Work as

a Priority

A Resource for

Employing People

Who Have Serious

Mental Illnesses and

Who Are Homeless
2003

Work as

a Priority

A Resource for

Employing People

Who Have Serious

Mental Illnesses and

Who Are Homeless
Acknowledgements 

Numerous people contributed to the development of this manual (see appendix). The document was 

produced by Policy Research Associates, under contract No. 280-99-0601, with the Center for Mental 

Health Services (CMHS), Substance Abuse and Mental Health Services Administration (SAMHSA), U.S. 

Department of Health and Human Services (DHHS). Frances Randolph served as the Government Project 

Officer. The document was edited by Gary E. Shaheen, MPA, Advocates for Human Potential, Francine 

Williams, M.A. and Deborah Dennis, M.A., of Policy Research Associates. 

Disclaimer 

The content of this publication does not necessarily reflect the views, opinions, or policies of CMHS, 

SAMHSA, or DHHS. 

Public Domain Notice 

All material appearing in this report is in the public domain and may be reproduced or copied without 

permission from SAMHSA or CMHS. Citation of the source is appreciated. However, this publication 

may not be reproduced or distributed for a fee without the specific, written authorization of the Office of 

Communications, SAMHSA, DHHS. The photographs appear courtesy of Thresholds, Inc., and may not 

be reproduced without the specific permission of both Thresholds, Inc., and the individual clients depicted 

in the photographs. 

Electronic Access and Copies of Publication 

This publication can be accessed electronically through the following Internet World Wide Web 

connection: www.mentalhealth.samhsa.gov. For additional free copies of this document, please call 

SAMHSA’s National Mental Health Information Center, at 1-800-789-2647. 

Recommended Citation 

Shaheen, G., Williams, F., and Dennis D., eds. Work as a Priority: A Resource for Employing People 

who Have a Serious Mental Illness and who are Homeless. DHHS Pub. No. SMA 03-3834. 

Rockville, MD: Center for Mental Health Services, Substance Abuse and Mental Health Services 

Administration, 2003. 

Originating Office 

Center for Mental Health Services, Substance Abuse and Mental Health Services Administration, 

Department of Health and Human Services, 5600 Fishers Lane, Rockville, MD 20857. 
Table of Contents

Chapter Page

Introduction ...............................................................................................................................................i 

1. What Do We Know about Employment for People who Have Serious 

Mental Illnesses and Are Homeless? ......................................................................................1 

Background........................................................................................................................1 

What We Know So Far......................................................................................................2 

Employment Outcomes......................................................................................................3 

Urban vs. Rural Employment Program Considerations.....................................................6 

2. A Recovery-based Foundation for Employment Services ................................................9 

Worker Role Recovery ....................................................................................................11 

Conceptual Framework for Providing Employment Services .........................................12 

Cultural and Environmental Considerations....................................................................14 

3. Approaches to Employment for People with Serious Mental Illnesses.......................17 

Transitional Employment ................................................................................................18 

Supported Employment ...................................................................................................20 

The PACT Vocational Model ..........................................................................................22 

Individual Placement and Support...................................................................................22 

Social Enterprises and Affirmative Businesses ...............................................................24 

Self-Employment .............................................................................................................26 

A Note about Supported Education .................................................................................28 

4. The Impact of Homelessness on People with Serious Mental Illnesses 

who Are Seeking Employment................................................................................................31 

Personal-Level Challenges...............................................................................................32 

Program and Services Provider-Level Challenges...........................................................35 

Addressing Challenges In Service Systems.....................................................................38 

5. Helping People who are Homeless and Have Serious Mental Illnesses 

Obtain Work .................................................................................................................................41 

Underlying Principles ......................................................................................................42 

Key Services and Supports ..............................................................................................45 

6. Working with the State Vocational Rehabilitation Agency..............................................59 

Purpose and Scope of VR Services..................................................................................59 

Effectiveness of the VR System for People with Mental Illnesses..................................60 

Best Practices for People with Serious Mental Illnesses who are Homeless...................63 

Future Challenges in Building Successful VR/MH Partnerships ....................................65 
Table of Contents (continued)

Chapter Page

7. The Right to Work.......................................................................................................................69 

Rehabilitation Act of 1973...............................................................................................69 

Rehabilitation Act Amendments of 1998 ........................................................................70 

The Americans with Disabilities Act...............................................................................70 

Workforce Investment Act of 1998 .................................................................................71 

Ticket to Work/Work Incentives Improvement Act of 1999...........................................73 

Appendix .................................................................................................................................................77 
i 

Introduction 

his guidebook is intended to provide both a conceptual and practical foundation to increase 

employment among people who are homeless and who also have serious mental illnesses. Throughout 

the 1990s, as the U.S. enjoyed one of its longest periods of economic growth, the gap continued to grow 

between those who were benefiting from this prosperity and those who remained on the sidelines. 

Sweeping changes in American society were taking place as welfare reform impelled more and more 

Americans to enter the labor market. Yet nearly 90% of people who have serious mental illnesses are 

unemployed1

 and an estimated 200,000 individuals with serious mental illnesses are homeless. Recent 

Federal policy initiatives, including the creation of the Presidential Task Force on the Employment of 

Adults with Disabilities, and the New Freedom Initiative issued by President Bush, underscore the 

societal and economic importance of engaging people with significant barriers to work in meaningful, 

growth-oriented employment.2,3

A large number of programs and services have been developed during the past two decades to address the 

employment needs of people with serious mental illnesses. However, program adaptations and approaches 

to assist individuals who are homeless and have serious mental illnesses are less well known. Significant 

sections of this guidebook are derived from papers prepared for a September, 1999, meeting convened by 

Substance Abuse and Mental Health Services Administration (SAMHSA) to explore issues and factors 

related to increasing employment for consumers who are homeless. Additional material has been adapted 

from “Employing Homeless People with Mental Illness,”4

 a training curriculum sponsored by 

SAMHSA’s Center for Mental Health Services (CMHS) Projects for Assistance in Transition from 

Homelessness (PATH) program. 

Further, providers of mental health and homeless services across the country were surveyed for this 

guidebook. Brief summaries of their employment programs have been included in the text. While each 

provider is using different program models to help people with serious mental illness who are homeless 

obtain and keep jobs, two constant themes emerged: 

 Belief in the value of work at the earliest possible stages of recovery, as an aid to the 

recovery process. 

 Recognition that a job can help people develop motivation to change, dignity and selfrespect, and hope for the future. 

Paid employment, however, may not be the right opportunity for everyone. Helping people make good 

choices about their futures, that may or may not include paid work, is an important part of the recovery 

and reintegration process. 

This guidebook was developed to aid all stakeholders, including service providers and policymakers, as 

well as program managers, case managers, and employment specialists. This guidebook will be 

complemented by the forthcoming publication of a supported employment toolkit. The toolkit will 

address in more detail how to implement supported employment services for people who have serious 

mental illnesses. 

For consumers and recipients of services, this document is intended to help establish or extend their 

knowledge and increase their ability to navigate service systems. In the following pages, the reader will 

find a general review of the relevant literature, a summary of promising employment programs, and a 

T 
ii 

discussion of policies and laws that address the provision of employment support services to people who 

are homeless and have a serious mental illness. 

The information in this guidebook is arranged as follows: 

What We Know So Far. A brief review of the literature and research studies on employment of people 

who are homeless and have serious mental illnesses is offered. This background material presents 

preliminary findings that link mental health recovery and homelessness reduction to the ability to obtain 

and retain a job. 

A Recovery-based Foundation. People with serious mental illnesses face a dual challenge: recovery 

from mental illness itself, and recovery of the skills and aptitudes needed to acquire or re-acquire a valued 

role in the community, including that of worker. An orientation to the principles of recovery—considered 

to be the foundation for the development of employment services for people with serious mental 

illnesses—is reviewed. The essential service elements that guide worker role recovery are also discussed. 

Employment Approaches. A variety of employment models and approaches developed for people 

with mental impairments are summarized. Models that also focus on meeting the needs of individuals 

who are or who recently have been homeless can help facilitate recovery and provide the skills and 

opportunities needed for employment success. 

The Impact of Homelessness. The consequences of homelessness create distinct challenges for 

people with a serious mental illness. This chapter addresses personal, program, and system-level 

challenges to employment for people who face these dual challenges. 

Helping People Obtain Work. Overcoming the challenges that homelessness and mental illness create 

often requires augmentation or adaptation of traditional employment services. This chapter includes 

examples of programs throughout the country in agencies that have elevated work to a priority. Also 

included are key factors to consider when developing employment services for people with serious mental 

illnesses who are homeless. 

The State Office of Vocational Rehabilitation (VR). This chapter reviews employment-related 

services available through State VR systems, and issues and recommendations related to access, 

availability, and appropriateness for people with mental illnesses who are homeless. Examples of ways 

various State VRs are working with homeless people with serious mental illnesses, as well as recent 

VR/mental health integration efforts, are also included. 

The Right to Work. This chapter reviews the statutory framework supporting employment for people 

with disabilities, including the Americans with Disabilities Act (ADA), the Workforce Investment Act, 

and the Ticket to Work/Work Incentives Improvement Act. Implications of these important laws 

regarding the acquisition of employment by people with disabilities are discussed. 
iii 

Introduction Notes 

1

 Anthony, W.A., and Blanch, A. Supported employment for people who are psychiatrically disabled: An historical and 

conceptual perspective. Psychosocial Rehabilitation Journal 11(2): 5-19, 1987. 2

 Presidential Task Force on the Employment of Adults with Disabilities. Re-Charting the Course: Turning Points-The Third 

Report of the Presidential Task Force. Washington, DC: Presidential Task Force on the Employment of Adults with Disabilities, 

2000. 

3

 President George W. Bush. “New Freedom Initiative.” Washington, DC: Office of the President of the United States, 2001. 4

 Bianco, C., and Shaheen, G. Employing Homeless People with Mental Illness: Principles, Practices and Possibilities. 

Unpublished draft prepared for the CMHS PATH Program. Albany, NY: Advocates for Human Potential, July 1999. 
iv 
1 

Chapter One 

What Do We Know about Employment for 

People who Have Serious Mental Illnesses 

and Are Homeless?1

he vast majority of people with mental illnesses, including those with a history of homelessness, want 

to work and need to work. For many, work is an adjunct to their recovery from serious mental illness. 

Further, income from work may help them maintain residential stability. Though the United States 

enjoyed its longest period of economic growth throughout the 1990s, nearly 90% of people with serious 

mental illnesses were unemployed. This chapter provides a brief overview of what is known about 

employment services for individuals who are both homeless and have a serious mental illness. 

Background 

A renewed emphasis on employment services for people with serious mental illness, including those with 

a history of homelessness, is occurring throughout the United States. This reflects both the national 

agenda to help people who receive public assistance find work, and the call for increased job 

opportunities for people with mental illness by mental health advocates, homeless services advocates, and 

families. The experiences of mental health consumers who have been homeless reveal that even people 

with significant barriers can be employed successfully with the right blend of respect, encouragement, 

opportunity, and support. 

Homelessness remains one of America’s most serious problems, particularly for people with mental 

illnesses. On a given day, an estimated 600,000 people are homeless2

, approximately one-third have a 

serious mental illness3

, and about one-sixth suffer from co-occurring mental illness and substance use 

disorders.4

 

T 
2 

Racial and ethnic minorities are dramatically over-represented and often are underserved in homeless 

populations. 

Homeless individuals frequently face numerous other barriers to achieving lives of personal, social, and 

economic fulfillment, among them: 

 Lack of decent, affordable housing; 

 Chronic poverty and unemployment; 

 Fragmented, underfunded, and unresponsive service systems; 

 Disabling consequences of mental health and substance use issues; 

 Discouragement from recurrent homelessness; 

 Impact of health-related disabilities and chronic health conditions; 

 Barriers resulting from involvement with the criminal justice system; and 

 Emotional effects of histories of physical or sexual abuse. 

Unemployment for people with serious mental illnesses has been estimated at approximately 80-90%.5

Housing instability, coupled with insufficient education, job skills and employment opportunities, 

contributes further to the problem for these individuals. According to a recent survey, only 8% of people 

who are homeless, including those with serious mental illnesses, reported working at a job that they 

expected to last at least three months6

. People who were homeless indicated that insufficient income and 

lack of employment were among the most important factors preventing them from exiting homelessness. 

In terms of income, the same survey found that those who are both homeless and experiencing a mental 

health and/or substance use disorder reported receiving less in total income over the previous 30 days 

($337) than homeless individuals without mental illness and substance use issues alone ($427). 

Furthermore, 42% rated the need for assistance to find work as highest among their service needs. 

It is clear that employment services must be coordinated with additional services to address these 

complex issues. Each day, despite obstacles, thousands of homeless and formerly homeless people with 

serious mental illnesses demonstrate their resilience, re-kindle their hope, seize opportunities, and achieve 

success in their housing, social, and work lives. However, much remains to be accomplished to make a 

wider audience aware of the needs, issues, and triumphs of people with mental illnesses who are or have 

been homeless and successfully employed. 

What We Know So Far 

Given the dearth of empirical studies regarding employment of people who are homeless and have serious 

mental illnesses, the effectiveness of programs throughout the country that provide vocational services to 

this population is difficult to ascertain. 

What little research does exist consists primarily of vocational rehabilitation studies of homeless people 

that include sub-samples of individuals who also suffer from mental illnesses. In addition, the literature 

concerning employment services for people with mental illnesses, and the experience of providers who 

have adapted these services for individuals with mental illness who also are homeless, provides valuable 

insight into what is different about having a mental illness and being homeless when it comes to 

employment. This literature also can be used to help identify the kinds of services and supports that can 

help people with mental illnesses find and maintain employment. Throughout this guidebook, the 

elements and philosophies of existing employment programs for people with mental illnesses are 

discussed with suggested modifications for those who also are homeless. 
3 

Effective Services and Supports 

Several authors have identified critical elements for successful employment programs. Ridgeway and 

Rapp7

, Whiting8, and White and Wagner9 point to a number of program-level factors that affect 

employment outcomes for people with mental illnesses, including: 

 Integration of employment services with other mental health rehabilitation services; 

 Emphasis on consumer preference and practical assistance with finding jobs; 

 Limited reliance on vocational assessments; 

 Ongoing assessment and support based on individual needs and preferences; and 

 Services that are flexible, and consistent with individual preferences and long-term 

vocational goals. 

Facilitating Worker Role Recovery 

Lakefront Single Room Occupancy (SRO) in Chicago, Illinois—the Midwest’s 

largest provider of supportive housing for people who are homeless—owns 

and operates 892 units of SRO housing on Chicago’s North Side. Founded in 

1986, Lakefront provides individuals with an affordable, permanent place to

live, life skills, ongoing support for drug and alcohol addiction, as well as job 

training and employment opportunities. Lakefront SRO Employment Services

provides individual employment assessment, career planning, preemployment training, resources to reach job goals (including interviewappropriate clothing), job placement, job coaching, and a job bank for nearly 

350 program participants, 67% of whom are African-American. Lakefront SRO 

tenants who express interest in finding work may enroll in a program to help

prepare them for employment. In addition, a literacy program has been 

integrated into the program, and various partnerships have been developed

with the business community to provide job training and placement. 

Lakefront’s success in facilitating job placement largely is attributable to its 

strong relationships and collaborations with area employers. For example,

the agency has worked extensively with hotels in the Chicago area to develop

industry-standard training with job placement and post-placement supports. 

Furthermore, the City of Chicago contracts with Lakefront to bring 

employment services to people living in public housing, many of whom have

mental illnesses. The majority of Lakefront’s tenants are enrolled in the 

employment services program; and nearly half of its participants work either

full- or part-time. Tenants are eligible to receive employment services for as

long as they wish, even if they move from the Lakefront housing. 

Employment Outcomes 

Several recent studies provide useful information regarding the employment histories and needs of 

individuals who are homeless and have serious mental illness, as well as the factors that contribute to 

employment success. It is worth noting that the bulk of funding for these demonstration programs comes 

from sources other than the traditional employment sector. 

Job Training for the Homeless Demonstration Program (JTHDP). From 1988 to 1995, this 

U.S. Department of Justice program examined the effects of providing flexible funding to nonprofit 
4 

organizations offering employment, job training, and support services to homeless individuals10. These 

programs were based on the premise that job training and placement programs work best when combined 

with the additional services homeless people need to overcome obstacles to employment. JTHDP sites 

were required to provide an array of employment services including job assessment, training, 

development, placement services, and post-placement/follow-up services. In addition, sites were required 

to provide outreach, case management, substance abuse/mental health assessment and treatment, and 

housing services, along with child care, transportation, and life skills training. Three of the 63 

demonstration sites provided services exclusively to homeless people with serious mental illnesses. 

Overall, participants with mental illnesses (60%) were more likely than other participants (49%) to report 

they had not been employed in the six months prior to enrollment into JTHDP. They also were more 

likely (56% versus 46%) to report no earnings in the six months prior to intake. Despite these 

disadvantages at the outset, those with mental illnesses were just as likely to be placed in a job (33% 

versus 36%) as were other participants and were more likely to remain employed 13 weeks later (60% 

versus 50%). 

The Next Step – Jobs (NSJ) Initiative. This three-year demonstration program began as a 

partnership among the Corporation for Supportive Housing, the Rockefeller Foundation, and 20 nonprofit supportive housing providers in San Francisco, New York, and Chicago, to enhance employment 

opportunities for their tenants.11,12 All programs served homeless or recently homeless people, and were 

established within urban community-based organizations with strong links to other agencies in their 

communities.13

More than one-third of the 3,200 supportive housing residents involved in NSJ were identified as needing 

mental health services. These programs stressed that job training and placement programs worked best 

when combined with the additional services homeless people need to overcome obstacles to employment. 

Results indicated that 8% to 21% of participants with mental illnesses were employed at intake. Although 

most participants with mental illnesses worked at least once during the initiative, they were more likely to 

hold part-time positions and hold fewer jobs overall. Moreover, NSJ participants with mental illnesses 

appeared to be more likely to have jobs within the participating organization.14,15 Further, the supportive 

housing industry has proven to be a rich source of jobs; and individual employment appears to be most 

effective when access to work is combined with raised expectations, flexible opportunities, and 

encouragement.16 

ACCESS Demonstration Project. This Federally funded study examined the effect of service system 

integration in helping homeless people with serious mental illnesses exit homelessness and improve their 

health status, service use, and quality of life.17 Over the four-year study period, more than 7,000 homeless 

people with serious mental illnesses received intensive outreach and case management services for up to 

one year. 

In examining ACCESS consumers’ perception of service needs, Rosenheck and Lam18 found that 

employment was ranked relatively low among people who were homeless at the time, although 56% 

indicated that help with job training or finding a job was an important service need. However, only 15% 

of these participants reported receiving job assistance services in the 60 days prior to contact with 

ACCESS outreach staff. Given these findings, Cook and her colleagues further examined client-level data 

from the ACCESS project to determine whether participants experienced improved employment 

outcomes as a result of the services received through the ACCESS program.19 

They found that just under one-third (30%) of ACCESS participants never had held a full-time job at any 

time in their lives before entering the ACCESS program. Alternatively, in the twelve-month period prior 
5 

to ACCESS participation, over a third (36%) reported some type of work for pay, indicating motivation to 

secure gainful employment among this group. ACCESS clients who were employed were more likely to 

be young men with some college education and shorter histories of homelessness. They also tended to 

have diagnoses of depression and never to have been hospitalized for a mental problem. 

Overall, ACCESS participants’ vocational outcomes steadily improved during their first year after 

entering ACCESS services. The proportion who had worked in the past 30 days rose from 18% at 

baseline to 22% at one year. Among those who worked, the proportion employed full-time rose from 24% 

to 32%. The mean hourly wage also increased from $5.56 at baseline to $5.94 at 12 months. Likewise, the 

average number of hours worked per week rose from 20 to 26 hours. Estimated mean monthly earnings 

rose significantly, from $259/month to $469/month at twelve-month follow-up. 

Despite the fact that more than three-quarters (78%) were not in the labor force at baseline, 12 months 

after entering the ACCESS program, only 8% were receiving job training or education services, and 9% 

were receiving job development. In comparison, 71% reported receiving mental health services, 29% 

substance abuse services, 23% benefits and entitlements assistance, 19% housing assistance, and 15% 

legal services. 

Outcomes for those receiving employment-related services were instructive. Individuals who reported 

receiving job training services were two-and-a-half times more likely to be working, while those who 

reported receiving assistance with finding a job were two-and-one-third-times more likely to be working 

for pay at 12-month follow-up. Vocational services were associated with positive outcomes regardless of 

severity of mental impairment or substance abuse difficulties. ACCESS participants faced an array of 

disadvantages including histories of homelessness, mental illness, and in many cases, substance abuse 

problems. Like participants in similar studies, ACCESS participants’ poor work histories and lack of 

post-secondary education were additional barriers to employment. Further, relatively few received any 

vocational or educational services in their first year after becoming homeless. 

At the same time, the ACCESS cohort showed modest, steady improvement in employment status, 

achievement of full-time employment, hourly wage, hours worked per week, and estimated monthly 

earnings, indicating the enhanced employment potential of this group after only one year of coordinated 

service delivery. 

