The push for mandatory disability workforce and pay gap reporting is intended to drive workplace inclusivity, but it could actually backfire and do the opposite, warns new research.
The latest research from the Business Disability Forum (BDF) suggests that requiring companies to disclose disability data may have unintended consequences, potentially harming the very employees it aims to support. Titled Towards Meaningful Disability Workforce and Pay Gap Reporting – The Challenges and Unintended Consequences, the report highlights a critical flaw in the current government proposal: reporting on numbers alone won’t achieve meaningful change for disabled employees. Worse, it may even hinder inclusion efforts, as both employees and employers voice concerns about how such mandates might backfire.
DISABILITY PAY GAP DATA DILEMMA
“At first glance, mandatory disability workforce reporting seems simple and necessary,” said Angela Matthews, BDF’s Director of Public Policy and Research. “However, our research shows that reporting on numbers alone will not create greater inclusion in workplaces or the labour market. In fact, it may lead to negative, unintended consequences.”
One major concern is that some employers, in an effort to manipulate their pay gap data, may be reluctant to provide reasonable accommodations like reduced hours or customised job roles for disabled employees. These adjustments, which are essential for many workers, could artificially widen an organisation’s disability pay gap – creating a perverse incentive for companies to prioritise optics over actual inclusion.
MANDATORY DISABILITY REPORTING RISKS
The research reveals several key risks associated with mandatory disability reporting:
- Workplace accommodations at risk: Some employers have reportedly declined requests for flexible work arrangements to avoid negatively impacting their disability pay gap metrics.
- Resistance from employees: Surprisingly, disabled employees were more opposed to mandatory reporting than employers. While businesses generally supported the idea of data collection, they questioned whether the current approach would lead to meaningful change.
- Regulatory overload: Many companies already face multiple reporting requirements. Adding yet another layer of mandatory disability data reporting – each with different criteria – may create unnecessary bureaucratic hurdles rather than drive real progress.
- Shifting focus from support to disclosure: Some organisations found that when they created a truly inclusive work environment—one where adjustments were available to any employee who needed them—the number of employees formally identifying as disabled decreased. In other words, the better the support system, the less employees felt the need to disclose a disability.
“Inclusion appears to be a double-edged sword,” one disabled employee noted in the report. “To be included, do we have to say we have a disability? Employers should just be kind to everyone.”
RETHINKING DISABILITY REPORTING
Instead of focusing on numerical targets, the BDF urges policymakers and businesses to adopt a more nuanced approach to disability workforce and pay gap reporting. Recommendations include:
- Shifting from disclosure to experience: Data collection should prioritise the lived experiences of disabled employees rather than simply counting the number of people who identify as disabled.
- Providing context alongside numbers: Employers should be allowed to submit a narrative explaining their disability pay gap figures, detailing their efforts to improve inclusivity and workplace support.
- Accounting for work hours and role flexibility: Pay gap reporting should consider hourly wages alongside hours worked to provide a clearer picture of how workplace accommodations impact earnings.
- Identifying harmful employer behaviours: Government oversight should focus on addressing practices that negatively impact disabled employees, such as denying accommodations to artificially improve pay gap figures.
For employers, the message is clear: don’t just count disability numbers – focus on removing barriers. “The real question to ask employees isn’t ‘Do you have a disability?’ but ‘What are you finding difficult, and how can we make it easier?’” notes the report.
CALL FOR MORE MEANINGFUL INCLUSION
The findings highlight a fundamental flaw with the current reporting model. It places pressure on disabled employees to disclose their conditions rather than fostering environments where all employees can thrive. To create truly inclusive workplaces, businesses and policymakers must go beyond numbers and focus on actionable, sustainable change, concludes the report.
Click here to access the full report.
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