Our Recommendations:
From our experience, the On 2 Employment model clearly reflects the objectives set by the Government, is effective in addressing market failings and creates significant value for Government. It is our recommendation that new and complimentary business models must have characteristics that:-
– Broaden the access to “performance based” funding for organisations that provide other disability services.
– Are able to provide “wrap around” services that match the lifetime working career journey of people with disability.
– Enable scaled growth from “performance based” funding to create an investment ready business that can attract capital from private and social investment.
– Continues to involve the non-government sector (service providers), the community (philanthropists and family), and the private sector (especially employers and investors).
Recommendation 1: – A flexible, outcomes rewarded model is needed.
Flexibility in the system is essential, especially when outcomes based assessment is set as a priority performance indication. A one size fits all model does not allow for unique issues facing people with disability to be successfully addressed. The use of hybrid systems, where organisations can focus on the employer/participant relationship in contrast to “simple” placement outcomes should be developed. The proposed inclusion of a virtual marketplace can be used to make this method work in the same way the NDIS portal is integral in managing governance.
Recommendation 2: – Disability servies providers should be directly rewarded for successful outcome.
Service providers who are already working in a choice and control environment (eg: NDIS), are well placed to be directly involved in the function of job creation for people with disability. There needs to be a system where they can be directly paid for outcomes achieved and importantly have the flexibility to include these payments as part of their business model. For example, the ability to access “wage subsidies” directly for an employer, without having to engage the Disability Employment Service provider, streamlines the system.
So, this creates a system where successful employment outcomes can be rewarded for those organisations whom are not DES providers. Being compelled to involve the added layer of DES providers does not always add to efficient outcomes being achieved and potentially, the current model unfairly rewards the DES provider when other players in the model actually facilitate the employment outcome.
Recommendation 3: – Focus on Job Creation and not placements
A model with a focus on the employer/participant relationship and job creation, over just job placement will achieve more sustainable results. Further, added to the choice and control nature of self directed funding model, it is essential that any relationship with a service provider is ongoing. The ability of a person with disability to continue to “purchase” services into the future will assist to deal with skills development and career transition. There will be reduced cycling between employment and unemployment.
Recommendation 4: – Consumer choice and paid outcomes should be priorities.
Participants should be able to choose what element of support they need and obtain this from any provider – each element of support required may be awarded a different weighting which may correlate with a payment structure. Eg resume preparation may have a lower weighting and fee structure, Work Readiness programs may have a mid-level weighting and fee structure. Accordingly, Job Creation would have higher weighting and fee structure etc. Wage Subsidies could be allocated to clients in accordance to their level of disability and be utilized as part of their funding to support employment outcomes with any provider of their choosing.
Recommendation 5: – Ensure reduced administrative compliance
A compliance framework which does not increase the administrative burden on providers and employers could be considered. Eg Employers could automatically include wage data into their payroll system, submit to a Disability Employment management system, which would negate the need to collate wage and salary details which is an additional burden on providers and employers.

Full document details are in the attached document