Another noteworthy finding was the association between receipt of vocational services and greater 

likelihood of employment at 12 months. This link remained significant even when controlling for 

diagnosis, mental illness and substance abuse status, and demographics, suggesting that formerly 

homeless people with serious mental illnesses may benefit significantly from vocational rehabilitation 

efforts. At the same time, the results indicated the need for rehabilitation outreach to this population. 

Employment Intervention Demonstration Program (EIDP). This SAMHSA program revealed a 

positive association between receipt of services and employment for people with mental illnesses. 

Preliminary findings of the eight-site study indicated that 51% of individuals who received services for 12 

months were employed, compared to 28% of those who received services for three months.20 Of the 

study’s 1,648 participants, 100 (6%) reported being homeless at any interview; 17 of those reported being 

homeless at two interviews. 

Though EIDP program participants had significant levels of disability and impairment, 86% of all jobs 

held were at the minimum wage or above; the average amount earned per employed client was $4,894. 
6 

Researchers tested a number of vocational models, including supported employment, Individual 

Placement and Support (IPS), and the Program for Assertive Community Treatment (PACT) vocational 

model, each of which is described in Chapter Three of this guidebook. 

Urban vs. Rural Employment Program Considerations 

While best practices for employing homeless people with mental illnesses in urban settings are just 

beginning to be identified, even less is known about what works in rural settings. Rural-based 

employment programs have a number of special impediments to overcome: 

 Consumers often must travel long distances from their homes to their places of employment; 

public transportation often is insufficient or non-existent. 

 Opportunities for employment may be fewer if small businesses are the major source of 

employment. 

 The development of supported or transitional employment programs may be difficult, since 

the number of enrollees often is insufficient to recoup the costs of hiring job developers, job 

coaches, etc. 

 Because small employers generally do not want a high turnover rate, job development on 

behalf of consumers who are homeless becomes more difficult. 

A report summarizing work and education programs for people with serious mental illnesses in seven 

Western states identified common themes relevant to both rural communities and urban settings:21 

 Interagency collaboration is essential. 

 Social Security benefits management, information, and advocacy are important 

considerations to address consumers’ fear about loss of benefits while working. 

 A “fast track” to work often is more effective and preferable than are pre-vocational training 

and sheltered work. 

 Data systems to track service costs and outcomes are critical for evaluation. 

 Many communities need public education about consumer employability. 

 Programs often have limited resources for employment. 

These findings also were supported in a 10-site research study examining competitive employment 

outcomes among people with serious mental illnesses in both rural and urban settings in New Hampshire. 

The SAMHSA-funded Employment Intervention Demonstration Projects (EIDP)22 found that positive 

vocational outcomes were associated with the presence of a number of factors including the amount of 

resources a program was provided, the importance of a program among the agency’s priorities, and the 

emphasis on helping people to obtain competitive employment other than reliance on pre-vocational 

programs. The study suggests that the presence of these factors was more important to achieving positive 

employment outcomes for consumers than were local economic factors, difference in case mixes among 

programs, or differences in providers’ relationships with the State Department of Vocational 

Rehabilitation. 

Another recent study of one of the eight EIDP programs described implementation issues in delivering a 

combined Program for Assertive Community Treatment (PACT)/Individual Placement and Support (IPS) 

approach in a rural community in South Carolina.23 Among the many obstacles encountered were 

problems in recruiting, training, and retaining qualified staff, and adhering to the fidelity standards of 

each approach within a combined program structure. Despite these difficulties, 60% of program enrollees 

held at least one job after they entered the program and the employment rate fluctuated between 

25%-40% over the two-year study period. 
7 

Clearly, employment programs designed for rural communities must be flexible, mobile, and able to 

withstand the higher costs that may be associated with serving relatively low numbers of enrollees. As 

discussed in more detail in Chapter Three, social enterprises and self-employment approaches 

increasingly are being viewed as effective program responses to meet the needs of consumers in rural 

communities. Furthermore, the development of social enterprises adds to the number of jobs in the local 

marketplace and may be a way of addressing chronic unemployment in rural communities.24 

Chapter Summary 

Employment is an important, but often neglected, goal for people who are homeless and have serious 

mental illnesses. The remedies to employing this population do not lie in formulaic solutions, but rather 

require existing service programs to make employment as high a priority as are housing or treatment. By 

receiving vocational services within a comprehensive system of care, homeless people with serious 

mental illnesses may attain the resources they need to remain permanently housed. 

When designing vocational programs for homeless people with serious mental illnesses, their limited or 

intermittent work histories, as well as their significant and continuing mental health, substance abuse, and 

housing assistance needs are important factors to keep in mind. With safe, affordable housing, support 

services (e.g., case management, medication, social skills training), and employment services, these 

individuals can achieve job stability.25 

To assist people with multiple needs, services targeted at goals other than employment (e.g., clinical 

symptom control, receipt of benefits and entitlements, acceptable housing) are necessary but not sufficient 

to further consumers’ vocational achievement. The adaptation of currently popular vocational 

rehabilitation models such as supported employment—particularly variants designed for people with 

mental illnesses (e.g., individual placement and support, and clubhouse models)—need to be considered 

for people with severe mental illnesses. These programs, which have demonstrated improved vocational 

outcomes for people with serious mental illnesses,26 may provide people with the work skills and job 

supports needed to secure and retain paid employment. 

Chapter 1 Notes 

1

 This Chapter contains material adapted from: Cook, J.A., Pickett-Schenk, S.A., Grey, D., Banghart, M., Rosenheck, R., and 

Randolph, F. Vocational outcomes among formerly homeless individuals with severe mental illness in the ACCESS program. 

Psychiatric Services 52(8):1075-1080, 2001; and Kaufman, C.L. “Employment of people who are mentally ill and homeless: A 

review of trends and practices.” Paper prepared for the CMHS Sponsored Employment and Vocational Rehabilitation for 

Homeless People with Serious Mental Illnesses Workshop, Washington, DC, September 1999. 2

 Interagency Council on the Homeless. Priority: Home! The Federal Plan to Break the Cycle of Homelessness. Washington, DC: 

U.S. Department of Housing and Urban Development, 1994. 3

 Federal Task Force on Homelessness and Severe Mental Illness. Outcasts on Main Street: Report of the Federal Task Force on 

Homelessness and Severe Mental Illness. Washington, DC: Interagency Council on the Homeless, 1992. 4

 Fischer, P.J., and Breaky, W.R. The epidemiology of alcohol, drug, and mental disorders among homeless people. American 

Psychologist 46(11): 1115-1128, 1991. 5

 Anthony, W.A., and Blanch, A. Supported employment for people who are psychiatrically disabled: An historical and 

conceptual perspective. Psychosocial Rehabilitation Journal 11(2): 5-19, 1987. 6

 Burt, M.R., Aron, L.Y., Douglas, T., et al. Homelessness: Programs and the People They Serve. Washington, DC: Interagency 

Council on the Homeless, 1999. 

7

 Ridgeway, P., and Rapp, C. The Active Ingredients in Achieving Competitive Employment for People with Serious Mental 

Illness: A Research Synthesis. Lawrence, KS: University of Kansas School of Social Welfare, 1998. 
8 

8

 Whiting, B. Employing the Formerly Homeless: Adding Employment to the Mix of Housing and Services. New York, NY: 

Corporation for Supportive Housing, 1994. 

9

 White, A., and Wagner, S. “Effective strategies: Employment for homeless people with serious mental illness.” Paper prepared 

for the CMHS Sponsored Employment and Vocational Rehabilitation for Homeless People with Serious Mental Illnesses 

Workshop, Washington, DC, September 1999. 

10 Trutko, J.W., Barnow, B.S., Kessler-Beck, S., et al. Employment and Training for America’s Homeless: Final Report of the 

Job Training for the Homeless Demonstration Program. Washington, DC: U.S. Department of Labor, 1997. 11 Dressner, J., Fleischer, W., and Sherwood, K.E. Next Door: A Concept Paper for Place-Based Employment Initiatives. New 

York, NY: Corporation for Supportive Housing, 1998. 

12 Rog, D., Holupka, C.S., Brito, M.C., et al. Next Steps: Jobs Second Evaluation/Documentation Report. Washington, DC: 

Vanderbilt Institute for Public Policy Studies, Center for Mental Health Policy, 1998. 13 Long, D. A., Doyle, H., and Amendolia, J.M. The Next Step: Jobs Initiative Cost-Effectiveness Analysis. New York, NY: 

Corporation for Supportive Housing, 1999. 

14 Rog, Holupka, Brito, et al., op.cit., p. 8. 

15 Parkhill, P. Vocationalizing the Homefront: Promising Practices in Place-Based Employment. New York, NY: Corporation for 

Supportive Housing, 2000; and Fleischer, W. and Sherwood, K.E. The Next Wave: Employing People with Multiple Barriers to 

Work: Policy Lessons from the Next Step: Jobs Initiative and Next Wave Symposium. New York, NY: Corporation for Supportive 

Housing, 2000. 

16 Rog, Holupka, Brito, et al., op.cit., p. 8. 

17 Randolph, F., Blasinsky, M., Leginski, W., et al. Creating integrated service systems for homeless people with mental illness:

The ACCESS program. Psychiatric Services 48: 369-373, 1997. 18 Rosenheck, R., Lam, J.A. Homeless mentally ill clients and providers: Perceptions of service needs and clients’ use of services. 

Psychiatric Services 48(3): 381-86, 1997. 19 Cook, Pickett-Schenk, Grey, et al., op.cit. p. 7. 

20 Preliminary findings of the Employment Intervention Demonstration Program. Center for Mental Health Services. Available at

http://www.psych.uic.edu/EIDP. 21 Kaley-Isley, L. Work in the West: Work and education programs for people with serious mental illness. The West Link, 18(2), 

June 1997. 

22 Drake, R. E., Fox, T.S., Leather, P.K., Becker, D.R., Musumeci, J.S., Ingram, W.F., and McHugo, G.J. Regional variation in 

competitive employment for people with severe mental illness. Administration and Policy in Mental Health, 25(5): 493-504, 

1998. 

23 Meisler, N. and Williams, O. Replicating effective supported employment models for adults with serious mental illness. 

Psychiatric Services, 49(11):1419-1421, 1998. 24 Raveloot, C., and Seekins, T. Rehabilitation counselors’ attitudes toward self-employment as a rehabilitation strategy. 

Rehabilitation Counseling Bulletin 39(3): 189-201, 1994. 25 Whiting, op.cit., p. 8. 

26 Ridgeway and Rapp, op.cit., p. 7. 
9 

Chapter Two 

A Recovery-based Foundation for 

Employment Services1

ecovery from mental illness is a personal process. The struggle to live with and beyond the limits of 

a disability is well described in consumer literature as “the urge, the wrestle, and the resurrection.”2

Recovery means different things to different people; it is not a linear process. For some, recovery means 

no longer experiencing symptoms of a mental illness or needing to take medication. Others experience 

recovery as a life-long process of learning to live fully with the ongoing presence of symptoms. Daniel 

Fisher, MD., Ph.D., has suggested that a person has recovered from a mental illness when he or she 

regains primary control of major life decisions and functions in a significant and valued social role,3

 such 

as being an employee. By combining supports that help consumers establish or re-establish social roles 

and self-management skills, and make their own decisions, recovery can become an achievable goal.4

Though recovery is an individual process, some people in recovery have articulated what they deem 

important: the ability to have hope, trust their own thoughts, enjoy their environment, feel alert and alive, 

experience increased self-esteem and spirituality, know there is a tomorrow to look forward to, and have a 

job.5

 They also have suggested how mental health professionals can assist them in the recovery process 

by encouraging independent thinking, treating them as equals in planning services, giving them freedom 

to make their own mistakes, listening to and believing what they say, recognizing their abilities, and 

working with them to find the resources and services they need. 

Having a job often can facilitate recovery, but having a job is not essential to the recovery process. Many 

people gain the same satisfaction and self-esteem a wage-paying job provides from other life activities, 

including parenthood, caring for ill or disabled family members, or volunteerism. However, many people 

R 
10 

view employment as important to them in their recovery. Recovery-oriented employment programs 

should be person-centered, culturally and linguistically appropriate, responsive to individual need, and 

should recognize individuals’ strengths and potential that could help them get and keep a job. Many 

individuals have significant, though perhaps intermittent, educational and work histories; others have 

worked little, or not at all. Beyond employment or educational credentials, thousands possess inherent 

skills and strengths derived from surviving day-to-day with serious mental illness and homelessness. 

Recognizing and endorsing the strength, resilience, and survival skills gained from these experiences 

expands the definition of work readiness beyond job-related skills to include personal and experiential 

factors that can contribute to job success. In Figure 2.1, insight and humor illustrate the view shared by 

many consumers who regard their experiences in the mental health system as potential sources of strength 

that can be transferred to the employment sector. 

This chapter presents and discusses both program elements that facilitate worker role recovery and a 

conceptual framework for providing recovery-based employment. Cultural and environmental factors in 

the development of employment programs are also considered. 

Figure 2.1 Consumer Experiences Translated to the Workplace6

If you have had any major mental illnesses, you... 

 Have strength 

 Can cope 

 Have patience 

 Possess spirituality and hope 

 Have courage 

 Have humility 

 Have imagination 

If you have been hospitalized, you... 

 Have survival ability 

 Can tolerate pain 

 Can deal with the unknown 

 Have interpersonal skills 

If you have participated in hearings for SSI, food stamps, etc., you... 

 Can tolerate anxiety 

 Can organize documentation 

 Can negotiate systems 

 Can persevere 

If you have taken medication, you... 

 Can handle risk 

 Can adapt to adverse conditions 

 Can compensate for induced physical disability 

 Might have gained some knowledge of introductory chemistry 
11 

Worker Role Recovery 

Over 80% of persons with severe mental illnesses are unemployed, despite heightened awareness of the 

value of work promoting recovery, the presence of effective program models to help consumers to obtain 

employment, and the fact that most persons with mental illnesses want to work.7 A number of factors 

contribute to this chilling fact: 

 The stigma associated with mental illness can result in many employers’ reluctance to hire; 

 Fear of failure and of loss of entitlement benefits influences consumers’ reluctance to try 

employment; 

 The impact of co-occurring mental illness and substance use disorders carries severe 

functional implications for a person’s ability to obtain and sustain a job; and 

 Lack of job training and access to jobs that are flexible enough to support an individual’s 

recovery. 

Rehabilitation services that restore work-related skills and that help individuals develop a new self-image 

as workers, not just as mental health consumers, also are necessary.8

 Such rehabilitation support and 

assistance must continue as needed, even after a job is obtained, to help individuals function effectively 

“so they may learn to adapt to their world.”9

 In the field of psychiatric rehabilitation, “skill performance” 

includes job interviewing, money management, and interpersonal skills, among other measures. However, 

improved skill performance alone cannot be a replacement for “role performance” or worker role 

recovery, the fundamental outcome that individuals and programs seek. 

Helping people obtain jobs quickly and building skills appropriate for success in a given work setting is 

more effective than programs that emphasize skills development as a prerequisite for seeking and finding 

work.10 First, the types of occupational skills taught in employment programs may not be relevant to 

either local employer hiring needs or consumer job preferences. Second, some “soft” employment skills, 

such as organization, setting priorities, time management, anger management and accepting criticism, are 

among the most difficult and important skills that all individuals, regardless of disability, must master. 

These are learned best in actual work situations, with natural, peer, and professional support services to 

assist in the learning process. 

Vocational growth, including perception of oneself in a worker role, is built over time and with 

experience. This growth process occurs not only through the ability to perform a job, but also through 

success at assimilating and/or acculturating to the employment environment. Vocational services should 

be dynamic and reflective of an individual’s particular needs, expectations, and goals at a particular time 

of life. Services also should be adaptable to meet the changing needs of the individual, and should define 

success in more flexible ways, including modifying standardized measures of achievement, a threshold of 

hours worked per week, and job retention milestones. For example, the ability to work for one hour a day 

for two days per week may be a valid measure of success when an individual has been unable to work for 

more than 30 minutes in any given week. Endorsing successes, no matter how small, is an essential 

element to help consumers rebuild the confidence, self-esteem, and trust necessary to achieve advanced 

employment. 

At the same time, consumers with mental illnesses who want to pursue a career should be encouraged to 

do so under the right conditions. Many individuals, even those without disabilities, leave entry-level jobs 

that provide few benefits, little opportunity for advancement, and a lack of stimulation. An individual who 

changes jobs frequently threatens his or her residential stability and recovery process. Providers help 

individuals who want to pursue more demanding work set realistic goals to prepare fully for the 

challenges of career opportunities. 
12 

The following program elements can help facilitate worker role recovery: 

 Consumer/practitioner partnerships – participation in decisions regarding an 

individual’s own career future; 

 Focused skill development – developing the skills and resources required to be 

successful in a particular job; 

 Support consistent with individual choice – active consumer participation in finding, 

retaining, or changing a job; 

 Ongoing assistance as needed – ensuring that the person receives ongoing support 

services to maintain employment and facilitate job and career growth; 

 Provision of holistic, comprehensive support services – assisting the individual in 

achieving a sustainable, satisfying life in his/her community as a productive, contributing 

member. This includes services that address needs beyond employment, such as housing, 

treatment, opportunities to develop meaningful friendships, socialization opportunities, etc.; 

 A hopeful, supportive environment – encouraging the consumer to consider the future; 

respecting his/her needs and aspirations; providing tangible assistance that enables the 

individual to meet job and career goals; and 

 A culturally, linguistically appropriate environment – providing services that are 

accessible to and appropriate for individuals of diverse racial, ethnic, and cultural 

backgrounds and sexual preferences; respecting different cultural views about help-seeking 

behavior, mental illness, and employment. 

Conceptual Framework for Providing Employment Services 

Offering options for work throughout all stages of contact between consumer and mental health provider 

can facilitate worker role recovery. The four-phase model below describes the stages and objectives of 

consumer-practitioner contact, incorporating work-related services that respect consumer needs, interests, 

and growth potential. This menu of services does not constitute a step-wise continuum; any or all stages 

may be revisited over the course of an individual’s working life. 

Engagement 

The purpose of engagement is to connect with individuals and establish trust, rapport, and informationsharing that could lead to involvement in employment services. Successful engagement requires 

development of a relationship built on empathy and respect; it should not be perceived as coercive or 

considered a prerequisite to gaining privileges or services. People diagnosed with mental illnesses, 

especially those with co-occurring substance use disorders, have significant barriers to overcome in order 

to recover a worker role. However, the goal of getting and keeping a job can help motivate change. 

Providers can help individuals move through the stages of change (from pre-contemplation to 

contemplation, determination, action, maintenance, and relapse)11 that will help stabilize symptoms and 

recover a valued social role. 

Elements that support engagement in work-related activities during this early stage of contact can include: 

 Conversations recognizing and supporting the possibility of work as a current option, 

including discussions with individuals who have made the transition to work; 

 Building partnerships with individuals by validating their perspective, exploring their vision 

of the future, and establishing a sense of hope that employment is achievable; 

 Recognizing and reinforcing that past work experiences, no matter how brief, have value; 
13 

 Building desire to consider employment as a rehabilitation goal; and 

 Identifying and accepting individuals’ strengths, abilities, and perceived barriers as they 

relate to employment. 

Exploration 

Practitioners can help individuals choose to participate in employment services, though such efforts 

should not be used as a prerequisite for obtaining other services or privileges. Techniques of motivational 

interviewing12 can be especially useful here. To help individuals move through the stages of change, 

counselors who employ motivational interviewing avoid argumentation, express empathy, support selfefficacy, “roll with resistance,” and help consumers develop a discrepancy between where they are now 

and where they want to be. Tools that can be used in this phase include: 

 Meeting and discussing with peers how participation in employment services has made a 

positive difference in their lives; 

 Visiting employment sites to view work environments and to talk with workers and 

supervisors; 

 Reading and discussing written program materials, such as training schedules, job 

descriptions, etc.; 

 Testing an employment service by sitting in on a skills-building group session, or briefly 

partnering with a peer or staff mentor; and 

 “Job shadowing” that pairs a consumer with a staff person for a short period of time, 

enabling the consumer to observe, and possibly assist, in a real work setting. 

