Metro magazine’s editor interviews company leaders to share how people with disabilities help make elecontronics components for InterMotive Vehicle Controls, including a product that makes wheelchair-accessible vehicles safer, in a decades-long partnership.
Employment Services
The social enterprise was recognized as a Top Impact Company globally.
Roseville, Calif — For the second year in a row, PRIDE Industries has been named a Top Impact Company by Real Leaders®, a Global Media and Certified B Corp dedicated to inspiring the future of business. Real Leaders® awards the Top Impact Company honor to privately owned companies based on their leadership performance within six categories of I.M.P.A.C.T (Intention, Model, People, Accountability, Collaboration and Transformation).
PRIDE Industries ranked 40th among 185 companies in the Top Impact category, chosen from a field of 500 applicants from more than 15 countries.
With its five-decade track record of creating employment for people with disabilities, PRIDE Industries is a natural Top Impact Company. A pioneer in the inclusivity movement, the company’s influence stretches from small businesses to governmental and Fortune 500 organizations. Its impact also reaches military veterans and former foster youth, through its services for veterans services and it’s Youth Employment Services (YES!) program.
“We are thrilled to be recognized, for a second consecutive year, as a Top Impact Company by Real Leaders®,” said Jeff Dern, President and CEO at PRIDE Industries. “Our long-term focus on creating employment for people with disabilities has been a key factor in achieving this award. Organizations which employ people with disabilities have stronger cultures, employee retention, and bottom lines. Together, in partnership with our customers, our success proves the value of an inclusive workforce.”
The 2024 list features a mix of respected impact brands of all sizes and from a variety of industries with companies such as: Brandless, Generate Capital, Cotopaxi, and Every Man Jack (see full list).
In addition to the new I.M.P.A.C.T categories, the awards debuted five new awards such as: Most Valuable Mission, Most Innovative Model, Most Impactful People, Best Collaboration, and Most Transparent. “After five successful years of producing the go-to list of the ‘Top Impact Companies’ it was time for Real Leaders to expand its mission by growing an impact awards community that preserves its integrity while scaling its impact,” said Kevin Edwards, Real Leaders’ General Manager.
A special “Real Leaders UNITE” awards celebration will be held in San Diego on February 6, 2024, to honor the winners.
About PRIDE Industries
PRIDE Industries delivers business excellence with a positive social impact. A social enterprise, we provide facilities operations and maintenance services, custodial services, contract manufacturing, supply chain management, packaging and fulfillment services, and placement services to private and public organizations nationwide. Founded in 1966, PRIDE Industries’ mission is to create employment for people with disabilities. Through personalized employment services, we help individuals realize their true potential and lead more independent lives. PRIDE Industries proves the value of its inclusive workforce model through operational success across multiple industries every day.
About Real Leaders
Real Leaders is the fastest-growing community for impact leaders backed by a global media platform dedicated to driving positive change. Founded in 2010, Real Leaders recognized and advocated that businesses take more responsibility to be as cognizant of their impact on employees, society, and the planet as they are on their bottom line. Real Leaders is an independently owned certified B Corporation and member of the UN Global Compact. Our mission is to unite farsighted leaders to transform our shortsighted world.
LinkedIn: Real Leaders
Instagram: @Real_Leaders
Twitter: @Real_Leaders
Facebook: @RealLeadersMagazine
Hashtag: #RealLeadersImpactAwards
Media Contact
Kat Maudru
PRIDE Industries is a social enterprise delivering business excellence to public and private organizations nationwide.
The many benefits of hiring people with disabilities are becoming more widely recognized, but one benefit is still often overlooked: tax incentives. Among the three primary such incentives, the Work Opportunity Tax Credit (WOTC) tops the list, but what is it?
What is the Work Opportunity Tax Credit?
The Work Opportunity Tax Credit is a federal program that provides employers with tax credits for hiring individuals from certain target groups that have faced barriers to employment, including people with disabilities.
Created as a part of the 1996 Small Business Job Act, the WOTC was a temporary tax credit designed to promote employment, empowering individuals to become members of the workforce and attain self-sufficiency while earning a steady income.
Since its initial enactment, the WOTC has been extended several times—most recently through 2025—with legislation on the table to make it permanent.
How Does the Work Opportunity Tax Credit Work?
