Rural and Remote Disability Employment Assistance Study 

Background

In 1997 the Commonwealth Government embarked on a process of reform of disability employment assistance. The principles underpinning reform are:

• To enhance job seeker access, choice and employment outcomes;
• To make funding more equitable;
• To provide employment assistance to as many people as possible within existing funding; and
• To promote flexibility and innovation.

One of the most significant reforms is in the proposed way disability employment assistance will be funded. It is planned to fund disability employment assistance services based on the needs of individual job seekers, with payments linked to the achievement of defined outcomes (called case based funding).

Consequently the Department of Family & Community Services (FaCS) is undertaking a Case Based Funding Trial. This commenced in November 1999 and will last two years. The Trial establishes funding levels for individual job seekers, and payments are made to service providers on the achievement of specified outcomes.

FaCS wishes to ensure that funding reforms can also be delivered in rural and remote locations. This study is being undertaken to identify funding arrangements which will focus on individual needs and outcomes but also take into account issues specific to rural and remote locations. The results of this study will feed into the evaluation of the Case Based Funding Trial.

While the Trial should provide more detailed information about the effect of case based funding on services in rural and remote locations, this information will be based largely on existing models of service.

The study aims to identify innovative ways to provide disability employment assistance services in rural and remote locations, including services for Indigenous job seekers in remote communities. Innovative models are required which facilitate the provision of services where it may not be cost effective to establish a stand alone service outlet, and which may involve various organisations with complementary programs and services providing disability employment assistance.

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Rural and remote service provision

For the purposes of this study 'rural and remote' locations are defined according to ARIA groups - 'Moderately Accessible', Remote' and 'Very Remote'.¹ Under the ARIA classification, there are 72 disability employment outlets (including 31 open, 31 supported, and 10 open and supported outlets) in rural and remote locations in Australia, out of a total of 840 (or 8.5%). However a higher number of services (possibly 10-15% of all services) provide services to rural and remote locations from a more 'Accessible' location.²The 72 rural and remote outlets provided services to nearly 3,000 consumers in 1999.

Although current data is inconclusive, analysis suggests that unmet demand for disability employment assistance may be relatively higher in rural and remote locations, compared to more accessible locations. However, further analysis is required, ideally based on an expanded ARIA scale. If unmet demand is relatively higher in rural and remote locations, this would suggest that additional resources are required.



It is generally acknowledged that services in rural and remote locations experience higher input costs (eg. petrol, communications, maintenance, salaries and wages) compared to their urban counterparts. However, there is little actual comparative cost information available. Much of the data for this study was gathered using a case study approach.

Although based on a limited number of cases, the data suggests that input costs for disability employment services in rural and remote locations are 10-20% higher than in urban areas, mainly due to higher travel and communications costs. Salaries and wages may also be slightly higher. The Commonwealth Grants Commission has information which supports these estimates, indicating even higher relative costs in very remote locations.

Individual State/Territories also use various formulae to recognise higher costs in providing community services. Techniques include adding a subsidy to base level unit funding, or weighting resource allocation by a factor such as population density.

Case study information, together with Grants Commission and selected State/ Territory formulae indicate that input costs for disability employment services in rural and remote locations are 10-20% higher than in urban areas.

In addition to higher input costs, staff productivity in rural and remote open employment services is often relatively low due to longer travel times (especially where services are provided on an outreach basis), and lower 'throughput' of job seekers with disabilities, the result of weak and/or seasonal labour markets.

Staff productivity may be lower by 10-30% although this depends very much on the service model.

During Phase One of the Case Based Funding Trial a number of issues were addressed including the classification process, funding levels, and payment stages. While these changes have been applied across the board for Phase Two, they are likely to improve service viability in rural and remote locations.

If it is necessary to adjust funding levels to ensure that funding reforms can be delivered in rural and remote locations due to higher input costs or lower productivity, then more detailed cost information in relation to specific locations is required.



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Facilitating innovation through funding

While Phase Two of the Trial will provide additional data concerning the effectiveness of a case based approach in rural and remote areas, much of this data will be based on traditional models of service delivery.

The reform process includes the development of more innovative ways to provide services to job seekers with disabilities. Applied appropriately, case based funding can facilitate innovation. Three funding principles are proposed which are designed to enable innovation in rural and remote locations.