Exposure 

Exposure to employment at the earliest opportunity helps test job choices. It combines involvement in the 

real-life demands of work with insight and evaluation, examination of barriers, and assessment of possible 

alternative job choices. Practitioners must help create opportunities for people to succeed and help them 

see the strides they have already made. Activities that build exposure to the world of work may include: 

 Experiencing work for short periods in a supportive setting to build confidence and 

motivation. Settings can include residential programs, drop-in centers, and mental health 

programs; 

 Discussing elements that contributed to past job success and reinforcing them, while 

participating in the current work experience; 

 Discussing elements that impeded past job success, and developing plans to address them in 

current or future jobs; 

 Enhancing knowledge of alternative job options sharing information, visiting other work 

sites, and planning to acquire a more preferred job; and 

 Reinforcing the hope and belief that employment success is possible by emphasizing current 

successes (e.g. increased work hours, productivity, attendance). 
14 

Experience 

Supported work experiences are jobs in integrated work environments that help participants gain skills 

and experience, and allow them to test job goals. Supported work experiences should include assistance in 

retaining a job, and also should address non-work critical services (e.g., housing, mental health treatment, 

and family/friend relationships). Among the objectives of supported work experiences are: 

 Building increased tolerance for work demands; 

 Increasing proficiency in general work skills (e.g. attendance, co-worker interactions, 

concentration, task completion); 

 Establishing proficiency in specific, needed work skills; 

 Developing a record of work accomplishment and a resume of recent work experience; 

 Continuing the goal development, including awareness of alternative, more fulfilling, and/or 

higher paying jobs with career opportunities or increased hours; 

 Acquiring additional training, education, or experience to obtain a better job and advance in 

a career; 

 Employing job retention services that include working with employee and employer to 

sustain employment; 

 Identifying and utilizing natural workplace supports, including co-workers and supervisors; 

and 

 Evaluating skills and abilities, identifying those that need to be strengthened to meet a 

particular job or career goal. 

Worker role recovery, like the process of recovery from mental illness, is a complex, often circuitous 

path. Understanding the relationship between these two dimensions and adapting services that 

accommodate both the progress and setbacks on the journey towards recovery, can help facilitate 

employment success. 

Cultural and Environmental Considerations 

This discussion would not be complete without considering cultural and environmental factors that affect 

the design and delivery of employment services. To facilitate successful worker role recovery, 

employment programs must incorporate sensitivity to these critical personal dimensions. 

Cultural Considerations 

Practitioners need to recognize that each individual they approach may be culturally different from 

themselves in ways not always obvious. Becoming culturally competent provides the knowledge, skills, 

and attitudes to enable administrators and practitioners within systems of care to provide effective 

services to diverse populations, i.e., to work within the person’s values and reality conditions.13 A number 

of essential ingredients are needed to develop employment services sensitive to consumers’ ethnic and 

cultural needs and issues: 

 Hire staff who reflect the language, ethnicity, and culture of the persons 

served. The value of a common culture and language cannot be underestimated in engaging 

and supporting consumers in the worker role recovery process. Work has different priorities 

in different cultures; barriers to work may be unique as well. Practitioners need to be 

sensitive to these issues and understand that what may appear to be a lack of motivation or 

unwillingness to work may have a cultural basis, and may mean something else altogether. 
15 

 Recognize that peer support is fundamental. Staff who also are mental health 

consumers share the language of their peers—they can better understand the neighborhoods 

in which consumers live, are sensitive to their cultural needs, and serve as powerful and 

positive role models. Moreover, peers as staff are living proof that success is possible. It is 

important to acknowledge, however, that not all consumers are prepared to serve in this role. 

 Meet with consumers who have varied ethnic/cultural backgrounds and listen 

to how they perceive their employment goals, barriers, and issues. Employment 

program strategies cannot take place in a vacuum. Conversations with small groups of 

consumer stakeholders may generate valuable information regarding family support for work 

and what types of jobs are acceptable and non-acceptable in a particular culture. For 

example, in some cultures, particular jobs are viewed as appropriate for one gender and not 

the other. Other important considerations in facilitating employment success are: how mental 

illness is viewed and accepted; factors related to pride, honor, and self-worth; and how 

biomedical and alternative treatment approaches are used.14

Every organization has its own mission-driven “internal cultures” that often can lead to cultural 

dissonance between consumers and employment programs. For example, the culture of state vocational 

rehabilitation (VR) emphasizes independence, individual uniqueness, and person-centered planning. 

However, some cultures view the individual as an interdependent part of family and community. 

Consumers from a background reflecting this view may find themselves caught in a clash between 

vocational rehabilitation cultures and their collectivist culture. Strategies should be developed to address 

this issue, such as training VR counselors in more effective counseling approaches that facilitate the 

provision of services to persons with disabilities from diverse cultural backgrounds; developing new 

assessments of independence and interdependence; and exploring how VR could consider 

interdependence as an equally viable philosophy and practice.15

In addition, the culture within an organization may not place an emphasis on “work first.” Front line 

providers who are expected to advance this concept with their clients may need additional training in the 

value of this approach, as opposed to more traditional pre-vocational training. 

A recent report describes programs that provide culturally competent mental health services throughout 

the country.16 While not limited to employment programs or emphasizing people who also are homeless, 

the report offers many valuable lessons and examples of ways to improve the ethnic and cultural 

relevance of mental health services. For example, the Muscogee Creek Nation Behavioral Health Services 

of Oklahoma, serving Native Americans, utilizes a variety of culturally appropriate strategies when 

providing treatment, including a focus on traditional values and coping skills training exercises. These are 

augmented by employment services that include career counseling, vocational assessment and vocational 

rehabilitation counseling, delivered by a predominately Native American staff who are sensitive to 

cultural norms. 

Casa Primavera, a subsidiary of Bay Cove Human Services in Massachusetts, operates a Fountain House 

model clubhouse. It is language- and culture-friendly, and is staffed and managed by Latinos. Casa 

Primavera is focused on a work-ordered day. Members and staff work together in teams at in-house food 

service, office support, and maintenance employment programs (“La Cocina”, “El Kiosko,” “Oficina,” 

and “Mantenimiento”). Members are helped to move into regular jobs through a transitional employment 

program. The African-American Counseling Center in Minnesota recognizes that the anxiety associated 

with racial discrimination and prejudice can be a barrier to getting and holding a job. By acquainting 

people with others who have faced and overcome the same challenges, they help clients achieve their 

employment goals. 
16 

Chapter Summary 

Persons with mental illnesses face the challenge of recovery on multiple levels. The first is the internal 

struggle to come to terms with, accept, and move beyond the devastating consequences of severe mental 

illness. Second is the task of recovering the skills needed to meet the demands of everyday life. Third is 

the challenge of transferring survival skills to new life roles, including the role of worker. These 

challenges can be met through a partnership between consumer and practitioner. By recognizing and 

supporting consumers’ inherent strengths and aspirations, practitioners can facilitate the training, 

advocacy, and resources necessary to attain employment goals. With assurance that work-related services 

are a constant option throughout all stages of the recovery process, worker role recovery can become both 

a possibility and a priority. 

Chapter 2 Notes 

1

 This chapter contains original material authored by Gary E. Shaheen, M.P.A., Advocates for Human Potential, Delmar, NY. 

2

 Deegan, P. Recovery: The lived experience of rehabilitation. Psychosocial Rehabilitation Journal 11(4): 11-19, 1988. 3

 National Technical Assistance Center for State Mental Health Planning. Embracing recovery: A simple but powerful vision. 

Networks, Winter 1999. 4

 Fisher, D. A new vision of recovery: The empowerment vision. National Empowerment Center Newsletter: 12-13, 

Spring/Summer 1998. 

5

 Ralph, R., et al. Recovery Issues in a Consumer Developed Evaluation of the Mental Health System. Proceedings of the Fifth 

Annual Conference on Mental Health Services Research and Evaluation, Arlington, VA, February 1996. 6

 Anthony, W.A., and Blanch, A. Supported employment for people who are psychiatrically disabled: An historical and 

conceptual perspective. Psychosocial Rehabilitation Journal 11(2): 5-19, 1987. 7

 Kravitz, M. Address delivered at the Coalition of Mainstream Employment Programs, New York, NY, November 14, 1996. 8

 Anthony, W. Integrating psychiatric rehabilitation into managed care. Health Affairs 11(3): 170, 1995. 9

 Deegan, op.cit. p. 3. 

10 Ridgeway, P., and Rapp, C. The Active Ingredients in Achieving Competitive Employment for People with Serious Mental 

Illness: A Research Synthesis. Lawrence, KS: University of Kansas School of Social Welfare, 1998. 11 Prochaska, J.O. and DiClemente, C.C. Trans theoretical therapy: Toward a more integrative model of change. Psychotherapy: 

Theory, Research, and Practice 19:276-288, 1982. 12 Miller, W.R. and Rollnick, S. Motivational Interviewing: Preparing People to Change Addictive Behavior. New York/London: 

The Guilford Press, 1991. 

13 Center for Mental Health Services. Cultural Competence Standards in Managed Mental Health Care Services: Four 

Underserved/Underrepresented Racial/Ethnic Groups. Rockville, MD: Center for Mental Health Services, 2000. 14 Alverson, H., and Vicente, E. An ethnographic study of vocational rehabilitation for Puerto Rican Americans with severe 

mental illness. Psychiatric Rehabilitation Journal 22(1): 69-72, 1998. 15 Thompson, V.C. Independent and interdependent views of self: Implications for culturally sensitive vocational rehabilitation 

services. Journal of Rehabilitation 63(4): 16-20, 1997. 16 National Technical Assistance Center for State Mental Health Planning. Examples from the Field: Programmatic Efforts to 

Improve Cultural Competence in Mental Health Services. Alexandria, VA: National Technical Assistance Center for State 

Mental Health Planning, 2000. 
17 

Chapter Three 

Approaches to Employment for People 

with Serious Mental Illnesses1

recent report documented and described program-level factors affecting outcomes in various types of 

employment program models that serve people with severe mental illnesses.2

 Five major factors 

related to employment success cut across all program types: (1) organizational climate and culture that 

support work; (2) facilitation of employment; (3) emphasis on consumer preferences and strengths; 

(4) ongoing, flexible, individualized support; and (5) re-placement assistance. 

This chapter provides an overview of the most frequently utilized employment approaches to help people 

with mental illnesses obtain and maintain employment. While many mental health consumers 

acknowledge that, at some point in their recovery, a structured/sheltered work setting was needed, the 

merits and disadvantages of sheltered employment are not discussed in this volume. Rather, this 

discussion begins with the premise that long-term worker role recovery is possible through integrated 

employment that provides work at competitive wages, offers the opportunity to work with non-disabled 

co-workers, and offers long-term, post-placement support. 

When deciding to adopt a particular employment program, agencies must consider how the particular 

model chosen is relevant to the needs, interests, and cultural values of their constituency; whether a 

particular strategy will work in both urban and rural settings; and whether types of funding and staff 

expertise required match agency capacity. The strength and diversity of the local employment or business 

market and its ability to meet the job placement and job creation objectives of the agency, also should be 

evaluated. Finally, the culture of the agency and the importance it places upon employment must be 

evaluated. Valuing work as a priority may represent a significant change in an agency’s culture. 

A 
18 

Some agencies may find that the local employment market is sufficiently strong, that their Board of 

Directors or staff has established networks with employers, and that their constituency prefers a supported 

employment option. They may decide that a “place/train” strategy would be most appropriate. Another 

agency may have a history of risk-taking and entrepreneurship, in which case social enterprise 

development might be more consistent with their orientation. 

The goals of each of the employment approaches in this chapter are summarized in Table 3.1. Many 

providers have recognized that job and career growth is tied inextricably to job training and education. It 

therefore is worth noting that job training and education are essential components in the array of 

employment-related services. This includes helping individuals obtain their GED, college diploma, or 

certification through a trade school; and providing or linking individuals to appropriate educational 

services, including supported education, described briefly at the end of this chapter. 

Transitional Employment 

Fountain House Foundation in New York City implemented the first Transitional Employment Program 

(TEP) in 1964.3

 Fountain House developed a Clubhouse Model, offering day treatment based on a 

specific psychosocial rehabilitation approach. Today, TEPs remain one of the primary vocational services 

offered to their members by psychosocial clubs in the Nation. In addition to providing organized 

individual and group activities, psychosocial clubs afford community members the opportunity to 

socialize, support, and advise each other. 

Often the setting for job clubs, temporary labor, and work readiness services (e.g., resume writing, job 

searches, visiting speakers, etc.), psychosocial clubs provide safe environments for consumers to begin 

exploring the notion of returning to work. 

TEP participants work in a series of time-limited, competitive jobs to gain employment experience and 

skills, and to identify job preferences. The jobs, usually entry-level, are developed through an agreement 

between the rehabilitation agency and one or more private businesses. The agency commits to filling the 

job slots with trainees on a continuing basis, while the business commits to providing the slots. The 

designation of a specific staff liaison by the agency can help assure the employer that the agency is 

reliable.4

 On- and off-site job coaching is provided to participants by club staff. Trainees usually 

participate on a part-time basis for four to six months, after which they are transferred to another job 

placement. 

While the desired outcome is the eventual acquisition of either full- or part-time permanent employment, 

the results are mixed with regard to the effectiveness of TEPs in helping individuals achieve permanent, 

competitive employment. Although evidence exists that TEPs can have a significant impact on 

employment outcomes as length of the follow-up or job coaching period increases,5

 a recent study found 

that longer involvement in TEPs actually can result in lower rates of competitive employment.6

 TEP 

participation can be a useful form of situational assessment for many people with serious mental illnesses, 

and can help some individuals establish an integrated work experience, test work goals, and develop 

interaction skills with coworkers who are not disabled—often the most difficult challenge faced by 

trainees. 
19 

Table 3.1 Overview of Employment Program Approaches

 Type of Employment Approach 

Approach Transitional 

Employment 

programs. (TEP) 

Supported 

Employment. 

Program of 

Assertive 

Community 

Treatment. (PACT) 

Individual 

Placement and 

Support. 

Social Enterprises. Self-Employment. 

Characteristics Time-limited 

placements in 

competitive jobs. 

Agency commits to 

keeping job slots 

filled. Often 

clubhouse-based. 

Direct placement 

into integrated 

competitive jobs 

with follow-along 

supports. 

Integrates both 

clinical and 

rehabilitative 

services within a 

continuous or 

assertive 

community 

treatment team. 

Emphasizes rapid 

job search. 

Continuous and 

comprehensive 

assessment that 

continues 

throughout 

employment. Timeunlimited 

supported. 

Agency-sponsored 

businesses that 

provide affirmative 

employment. 

Consumer-owned 

business (sole 

proprietorship/ 

partnership/ 

cooperative). 

Objective Build experience, 

competence, and 

job goals with the 

objective of 

attaining a 

permanent job. 

Part- or full-time 

employment at 

prevailing wage. 

Work as a longterm process to aid 

in recovery. 

Individualized 

assessment, 

placement, followalong, and 

reassessment. 

Replace traditional 

day treatment 

programs with 

those focused on 

work to achieve 

better vocational 

outcomes. 

Job goal and skills 

development, work 

experience, 

transitional/career 

employment. 

Employment as fulltime/part-time selfemployed business 

owner. 

Possible Funding 

Sources 

State VR, HUD, 

MH, Foundations. 

State VR, MH, 

HUD, DOL (wage 

subsidies, employer 

hiring incentives), 

foundations. 

MH, State VR, 

Medicaid/Managed 

Care. 

State VR, MH, 

Medicaid. 

VR, MH, business 

revenue, economic 

development, HUD, 

foundations. 

VR, SSA, MH 

Federal, SBA, State 

community 

business lenders, 

private capital. 

Staff Expertise 

Required 

Skills teaching, job 

development, 

placement, support, 

ability to perform 

job in consumer’s 

absence. 

Skills teaching, job 

development, 

placement, 

intensive/extended 

support, replacement. 

Interdisciplinary 

treatment team with 

vocational 

specialist. 

Employment 

specialist to 

coordinate services 

with case 

management or 

mental health 

treatment team. 

Business/ 

production experts, 

training/job coach 

staff, job 

development 

placement staff. 

Business-related 

TA/support, MH 

support. 

Advantages Basis for 

establishing links 

with employers. 

Builds credentials, 

experience, and 

resume. 

Employee hired by 

the employer, not 

by the MH program. 

Works with nondisabled coworkers. Salary, 

growth potential like 

co-workers. 

Work as an 

important and 

integral component 

of clinical treatment.

Integrates mental 

health and 

rehabilitation 

services through 

regular meetings 

between MH 

clinicians and 

employment 

specialists. 

Adds to the 

available jobs in a 

community. Has 

economic 

development 

potential. Agency 

“owns” jobs. 

Responsibility for 

success relies upon 

the individual. 

Independence, 

control. 

Disadvantages Time limitations not 

always congruent 

with consumer 

preference. Staff 

may need to fill in 

for absent worker. 

Unclear outcomes 

re: how TEP 

facilitates 

competitive 

employment. 

Clash between 

long-term job 

coaching needs 

and short-term VR 

support, individual’s 

discomfort with 

being coached on 

the job. 

Direct placement 

approach contains 

similar 

disadvantages as 

supported 

employment; e.g., 

funding for longterm follow-along 

and re-placement 

assistance. 

Providing timeunlimited supports 

contains similar 

disadvantages as 

noted for PACT and 

supported 

employment, e.g., 

funding for longterm follow-along 

and re-placement 

assistance. Need 

support for people 

who cannot or do 

not find jobs 

through IPS. 

Requires sound 

business planning. 

High business risk 

factor. Start-up 

capital needs. 

Responsibility for 

success relies upon 

the individual. High 

financial risk 

factors. Requires 

sound business 

planning. 
20 

Using a Transitional Employment Approach 

Community Access, Inc. has been providing supportive housing to people

discharged from psychiatric hospitals in New York City since 1974. Over the 

past 25 years, Community Access has continued to expand its residential

services while adding case management, social clubs, advocacy, consumeroperated programs and services, and employment and education services. 

The Cooper Employment and Training Center is one of two psychosocial

clubs the organization operates. Begun in 1995, the Center specializes in 

services leading toward employment, including GED and college

preparation, computer skills, job readiness, benefits counseling, on-site 

internships and volunteer positions, and on-site transitional and permanent 

employment placements. The Center’s 250 members are people with serious 

mental illness, the majority of whom are single, African-American adults, 

approximately 50% of whom have recently been homeless. Members take 

job readiness classes for five weeks and then volunteer in various club

positions. At the end of 12 weeks, a determination is made for continued job

readiness, entry into a transitional employment slot, or a permanent

employment opportunity. The Center works to place members with various

employers in the business community with on- or off-site job coaching 

provided as necessary. 

Supported Employment 

Supported employment became popular in the mid-1970s as a way to improve the employability of 

people who historically had experienced high unemployment rates, particularly people with physical or 

developmental disabilities.7

 It also was developed as an alternative to sheltered workshops. Supported 

employment is defined by Federal statute as “competitive employment in an integrated setting with 

ongoing support services for individuals with the most severe disabilities.”8

 The purpose of supported 

employment is to provide employment success and integration using a wide array of short- and long-term 

supports after placement. From the beginning, this “place, then train” approach has differed significantly 

from the pre-employment testing and pre-vocational work that were previously widely used for people 

with disabilities. 
21 

Making Use of Supported Employment 

Life Link, a not-for-profit corporation founded in Santa Fe, New Mexico, in

1987, helps homeless individuals and families find affordable housing and

achieve self-sufficiency and community integration. It operates two housing

projects and has achieved recognition as an exemplary supported

employment program. Life Link believes that everyone can be employed in

some way, and has achieved a 50% job placement rate, with nearly half of

those individuals placed remaining employed for six months or longer. Its 

supported employment program, Employment Connections, serves about

120 people annually, approximately 40-50% of whom are dually diagnosed 

with mental illness and substance abuse disorders, and 20% of whom have

had prior criminal justice system involvement. 

By creating an ongoing Business Advisory Committee, Life Link stays

attuned to employer training and hiring needs, and, therefore, can facilitate 

employee/employer matches more quickly. The program reflects a quasiIndividual Placement and Support (IPS) approach that includes case-sharing 

and coordination with other members of the integrated treatment team. The

team makes referrals to the employment program based upon criteria

mirroring that of the State VR, including: 90 day sobriety, motivation to 

work, ability to keep appointments, and personal responsibility. Staff act as

counselors for job placement and long-term, post-placement support. 

Assessments are ongoing during the vocational counseling, job search, and

job placement phases. Consumers are employed by the agency as

supported employment specialists, case managers, licensed therapists,

secretarial staff, drop-in center staff, and housing specialists. 

Increasingly, supported employment principles and practices have been adapted to meet the needs of a 

wider population with disabilities. Adaptations to the original program model are evolving to address the 

specialized needs of people with serious mental illnesses.9,10,11,12 An important modification acknowledges 

that many people with mental illnesses need assistance to establish job preferences and career goals, and 

both get and keep jobs.13 As the field expands, a wide variety of strategies have been adopted to modify 

this approach and increase job success for people with severe mental illnesses. Some of the most common 

adaptations include: 

 Active consumer involvement in identifying personal job goals; 

 More time educating employers and coworkers; 

 Recognition that some consumers choose not to disclose their disability; 

 Increased training in emotional-interpersonal skills development; 

 Increased levels of support; 

 Re-placement services; 

 Wider variety of jobs, with greater emphasis on professional/technical options; and 

 Emphasis on career and opportunities for advancement. 