In a nutshell, the WOTC amounts to 40 percent of an individual employee’s incurred wages, up to $6,000 for an individual who meets the following criteria:
- Is in their first year of employment
- Is certified as being a member of a target group
- Performs at least 400 hours of services for that employer
Individuals working fewer than 400 hours but at least 120 hours for an employer are subject to a reduced credit (25 percent). Rehired employees are not eligible for the WOTC.
Generally, taxable employers can apply any unused WOTC from the current year to the previous year and carry it forward.
How Does an Employer Claim This Credit?
According to the U.S. Department of Labor (DOL) and the Internal Revenue (IRS), employers must follow a structured process to claim the WOTC.
1. Prescreening and Filing Certification Request
Within 28 days of a new hire, employers must apply for certification that the employee is a member of a target group.
To do so, the employer and the newly hired employee must complete and submit the following pre-screening paperwork to the designated state agency:
- IRS Form 8850, the Pre-Screening Notice and Certification Request for the Work Opportunity Credit
- DOL Form 9061, the Individual Characteristics Form
2. Certification Approval
After the forms have been submitted to the state agency, assuming the new hire meets eligibility requirements, the employer will receive a determination from the certifying agency. The determination will detail why an employee does or does not qualify. The WOTC certification will be included if the individual qualifies for it, or the agency will request additional information.
3. Claiming the Work Opportunity Tax Credit
After certification by the designated local agency, and after the employee has worked a minimum of 120 hours, taxable employers can proceed to file the WOTC with the IRS. Taxable organizations will file IRS Form 5884, while tax-exempt organizations will file IRS Form 5884-C.
It’s crucial to complete and submit the required forms accurately. Refer to the IRS and U.S. Department of Labor websites for these forms and for detailed instructions.
What Other Tax Credits are Available for Employers Who Hire People with Disabilities?
In addition to the Work Opportunity Tax Credit, employers may be eligible for two more incentives that relate to physical accessibility.
1. Disabled Access Credit
To encourage businesses to improve accessibility for both employees and customers with disabilities, the Disabled Access Credit provides tax incentives for making establishments more accessible. Small businesses that incur expenses for architectural adaptations, equipment purchases, or services aimed at facilitating accessibility may qualify for a tax credit of up to $5,000 per year. A business can claim a tax credit once annually for qualifying access expenditures.
2. Architectural Barrier Removal Tax Deduction
The Architectural Barrier Removal Tax Deduction is another incentive aimed at encouraging businesses to make their facilities more accessible. Specifically, it allows a deduction of up to $15,000 per year for qualified expenses related to removing physical barriers in the workplace.
State Tax Credits
Several states offer their own tax credits related to hiring people with disabilities and creating accessible workplaces. More information about these credits is available on state tax board websites.
The Benefits of Hiring People with Disabilities
In addition to the direct financial benefit of hiring people with disabilities that the WOTC offers, there are proven business benefits for companies that build inclusive workforces. Here are just a handful:
- High Retention Rates: Reducing turnover and fostering continuity, maximizing organizational stability and success.
- Low Absenteeism: Fostering a healthy work environment, enhancing productivity and minimizing disruptions to workflow.
- High Productivity: Translating into increased operational success and competitiveness in the market.
- Boosted Workplace Morale: Encouraging a positive workplace culture that enhances motivation and collaboration.
- Appeal to Socially Conscious Investors: Attracting investors that are more committed than ever to putting their money toward positive social impact.
- Maximizing DEI Efforts: Creating a more equitable and representative workplace that reflects a diverse global market.
- Increased Profits: Resulting from improved employee performance, reduced turnover costs, and heightened customer satsifcation.
Connect With This Stellar Workforce
State agencies, such as the California Department of Rehabilitation, and partnering organizations like PRIDE Industries, can put employers in touch with this stellar workforce so they can make use of the Work Opportunity Tax Credit in the coming year.
Let Us Help Solve Your Labor Shortages
The US Chamber of Commerce recommends that businesses turn to experienced partners to tap the many benefits—including tax incentives—of employing people with disabilities. PRIDE Industries has helped hundreds of companies do just that, helping recruit, hire, train, and support this growing and reliable talent pool—free of charge to employers.