1 Funding should recognise the higher costs of operating in rural and remote locations

There are several funding mechanisms which could be developed which would recognise the higher costs of operating in rural and remote communities. These rely on judgements about additional input costs and operating productivity, which can be informed by Grants Commission information and ARIA measures. These can be arrived at by analysis and built into funding arrangements, or can be arrived at by negotiation between purchaser and provider. There are advantages and disadvantages associated with alternative funding mechanisms.

2 Funding should be appropriate to the circumstances of the rural and remote location

It is recognised that it may be more difficult to achieve the outcomes in rural and remote locations, currently specified under case based funding. In order for funding to reflect circumstances in rural and remote locations, such as higher unemployment rates, low job growth, and/or seasonal labour markets. It may be necessary to make milestone payments upon the achievement of 13 weeks work in a period of 12 months.

Similarly, payments are required for employment assistance provided to Indigenous people with disabilities who perform 'work' which is of value to the community, but which may not comply with the formal definition. This includes CDEP work, and work based training.

3 Funding should promote a viable, efficient and innovative service system.

Where disability employment assistance is currently provided by small organisations which experience peaks and troughs in demand, case based funding implies unpredictable cash flows, impacting on viability.

This may be addressed by providing a fixed component of funding.

In addition, there are a range of innovative approaches (Section 4 of the report) which also promote an efficient and innovative service system.



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Innovative approaches to providing services in rural and remote locations

A number of innovative approaches were examined, based on current practice in Australia and overseas. These were used to develop innovative 'models' of service provision.

Case management and brokerage

Where it is not cost effective to establish a separate disability employment service, area-based case management appears to be a cost effective way to increase access to disability employment assistance to job seekers with disabilities. This approach enhances the opportunity for people to access disability employment assistance through State/Territory funded services. To date, area-based case management has been established in Western Australia and South Australia, and there is increasing interest in area-based case management in other States, including Queensland and New South Wales.

The current geographical coverage of area-based case management in Western Australia and South Australia, and the lack of support services generally in very remote areas implies that this approach may only be an option in selected areas.

Western Australia has expressed interest in collaborating with the Commonwealth to provide disability employment services through its Local Area Coordinator network. In this context it would appear worthwhile further exploring such an approach in selected regions.

Collaborative approaches

Collaborative approaches may enable service provision in places where it is not currently viable to establish a separate disability employment service. Collaboration involves a shared approach to service provision, including resources, and may involve joint projects, sub contracting and possibly amalgamation of provider organisations.

Where collaboration extends to amalgamation, it may be possible to achieve economies of scale with administrative support, management and quality assurance systems, staff training and support, as well as enhance capacity for service development.

Collaboration may lead to improved productivity through service re-organisation, particularly where services are provided on an outreach basis. Thus collaborative approaches address higher costs and lower productivity (funding principle 1), as well as service viability issues (funding principle 3).

There are seven collaborative approaches identified.

Collaboration between two (or more) open employment services

There are opportunities for smaller open employment services to collaborate with other employment services to improve coverage and achieve more cost effective services. Where collaboration extends to amalgamation, there may be economies of scale with administrative support, management and quality assurance systems, staff training and support, enhanced capacity for service development and improved funding stability.



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Collaboration between open and supported employment services

There are many potential benefits from collaboration between open and supported employment services in rural and remote locations. Job seekers with open employment services can be temporarily employed in business services for skill identification and development, work training and experience, and to help consumers determine their preferences. This is particularly advantageous where there are limited training providers, and/or employers willing to participate in work place training. Collaboration provides pathways for job seekers with an opportunity to pursue work in which they are interested, and capable of doing.

Collaboration between disability employment services and day options programs

State funded day options programs can provide non-employment service components (for example, support, training) to job seekers with disabilities. This can be an effective approach in rural and remote locations where State funded services exist, but Commonwealth disability employment services do not, or are spread thinly. In addition, State funded services are often aware of individual job seekers with disabilities and collaboration with a disability employment service in another town can facilitate access and referral for job seekers. Some day options programs already provide training in appropriate social behaviours and engage people with disabilities in pre vocational activities.