The effectiveness of supported employment has been demonstrated by evidence from eight randomized 

controlled trials and three quasi-experimental studies and fidelity measures.14 Supported employment 

programs demonstrated improved employment outcomes across a range of client characteristics and 

community settings. A recent study demonstrated a strong correlation between overall program fidelity 

and higher rates of competitive employment outcomes compared to non-supported employment 

approaches.15 However, a prime barrier to its use was a lack of access and availability. Further, fewer than 
22 

25% of people with severe mental illness receive any vocational assistance; only a fraction had access to 

supported employment.16

The PACT Vocational Model 

The Program of Assertive Community Treatment (PACT) was established in 1984 to provide 

comprehensive, community-based clinical and rehabilitative services for discharged state hospital patients 

identified by outpatient mental health centers as requiring extensive and intensive support.17 PACT 

addresses these needs with a continuous treatment team approach that has a low staff-to-client ratio. The 

team includes nurses, social workers, psychiatrists, peer specialists, substance abuse counselors, and 

employment specialists who provide community-based symptom monitoring and management, 24-hour 

crisis intervention, and assistance in areas of improved functioning in critical life skills areas, including 

work.18 

Though few PACT programs include vocational or employment specialists on their teams, the PACT 

approach recognizes work as integral to the treatment process. It also helps to promote a positive selfconcept as a worker or valued and productive member of society. PACT programs that address 

employment emphasize helping people get jobs as an individualized, long-term process built through trial 

and error. There are no readiness prerequisites; individualized assessment, placement, follow-along and 

reassessment services are provided on an as-needed, ongoing, basis. One of the major distinctions 

between PACT and step-wise employment programs is PACT’s perspective that the best way to address 

people’s strengths and limitations is within a normalized work setting. The PACT model emphasizes 

rapid placement into competitive work rather than extended involvement in pre-employment testing and 

assessment. Assessment is ongoing; growth and job stability are outcomes, and “failure” can be one of the 

keys to success.19 

Individual Placement and Support 

One of the most recent and well-studied adaptations of supported employment is the Individual Placement 

and Support Program (IPS), developed and researched at the New Hampshire-Dartmouth Psychiatric 

Research Center and Dartmouth Medical School.20 IPS makes employment a high priority in the 

consumer’s treatment and rehabilitation plan by including employment specialists, who assist with rapid 

job searches, as part of the case management or mental health treatment team.21 

Drawing from the PACT vocational model, IPS emphasizes the integration of vocational and clinical 

services, minimal preliminary assessments, rapid job searches, normal work settings, matching consumers 

with jobs of their choice, and ongoing support. Work is considered treatment, in which employment 

outcomes and vocational rehabilitation become vital components of a client’s ongoing treatment 

regimen.22 

Elevating work to the same priority as mental health services can change the way clinicians and 

employment specialists view their roles. In a New Hampshire study, IPS was compared to step-wise 

employment services provided by a day-treatment provider. The results were dramatic. The competitive 

employment outcomes of people attending IPS improved significantly (33%-56%), while people 

attending day treatment showed no significant change in employment outcomes (9%-14%).23

Furthermore, IPS clients obtained competitive employment faster, were more likely to be employed every 

month of the 18-month study, worked more total hours, and earned higher wages than those in the 
23 

rehabilitation agency program.24 Key program principles identified as related to better vocational 

outcomes include:25 

 Competitive employment as a primary goal; 

 Integration of rehabilitation with mental health services; 

 Rapid job searches; 

 Continuous assessment; and 

 Unlimited support. 

An IPS Approach 

The Community Counseling Center, based just north of Providence, Rhode

Island, provides a wide range of mental health and other behavioral services

designed to meet the specific needs of each individual, and is aimed at 

bringing services to the neighborhoods where clients live and work.

Employment services are provided in accordance with the Individual

Placement and Support (IPS) model and offer the full range of vocational

services including assessment, job development, job matching and

placement, on-site support, and follow-up services on a time-unlimited 

basis. Benefits counseling and assistance with income reporting and tax

preparation are provided. Educational goals are identified and actively

pursued. Partnerships with state and private agencies maximize consumer

options. 

Consistent with the IPS approach, the focus is on rapid placement of

consumers in a wide variety of competitive community positions, based on

a comprehensive assessment and the person’s preference. Whenever

possible, services are provided in the community rather than at the Center.

Assessment is a continuous process, and all job experiences are viewed 

positively as part of the recovery process. The key is individualized 

planning based on stated desires and goals, and a recognition that change 

is a natural process, as consistent as it is unique to each individual. The

seven, full-time employment specialists function as part of a multidisciplinary treatment team including case manager, counselor, nurse, and 

psychiatrist. They are physically co-located with case managers to enhance 

communication and service coordination and actively participate in weekly

planning meetings, as well as in separate staff meetings, to foster a unique

identity and to keep their role focused on employment issues. 

The emerging PACT and IPS employment approaches recognize the complex, ongoing support 

requirements of people with mental illnesses and the need to address those requirements simultaneously 

to achieve work success. Consumers have expressed their preference for rapid work placement to respond 

to their work needs and interests rather than pre-vocational services where they may spend years without 

ever working at a real job. IPS recognizes and incorporates those preferences as an underpinning of its 

approach. In randomized, controlled trials in a limited number of test sites, IPS showed better 

employment outcomes with 58% of participants, compared to 21% achieving similar outcomes through 

traditional programs.26 Adoption and testing of the IPS approach is occurring throughout the country, 

including a number of projects funded through the Federal Community Action Grant Program supported 

by SAMHSA. The results of those programs should help increase knowledge of how IPS can be even 

more effective in assisting consumers to get, keep, and advance in employment compared to more 

traditional step-wise options. 
24 

Social Enterprises and Affirmative Businesses 

A social enterprise is a business venture created specifically to provide employment and career 

opportunities for people who are unemployed, disabled, or otherwise disadvantaged. Social enterprises 

seek to achieve social change through the economic empowerment of individuals and groups who have 

been disenfranchised. While the term “social enterprise” is used throughout Canada and Europe, in the 

United States, the term “affirmative business” is used when the business primarily employs people with 

disabilities. 

Each year, new social enterprises are created throughout the United States and in other parts of the world. 

An increasing number are being developed with the express purpose of employing people who previously 

were homeless.27,28,29,30,31,32 A social enterprise has a dual purpose: to operate a viable, sustainable 

business and to help people who face multiple barriers to achieve success and satisfaction in a real work 

setting. To operate as a viable business, a social enterprise must adopt standard business practices, employ 

experts, and expect all employees to practice the technical skills that will enable the business to offer a 

competitive product or service. 

Current or former recipients of mental health services also own or manage and operate social enterprises 

formed as worker cooperatives, a model more common in Canada.33 Examples include ABEL Enterprises 

in Simcoe, Ontario, and Fresh Start Cleaning in Toronto. These businesses receive some government 

subsidy and provide permanent part-time employment to individuals with serious mental illnesses, some 

of whom also have histories of homelessness. 

Social enterprises should look like businesses, act like businesses, and provide products and services of 

comparable price and quality as those of other businesses. If these goals are achieved, the potential exists 

to overcome the stigma and misconceptions faced by people with mental illnesses in their communities. 

They can be seen, not as patients in a treatment program, but rather as workers in a local business. In 

addition, these businesses can contribute to the local economy and demonstrate how people with mental 

illnesses can provide quality products and services when given the opportunities to do so. 

Realistically, not every mental health provider has the commitment or capacity to develop an effective 

social enterprise. Similarly, not every person with a mental illness who has been homeless may choose 

employment in a social enterprise. However, a social enterprise can add to the jobs available within a 

locality without relying on the existing job market to meet the employment needs of consumers. 

For a social enterprise to be successful, certain key elements beyond financial viability must be in place:34

 Capacity: What compels the organization to go into business? What organizational 

strengths, assets, and experiences will prepare the agency to become social entrepreneurs? 

What are the organization’s weak points? What are the indicators of success? 

 Fit: Is this business compatible with the agency’s goals, needs, interests, values, risk 

tolerance level, and other organizational/program criteria? 

 Viability: Can the proposed business provide quality products or services at competitive 

prices to an identified group of purchasers who can afford to purchase these 

products/services at the price the agency must charge? 
25 

In essence, the rigorous business planning process for social enterprises involves a thorough assessment 

of the organization and the business, and the potential interrelationship between the organization and the 

business and the business and its market environment. 

While there is no one social enterprise program model, those that have successfully blended economic 

development and social service aspects can serve as examples of “best practices.” They often exhibit the 

following characteristics: 

 Are market- and profit-oriented; 

 Access technical expertise and capital resources; 

 Establish linkages with individual support services for employees; 

 Involve participants in the establishment and/or management of the enterprise; 

 Utilize a business planning approach; 

 Are driven by the provision of quality products/services to their customers; 

 Provide competitive wages and fringe benefits; 

 Achieve a social purpose by hiring, training, and employing people who have been typically 

unemployed or underemployed as a result of a disability or other disadvantage; 

 Consider workers as employees, not clients; and 

 Provide either an integrated workforce or a community-integrated setting. 

Using a Social Enterprise Approach 

Established in San Francisco, California, in 1986, Community Vocational 

Enterprises (CVE) is a private, not-for-profit agency that provides training 

and employment for San Francisco residents with serious mental illnesses

and for other disenfranchised populations. Through assessment, training,

transitional employment, community placement, and follow-up, the agency 

helps consumers recognize and realize their potential. 

All individuals enrolled in the program complete an evaluation with an

occupational therapist, who helps them identify their interests and skills,

effectively matches them to the kind of job or career in which they are 

interested, or identifies the need for additional training. This assessment 

process takes a “no fail” approach; it is not used for screening, but rather

for self-awareness and planning. CVE offers a comprehensive range of

employment services before, during, and after individuals start work. A

clerical certificate program and occupational skills training program is

staffed by business school graduates, and transitional employment is

available in one of the agency-sponsored businesses, including two cafes 

that operate at public office complexes, a temporary clerical employment

agency, a driver/messenger service, and a janitorial business. Professional 

development seminars also are provided, covering such topics as 

interaction in the workplace, balancing work with outside interests, job

retention, legal issues, career exploration, dress for success, and benefits

management. Support services include case management, counseling,

social support, and leisure activities. 
26 

Self-Employment 

Though often overlooked as an option for people with serious mental illnesses, self-employment—or 

entrepreneurship—is firmly embedded in the American dream, and, for many, can be a successful step 

toward self-sufficiency. Many people who have experienced a major mental illness have developed or 

operated a small business at some time in their lives. Despite the obstacles, self-employment is becoming 

an increasingly desired work option for many individuals with disabilities. Self-employment provides a 

high degree of independence and control over one’s economic future, and satisfies a personal work 

objective. For individuals with disabilities who believe that traditional vocational programs promote 

“learned helplessness,” self-employment can be an opportunity to control their own vocational future, 

independent of the vocational service system. 

An Institute Supporting Self-Employment 

The Adult Community Services and Supports Department of the Rural

Institute at the University of Montana provides training and technical 

consultation on Social Security Administration Work Incentives, supported

employment, and self-employment. The staff works throughout the country

and around the world with organizations, self-advocates, and systems to 

create employment options for people with disabilities. It provides 

assistance in organizational development and systems change to help

agencies create the necessary infrastructure to develop, manage, and grow 

their employment services. 

The Rural Institute is a cross-disability organization whose services address 

the needs of people with developmental, mental, physical, and sensory

disabilities. It develops and manages numerous grants and contracts that

support employment development. For example, a new five-year initiative: 

the “Rural Entrepreneurship and Self-Employment Design Project 

(RESEED),” is supported by the Rehabilitation Service Administration of the

U.S. Department of Education. RESEED proposes, in each of its five project 

years (2000-2005), to select four rural community-based rehabilitation 

agencies that will help four of their consumer constituents develop their

own business. In addition to seed funding, RESEED will provide technical

assistance and training on entrepreneurship, business planning, financing,

and long-term support strategies. The Institute also has an extensive

publications list on supported self-employment principles and practices. 

Small business development is a blend of art, science, and passion. To be successful, a business must be 

economically viable, meet its business operating expenses (e.g. salaries and fringe benefits, rent, utilities, 

production costs) through sales revenue, and generate a return on investment for its owners. Not 

everyone, however, has the capacity to build an enterprise with the characteristics necessary to be a 

sustainable business. Among the personal attributes needed to create and sustain a business venture are 

creativity, dedication, self-sacrifice, business acumen, technical and marketing skills, and a desire to be 

self-employed. 

Utilizing one’s inherent skills, motivation, and talents to develop a meaningful and rewarding career 

reflects the cornerstones of recovery—hope, willingness, and responsible action.35 InCube, Inc. was an 

early pioneer in efforts to help consumers develop their own businesses. Established in 1990 in New York 

City, this consumer-managed and staffed organization helped more than 30 small business enterprises that 

provided full or part-time employment to more than 70 consumers. 
27 

InCube’s work inspired similar efforts throughout the country and worldwide. The organization helped 

aspiring entrepreneurs assess their skills, interests, experiences, financial resources, and family and 

collateral supports. People received help to develop a business plan, obtain start-up funds, acquire 

equipment, access training needs, and market their products or services. The InCube strategy tightly 

linked business development assistance to peer and self-help supports to help people balance and 

strengthen both their recovery and their self-employment priorities. While InCube has reduced its services 

in recent years, its founder remains active in both national and international forums promoting the 

possibilities and best practices of supported self-employment and inspiring consumers to take charge of 

their own economic futures through entrepreneurship. 

In rural locations, where both employers and jobs may be scarce, self-employment may be a viable work 

option where few large employers exist.36 However, vocational rehabilitation (VR) support for selfemployment varies throughout the country. In 1988, for example, only 2.6% of all successful VR case 

closures were to self-employment. A more recent study suggests that the variation across state VR 

policies is one reason for low utilization of the self-employment option.37 However, with the 1998 

amendments to the Vocational Rehabilitation Act that reaffirm the value of self-employment as a viable 

employment goal, this trend may begin to change. 

While no single approach to supported self-employment exists, currently successful methods and their 

implementation have been described, including those related to helping people own equipment, 

computers, etc., needed to start and operate their business.38 In addition, rehabilitation staff must acquire 

new skills and assess their own personality traits in order to help people with disabilities achieve success 

as small business owners.39

A Range of Employment Options 

Established in 1967, Project Renewal is a New York City-based not-for-profit 

organization serving 11,000 homeless men and women with substance

abuse and/or mental illnesses each year. The program provides extensive

street outreach, crisis, transitional and permanent housing, and a variety of

employment services to meet the diverse skills, experience, and 

expectations of its clientele. 

Rather than using a single approach to employment, Project Renewal offers

rapid competitive job placement with long-term follow-along services (based 

on the IPS program model), as well as various educational and in-house 

employment services. Consumers also have access to training in “life 

skills” and literacy and math skills, which are necessary for getting and

advancing in employment. Specific job-skills training is provided in a 

number of in-house social enterprises. Imprints, an in-house commercial 

printing business, helps people to develop self-confidence and job skills 

through employment. The Culinary Arts Training Program offers an

intensive six-month training program in commercial food preparation that

has graduated 40 people since its inception in 1995 with an 85% placement

rate. Renewal Farm and Comfort Foods catering services provide job skills

training opportunities for approximately 25 homeless men per year.

Fundamental to each employment option is Project Renewal’s commitment 

to providing after-care services as long as needed to help people strengthen 

the skills required to sustain their jobs, housing, and mental health

recovery. 
28 

A Note about Supported Education 

Mental illness often manifests itself in late adolescence and early adulthood, critical years when important 

decisions concerning education and careers are made. People whose jobs and career development have 

been interrupted by serious mental illnesses must have opportunities to regain exposure and experience in 

the world of work. Similarly, people whose education is interrupted must obtain assistance to reconnect 

and continue with their educational development.40

Through supported education, people receive help to define their educational objectives, such as getting 

their high school GED or a post-secondary degree. Support and assistance for education can be provided 

in a number of ways. For example, some programs use on-site support in which people receive individual 

counseling, college placement, and support from an educational coach who provides ongoing assistance 

both on- and off-campus. Other programs utilize a mobile team similar to the on-site model except that 

services are provided at more than one post-secondary site by a mobile team, usually from the community 

mental health center. Another strategy is to provide remedial education and educational readiness services 

in on-campus, self-contained classrooms to ease the re-entry into the college mainstream. 

Two Federal statutes—the Individuals with Disabilities Education Act (IDEA) and the Carl D. Perkins 

Education Applied Technology Education Act—have language addressing the coordination of vocational 

and educational planning for people with disabilities. Educational institutions maintain an Office of 

Disabled Student Services (ODSS) which handles issues related to accommodations under the Americans 

with Disabilities Act (ADA) and can be a valuable partner in a supported education program. ODSS often 

has contact information for mental health treatment services, as well as for counseling services to help 

with adjusting to college life. These offices also work with academic staff to raise awareness about 

disabilities and provide support and accommodations to help students meet classroom requirements. 

Support needs of consumers re-entering school can be similar to those for people acclimating to a 

competitive work environment. That is, consumers may have greater difficulty managing and negotiating 

the interpersonal relationships at school than they do in meeting their class requirements. Helping people 

accept praise and criticism, attend to tasks, work with classmates and instructors, and identify and acquire 

natural supports, are often critical skills needed for success. Mainstream public and private sources, as 

well as state departments of vocational rehabilitation, can provide tuition assistance, and mental health 

departments often support case management and educational counseling. The challenge is to coordinate 

all the funds needed to pay tuition, provide support while in school, ensure a safe, affordable place to stay 

and study, and offer ongoing support as needed. 
29 

Barriers to supported education, in many respects, are similar to those for supported employment. The 

stigma associated with mental illness, the side-effects of medication that affect concentration and 

functioning, poor support systems, the need to manage a job and one’s recovery process, in addition to 

school demands, are among the barriers faced by consumers. Since many people were in school or about 

to enter school when their mental illness began, there may be the corresponding fear and lack of 

confidence in resuming a path that may be associated with the onset of the illness. Still, supported 

education may be an essential element to address for many consumers who are attempting to achieve their 

employment goals. 

Chapter Summary 

During the past two decades, a number of best practices have been developed to increase employment 

success for people with serious mental illness. While particular approaches may differ, the essential and 

common elements include a focus on helping people meet their stated goals for employment and/or 

education, and providing the ongoing support to grow and sustain their efforts. Individuals may require 

different services at different times, with varying levels of intensity. Whether a person participates in 

employment goal-setting, rapid job placement, or addresses worker role recovery through return to 

school, the right to choose and participate in planning one’s own employment future must be respected 

and nourished. It is recommended that this person-centered and recovery-focused approach be the 

foundation for whatever type of employment service is developed and offered. 

Chapter 3 Notes 

1

 This Chapter contains material adapted from: Shaheen, G., Bianco, C., and Falco, A. “Employing people with mental illness 

who are homeless: Surveying the field.” Paper prepared for the CMHS Sponsored Employment and Vocational Rehabilitation for 

Homeless People with Serious Mental Illnesses Workshop, Washington, DC, September 1999; and Bianco, C. and Shaheen, G. 

Employing Homeless People with Mental Illness: Principles, Practices and Possibilities. Unpublished draft prepared for the 

CMHS PATH Program. Albany, NY: Advocates for Human Potential, July 1999. 2

 Ridgeway, P., and Rapp, C. The Active Ingredients in Achieving Competitive Employment for People with Serious Mental 

Illness: A Research Synthesis. Lawrence, KS: University of Kansas School of Social Welfare, 1998. 3

 Beard, J.H., Probst, R.N., and Malamud, T.J. The Fountain House model of psychiatric rehabilitation. Psychosocial 

Rehabilitation Journal 5(1):47-53, 1982. 4

 Black, B.J. Work as therapy and rehabilitation for the mentally ill. Altro Institute for Rehabilitation Studies, Professional 

Monograph Series: Volume I, New York, NY 1986. 5

 Anthony, W., Cohen, M., and Farkas, M. Psychiatric Rehabilitation. Boston, MA: Center for Psychiatric Rehabilitation, 1990. 6

 Ridgeway and Rapp, op.cit. p. 29. 

7

 Wehman, P. and Moon, M.S. Vocational Rehabilitation and Supported Employment. Paul H. Brookes Publishing Company, 

1998. 

8

 Rehabilitation Act Amendments of 1986 PL 99-506, 1986 and PL 102-569, 1992. 9

 Bond, G.R., Drake, R.E., Mueser, K.T., and Becker, D.R. An update on supported employment for people with severe mental 

illness. Psychiatric Services 48(3): 335-46, 1997. 10 MacDonald-Wilson, K., Revell Jr., W.G., Nguyen, N., and Peterson, M.E. Supported employment outcomes for people with 

psychiatric disability: A comparative analysis. Journal of Vocational Rehabilitation 1(3): 30-44, 1991. 11 Becker, D.R., and Drake, R.E. A Working Life: The Individual Placement and Support (IPS) Program. Concord, NH: New 

Hampshire-Dartmouth Psychiatric Research Center, 1993. 12 Bianco, C., and Shaheen, G. Employing Homeless People with Mental Illness: Principles, Practices and Possibilities. 