Employee success can be elusive for people with disabilities. Historically, organizations were hesitant to hire this population. That’s changing. Of the 10.6 million working-age people with disabilities in the United States, just 35 percent were employed in 2022. But in 2023, that number rose to 38 percent.
Why? Faced with labor shortages, many companies include people of diverse abilities in their workforces. Greater adoption of inclusive business practices, including widespread acceptance of remote work and availability of assistive technology, has further propelled the shift—resulting in employee success that, in turn, leads to employer success.
How? Companies that staff people with disabilities consistently show increases in productivity and profit margins, while absenteeism and turnover decline. Other benefits include boosted morale, appeal to socially conscious investors, and employer tax incentives.
At three California-based businesses, none of this is news.
Angie’s Story: The Morning Light
Raley’s has fostered an inclusive workforce for decades, including hiring, training, and managing employees with various physical and intellectual disabilities.
Companies that staff people with disabilities consistently show increases in productivity, while absenteeism and turnover decline. Other benefits include boosted morale, appeal to socially conscious investors, and employer tax incentives.
When it comes to employee success, Angela “Angie” Rao is a shining example. Angie, who has a developmental disability, has worked for Raley’s supermarket as a courtesy clerk for 32 years.
“When I started, there were no computers,” Angie said. “You wrote down your shift requests and recorded your hours on little pieces of paper.” As the role of technology has grown in the business, Angie has grown with it.
“I call her my morning light,” said Danielle Bergmann, store team leader at the Carmichael, California Bel Air Market, one of Raley’s brands. “She’s probably one of the top five courtesy clerks I’ve ever had.” That’s saying a lot, as Bergmann has worked for the company for 28 years. “She’s on time, eager to work, she has a smile for everyone, and the customers love her to the point of asking about her if she’s not there one day.”
Bergmann’s experience with Angie is consistent with the data. Punctuality, loyalty, and customer satisfaction are part and parcel of including people of all abilities in the workplace.
Jesus’s Story: Top Salesperson
Speaking of customer satisfaction, there’s Jesus Navarro who has been working at Soapy Joe’s, a top carwash in San Diego, since 2022. Jesus leads the company in sales of memberships that give customers discounted pre-paid car washes and give Soapy Joe’s recurring revenue.
“It’s easy,” Jesus said. “Memberships save customers time and money.”
Jesus’ enthusiasm has proven contagious at Soapy Joe’s, promoting a friendly rivalry to see how many memberships employees can sell. And his work ethic has led him into a supervisor training program. In fact, Jesus has recently trained three Soapy Joe’s employees—all of whom are now top sellers, too.
“He knows how to talk to people,” said Ysabel Perry, a PRIDE Industries employment coach who has worked with Jesus. “He has a great, optimistic attitude, too. Given some challenges he’s been through, that’s one of the things I most admire about him. He’s very likable.”
The rest of Jesus’s team agrees.
“In the small amount of time I’ve had working with Jesus, he’s brought purpose to my job,” said Mauricio Cardenas, Area Manager for Soapy Joe’s. “The whole team loves him.”
Jesus’ story is yet another example of how employee success for one can snowball into success for many.
Brendan’s Employee Success Story
Production Worker Brendan Ford is one of the “hardest workers you’re going to find” at Acushnet Golf. Acushnet, manufacturer of Titleist golf clubs among others, is the only original equipment manufacturer (OEM) of golf clubs left in the United States—equipment that the likes of Tiger Woods and Phil Mickelson forged their success with.
Retention in manufacturing is a constant challenge, but not for Doug Jacot, Acushnet’s Director of Manufacturing. Jacot has been hiring people with disabilities for more than 20 years. “They are the most can-do group I’ve ever been around,” he said. “And they elevate the attitudes of everyone around them. If I could hire a hundred of them, I would.”
At Acushnet, employee success looks like Brendan Ford. It also looks like this: Every day, a team of five employees with disabilities builds about 1,000 boxes and 3,000 packaging inserts at the company’s San Diego County manufacturing facility.
“They’re not going to have any attendance issues. They’re going to be there bright and early—ready to work,” said Elizabeth Valverde, a PRIDE Industries Workforce Inclusion Employment Coach Assistant Manager that supports the team.
For Brendan, the payoff is well worth his hard work. “It lets me do more independent stuff,” he said.