Collaboration between disability employment services and schools

Many disability services recognise the benefit of establishing contact and providing support and training to young people with disabilities, while they are at school. There are specific State/Territory programs (eg Post School Options Programs) to assist young people in the transition from school to the community, and workplace. While there are existing Commonwealth/State agreements covering such programs, there are opportunities to improve services through the involvement of training organisations, and by adopting a more outcome oriented approach.

Collaboration between Disability employment services and local government

The preferred form of collaboration with local government is purchase of disability employment assistance, particularly where local government already provides services to people living in the community on an outreach basis. The involvement of local government enhances opportunities for community development, enterprise development, and possibly direct employment opportunities for job seekers with disabilities; improves funding stability under case based funding arrangements; provides peer support; and provides potential economies of scale with outreach service, administrative support, management and quality assurance systems, staff training and support.



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Collaboration between disability employment service and Job Network providers

Job Network providers and disability employment services are complementary components of the Commonwealth's labour market program, both providing employment assistance to job seekers with disabilities. In rural and remote locations where there is only one type of employment service, job seekers with disabilities would benefit from being able to access that service regardless of their level of disability. Case based funding may facilitate the purchase of Job Network provider services for placing people with disabilities in employment.

Collaboration between disability employment services and VET providers

In rural and remote locations the availability of externally provided training courses and resources for job seekers with disabilities is often poor. As a result disability employment services often provide training in living skills, pre-vocational and entry level vocational training. At the same time they may establish their own work sites to provide in-house training opportunities or collaborate with employer organisations or supported employment services to access workplace training. Some disability employment services have diversified their training provision and become Registered Training Organisations.

Recognising a number of concerns the Australian National Training Authority has put forward a national strategy, with a number of important components for job seekers with disabilities in rural and remote locations.

Service delivery structures

The way organisations structure service delivery has an important influence on access for job seekers with disabilities, as well as the costs of service delivery. Structures appear to be shaped by history, organisational policies, and by funding processes, as well as a planned response to demand for services. New organisational arrangements for providing employment assistance may facilitate increased access by job seekers who are living outside population centres in rural and remote communities.

A number of traditional structures for providing disability employment services in rural and remote locations are identified, including stand alone town-based services, town-based services with remote outlets, multi-funded/program services, mobile outreach services, sub contracting arrangements with providers in remote locations, and the employment of casual and co-workers.

In addition, three innovative service delivery structures are identified. Each has the potential to develop employment opportunities for job seekers, as well as reduce the costs associated with training, support, and job search. Each approach (initially) involves a disability employment service as case manager.

Business coalition

In areas where there is high unemployment and low employment growth, developing a new business with the needs of job seekers with disabilities in mind may be an important option. The model involves establishing a coalition between a disability employment service, representative of the local business community, and other (government) stakeholders. Not only does the model provide employment, it provides opportunities for workplace training, reduces the costs of training and job search, and increases service productivity.

Members of the business community contribute their business knowledge to the venture covering finance, procurement, production, and marketing. The disability employment service provides support to the workers. There are also opportunities to gain broader community support.



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Businesses as employment assistance provider

This model involves an employer providing training and on-going maintenance support, using its own support staff, who have the required expertise. Co-workers may also be involved. Such an approach adopted by some major food retailers overseas.

The model aims to improve access and throughput of job seekers with disabilities, and minimise costs, as many disability employment functions are within the employer organisation. The model provides higher certainty about the availability of jobs, and opportunities for work place training.

Disability employment providers would collaborate with employers on an agreed basis. Employers could develop collaborate arrangements with disability employment services, possibly purchasing advisory services if and when required. An external case manager may or may not be involved depending on the arrangements made by the employer organisation.

Family as employment assistance provider

Where job seekers live some distance from service providers, and their family operates (or may operate) a business, the family would provide employment assistance, with case management (brokerage) provided by a disability employment provider.

From the job seeker's perspective there is a guaranteed job in a familiar environment, and there is no need to travel to a workplace. From the perspective of a disability employment assistance provider, this approach reduces the need for job placement, may reduce the need for training, and reduces the need for travel to provide on going support.

Case management would ensure that the support services provided and conditions of employment meet appropriate standards.