Unpublished draft prepared for the CMHS PATH Program. Albany, NY: Advocates for Human Potential, July 1999. 13 Danley, K.S., and Anthony, W.A. The Choose-Get-Keep Model: Serving Psychiatrically Disabled People. Boston, MA: 

Boston University Center for Psychiatric Rehabilitation, 1988. 14 Bond, G.R., Becker, D.R., Drake, R.E., Rapp, C.A., Meisler, N., Lehman, A.F., Bell, M.D., and Blyler, C.R. Implementing 

supported employment as an evidence-based practice. Psychiatric Services 52(3): 312-322, 2001. 15 Ibid. 
30 

16 Becker, D.R., Smith, J., Tanzman, B., Drake, R.E., Tremblay, T. Fidelity of supported employment programs and employment 

outcomes. Psychiatric Services, 52: 834-836, 2001. 17 Edgar, E. The Role of PACT in Recovery. Arlington, VA: National Alliance for the Mentally Ill, 2000. 18 Russert, M. G. and Frey, J. L. The PACT vocational model: A step into the future. Psychosocial Rehabilitation Journal, 14(4), 

7-18, 1991. 

19 Ibid. 

20 Drake, R. A brief history of the individual placement and support model. Psychiatric Rehabilitation Journal 22(1): 3-7,1998. 21 Drake, R.E. and Becker, D.R. The individual placement and support model of supported employment. Psychiatric Services, 

47(5): 473-475, 1996. 

22 Becker, Drake, op.cit., p. 29. 

23 Torrey, W.C., Becker, D.R., and Drake, R. Rehabilitative day treatment vs. supported employment: Consumer, family and staff 

reactions to a program change. Psychosocial Rehabilitation Journal 18(3): 67-75, 1995. 24 Drake, R., Becker, D., Clark, R., Mueser, K. et al. Research on the individual placement and support model of supported 

employment. Psychiatric Quarterly 70(4): 289-301, 1999. 25 Ibid. 

26 Bond, G.R., Drake, R.E., Mueser, K.T. An update on supported employment for people with severe mental illness. Psychiatric 

Services 48: 335-346, 1997. 27 Emerson, J., and Twersky, F. (eds). New Social Entrepreneurs: The Success, Challenge and Lessons of Non-Profit Enterprise 

Creation. San Francisco, CA: Roberts Foundation Homeless Economic Development Fund, 1996. 28 Fleischer, W. Work in Progress: An Interim Report From The Next Step: Jobs Initiative. New York, NY: Corporation for 

Supportive Housing, 1997. 

29 Granger B., Baron, R., and Robinson, S. Findings from a national survey of job coaches and job developers about job 

accommodations arranged between employers and people with serious mental illness. Journal of Vocational Rehabilitation 9: 

235-251, 1997. 

30 Proscio, T. Work in Progress 2: An Interim Report on Next Step: Jobs. New York, NY: Corporation for Supportive Housing, 

1997. 

31 Whiting, B. Employing the Formerly Homeless: Adding Employment to the Mix of Housing and Services. New York, NY: 

Corporation for Supportive Housing, 1994. 

32 Bianco, C., Shaheen, G., and Golden, T. Integrated Employment for People with Serious mental illness: A Rehabilitation and 

Recovery-Based Approach. Ithaca, NY: Cornell University, 1997. 33 Church, K. Build Your Own Boat. Presented at Navigating the Waters, Canadian Association of Independent Living Centers, 

Ottawa, Canada, September 2000. 

34 Bianco, Shaheen, Golden, op.cit., p. 30. 

35 Deegan, P. Recovery: The lived experience of rehabilitation. Psychosocial Rehabilitation Journal 11(4): 11-19, 1988. 36 Raveloot, C., and Seekins, T. Rehabilitation counselors’ attitudes toward self-employment as a rehabilitation strategy. 

Rehabilitation Counseling Bulletin 39(3): 189-201, 1994. 37 Arnold, N.L., and Seekins, T. Self-employment as a vocational rehabilitation closure in urban and rural areas. Rehabilitation 

Counseling Bulletin 39(2): 94-106, 1995. 38 Hammis, D. Steps to success: Supported self-employment. In Future Designs: The Annual Monograph of the Montana 

Consumer Controlled Careers Project. Montana Affiliated Rural Institute on Disabilities, 1999. 39 Griffin, C. Supporting entrepreneurs with disabilities: Vital characteristics for rehabilitation personnel. Rural Exchange 

Newsletter 12(2), 1999. 40 Unger, K. Supported post-secondary education for people with mental illness. American Rehabilitation, Summer: 10-33, 1990. 
31 

Chapter Four 

The Impact of Homelessness on People with 

Serious Mental Illnesses who Are Seeking 

Employment1

ddressing homelessness requires more than securing housing and access to treatment. Employment 

often becomes a priority for individuals once they are housed. Yet, many housing and other service 

programs are not equipped to address the need for job training and assistance. Moreover, vocational 

approaches developed for individuals in the mental health service system often are insufficient to address 

the specific needs of people who are both homeless and have serious mental illnesses. 

The same factors that place people with mental illnesses at increased risk for homelessness are challenges 

to employment as well.2

 The lack of safe, affordable housing for individuals with mental illnesses, income 

levels that are below the Federal poverty level, and fragmented and under-funded service systems that 

often do not provide the full array of needed community supports, all make successful employment more 

difficult. In addition, despite statutes protecting the rights of people with disabilities, the effects of stigma 

and discrimination make it difficult for people with mental illnesses to find housing and jobs, maintain 

social networks, and gain acceptance in their communities. People with serious mental illnesses who 

become homeless also are less likely to have contact with family members and, therefore, lack this 

essential resource for support. Finally, problems related to untreated mental symptoms and/or drug and 

alcohol abuse make it difficult to maintain stable housing and employment. 

Stand-alone services that fail to take these factors into account will not be able to prevent homelessness 

and break the cycle of unemployment for people who have serious mental illnesses. This chapter 

A 
32 

addresses personal, program, and system-level challenges to employment for people who are homeless 

and also have serious mental illnesses. 

Personal-Level Challenges 

People who are homeless and have serious mental illnesses often face major obstacles to employment. 

Table 4.1 provides an overview of some of the factors related to homelessness and mental illness that 

affect employment and potential service strategies for addressing these issues. 

These and other barriers to employment in many cases can be addressed through the key program 

elements identified in Chapter 5, as well as through some of the strategies noted here. 

It also is important to remember that in addition to barriers, people with serious mental illnesses, 

especially those who have been homeless, have significant strengths on which providers and employers 

can build (see Figure 2.1 in Chapter Two). Individuals who have negotiated life on the streets and the 

mental health system have resiliency, strength, patience, courage, and humility. They can tolerate anxiety, 

negotiate systems, and adapt to adverse conditions. Some of their skills can transfer directly to the 

workplace, while others will help them handle the significant changes inherent in worker role recovery. 

Meeting Personal Needs 

LAMP, Inc., established in 1985 in the Skid Row District of Los Angeles,

California, provides social, vocational, and supportive housing services to

more than 1,800 adults who have been homeless and are diagnosed with

serious mental illnesses. The majority are single, African-American adults, 

80% of whom have substance abuse issues and are either currently using 

drugs of abuse or are in recovery. Frequently, these individuals also are 

living with HIV/AIDS, or have criminal histories. LAMP’s emphasis is on 

building a sense of intentional community among guests by providing

resources and a safe, accessible environment. Among the array of services

LAMP provides are: on-the-job training in LAMP businesses; supportive 

counseling and job coaching; self-help groups; benefits management; a 

drop-in center; an emergency shelter; and transitional and permanent 

supportive housing. Mental health services are provided by partnerships

with other community-based agencies. 

LAMP has made a commitment to hiring guests/graduates of its programs to

work within the agency, and approximately one-third of staff are prior

guests of LAMP. Under the auspices of “Village Industry,” LAMP operates a 

cluster of small businesses in the Skid Row neighborhood. These include 

LAMP Linen Services, LAMP Public Laundromat, and LAMP Public Toilets &

Showers. In addition to providing much-needed services for members of the 

community, these businesses produce income for LAMP programs and offer

a source of job training and entry-level employment for guests. Screening 

for work in one of the businesses involves an assessment of the individual’s 

motivation to work and willingness to perform the necessary tasks.

Assessment is ongoing, and success is measured by the individual’s ability 

to experience change and contribute to the lives of other community

members. 
33 

Table 4.1 Addressing Personal Challenges to Employment

 Challenge Impact Upon Work Service Strategy 

 Lack of permanent address and telephone 

number, lack of bathing and laundry facilities 

Potential employers or employment specialists 

cannot contact the applicant. Applicant prefers 

not to leave shelter phone number with the 

employer. Personal hygiene more difficult. 

Establish community voice mailboxes. Establish 

times when applicant can pick up messages or 

make calls from the program site. Offer 

showers and laundry services in shelters or 

local drop-in programs. 

 Lack of personal documentation Without identification, social security number, or 

birth certificate, employers cannot hire. 

Case management and advocacy services to 

acquire the personal documentation needed. 

 Poor self-esteem, confidence Reluctance or fear of trying employment. Vocational counseling, providing work at the 

shelter or residence with job coaching services 

that endorse successes, no matter how small. 

 Undeveloped vocational goals “Impulse shopping for jobs,” unclear knowledge 

of personal skills relevant to available jobs. 

Use involvement in part-time, transitional, or 

volunteer work to develop/reinforce goals. 

 Skills mismatch Skills needed for survival on the streets not 

necessarily those needed for work. 

Skills identification and sorting to assess skills 

needed for success at a particular job. 

 Mobility The “hook,” or possibility of employment is not 

discussed prior to the individual’s departure 

from the shelter. Once employed, the person 

breaks contact with the employment specialist. 

Introduce the possibility of work at the earliest 

possible contact. Respond to consumers’ 

expressed desire to work with rapid placement 

and follow-along. Arrange times and places to 

meet away from the employment office. 

 Functional illiteracy and educational deficits Individual cannot meet basic hiring 

requirements. 

Include both formal (GED, classroom) and 

informal (on-the-job), educational (reading, 

math, etc.) opportunities as part of the 

employment service package. 

 Functional disabilities caused by psychiatric 

symptoms or other physical health conditions 

Individual cannot meet the physical or cognitive 

demands of work or manage work-related interpersonal relationships, including those with 

supervisor. 

Ensure access to integrated treatment and 

rehabilitation that includes medications, mental 

health counseling and support services, and 

case management. Cognitive remediation 

services and physical therapy may also be 

needed. 

 Alcohol or drug dependency Alcohol/drug use violates drug-free workplace 

rules, increases absences from work, impairs 

physical and cognitive functioning, and 

increases the likelihood of criminal charges, 

errors or injury on the job. Provides just cause 

for termination from employment. 

Ensure access to alcohol/drug treatment, 

recovery/motivation support groups and peer 

and family support networks. Include case 

management support as part of an integrated 

planning strategy that addresses an individual’s 

needs at various stages of recovery. 

 Criminal justice system involvement Criminal record can exclude eligibility for some 

jobs and questions regarding past criminal 

involvement in the hiring process are not 

precluded under the ADA. 

Vocational case management that builds 

motivation for change, addresses worker role 

recovery, and focuses on acquiring or retaining 

work to rebuild an acceptable work history. 

Enrollment in job training or educational 

programs that provide credentials which 

employers need and indicate the person’s 

motivation to succeed. 

 Fear of losing entitlements Decision not to work, or to limit hours worked 

per week, or reluctance to accept wage 

increases for fear of losing entitlements. 

Work incentives benefits management 

counseling on an ongoing basis. 

Utilize/advocate for options that ensure 

retention of health care benefits. 
34 

To help people at risk for homelessness overcome barriers, recognize their strengths, and become 

successfully employed, employment services must be offered as part of a larger set of services that 

address the housing and support needs of individuals with serious mental illnesses. This “three-legged 

stool” approach suggests that agencies focus on three critical elements to maximize the well-being of 

consumers and reduce their risk of recurrent homelessness:3

 Housing that is safe and affordable, consistent with individual preferences, and with 

support services as needed; 

 Coordinated and integrated mental health/substance abuse treatment and 

other support services that are based on consumer needs and preferences, and are 

recovery and outcome-focused; and 

 Growth-oriented jobs that are consistent with consumer goals, growth-oriented, and 

provided in integrated community settings, with other support services, including ongoing 

job support, as needed. 

Substance abuse deserves special mention because it is a common barrier to employment for people 

regardless of whether or not they also have serious mental illnesses. It can have a negative impact on job 

performance, timeliness, and attendance. The stigma of co-occurring mental and substance abuse 

disorders also is a powerful barrier to employment. It is present not only in the way society views people 

with co-occurring disorders, but also in the negative views an individual may have about his or her place 

in the workforce and as a member of society.4

Linking Housing, Supports and Jobs 

Founded in 1979, Rehabilitation Support Services, Inc. (RSS) operates

supervised and supported housing programs for 800 people in 10 counties

of New York State. It also operates 16 affirmative businesses that provide

training and jobs for people with serious mental illnesses. These include a 

bakery, two construction companies, a movie theatre, and a bagel shop. 

While most of the agency’s housing and employment programs serve

people with recent histories of homelessness, the COACH program was

designed specifically for this population. Funded by HUD’s Supportive 

Housing Program since 1996, the program provides 16 units of supported

housing, case management, and employment services to people with mental

illness coming from shelters or the streets. 

COACH has been successful because it links a home, a job, and support

services. This tends to strengthen and support individual motivation to work

and helps people to see the immediate benefits of work: having a home. The

COACH participant is the leaseholder on a supported apartment. Criteria for

success include working at least 10 hours per week and meeting treatment 

and rehabilitation goals. If a person cannot work 10 hours per week, school

or volunteer work can be substituted. Most COACH participants get jobs in 

one of the agency’s affirmative businesses, primarily either Teamwork

Remodelers or the Pie-in-the-Sky Bakery. Having the ability to respond

rapidly to a person’s desire to work by providing a job in an agency-owned 

business provides opportunities to develop work readiness and skills in real

work situations. 
35 

Employment programs must be designed with recognition and consideration that ongoing treatment for 

both mental and substance use disorders is an essential component of any program serving individuals 

with mental illnesses who are, or have been, homeless. In addition to ensuring ongoing treatment and 

support for substance abuse, employment programs should incorporate early assessment so behaviors 

associated with substance abuse that create obstacles to sustained employment can be addressed. Because 

employment may contribute to sobriety for some individuals, sobriety should not be a necessary 

prerequisite to receive employment services. 

Program and Services Provider-Level Challenges 

Consumers may encounter a number of service provider level barriers to employment. Table 4.2 

highlights some of these program-level challenges. When creating employment programs, providers 

should begin by taking an inventory to determine their own readiness and capacity to make employment 

an organizational priority. Agencies may begin by assessing the staff’s ability to challenge traditional 

concepts of work readiness for its clientele, and identifying and acquiring the resources and technical 

assistance to help them firmly establish and sustain vocational programs. This may require a fundamental 

shift in agency priorities. 

Agencies also must develop clear and reasonable expectations for both staff and clients about the services 

offered and the people they are able to help. If an agency cannot “keep the promise” it makes to its 

clients, both staff and client morale will suffer. Individuals with serious mental illnesses, especially those 

who also have been homeless, have suffered numerous setbacks and losses. An agency must ensure a 

good fit between the services it offers, and the clients it accepts, if participants are going to experience the 

success that is so critical to their recovery. 
36 

Table 4.2 Addressing Program-Level Challenges

 Challenge Impact Upon Work Strategy 

 Lack of knowledge and experience Unclear goals, expectations, funding sources, 

strategies to use to meet the employment needs 

of their constituency. 

Build awareness through training, visits to other 

programs, program development consultations. 

 Staff “paradigm paralysis” Generally held belief among staff that consumers 

are too disabled to work, work is too stressful, and 

lack of prior success impedes future success. 

Develop new assessment tools that provide a 

wider measure of inherent skills and 

competencies, incorporate consumers who 

achieved work success as trainers. 

 Stringent readiness prerequisites Assessments screen out rather than include, 

requirements that people are abstinent or 

symptom-free conflict with consumers’ wish to 

work. 

“Meet the person where they are” with jobs that 

they can do safely and wish to do, with case 

management support. Replace preoccupation with 

the disability with a new purpose and build 

motivation for treatment and advanced 

employment. 

 Failure to acknowledge cultural and ethnic 

needs 

Employment services conflict with the consumers’ 

cultural orientation. 

Include culturally competent, multi-lingual staff 

(including consumer staff) on the team. Familiarize 

families with services, provide staff cultural 

sensitivity training, review and adapt program 

outcomes to meet individual needs. 

 Milestone disparity Success (and funding) is determined by achieving 

outcomes that fail to endorse small steps and 

successes. 

Adopt milestone-based outcome system that 

included flexibility, rapid re-placement, and shortterm goal attainment. 

 Compartmentalization Employment seen as the responsibility of the 

vocational staff only. 

Adopt a “jobs are everybody’s business” approach 

that includes roles for housing staff, facility support 

staff, treatment staff, etc., to contribute to the 

employment process. 

 Funding inadequacy or fragmentation Funding sources serve “one slice” of the 

population with different requirements, funding is 

short-term, out of step with consumer need. 

Cast a “wide funding net”, utilizing HUD, MH, VR, 

Substance Abuse, earned business revenue, 

DOL, and private sources with strategic planning 

process that covers all of the needs. 

 Lack of coordination between employment 

services, case management, and 

treatment services 

Clash of priorities viewed from different staff 

perspectives, broken links between work and nonwork issues and services. 

Adopt an integrated team approach to coordinate 

the full range of work and non-work services to 

meet consumers’ comprehensive needs. 

 “Keeping the promise” Lack of success for clients promised more than 

staff can deliver affects both client and staff 

morale. 

Specify clearly what the program can and can’t 

provide; be realistic and deliver what you promise 

to those you accept in the program. 

The Corporation for Supportive Housing was established in 1991 to support the individual efforts of local 

nonprofit pioneers developing service-supported housing for those most in need: people coping with 

homelessness and extreme poverty, as well as chronic health conditions such as mental illness, addiction, 

or HIV/AIDS. They have identified three strategies to help develop effective employment programs: 

(1) establish employment goals as integral to the agency’s mission; (2) make significant internal changes; 

and (3) integrate those changes into the existing system of agency services.5

 To make work a priority, 

agencies can: 

 Build collaborations. Housing, employment, treatment, and support service providers 

need to develop linkages with one another. Mental health and homeless services providers 

can work as members of neighborhood-based initiatives to identify people in their 

communities who need jobs and housing, and to find ways to increase their access to those 

services. Working with Business Improvement Districts and police departments may be 

another way to link agency-sponsored jobs with outreach and jail diversion programs. 

Another way providers and mental health authorities can promote and develop 

comprehensive, wrap-around services that link work with economic security and health 

insurance for their constituents, is to encourage collaborations among state vocational 

rehabilitation, Medicaid authorities, and the Social Security Administration. 
37 

 Avoid over-reliance on formal settings and approaches. People who have been 

homeless often are resistant and distrustful of office-based services. Providing employment 

services in more informal settings can be a critical program modification. For example, 

meeting at a restaurant or a park instead of at the office to discuss work options, is just one 

of the many ways staff can help diminish the consumer’s fear and increase trust. 

 Utilize non-traditional approaches. When is the possibility of work an option? Where 

should employment services be delivered? What staff is responsible for employment 

programs? Challenging traditional assumptions in each of these areas can result in the 

creativity and flexibility needed to adopt effective employment strategies. For some, it may 

mean that people are engaged in some form of work—even for an hour or two—shortly after 

street engagement. For others, it may mean that housing staff are trained in employment 

assessment and supervision of job crews. Committing to work as an agency priority means 

jobs are the business of everyone. 

 Think creatively about funding. Agencies sometimes need to blend funds from multiple 

sources to support employment programs. State and local mental health and 

alcohol/substance abuse agencies often include employment as one of their priority funding 

areas. HUD Supportive Housing funds, as approved and submitted through the local 

continuum of care process, may be another source for employment services funding. 

Investment by businesses and consortiums of businesses, including Business Improvement 

Districts, can be matched with other dollars to support employment services, specifically 

work crews and small businesses. State VR funds may help pay for situational assessments, 

on-the-job training, job coaches, and, in many cases, assist those interested in selfemployment. HUD Community Development Block Grants (CDBG), usually administered 

through municipalities and often used for economic and business development, can be 

another funding source for small business start-ups. Public housing authorities with access to 

HUD funds for housing development also can seek service dollars to increase selfsufficiency among tenants. Private foundations that support self-sufficiency for people with 

disabilities can be identified using online or published foundation directories. Foundations 

may be a good source of support for vehicles, equipment, and other program costs. 

 Hire consumers in staff positions. Consumer perspectives are invaluable in developing 

employment services. As staff members with responsibility for developing and/or evaluating 

programs, they can help determine the relevance of proposed services. In addition, they can 

articulate the benefits of employment, how they addressed their own feelings of learned 

helplessness and disillusionment, and what staff supports were important to them. 
38 

Making Work A Priority 

The Corporation for Supportive Housing’s “Next Step Jobs initiative”6 made 

employment a high priority for their nonprofit supportive housing providers

nationwide. Each housing provider established employment services to

engage tenants—approximately 65% of whom had histories of

homelessness—in job opportunities through a “standing offer of

employment” in businesses located within their housing or sponsored by

the housing providers. Strategies used by providers to enhance workrelated opportunities included: 

 Establishing activities and dedicating on-site staff to help residents 

develop skills, find jobs, and remain employed. 

 Connecting residents of supportive housing with off-site employment 

and training services. 