Employee Success Translates to Employer Success
Smart companies are increasingly turning to people with disabilities as a steady pipeline of frontline workers.
It should come as no surprise. Employees with disabilities offer companies several benefits—high retention, punctuality, and loyalty—that directly impact the bottom line. When analyst firm Accenture measured the business benefits to employers that actively hire and support employees with disabilities, it found that these “Disability Champions” routinely achieve higher revenue, net income, and profit margins than companies that don’t actively include this population. Its 2023 report found that “The business case for hiring persons with disabilities has become even stronger,” with Disability Champions experiencing the following outcomes as compared to their peers:
- 6x higher revenue
- 6x more net income
- 2x better profit margins
All of these gains are higher than in Accenture’s previous 2018 report.
PRIDE Industries’ employment partner program helps companies like Raley’s, Soapy Joe’s, and Acushnet recruit, hire, train, and support employees with disabilities on the job, taking much of the uncertainty employers might have about engaging this exceptional talent pool. For more information about working with PRIDE Industries for your employment needs, contact us.
Unlock the Proven Benefits of Hiring People With Disabilities
The US Chamber of Commerce recommends that businesses turn to experienced partners to tap the benefits of employing people with disabilities. PRIDE Industries has helped hundreds of companies do just that, helping recruit, hire, train, and support this growing and reliable talent pool—free of charge to employers.
In some industries, labor shortages have eased, but other sectors still grapple to find and keep good employees, especially frontline workers. Meanwhile, savvy employers are turning to an underutilized workforce: people with disabilities.
But let’s backtrack for a moment. According to data from the U.S. Chamber of Commerce, several factors are creating the ongoing shortage of frontline workers, including a lack of affordable childcare, early retirements, and an aging workforce.
The Chamber’s report further notes that the sectors experiencing the highest numbers of job openings are education and health services, hospitality, and professional business services—most notably relating to work done in-person such as landscaping, cashiering, cleaning, and waste disposal.
Hiring and retaining frontline workers is a costly challenge. In a Harvard Business School study of 181,891 hourly workers, half the employers surveyed said that turnover among frontline workers was more than 24 percent a year, and almost a quarter said it was greater than 50 percent, with the cost of turnover estimated at $3,000 per employee. If you replace 24-50 percent of your employees yearly, that’s expensive.
Add to all of this the coming “silver tsunami”—when baby boomers will age out of the workforce—and the long-term effects become clear: the shortage of frontline workers isn’t going away.
So, what’s the solution?
“Employees with disabilities are some of our most dedicated employees. They come to work, and they’re smiling. They’re ready for work. They’re excited for work.” ”
Expanding the Pool of Frontline Workers: Employees with Disabilities
“For years, organizations have talked about the strategic value of expanding and diversifying their talent pipelines,” said Emily Rose McRae, Future of Work and Talent Analytics researcher in Gartner’s HR Practice. “Organizations can no longer meet their talent needs through traditional sourcing methods and candidate pools.”
Smart companies are turning to people with disabilities—a demographic that includes more than 10 percent of working-age Americans—as a steady pipeline of frontline workers. Due to advances in workplace technology, greater adoption of inclusive business practices, and widespread acceptance of remote work, companies have more access to this skilled, reliable, and loyal talent pool.
And it so happens that hiring people with disabilities as frontline workers is good for business.
Many Benefits of Employees with Disabilities
Hiring people with disabilities isn’t about altruism. Their presence in an organization boasts several benefits, including high retention, low absenteeism, improved employee satisfaction, tax incentives, and greater appeal to socially conscious investors.
It’s important to note that, while this workforce remains underutilized, huge progress has been made in companies employing people with disabilities.
Approximately 22 million working-age Americans have a disability. Historically, the employment to population ratio for working-age adults with disabilities was around 30 percent while the ratio for persons without a disability was 75 percent.
This has changed a lot in the years since the pandemic, with the disability employment-to-population ratio for people with disabilities rising as high as 38 percent, according to the National Trends in Disability Employment (nTIDE) report published by the Kessler Foundation and the University of New Hampshire.
However, it’s still the case that much more could be done. More employers need to understand the benefits that employing people with a disability brings. PRIDE Industries has partnered with hundreds of companies to recruit, hire, and support employees’ different abilities to solve employers’ labor challenges and improve workforce productivity.