Developing integrated disability employment services

As the disability employment service industry matures, and in the context of welfare reform, a more analytical, planned and collaborative approach to service delivery appears warranted, in order to enable the most cost effective arrangements in rural and remote locations. Key elements would include collaboration between Commonwealth and State government departments, involvement of non-traditional service providers, and expanding the role of traditional service providers to include complementary services.



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Community development

Community development is an important role for disability employment services and might include promotion, resourcing and training volunteers, fundraising and participating in community events.

Community development can result in the establishment of a new disability employment service or a new organisation proving disability employment assistance as one of several services, either managed by a new organisation or an existing organisation.

Community development approaches involve partnerships between disability employment assistance providers, other disability services, government and the local community. The Commonwealth supports community development through the Stronger Families and Communities Program, and through other initiatives such as Area Consultative Committees, and regional development initiatives.

Transport

Physical access to disability employment assistance and employment opportunities by job seekers with disabilities is clearly a major issue. Where there is no public transport and family and/or carers are occupied during the day, many disability employment services visit job seekers with disabilities in their home territory, which can be hundreds of kilometres away.

Employment assistance providers consider a joint approach to promoting improved transport options for people with disabilities in rural and remote locations, involving other Government Departments, and local government.

Technology

Video conferencing has the potential to facilitate timely and lower cost contact between disability employment services and job seekers with disabilities. Administrative functions can be completed without job seekers or workers having to travel. In addition, video conferencing can more readily provide continual support, rather than infrequent visits (eg. once every 2 weeks). This technology can also be used to maintain contact with casual workers and co-workers. While videoconferencing will not completely replace visiting, it has the potential to significantly reduce the amount of time spent travelling.

Accessible video conferencing facilities located within a community can also promote linkages between related services within the community (human services, employment services, businesses).

To date, videoconferencing has been used very little in remote locations. Effective videoconferencing systems are expensive and costly to maintain, and are not yet widespread. Videoconferencing requires that job seekers with disabilities arrange to visit facilities in the offices of service providers. Many disability employment assistance providers in rural and remote locations are not comfortable using videoconferencing until the quality of the systems improves.



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Providing services to Indigenous people

While Indigenous people represent 2% of Australia's population, the proportion in rural and remote Australia is much higher. There is also a higher incidence of disability in Indigenous communities. The provision of appropriate disability employment assistance to Indigenous people needs to take into account a range of issues including the way disability is perceived by Indigenous people, isolation and access to services, Indigenous concepts of work, and community priorities.

A regional approach to service provision is required, which is likely to involve several Indigenous communities. At the same time services should respond to the needs of individual communities through a consultative process, building on the community's capacity and strengths. Indigenous people should be involved in service provision, and culturally appropriate promotion of the benefits of employment for people with disabilities is required.

In many of the more remote communities, where there is little or no opportunity for mainstream employment, Community Development Employment Projects have been established. CDEP provides income support, community development, skill acquisition and a potential pathway to employment. Indigenous people receiving the Disability Support Pension are eligible to participate in CDEP. However a lack of CDEP places, lack of financial incentives for job seekers (or for CDEP), and a lack of suitable support structures for job seekers with disabilities has meant limited participation to date. Policies and practices are required to enhance prospects for job seekers with disabilities.

An alternative to CDEP is to establish businesses which are aligned to the interests, cultural heritage and infrastructure of the community. This has proven a successful employment creation strategy in many communities.

Proposed models

Proposed models are described according to a framework designed to highlight innovative approaches. The proposed models are not intended to be prescriptive, nor the only models that may meet the needs of a local community. Rather they service to illustrate service provision and funding arrangements which will both improve access to disability employment assistance, and promote cost effective service delivery.

It is expected that some of the proposed models will be piloted and feed into the Case Based Funding Trial.

1. ARIA is the Accessibility and Remoteness Index of Australia. It measures accessibility to community services, and is based on road distances to populated centres. ARIA assigns a remoteness ranking to locations (ie towns) in Australia.
2. Previous classifications of remoteness (ie as used by AIHW) suggested a higher number of service providers in rural and remote locations, and ARIA classifications may need to be revised to provide more meaningful groupings.

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