 Hiring residents, either as staff or paid trainees, within the housing

program, the sponsoring organization, or the broader supportive

housing industry. 

 Developing relationships with employers, and encouraging them to

hire supportive housing tenants. 

 Creating and expanding businesses that train and hire disadvantaged

people, including supportive housing tenants. 

An assessment tool helped supportive housing providers initiate and

implement employment programs. This tool identified the “critical 

ingredients” for successful employment programs. By embedding

employment services within housing programs, employment specialists

have had unlimited opportunities to reach out and engage individuals. Most

importantly, the project demonstrated the benefits of creating a culture and 

climate that supports work as a priority in residential settings. 

Addressing Challenges In Service Systems 

Individuals who are homeless and have mental illnesses face numerous service system barriers to 

employment; they often receive mixed or conflicting messages. For example, when seeking public 

assistance, they must portray themselves as needy and unable to live without assistance. Yet, when 

applying for work, they must portray themselves as motivated, skillful, and self-reliant. Role ambiguity is 

just one system-related barrier that consumers face when seeking employment. Other common service 

system barriers to employment and suggested ways to address them are found in Table 4.3. 
39 

Table 4.3 Addressing Service System Challenges

 Challenge Impact Upon Work Strategy 

 Services fragmentation Multiple funding sources, priorities, roles, reporting 

requirements, and regulations increase ambiguity 

and create overlaps and gaps in employment 

services for consumers. 

 Utilize HUD Continuum of Care process to 

integrate work in the community for homeless 

people. 

 Advocate for agreements between State VR, 

Mental Health, and Substance Abuse 

agencies for blended funding. 

 Welfare-to-Work changes fail to meet the 

needs of people with persistent, multiple 

barriers including homelessness, mental 

illness, and substance abuse 

Inability to meet stringent work requirements for 

those without disability exemptions results in 

sanctions/loss of benefits. Emerging Ticket to 

Work plans reward providers who move 

customers into employment and off benefits. 

People with chronic recurrent needs may not be 

well served. 

 Homeless services agencies should advocate 

for representation on Workforce Investment 

Boards and solicit contracts for employment 

services for their constituencies. 

 Develop vendorship with State VR, contracts 

with Departments of Social Services and 

Labor for hard-to-serve individuals. 

 Stigma Results in fear and misconceptions regarding the 

nature of mental illness. Leads to wrong 

assumptions regarding their capabilities to perform 

work, limits job opportunities. 

 Develop Business Advisory Councils whose 

members provide written endorsements of 

the employment program, and advocacy and 

public information programs. 

 Familiarize staff and community members 

with ADA provisions. 

 Develop educational programs for businesses 

on the benefits of hiring underutilized workers.

 Lack of provider agency coordination and 

collaboration. 

Shelters, housing providers, crisis services, and 

employment service providers have differing views 

regarding employment, resulting in fragmented 

services and mixed messages to the consumer. 

 Engage shelters, housing providers, and 

employment services providers in a strategies 

planning process that offers consumers work 

with agencies that receive funding and 

technical assistance support. 

Chapter Summary 

People with serious mental illnesses who also are homeless face numerous challenges to achieving 

employment success, including the personal barriers resulting from the consequences of mental illness 

and/or co-occurring substance use disorders, and recurrent homelessness. Added to these barriers are 

program structures that may not address their needs, service system fragmentation, and societal factors 

such as stigma and discrimination. Breaking these barriers requires recognition of the various and often 

interconnected individual, organizational, and environmental factors that may impede employment. 

Chapter 4 Notes

1

 This Chapter contains material adapted from: White, A., and Wagner, S. “Effective strategies: Employment for homeless people 

with serious mental illness” and Shaheen, G., Bianco, C., Falco, A. “Employing people with mental illness who are homeless: 

Surveying the field.” Papers prepared for the CMHS Sponsored Employment and Vocational Rehabilitation for Homeless People 

with Serious Mental Illnesses Workshop, Washington, DC, September 1999; and Bianco, C., and Shaheen, G. Employing 

Homeless People with Mental Illness: Principles, Practices and Possibilities. Unpublished draft prepared for the CMHS PATH 

Program. Albany, NY: Advocates for Human Potential, July 1999. 2

 Lezak, A.D., and Edgar, E. Preventing Homelessness Among People with Serious Mental Illness: A Guide for States. Rockville, 

MD: Center for Mental Health Services, 1998. 3

 Whiting, B. Employing the Formerly Homeless: Adding Employment to the Mix of Housing and Services. New York, NY: 

Corporation for Supportive Housing, 1994. 
40 

4

 Ludet, A.B., Magura, S., Vogel, H., and Knight, E. Recovery challenges among dually diagnosed individuals. Journal of 

Substance Abuse Treatment, 18: 321-329, 2000. 5

 Corporation for Supportive Housing. Work in Progress: An Interim Report of the Next Step: Jobs Initiative. New York, NY: 

Corporation for Supportive Housing, 1997. 

6

 Rog, D., Holupka, C.S., Brito, M.C., et al. Next Steps: Jobs Second Evaluation/Documentation Report. Washington, DC: 

Vanderbilt Institute for Public Policy Studies, Center for Mental Health Policy, 1998. 
41 

Chapter Five 

Helping People who are Homeless and 

Have Serious Mental Illnesses Obtain Work1

he employment needs of people who are homeless and have serious mental illnesses cannot be met 

with a “one size fits all” approach. Often, to provide the array of services needed, approaches must be 

offered in combination. Providers need to be flexible, creative, and innovative in program design and 

delivery. 

Many programs throughout the country are successfully addressing the housing, treatment, employment, 

and support needs of consumers who are homeless. In doing so, these programs embody the elements 

essential to help people with mental illnesses attain employment, including: integrating services, 

responding to individual preferences regarding employment, adapting employment service approaches to 

address the impact of homelessness, and managing the workplace support needs of people with mental 

illnesses who are, or have been, homeless. In this way, recovery from mental illnesses and addictions are 

supported as part of a larger strategy that cares for the whole person. 

T 
42 

Underlying Principles 

As described in previous chapters, employment programs that work with people who are, or who have 

recently been, homeless share a set of underlying principles, summarized in Table 5.1. 

Table 5.1 Key Ingredients of Employment Programs for People with Mental 

Illnesses Who Have Been Homeless 

 Key Ingredients 

 Underlying Principles Key Services and Supports 

9 Listen to consumers 

9 Allow for the process of recovery 

9 Challenge traditional concepts of readiness 

9 Provide ongoing assessment 

9 Offer work in-hours 

9 Address non-work issues 

9 Develop clear and reasonable goals 

9 Employ flexible outcomes 

9 Redefine failure 

9 Integrate employment with case management and other supports 

9 Employment outreach 

9 Managing the transition to work 

9 Goal Setting 

9 Employment assessment 

9 Employment counseling and planning 

9 Work readiness development 

9 Work experience 

9 Occupational skills training 

9 Job development and placement 

9 Benefits management and advocacy 

9 Creating employment opportunities 

9 Developing new partnerships 

9 Ongoing job support 

9 Employment accommodations 

Listen to Consumers 

Employment programs are more successful when participants’ interests are accommodated. While 

meeting individual preferences may not always be possible, consumers appreciate staff who offer 

employment services and opportunities consistent with the consumers’ expressed short- or long-term 

goals. This can be as simple as listening carefully and responding directly to what consumers say, or as 

formalized as involving participants in program design, delivery, and evaluation. The well-known tenet of 

the self-help movement, “nothing about us without us,” is a good guideline to observe. 

Allow for the Process of Recovery 

Employment programs designed for short-term interventions are not equipped to respond to the long-term 

and relapsing nature of many mental and addictive disorders. In general, they fail to recognize that change 

occurs gradually over time. Recurrence of symptoms or behaviors related to an individual’s mental or 

substance use disorder should be acknowledged as part of the normal course of events; employment 

services should be flexible and adjusted accordingly. 
43 

Challenge Traditional Concepts of Readiness 

Vocational training and rehabilitation programs typically exclude individuals exhibiting active symptoms 

of mental illness, difficult behaviors, and/or substance abuse because they do not meet “readiness” criteria 

for program participation. Yet, offering job options can provide motivation to address recovery in other 

areas of a person’s life, even if that person has not indicated an interest in work on program entry.2

 The 

key is to strike a balance between requiring total abstinence or freedom from symptoms, and tolerating 

some substance use-related behaviors or symptoms of mental illness on the job. This can be done by 

widening readiness prerequisites without ignoring health and safety considerations. 

Provide Ongoing Assessment 

The Voice of Experience 

“I am a former recipient of SSI/SSDI for a psychiatric disability. I transitioned

off disability into full-time employment two times, most recently in 1998. My 

last period of disability lasted more than seven years, with periods of

homelessness and substance abuse. I was seeing a psychiatrist regularly,

but I had little hope of improving the quality of my life. I lived in shelters,

welfare hotels, or with boyfriends. Luckily, I ended up in a transitional living

community run by CUCS [Center for Urban Community Services in New

York City] for women who are homeless and have mental illnesses, and I

was placed in the Times Square SRO [single-room-occupancy residence]. 

“Living in supported housing offered me the combination of independence

and support (when needed) that enabled me to focus on recovery rather

than survival. When I first moved in, I started attending a MICA [mental

illness/chemical abuse] day treatment program to give me something to do

during the day and to help me adjust to my new environment. The thought

of employment seemed far-fetched and out of the question. My mind was

changed by seeing other tenants working at various jobs within the 

building. I thought to myself, “I can do that.” I had seen flyers posted within 

the building and in the residence newsletter announcing the existence of the

Times Square Jobs Program. One day I was brave enough to check it out. 

“There were so many barriers I had to overcome during my transition to

work. Fear of losing benefits was by far the most daunting, so knowledge

about the policies of SSI/SSDI and Medicaid was crucial. Case management

on entitlements where I could discuss the risks and my readiness would 

have been helpful, since the stress of handling these benefits oftentimes

was greater than learning my new job and getting used to being at work.” 

Extensive readiness prerequisites can dampen motivation and discourage people eager to resume or begin 

work. While assessment of skills, aptitudes, and interests are valuable, they should be viewed as tools 

available, not only during the pre-employment process, but after a person has obtained a job. In fact, they 

may be most accurate in evaluating job skills and assisting in job goal development when a person is in a 

work experience that provides a real-time context for vocational growth. 
44 

Offer Work In-house 

Offering options for work in jobs that the agency “owns” or controls is an effective means of responding 

to consumers’ interests in rapid job entry. It provides the opportunity to assess job preferences and 

motivation, to regain exposure and experience in the world of work, and to develop a plan for job and 

career growth. Nevertheless, the goal and primary focus should be on competitive employment in 

integrated settings whenever possible. 

Address Non-work Issues 

Job success includes the ability to manage personal interactions in the workplace as well as the ability to 

perform work tasks. Gaining the support of co-workers can be critical to enable an individual to navigate 

the culture of the workplace. In addition, a person’s life outside work often may “travel to work” with the 

employee, affecting job performance or attendance. Learning how to manage these issues and to use 

natural supports, such as the assistance of co-workers, is essential to helping people with mental illnesses 

retain employment. 

Develop Clear and Reasonable Goals 

Participants must be clear from the beginning about the services offered by the employment program, the 

possibilities and resources available, and the requirements for program participation. Skills and interests 

should be assessed at intake to ensure a match between applicant needs and expectations, and program 

services. Program goals should be achievable and appropriate for consumers served by the program. Staff 

must be clear about where they “fit” in the process of meeting program goals, and must have the skills 

and knowledge to successfully carry out their roles. Staff also must have expectations that participants can 

and will achieve their goals and be able to convey these expectations to participants. 

Employ Flexible Outcomes 

Commonly, employment programs are evaluated based on the number of people who achieve and retain 

full-time gainful employment. While a desirable goal, the path for people with serious mental illnesses 

with histories of homelessness may or may not lead to this outcome. When it does, the length of time to 

achieve this goal can vary. Individual employment paths usually include intermediate outcomes such as 

working part-time, increasing hourly wages, total income or the number of hours worked, or retaining a 

position over time. Where possible, providers should establish benchmarks that capture these important 

milestones and allow longer timeframes for success. For individuals who do not have full-time, 

competitive employment as their goal, providers need to recognize that alternatives, such as part-time 

work, can represent success for those consumers. 

Redefine Failure 

Despite thorough assessments and supports, individuals with serious mental illnesses may have setbacks, 

experience problems in the workplace, and sometimes lose jobs. Staff should prepare participants for 

these possibilities and explain that it is normal for most people to have some problems at work and 

occasionally to lose a job. By encouraging individuals to use the experience as a learning opportunity, 

staff can help participants determine what went wrong and how to better manage the situation in the 

future. 
45 

Integrate Employment with Case Management and Other Supports 

Many employment programs offer other services through different programs within their organizations. 

While the specific services vary, coordination and integration across programs is critical to successful 

outcomes. In particular, if case management services are offered, employment goals should be integrated 

into the service or treatment plan. Case managers should be aware of a person’s involvement in work and 

integrate that into the plan for obtaining or retaining housing, treatment, or other support. Case managers 

can be especially helpful in the critical transition period immediately after an individual first becomes 

employed, a period during which he or she may need considerable ongoing support. Also, the case 

manager may be in a good position to see how a person deals with non-work issues that may provide 

insight into strengths and weaknesses in an employment setting. For example, difficulty being on time 

may lend itself to training and reinforcement across a number of life activities, including work. 

Integration across programs can be achieved through regular interdisciplinary/departmental meetings, 

through coordination of documentation procedures, and through interdepartmental staff collaboration. 

Key Services and Supports 

In addition to working from a set of underlying principles, employment programs for individuals with 

serious mental illnesses who also are, or have been, homeless, offer a range of flexible, individualized 

services. Based on a review of the literature and conversations with others in the field of employment 

services for homeless people, these key services and supports are described in Table 5.1. 

Employment Outreach 

Offering vocational services in shelters, soup kitchens, or even as part of mobile outreach, can help 

people who are homeless and who have serious mental illnesses explore the possibility of rehabilitation 

and employment. The message at this stage is clear and simple, “If you believe you can work, we can help 

you get a job that works for you.” However, agencies must be able to deliver on this promise. The 

importance of meeting individuals on their own turf cannot be overstated. This is widely accepted and 

practiced within the homeless services field; however it is less common for vocational rehabilitation to be 

part of the outreach process. It is also uncommon for mainstream vocational programs to offer services in 

places where homeless people are most often found. 

A prerequisite for success is active collaboration with homeless shelters and soup kitchens, other 

homeless housing and service providers, peer outreach specialists, and welfare and social service staff. 

This is a slow process that works to build trust and credibility, and to overcome initial resistance and 

skepticism on the part of both recipients and professionals. One way to gain credibility is to hold 

meetings and orientation sessions at shelters rather than at the community mental health center or 

vocational program. In addition, the employment specialist should become a familiar face to the staff of 

homeless shelters and street-outreach programs. In this way, they may be seen as a resource when issues 

involving employment are raised, and as helpful in finding ways to engage those motivated by the 

possibility of work. 
46 

Linking Life Skills and Employment Skills Development 

Building Opportunities for Self-Sufficiency, Inc. (BOSS), was founded in 

1971, is the largest provider of SRO housing and homeless services in

Alameda County, California. Its services link employment and

education/living skills as part of a comprehensive package. It has developed 

an adult education center; social enterprises that include businesses

providing light construction and window/door replacement; programs that 

help people choose, get, and keep jobs; and a HUD-funded Regional 

Employment Initiative with partners Rubicon and Juma Business Ventures

that have resulted in the creation of over 95 new jobs for people with mental

illness. 

During the earliest stages of employment readiness, people get help in all 

skill areas (e.g., life, job, treatment stability, housing retention). Other preemployment services address physical readiness for work, including

classes to build physical strength, dexterity, and balance; socialization 

skills; and vocational interests through job club and vocational exploration

groups. Concurrent with involvement in employment services, BOSS can

help people set up savings accounts for home ownership, business

development, and education. The overall objective is to link housing, case

management, and work, so individuals can successfully re-integrate into 

their community. 

Managing the Transition to Work 

The transition in role from “consumer” or “homeless person” to “worker” is significant. Assistance in 

managing this transition is usually critical, particularly for those who have experienced repeated failure. 

Staff can help by understanding the work histories of individual participants, the meaning of work in their 

lives, and concerns about fulfilling the new role. Discussions about participant expectations and concerns, 

help in identifying achievable goals, and developing a career plan are important in facilitating the 

transition. 

Goal Setting 

Goal setting helps the consumer and practitioner examine the need for, and commitment to, change, and 

what it will take to achieve success and sustained employment. Goal setting has two main elements: 

 Establishing personal insight into what jobs may be preferred and possible, why the jobs are 

important to the individual, where those jobs are located, and when the job acquisition 

process will begin; and 

 Developing a plan to acquire the job-related skills and aptitudes to achieve and succeed at a 

chosen job. 
47 

Making the Transition to Work 

Project Light is an interfaith volunteer caregiver program, established in 

1998 in Wichita, Kansas, as a service of the First Metropolitan Community

Church. Project Light identifies and links community volunteers from 10

congregations to work one-on-one with formerly homeless individuals. The 

mission of Project Light is to provide vocational, educational, and social

support for people living with mental illnesses who recently have been 

homeless. The program’s primary goals are: to make a positive difference in 

the lives of homeless people with mental illnesses; to help them return to 

work or school, thereby breaking the cycle of chronic poverty and 

homelessness; and help eliminate the stigma and public bias toward people

who are homeless. 

Project Light provides social support and assurance to build the self-esteem 

and confidence necessary for individuals to obtain and sustain jobs.

Volunteers receive a three-hour training on stigma, mental illness,

homelessness, helping people return to work, and lending other supports. A 

speaker’s bureau operated by a consumer-run agency offers presentations 

for volunteers. Volunteers offer “soft-counseling,” practice interviews and 

role-plays, suggestions for clothing and good personal presentation, help 

with job search, resume/application completion, and transportation. Literacy 

groups are an important component. All jobs offered to consumers are in 

community restaurants, grocery stores, the Botanical Gardens, or the local

animal shelter. 

Practitioners should resist the temptation to rush through this process and remember that goal-setting can 

and should be an ongoing process. The best approach is to let the needs and preferences of the consumer 

dictate the time frames for this process. For example, if an individual is anxious to start work but is likely 

to drop out of an extended planning process, help in obtaining a job as quickly as possible and ongoing 

assessment to enable him/her to develop long-term goals, may be an effective strategy. In contrast, 

another person might be nervous or reluctant to work at all, and would benefit from the time to prepare 

for the demands and expectations of a work environment. 

Sometimes, during the goal-setting process, an individual may select an employment goal the practitioner 

believes is “unrealistic”. Rather than trying to convince the person that the goal is unattainable, 

practitioners should help the individual focus on short-term steps to achieving the longer-term goal. 

Individuals should be free to choose, reconsider, and modify goals with the practitioner acting as 

navigator rather than as a captain. 

Employment Assessment 

For many participants, the concepts of a job path and career planning are new. Participants also may need 

general education about the world of work. Career planning includes an assessment of skills, interests, 

and work history, resulting in the development of an individualized employment plan. However, 

assessment services need not be limited to those provided in classroom settings. Often, the best way to 

assess a person’s skills, work tolerance, and work adjustment ability in a mainstream work environment is 

through situational assessments in a real work setting. These assessments can occur during the course of 

transitional employment placement3

 or as part of short-term supported assessment. 
48 

Whether provided in classrooms or on the job, an essential aspect of the employment assessment is 

examining and understanding the individual’s interests, skills, strengths, and knowledge as they pertain to 

a particular job. When making an assessment, program staff should pay attention to aptitudes that may not 

relate directly to a particular job, but that may be transferable to the work place, such as navigating the 

shelter or entitlements systems and managing bureaucracies. A thorough assessment should examine an 

individual’s situation regarding: 

 Adaptive capabilities (verbal, cognitive, time management, problem solving, etc.) 

 Aptitudes 

 Preferred learning styles 

 Life and work experiences 

 Occupational skills and interests 

 Formal education 

 Literacy and academic skills 

 Hobbies and accomplishments 

 Resources 

 Functional capacities and limitations 

 Support needs 

Employment Counseling and Planning 

As part of a comprehensive plan that addresses the housing, treatment, employment, and support needs, a 

case manager also may provide employment counseling to people who are homeless. A rehabilitation 

counselor may provide specialized vocational counseling. 

Career plans delineate specific employment goals and the tasks required to achieve these goals, and 

provide participants with a clear sense of the path to work and advancement. Additionally, plans identify 

needed educational or skills training as well as supports that can help with maintaining employment. The 

plan should be assessed with participants over time and, similar to service plans, reviewed and modified 

on a regular basis, especially in the early stages of the job placement process. Revisiting an individual’s 

work goals periodically helps incorporate new experiences and insights gained while working and also 

helps avoid the risk of failure. 

Work Readiness Development 

Readiness development includes all activities that help an individual to improve his/her likelihood for 

employment success. While work readiness services often are termed “pre-vocational,” they might more 

aptly be called “pro-vocational”, because they often are needed on an ongoing basis. Such services are 

critical to successful employment for people with serious mental illness and may be provided by case 

managers or vocational counselors depending on the structure of the program. 

