and other key stakeholders in numerous states (including unions, peak body representatives and government representatives);
- assessment of the level of compliance of different wage determination processes with relevant standards and legislation; and
- production of a guide for Business Services to use when implementing or planning to adopt a wage determination process that relates to their particular industry/circumstances, whilst ensuring that legislative (and quality assurance) requirements are met.
Note: the production of A Guide to Good Practice Wage Determination for Business Services was deemed the most appropriate product of the research, as the research team did not feel that the development of an assessment handbook was feasible at this time.