Fronline Workers with Disabilities: ‘Our most dedicated employees’
“Employees with disabilities are some of our most dedicated employees,” said Julie Smith, HR Director for Soapy Joe’s, a 16-location car wash franchise in San Diego County, California. “They come to work, and they’re smiling. They’re ready for work. They’re excited for work.”
In the carwash industry, turnover is a constant challenge. Over 45 percent of carwash employees leave within a year, according to career researchers at Zippia. Faced with this problem, Smith, who had prior experience with employees with disabilities, saw an opportunity. “I was familiar with the assets that adults with different abilities can bring to an organization,” she said. “Coming to Soapy Joe’s, I was a big advocate for hiring from this workforce because I knew it would solve many of the issues we were having with retention and turnover.”
Now Soapy Joe’s employs people with disabilities at 15 of its car washes, with a 94 percent retention rate. These employees have proven to be valuable assets. At the company’s National City location, for example, the top seller of memberships is Jesus, an employee with a developmental disability. Jesus’s performance has been so stellar that he has now entered a management training program to move up in the company.
‘You'll be amazed by what they can do.’
A study by Deloitte and the Manufacturing Institute found that the manufacturing labor shortage could result in 2.1 million unfilled jobs, costing businesses a trillion dollars by 2030.
InterMotive Vehicle Controls, maker of electronics components for the automotive industry, is another company tackling the labor shortage by hiring people with disabilities. “We have hired people with disabilities for going on two decades now,” CEO Linda Schafer said. “When you take someone with an intellectual or physical disability, assess their skills and interests, and give them the training and support they need, you’ll be amazed at what they can do and how much they can contribute.”
Hiring people with disabilities helps InterMotive address workforce shortages and increase retention. “I have employees with disabilities who started after high school and are now married and buying homes,” President Greg Schafer said. “They love their jobs, show up on time every day, and are proud of their work. They really enhance our workforce.”
The quality of the work
It wasn’t so much turnover but quality control that led Thunder Valley Casino Resort to tap employees with disabilities to reduce the cost and improve the hotel’s laundry service quality, which they were trucking three counties away. The 270,000-square-foot AAA Four Diamond resort generates 10,000 pounds of laundry each day.
“The employees bring so much joy to the workplace,” said Joel Moore, VP of Hotel Operations. “They are so happy to be out in the community, to have a job. It is infectious.”
The resort also benefits from their laundry team’s high retention and attendance. “The level of absenteeism is lower than in other teams,” Moore said. “These employees stay longer because they love working here –they are not looking for their next job.” Advancement opportunities are also available. Some employees have moved into other areas, like food and custodial services, where they work more independently.
Overcoming misconceptions
Misconceptions keep employers from turning to people with disabilities to address labor shortages. The Society for Human Resources Managers (SHRM) cites three “myths” that must be busted:
- People with disabilities aren’t qualified applicants.
- Reasonable accommodation is expensive.
- Managers can’t expect the same level of performance from employees with disabilities.
Regarding qualifications, “organizations will need to become more comfortable assessing candidates solely on their ability to perform in the role, not their credentials and prior experience,” Gartner’s McRae said.
Raley’s Bergmann agrees. “Hiring someone with a disability is not much different than hiring anybody,” she said. “You find out what they are good at, what they like, and train them when you see gaps in their abilities.”
Accommodation is surprisingly easy in most cases. In a survey of 3,528 employers by the Job Accommodation Network (JAN), 49.4 percent reported that the accommodations for employees with disabilities “cost absolutely nothing.”
For employers that incurred a one-time cost to accommodate employees with disabilities, the median expenditure was just $300. Additionally, job performance has proven equal, if not better, than workers without disabilities, which makes hiring people with disabilities a low-risk, high-reward opportunity.
Let Us Help Solve Your Labor Shortages
The US Chamber of Commerce recommends that businesses turn to experienced partners to tap the genius of employees with disabilities. PRIDE Industries has helped hundreds of companies do just that, helping recruit, hire, train, and support this growing and reliable talent pool—free of charge to employers.
CEO Jeff Dern encourages employers to consider people with disabilities in a San Diego Union-Tribune opinion piece.