Unlike other pre-vocational approaches, readiness services prepare people to achieve a specific job they 

will want to keep that will provide them with both desired income and satisfaction. Therefore, readiness 

services should be available for those who are unemployed as well as for those who are dissatisfied in 

their current working environment. For people who are homeless, this can include individuals in 
49 

temporary, transitional, or day labor employment; or workfare positions. Readiness activities may 

encompass: 

 Assisting with resume and job application preparation; 

 Simulating job interviews; 

 Learning effective communication and workplace behavior; 

 Exploring the world of work; 

 Supporting peer groups; 

 Improving interpersonal, conflict management, and problem solving skills; 

 Handling self-disclosure; 

 Identifying personal skills and strengths; 

 Building hope and motivation; and 

 Recognizing successes and dealing with setbacks 

Work Experience 

Work experience means all activities, paid and unpaid, that help individuals learn more about the world of 

work and refine their interests and vocational goals. The best way to gain experience in competitive 

employment is to work in competitive jobs. However, volunteer work, mentoring/internships, temporary 

employment, and transitional employment also can help individuals gain experience. 

Volunteer work is unpaid and performed for a community or charitable organization. Internships 

generally are also unpaid, although stipends or paid internships sometimes are available. It is important to 

be fully aware of, and compliant with, Department of Labor wage and hour standards in all situations 

involving unpaid internships. 

Transitional employment usually lasts three to six months and is provided or arranged by a rehabilitation 

agency. Temporary employment includes day labor or other short-term employment for a pre-determined 

duration. Transitional and supported work experiences provide workers with extra support and training, 

and may offer opportunities for advancement. The amount of time participants need in transitional 

positions varies, emphasizing the need for flexibility. 

Occupational Skills Training 

Occupational skills training helps participants develop or upgrade their skills in a particular trade or 

occupation. Skills training increases the opportunity for higher paying jobs with more career potential 

than does entry-level, unskilled employment. In particular, the presence of skills linked to specific jobs, 

rather than general skills, is a better predictor of employment success. Many programs have developed a 

variety of ways to meet the need for skills training, including traditional training programs, supported and 

transitional employment opportunities, and in-house positions within their organizations. 

For several reasons, skills training may be most successful after an individual has obtained recent work 

experience. First, many people need or want to get a job quickly, whether due to financial demands or 

welfare sanctions. They cannot wait to complete a training program. Second, if unemployment has been 

long-term, most likely the individual will need to re-establish positive work habits, social behaviors, 

structured learning skills, and stamina. A classroom setting, with the pressures of coursework and tests, 

may not be effective for someone in the early stages of re-engaging in work. Third, once individuals have 

experienced some vocational success and are more aware of their current abilities, interests, and potential 

work opportunities, they are more likely to be motivated to successfully complete occupational training. 
50 

Finally, employment can help an individual identify the specific job or field in which he or she is 

interested and the types of skills training needed for that position. 

In many cases, the best strategy is a combination of part-time employment and part-time training after 

some period of successful employment has been achieved. If tuition or training subsidies are required, VR 

financial assistance is available for occupational education. In addition, educational institutions and trade 

schools often offer scholarships, some of which are funded by the Department of Labor, to provide lowcost or free training to various target groups, including individuals who were recently homeless. In 

addition, SSI recipients may include the cost of education related to achieving a vocational goal as part of 

his/her PASS plan. 

In general, occupational skills training, closely linked with existing jobs in the local labor market, can 

help people move from entry level jobs to jobs with advancement potential. Developing relationships with 

various businesses and business associations in the community may be an effective means, not only to 

identify potential job openings, but also to understand the skills needed by employers. Establishing close 

working relationships with specific businesses can have numerous other advantages: 

 Placements into permanent employment are much easier when a partnership exists between 

the training program and the employer; 

 Internships allow participants to work and practice newly acquired skills while receiving 

training; 

 Business owners and managers become familiar with the needs and potential of participants, 

have a realistic understanding of costs and benefits, and are prepared to offer the 

accommodations most frequently needed; and 

 Trust and rapport increase between work-site supervisors and support services staff, such as 

case managers or job coaches. 

Job Development and Placement 

Employment and training agencies serving people who are low income and disadvantaged have 

emphasized job placement services as the next step after assessment and training. This is particularly true 

for those who may be unlikely to obtain or sustain employment on their own. Job placement assistance 

becomes the point at which an individual’s experiences, goals, and support needs are matched, to the 

greatest degree possible, with the conditions and demands of the local labor market. 

An effective job development and placement strategy combines knowledge of the real-life demands of 

business and industry with an understanding of the preferences and skills of the job applicant. A 

successful job developer has strong relationships with both employers and program participants. In an 

ideal job placement situation, the participant has been actively involved in the process of selecting and 

securing a job, even if a job developer or placement specialist made the initial contact with the employer. 

Similarly, the employer sees the intrinsic advantages of hiring this individual, and appreciates the extra 

support offered by the job developer. 

Effective job development and placement for individuals with mental illnesses who are or have been 

homeless involves special attention to activities that meet their specialized needs. Such activities include 

job re-placement assistance, specialized case management, peer support, and education concerning the 

rights of disabled workers, and employer incentives. 

Re-placement. Many people will need several work experiences before they find the right “fit”. Job 

loss and the need for re-placement assistance should not be considered a failure. Instead, it should be 
51 

reinforced that most people have to try several jobs when first entering the workforce, and that each 

experience can contribute to understanding what it takes to be a happy and successful employee. 

Specialized case management. Job development also addresses barriers to employment posed by 

homelessness and poverty. Many people who have been homeless have been unable to maintain their 

health and appearance. For example, dental care may be necessary to improve self-esteem and 

appearance. Job placement specialists must ensure the individual is able to meet the dress and grooming 

code for the workplace, and should help the individual obtain the appropriate clothing for job interviews 

and work. 

People living in shelters may have limited access to a telephone, and some may not want to list the 

shelter’s phone number as their own. A job developer may serve as a communication link between the 

prospective employer and job seeker. Alternatively, the job developer may help the individual acquire a 

community voice mailbox where they can receive messages. The latter option allows the individual to 

take more responsibility for follow-up. 

Peer support. Some people prefer to obtain their own jobs while maintaining some degree of program 

support. Peer support may be obtained through job search workshops or “job clubs” where job seekers 

come together to learn and share information on job leads, interviewing techniques, networking strategies, 

and applications and resume development. Job clubs or support groups can add structure to the job search 

process, with placement specialists helping individuals according to their particular needs and challenges. 

Though job clubs can be a valuable way to facilitate peer support, no clear evidence has shown that they 

deliver better outcomes than people seeking jobs on their own.4

Rights, incentives, and disclosure issues. Effective job development also involves a thorough 

understanding of the incentives available to employers, including Work Opportunity Tax Credit and 

economic development-related tax credits or incentives. Job developers should be experts in these 

incentive programs and should help employers obtain them. As discussed in Chapter Seven, the landmark 

Americans with Disabilities Act of 1990 (ADA) provides extensive protection and accommodation for 

people with disabilities during the employment process. 

The stigma associated with mental illness and homelessness often is compounded by a criminal record 

and/or a history of substance abuse. Participants may need counseling to make decisions about what and 

how much to disclose. With guidance, the individual can decide whether the benefits of on-site support 

from staff, along with employer accommodations, outweigh the risk of being stigmatized. Whether 

helping individuals understand the implications of disclosure or helping employers understand the 

benefits of the ADA, it is essential that employment specialists be knowledgeable about and comfortable 

discussing these issues directly. 
52 

A Job Development and Placement Approach 

Boley Centers for Behavioral Health Care, Inc. in St. Petersburg, Florida,

provides a wide array of clinical and psychosocial rehabilitation programs

and services that include residential, vocational, case management, clinical

treatment, and juvenile justice services. Boley’s supported employment 

program serves many individuals with serious mental illnesses who are, or

have recently been, homeless. 

Through intensive outreach to shelters, a strong relationship with State of

Florida Department of Vocational Rehabilitation, and referrals from Pinellas

County, the supported employment program helps individuals who want to 

work. While individual work-readiness is variable, and work-motivation 

fluctuates, job coaches and follow-along staff develop and place people in 

jobs with local employers and help them stay employed. Of the individuals 

referred to the program, 80% find employment. Success is measured when 

an individual has been employed 150 days, is no longer in need of job

coaching, and receives only follow-along services. 

The agency identifies two activities as key to its success. The first is a 

Business Advisory Council that meets quarterly to bring together business

representatives currently employing consumers. The second is a Job 

Keepers Club that offers monthly opportunities for employed individuals to

meet and discuss job issues, problem-solving techniques, and job-finding 

strategies. 

Benefits Management and Advocacy 

Many people with serious mental illnesses have relied on public benefits for much of their adult lives. 

Potential changes in these arrangements can generate fear and anxiety, making them reluctant to pursue 

employment at all. Despite numerous advance notices and repeated discussions about how their benefits 

will change as they earn other income, when they receive their first decreased benefits check, some 

people may consider quitting their job. 

It is no small wonder that both practitioners and consumers are concerned about the potential loss of 

benefits resulting from earning income. Perhaps more important than the loss of cash benefits is the threat 

of losing medical assistance, especially since many of the jobs that consumers obtain are unlikely to 

provide health insurance benefits. 
53 

Peer Support as a Tool for Employment Role Recovery 

Self-help can aid in the process of recovery,5 helping to regain and to 

maintain a desired vocational role. Self-help or peer support can: 

 Provide a social network based on shared experiences. Discussing 

one’s job is a way many people “break the ice” and build friendships 

and new resources for support both on and off the job; 

 Facilitate the move from help-recipient to helper. Much of the 

experience of being a mental health services recipient is enduring

helplessness. Helping another person deal with their work and nonwork issues can be a source of self-esteem and a feeling of

accomplishment; 

 Be a channel to share specific ways to cope, based on experience. 

Hearing how one’s peers have met and overcome job challenges can

provide valuable lessons for others in getting and keeping jobs; 

 Offer role models. The experiences of others can be a source of hope 

and inspiration that gives people who are uncertain about attempting

employment the impetus to try and succeed; and 

 Instill meaningful structure generated by members themselves.

Having a place and a time to meet with peers, participating in 

discussions about work according to one’s own pace and timetable,

often is a first step in building the confidence and skills of owning and

taking responsibility for one’s future. 

These concerns have discouraged many consumers and their counselors from examining employment as a 

desirable, viable option. Thus, employment service providers need to hire or become experts in 

entitlement benefits, particularly Social Security. These individuals must keep abreast of changes in 

policies and programs to offer the most accurate and up-to-date information. In the early stages of 

returning to work, especially for SSI beneficiaries, part-time employment often is the preferred strategy to 

develop work experience and increase income without immediately losing benefits. 

There are a number of additional ways to help people utilize the resources available to them, while 

continuing to move towards increased self-sufficiency. Unfortunately, many of those resources are poorly 

known and understood. For example, the Program to Achieve Self Support or PASS, a Social Security 

Work Incentive program, is estimated to be used by only .025% of eligible beneficiaries.6

 Similarly, many 

are unaware that, in some states, people on SSI may earn over $25,000 per year and remain eligible for 

Medicaid. The Work Incentives Improvement Act of 1999 (discussed in Chapter Seven) provides 

continued access to Medicaid and Medicare coverage while working, and addresses the earned income 

disincentives that are significant barriers to employment for people with mental illness. 

To make informed decisions about work and entitlements, participants need: 

 Instruction in the effects of earned income on benefits, including the implications of 

“substantial gainful activity,” “trial work period”, and “work activity” in Social Security 

regulations7

; 

 Assistance completing necessary paperwork and reports; 

 Help to establish and maintain a work schedule that does not exceed personal risk 

thresholds; 

 Guidance in using SSA Provision 1619B to maintain Medicaid benefits while working8; 

 Assistance developing PASS applications; 

 Advocacy and assistance with appeals as necessary; 
54 

 Help to understand the work requirements that can accompany receipt of public assistance; 

 Information about statutory changes that allow a person to retain a greater share of earned 

income and/or retain Medicaid benefits; and 

 Information on the Medicaid Buy-In option allowed by the Work Incentives Improvement 

Act of 1999. 

Creating Employment Opportunities 

An increasing number of agencies are creating jobs for people with mental illnesses who are or have been 

homeless, by developing businesses. They may also choose to support consumer-run businesses and 

consumer-run employment support programs as a way to create jobs. 

The Roberts Foundation Homeless Economic Development Fund (REDF) has been a leader in this field 

since 1990. Its progress report on non-profit business planning and start-up is considered by many to be 

the defining text on social entrepreneurship.9

 REDF’s study of 22 social enterprises serving homeless 

people in the San Francisco area concluded that: 

 Non-profit organizations have the potential to plan, create, and manage profitable business 

ventures; 

 Non-profits need access to technical expertise and capital resources to support an effective 

planning and start-up; 

 Successful job creation is linked with the provision of housing and support services; and 

 Program participants want to play an active role in the success of social purpose ventures. 

A Focus on Careers 

The Center for Urban Community Services (CUCS) is a pioneer in

developing creative and effective housing and service programs for

homeless and low-income people. One such program is the CUCS Career

Network. This program specializes in helping supportive-housing tenants 

who have multiple barriers to employment enter the workforce using an

individualized, career-centered approach. Using a range of service 

modalities including paid internships, supported employment, direct

placement, and career development, participants are prepared to access 

and/or advance in New York City’s competitive labor market. 

Participants receive ongoing support and assistance from a trained staff of

vocational counselors and job placement specialists. Support services 

include remedial assistance, such as hard and soft skills training and

cognitive remediation; individual vocational counseling for up to 18 months;

support groups; job coaching as needed; individualized career and job 

development; entitlements planning and assistance; computer training;

assistance with work clothing; access to transitional medical insurance;

access to voice and e-mail; accommodation planning assistance; and 

licensing assistance. 

The availability of immediately accessible jobs when consumers express a desire to work is a powerful 

tool to engage them in other services. Within the limits of the market, the agency as employer has control 

over jobs and makes the hiring and firing decisions. The agency also acquires direct experience in 

employing the target population and is in a better position to understand the various issues employers 
55 

face. The job creation approach can also use a range of incentives and financial support, including those 

targeted toward economic development. 

Developing new partnerships for employment. Employment programs must be connected to the 

commercial marketplace. Many agencies have established strategic alliances with the private sector to 

support their programs. Employing people with mental illnesses who have histories of homelessness may 

offer opportunities to partner with groups that many non-profits have not yet considered. 

Business improvement districts and public housing authorities are two non-traditional partners and 

funding resources for employment. In many downtown business districts, homelessness is viewed as an 

impediment to economic growth, resulting in the adoption of restrictive ordinances and forcible removal 

of street-dwelling homeless people in some cities. In other cities, human service providers and business 

improvement districts (BID) have been working in partnership to develop alternatives such as intensive 

outreach, hotlines for businesses to request assistance for someone on the street, drop-in centers, 

supportive housing and employment services.10

Partnerships with BIDs may include employing people with mental illnesses who are homeless in small 

businesses, such as street cleaning, security, distribution of sales, marketing, tourist and cultural 

information, property management, and maintenance services. With a steady source of transitional and 

day labor jobs at their disposal, providers can make the offer of work part of their engagement strategy for 

street-dwelling homeless people. By focusing first on services that homeless people want, a bond between 

case manager and consumer is established that may lead the consumer to treatment, shelter, and other 

services. Establishing a partnership with a local BID means developing conversations that acknowledge 

and respect each party’s unique objectives, building trust among respective parties, and establishing a 

common purpose.11

Many people with mental illnesses and histories of homelessness are eligible to receive employment/selfsufficiency services through public housing agencies utilizing HUD-McKinney funds targeted to that 

purpose. To be eligible, individuals must be a current tenant, on a public housing Section 8 waiting list, or 

living in the neighborhood surrounding the public housing agency. Both the HUD Family Economic 

Development and Residential Opportunity and Support Services (ROSS) Program, and Hope VI Program 

can provide funds for employment and training services to increase the economic self-sufficiency of 

eligible individuals and families. 

The Quality Housing and Work Responsibility Act of 1998 (QHWRA) reduces the concentration of 

poverty in public housing, protects access to housing assistance for the poorest families, and supports 

families making the transition from welfare to work. The Act also charges HUD with developing a mental 

health action plan for tenants of public housing and project- and tenant-based Section 8 programs. 

Housing and mental health advocates have encouraged HUD to consider employment one of the services 

under this provision. Mental health providers can become valuable resources for public housing 

authorities (PHAs), providing technical assistance, training, and collaborations that facilitate recovery and 

self-sufficiency for their tenants with mental illnesses. 
56 

Developing Community Alliances 

Project HOME, a nationally recognized non-profit in Philadelphia, 

Pennsylvania, provides housing, employment, education, and health care to

homeless and low-income individuals, a substantial number of whom have 

serious mental illnesses. The program identifies its best practices as

building supportive relationships with participants, community building, and

matching tasks and jobs to whatever level individuals have progressed in 

their readiness and recovery. 

Project HOME operates The Back Home Café, a bookstore, a thrift shop, an 

art-related business, and a greeting card business. An in-house newsletter

is also produced by participants. On a yearly basis, approximately 100

people receive employment services, and approximately 90% have a serious

mental illness. Many of the people in Project HOME’s employment programs 

also live in its permanent housing or early-stage recovery residences. To 

date, 94% of permanent housing residents and 87% of those in early-stage 

recovery residences have been stably housed for a year or longer. Among 

the wide range of services offered by Project HOME to the surrounding

community’s residents are free on-site medical care provided by area health 

care centers, adult learning classes with a welfare-to-work component, afterschool programs, mortgage counseling, an emergency food pantry, a 

mentoring and college scholarship program for teens, and subsidized home

repairs for homeowners on fixed incomes. 

Ongoing Job Support 

After people are placed in jobs, they frequently need help to manage and retain the positions. These 

services should be flexible as some people will need support weekly, daily, or some hardly at all. Further, 

practitioners need to help service recipients make choices about the kinds of support they receive on the 

job. Often, participants want assistance around particular challenges or problems and don’t necessarily 

want to meet with staff when no issues are present. If staff is familiar with a participant’s job environment 

they can anticipate problems and stresses that may occur. Additionally, case managers or vocational 

counselors should reinforce successes and skills developed, and help relate them to the individual’s 

employment goals. 

Some programs use on-site job coaches who periodically visit the work site to observe and coach 

participants. Often, the presence and assistance of a job coach is a valuable resource to employers and can 

improve the employee job tenure and success. However, some participants are embarrassed by the 

presence of a job coach at the work place. As a result, some programs have eliminated this intervention as 

long as the placement and participant are stable. 

Employment Accommodations 

Job accommodation often can be a critical factor in keeping a job. Some individuals may need help to 

negotiate reasonable accommodations with their employers (discussed in Chapter Seven). An important 

facet of employment counseling is to help the individual decide whether to request a job accommodation 

during the interview, after an offer to hire has been made, or after employment has begun. To request an 

accommodation, the job candidate/employee must disclose that he or she has a disability—something 

many mental health consumers are reluctant to do. There is no single answer to this issue. Each person 
57 

must address it from his or her own perspective. Table 5.2 highlights the most frequently requested 

accommodations. 

Table 5.2 Reasonable Accommodations Frequently Requested by People with 

Mental Illnesses12

Key Ingredients 

Communication Facilitation Flexible Scheduling Job Description Modifications Physical Space 

9 Job coach on-site per request of 

client 

9 Permit calls to job coach as 

needed 

9 Use of daily/regular task 

planning to set priorities 

9 Use of written instructions 

9 Provision of co-worker buddy 

9 Increased supervisory time 

9 Limiting supervisor/staff change 

9 Options to work part-time 

hours 

9 Time off for clinic or 

medical appointments 

9 Flexible work schedule 

9 Availability of time off 

without pay 

9 Use of vacation/personal 

time for medical needs 

9 More frequent breaks 

9 Gradual task introduction 

9 Minimizing changes to job 

description over time 

9 Exchanging tasks with others 

9 Access to water in 

workspace 

9 Access to rest area 

9 Access to private space 

9 Access to refrigerator for 

medications 

9 Changes in spatial 

arrangements 

9 Changes in noise levels 

9 Changes in lighting 

arrangements 

Chapter Summary 

The training and employment needs of people with serious mental illnesses who also are, or have been, 

homeless cannot be met by any single approach. By understanding and incorporating job-related service 

elements, from initial engagement through job retention, the employment specialist can more effectively 

help guide individuals toward a vocational future of hope and success. The task of increasing employment 

among people with mental illnesses cannot succeed if the mental health system acts alone. Collaboration 

with area businesses and public housing authorities is an effective way to expand and enhance jobs 

available to individuals with serious mental illnesses who are also homeless. 

Chapter 5 Notes 

1

 This Chapter contains material adapted from: White, A., and Wagner, S. “Effective strategies: Employment for homeless people 

with serious mental illness” and Shaheen, G., Bianco, C., Falco, A. “Employing people with mental illness who are homeless: 

Surveying the field.” Papers prepared for the CMHS Sponsored Employment and Vocational Rehabilitation for Homeless People 

with Serious Mental Illnesses Workshop, Washington, DC, September 1999; and Bianco, C., and Shaheen, G. Employing 

Homeless People with Mental Illness: Principles, Practices and Possibilities. Unpublished draft prepared for the CMHS PATH 

Program. Albany, NY: Advocates for Human Potential, July 1999. 2

 Macias, C. “An Experimental Comparison of PACT and Clubhouse.” Final report of the Massachusetts Employment 

Intervention Demonstration Project. Available at http://www.fountainhouse.org. 3

 Bianco, C., Shaheen, G., and Golden, T. Integrated Employment for People with Serious mental illness: A Rehabilitation and 

Recovery-Based Approach. Ithaca, NY: Cornell University, 1997. 4

 Ridgeway, P., and Rapp, C. The Active Ingredients in Achieving Competitive Employment for People with Serious Mental 

Illness: A Research Synthesis. Lawrence, KS: University of Kansas School of Social Welfare, 1998. 5

 Double Trouble for Recovery, Inc. Informational literature. Albany, NY: The Mental Health Empowerment Project, 2000. 6

 Corporation for Supportive Housing. Work in Progress: An Interim Report of the Next Step: Jobs Initiative. New York, NY: 

Corporation for Supportive Housing, 1997. 

7

 For comprehensive information on these and other topics, including development of a benefits support plan, see McAlees, D.C. 

Effective Strategies to Improve the Employment of SSI/SSDI Participants. Menomonie, WI: Stout Vocational Rehabilitation 

Institute, 2000. 
58 

8

 Section 1619b is an extremely important provision of the Social Security Act as it not only protects an individual’s Medicaid 

coverage, but also maintains their eligibility to receive SSI cash benefits in future months that countable income falls below the 

allowable limits, provided that they meet all other eligibility requirements for SSI. 

9

 Emerson, J., and Twersky, F. (eds). New Social Entrepreneurs: The Success, Challenge and Lessons of Non-Profit Enterprise 

Creation. San Francisco, CA: Roberts Foundation Homeless Economic Development Fund, 1996. 10 International Downtown Association. Addressing Homelessness: Successful Downtown Partnerships. A Report of Strategies to 

Assist Homeless People with Serious Mental Illnesses. Washington, DC: August, 2000. 11 Ibid. 

12 Granger B., Baron, R., and Robinson, S. Findings from a national survey of job coaches and job developers about job 

accommodations arranged between employers and people with serious mental illness. Journal of Vocational Rehabilitation 9: 

235-251, 1997. 
59 

Chapter Six 

Working with the State 

Vocational Rehabilitation Agency1

he Federal/state vocational rehabilitation (VR) system has been in existence since 1920. The Federal 

Rehabilitation Act mandates funding for vocational and other state-administered rehabilitation. The 

VR program originally was designed to serve people with physical disabilities until the Federal statute 

was amended in 1943, allowing services for people with mental illnesses and developmental disabilities. 

However, the structure and guidelines of the current VR system remain better suited to the needs of 

people with stable, non-declining physical disabilities than to those with relapsing disabilities such as 

long-term mental illness.2,3 

While people with mental illnesses present challenges that state VR agencies sometimes are unprepared to 

address, the current VR system is even less suited to meet the needs of people with mental illnesses who 

also are homeless. This chapter provides an overview of VR services available to help people with 

disabilities obtain employment, discusses its effectiveness in meeting the employment needs of people 

with mental illnesses, and suggests a number of considerations in the creation of effective collaborations 

between mental health and VR systems. 

Purpose and Scope of VR Services 

The Federal Rehabilitation Act defines a disability as any mental or physical condition that substantially 

interferes with a major life function. Areas of functioning identified in the statute include mobility, 

communication, the ability to set and pursue goals, work endurance, the ability to acquire and express 

work skills, and the ability to form and support interpersonal relationships. 

T 
60 

At the Federal level, the VR program is administered by the Rehabilitation Services Administration 

(RSA), which awards annual matching grants to each state to operate its own VR program. In each state 

and territory a designated state unit administers the VR program, with considerable latitude in how these 

services are operated. State-employed vocational rehabilitation counselors determine eligibility for VR 

services based on Federal guidelines, provide vocational and supportive counseling and job placement 

services, purchase or locate alternative sources of funding for services to help people achieve vocational 

goals, monitor and coordinate the delivery of these services, and monitor individuals’ progress. Among 

the services funded by state VR agencies are: 

 Situational, on-the-job assessments of work performance; 

 Personal adjustment training to assess and build the “soft skills” (e.g. co-worker 

relationships) needed for job success; 

 Work adjustment training to build stamina, attendance, etc.; 

 On-the-job training that pays the employee’s salary for a limited time after job placement; 

and 

 Time-limited job coaching to provide employee/employer support on and off-site. 

In addition, supported employment, allocated to states on a formula grant basis, has been incorporated 

into the VR program as a supplement to services provided under the standard VR program. Supported 

employment closure is achieved when the person with the disability maintains employment for 90 days or 

more under Federal criteria. The key benchmark by which the Federal government judges the success of 

the state VR programs is the number of successful closures generated each year. 

Since all categories of people with severe mentally or physically disabling conditions potentially are 

eligible for VR services, state rehabilitation counselor caseloads often are large and may include 

individuals with a wide range of disabilities. These include individuals with traumatic brain injuries, 

spinal cord injuries, HIV, histories of alcohol and substance abuse, neurological disorders, 

musculoskeletal disorders, cancer, heart disease, mental illnesses, developmental disabilities, those who 

are deaf and/or blind, among other disabling conditions. In addition, state rehabilitation counselors are 

expected to be conversant with a daunting array of technologies and with the professions that employ 

them. 

According to Albrecht, the short-term goals of the national rehabilitation program are to “enable people 

with impairments to function at their highest possible physical, social, and psychological level.”4

 The 

longer-term goals have to do with society’s desire to increase an individual’s ability to work or otherwise 

function independently, thereby decreasing public expenditures. Thus, rehabilitation counselors often face 

competing priorities in terms of furthering the social mission of the program within the context of the 

agency’s competing political concerns and fiscal limitations.5

 

Effectiveness of the VR System for People with Mental Illnesses 

VR often has been criticized as ill-prepared to cope with employment support strategies to help people 

with mental illnesses obtain and maintain jobs. Some suggest that the VR system’s training programs 

have done people with mental illness a disservice resulting in pessimistic notions of mental illness.6

Consumers and their families increasingly have become vocal in their dissatisfaction and disillusionment 

with the VR system, suggesting that it keeps people with disabilities trapped in lives of poverty.7

 Much of 

this criticism was summarized in a survey issued by the National Alliance for the Mentally Ill.8

 Based on 
61 

reviews of earlier studies examining the effectiveness of the national VR program and current state VR 

plans, the NAMI report concluded: 

 The time-limited nature of VR services, predicated upon the perception that, once employed, 

VR customers no longer needed vocational services, was inconsistent with the realities of the 

fluctuating nature of severe mental illness; 

 The emphasis on case closures provides incentive for state VR counselors to work with the 

easiest-to-place individuals as opposed to individuals with more complicated, long-term 

needs; 

 Too many resources were devoted to the eligibility determination process, frequently using 

assessment methodologies such as paper-and-pencil tests that may not consider the cognitive 

and/or literacy skills deficits of some people with mental illnesses; 

 State VR counselors and administrators lacked knowledge of the needs of people with severe 

mental illnesses, and too few opportunities existed to acquire this knowledge; 

 Despite evidence that specialization produced better outcomes, most states had not 

designated VR counselors as mental health specialists; 

 Little evidence was found of effective coordination between state VR and state mental health 

agencies; and 

 The time-limited nature of VR funding served as disincentives for community mental health 

providers to contract with those agencies. 

In response, the Rehabilitation Act Amendments of 1998 included a number of new provisions in 

accordance with advocates’ recommendations:9

 Purchase of rehabilitation technology to assist people in compensating for physical 

disabilities that would otherwise preclude them from performing job tasks; 

 Requiring trial work periods to determine eligibility before an individual is judged to be too 

severely disabled to benefit from VR services; 

 Strengthening education and training for VR staff; 

 Increasing the role of individuals in developing their own rehabilitation plans; 

 Requiring agencies to report on the employment status of individuals six- and 12-months 

post-case closure; and 

 Self-employment business planning and start-up funds, although this is not widely available. 

In the past, the VR system has been slow to adapt and change. Factors inhibiting change include limited 

knowledge of mental health issues and effective employment approaches for people with mental illnesses, 

the inability to provide long-term supports, and natural resistance to change.10 While the NAMI report 

does cite major improvements in the VR system that are better meeting the needs of people with mental 

illnesses, challenges still remain. 

The results of a 32-state survey of VR programs conducted in 2000 revealed that a number of these 

programs have taken steps to address some of these challenges.11 Sixteen states reported they had mental 

health specialist VR counselors. Six of those states indicated that they had a large number of these 

specialists, and three that they had some level of co-location of state VR staff in mental health agency 

settings. Fifteen of the states had agency-sponsored training on mental health rehabilitation available to 

their VR staff. Nine states reported that the training was in-depth. In four of the states, VR counselors 

underwent this training with their mental health counterparts. 

Sixteen of the states in the survey had blended funding arrangements with the state mental health agency, 

with eight of those states describing highly integrated budget arrangements. In two of the states, these 

arrangements were mandated by statute and, in one state, by court order. 
62 

Similarly, 14 of the states reported a joint planning process between the state VR and mental health 

agencies, described by eight states as highly integrated. Six of the states reported they had made some 

effort to promote mental health consumer leadership, and five states described a significant effort to 

promote a recovery philosophy. 

Despite remaining concern regarding the effectiveness of VR services for people with serious mental 

illnesses, intrinsic advantages that can be expanded exist within the VR system. First, and most obvious, 

VR can be an important source of funding for employment services where other resources are scarce or 

non-existent. Second, a wide range of potential services exist that can offer flexibility in meeting 

individual needs, including initial job testing and access to integrated work through situational 

assessments. In some states, VR will even fund business plans or provide business start-up capital for 

people with disabilities whose goal is self-employment. 

Individual Employment Plans (IEPs) require active involvement of individuals and significant others and 

allow individuals to choose their vocational goals, the services needed to achieve them, and their 

preferred service provider. Since VR establishes contracts with private vendors, it can connect individuals 

with agencies offering specialized services. Linkages with mental health and/or homeless services 

providers familiar with their clients’ specialized needs, could represent an effective investment of VR 

resources by increasing the likelihood for employment success. Furthermore, IEPs represent an effective 

way to ensure that services are appropriate to meeting personal employment goals and can be modified to 

incorporate new and improved vocational rehabilitation services. 

Individualized VR services can be the basis of continuing system improvement.12 Private community 

rehabilitation programs, in competing for VR funds, have a stronger incentive to seek more efficient and 

effective methods of helping consumers find jobs. VR counselors, impelled by limited budgets, are likely 

to select providers that offer the greatest chance for successful closures. This may make it difficult for 

providers of mental health services to access and utilize VR contracts to provide services to people with 

mental illnesses, given its cyclical nature. 

Another VR attribute can be utilized to better address the work-related needs of people with mental 

illnesses, particularly those who are homeless. As the only government agency whose prime focus is 

employment for people with disabilities, including people with mental illnesses and histories of 

homelessness, VR has a singleness of purpose not shared by other Federal and state agencies. VR 

employment services can cut across disability groups and can be provided to individual agencies serving a 

diverse clientele with a range of disabilities. Its value cannot be overestimated as a potential partner with 

other Federal and state agencies (Substance Abuse and Mental Health Services Administration, Housing 

and Urban Development, Department of Labor, State Mental Health, and Alcoholism and Substance 

Abuse authorities, etc.) in reducing systems fragmentation and overlap in providing vocational 

rehabilitation services. For people with mental illness who are homeless and need to negotiate multiple 

social, mental health, substance abuse, and housing services, VR has the potential to be a common thread 

for employment supports throughout the individual’s service planning process. However, significant 

systems integration needs to occur at the Federal, state, and local levels for these benefits to be fully 

realized. 
63 

Best Practices for People with Serious 

Mental Illnesses who are Homeless 

As a group, people with serious mental illnesses who are also homeless present some of the greatest 

challenges to the VR service system. The VR system can better meet the employment needs of 

individuals who are, or have been, homeless, by making them a priority group, recognizing their 

specialized needs, combined with cross-agency/discipline collaboration in the development and delivery 

of innovative services. 

Making People with Serious Mental Illnesses a Priority 

The 32-state survey of VR agencies13 indicated that people with mental illnesses were a priority 

population in most of those states, comprising from 18% to more than 70% of caseloads. The value of 

specialty caseloads is highlighted by the experience of one state that eliminated specialty caseloads in 

favor of a generalist approach. Within two years of making this change, this state experienced an 

estimated 20% decrease in the number of new cases and the number of successful outcomes involving 

people with mental illnesses. 

Staff Training 

The same survey found that some generalist VR staff were skeptical about working with people with 

serious mental illnesses, indicating that education and staff training is essential. The availability of 

training for VR staff on mental illness and psychiatric rehabilitation was found to range from ongoing 

coursework offered on a statewide basis to no available training at all. When offered, training reportedly 

was sporadic and, in most cases, did not include a focus on the needs of people who are homeless and 

who also have serious mental illnesses. 

Of those surveyed, California was the exception. The State VR and Mental Health Authority (MHA) 

provided a total of $1.5 million in interagency support for training and technical assistance, program 

reviews, research, and Building Employment Service Teams (BEST) Network support. BEST Networks 

are county-based coordinating bodies that provide support in areas such as training, networking with 

employers, support services (e.g., housing and transportation), and with special populations (e.g. youth, 

homeless individuals) to county teams comprised of VR and MHA staff. Some Networks employ a BEST 

technician—a person with a history of mental illness who provides coordination and support services 

(e.g., training, event/meeting coordination, research, clerical support) to Network teams. 

To enhance the services provided by VR practitioners, the Center for Psychiatric Rehabilitation at Boston 

University offers a part-time, one-year Certificate Program in Psychiatric Vocational Rehabilitation, 

funded by a grant from the Federal Rehabilitation Services Administration (RSA). Using training 

materials that include the “choose-get-keep” approach and other psychiatric rehabilitation technologies, 

the certificate program is offered as a series of six, two-day institutes. Program topics include partnering 

competencies; identifying vocational needs; facilitating vocational rehabilitation readiness; personalizing 

vocational assessment; achieving vocational placements; developing essential skills, supports, and 

accommodations; and meeting the needs of culturally diverse service recipients. 
64 

Federal Collaboration 

A good working relationship between state VR and mental health agencies is key. State Mental Heath 

Authorities (SMHAs) that emphasize vocational services have been successful in finding ways to blend 

funds to create opportunities for individuals with mental illnesses. For instance, in California, several 

county mental health agencies and local VR offices have developed cooperative contracts to blend public 

mental health and vocational rehabilitation funds, resulting in significant positive outcomes. 

The effectiveness of partnerships at the Federal, state, and local levels is further demonstrated in Illinois, 

in which the state VR and mental health agencies entered into regional agreements negotiated by 

consumers and specialist staff of state and community agencies. The agreements covered the 

responsibilities of all stakeholders regarding the scope of services, methods of referral, role of consumer 

leadership, and the process of dispute resolution. The participants to the agreement are surveyed and the 

agreements revised annually. Through Federal funding by the Social Security Administration, the VR 

program mental health specialists and some of their counterparts in community mental health agencies 

received 24 months of training and technical assistance in best practices in psychiatric rehabilitation from 

two training and research institutes. The grant also funded the development of two Internet sites, one that 

will feature interactive training software. 

In addition, the Illinois State VR program provided 12 months of training in psychiatric rehabilitation 

philosophy and practices to 25 psychiatric residents of one of the major state medical schools. The VR 

program specialists are forming teams with these psychiatrists, with consumers, and with staff of the state 

mental health agency to provide outreach training in psychiatric rehabilitation to community physicians 

and other community leaders throughout the state. A major emphasis of this training will be the needs of 

people who are homeless and have serious mental illnesses. These teams will also support initiatives to 

link people with mental illnesses who are exiting the corrections system to community support and 

vocational services. 

The Illinois VR program currently is working with the state mental health agency and the National 

Empowerment Center to develop consumer leadership training and consumer staffed outreach teams. 

Through its four-year co-sponsorship of a consumer advisory committee, the VR program has facilitated 

the development of a consumer-produced video series on work, recovery philosophy, and consumer 

rights. 

Linking Supportive Housing and Vocational Rehabilitation Systems 

Partnerships among various disciplines with differing philosophies can be an effective way to increase 

employment success for individuals with mental illnesses who also are homeless. In an effort to improve 

access to VR services and increase employment outcomes for tenants of supportive housing, the 

Corporation for Supportive Housing and the New York State Office of Vocational and Educational 

Services for Individuals with Disabilities (VESID) entered into a partnership with several non-profit 

providers of supportive housing between 1996 and 1999 to implement the Linking Supportive Housing 

and Vocational Rehabilitation Systems Project.14 The Project, funded by the U.S. Department of 

Education, Rehabilitation Services Administration, sought to improve systems integration and establish 

collaborative relationships between the VR and supportive housing services sectors. The project increased 

VR eligibility and employment rates of tenants with mental illnesses who had histories of homelessness. 

An important factor in the Project’s success was its inclusion of an intermediary between the supportive 

housing providers and VESID that facilitated joint training, meetings, and problem solving. Another key 

element was the use of an on-line VR application system, which resulted in nearly three times the number 
65 

of tenants being referred to VESID than before, as well as a nearly 50% decrease in length of time 

between application and eligibility determination.15 Other strategies emerging from the project included: 

 New referral relationships between VR and supportive housing agencies to coordinate and 

expedite VR eligibility determinations; 

 Expansion of local electronic training resources to include VR-funded programs and 

resources; 

 Development of an electronic job bank enabling supportive housing agencies to access job 

leads for their tenants within the supportive housing industry; and 

 Expanding and upgrading vocational and employment services provided by supportive 

housing agencies.16

Future Challenges in Building Successful VR/MH Partnerships 

Despite evidence of the effective partnerships and strategies that have emerged, a number of changes can 

be implemented to enhance the ability of people with mental illnesses, particularly those who are 

homeless, to take full advantage of VR services. 

Increased Collaboration 

Interagency collaboration at the state level can help overcome systems integration barriers, clarify roles, 

and plan innovative service delivery approaches: 

 Designing and implementing VR/MH systems integration efforts. VR counselors 

and mental health/homeless services providers need to be familiar with their respective 

policies and practices before dialogue and collaboration can occur. Use of the “Linking 

Supportive Housing and Vocational Rehabilitation Systems” project as a template for 

services integration could be a starting point. Utilizing the state budgets to blend VR/MH 

funding resources to support both intensive, time-limited supported employment services as 

well as extended, long-term post-placement supports also can help meet the long-term 

support needs of the population. 

 Establishing VR/MH agreements clarifying agency roles. A number of states have 

developed interagency memoranda of understanding that underscore compatibility of 

mission, vision, and values in designing and delivering consumer-responsive supported 

employment services. They can include: (1) responsibilities of the state agencies involved in 

supported employment and the agreed upon definitions of terms and models of service 

delivery; (2) principles and operating guidelines intended to promote access to integrated 

employment, including supported employment; and (3) quality indicators for supported 

employment that serve as a guide for self-evaluation, quality assurance, and generally 

accepted best practices. 

 Joint planning to explore non-traditional approaches. Non-traditional approaches 

may delineate: (1) supportive housing staff to complete some initial VR eligibility 

paperwork, and electronically transferring the data to reduce the time it takes to determine 

eligibility; (2) automatic VR eligibility when a consumer has established SSI eligibility due 

to disability; (3) mechanisms to support self-employment, including funds for business 

planning, equipment purchase, lease, etc; and (4) eligibility for VR on-the-job training funds 

or other employer work incentives for those involved with career-level competitive 
66 

employment. In addition, social enterprises or affirmative businesses might consider 

becoming VR vendors for training and out-placement into other community competitive 

jobs. 

Staff Training and Incentives 

A number of strategies may increase VR staff understanding and desire to meet the special needs of 

individuals who are homeless and have serious mental illnesses. These include opportunities for training 

and specialization, and incentives for serving this particular population: 

 Facilitating statewide cross-systems training initiatives. Training for VR 

counselors should include orientation, not only to the functional implications of mental 

illness, but also to the psychological and physical implications of homelessness. It also 

should include an appreciation of the effects of co-occurring substance abuse and mental 

illness, as well as compounding factors affecting employment, including criminal justice 

system involvement. Since many mental health consumers with histories of homelessness 

possess a combination of these disadvantages, VR counselors should be aware that 

traditional employment services may not work, and that new approaches may be necessary. 

In the emerging workforce development system, VR counselors and administrators who are 

aware of the needs of people who are mentally ill and also homeless could act on behalf of 

homeless services agencies seeking contracts from the Workforce Investment Boards, and 

ensure that consumers’ needs are met through the one-stop system. 

 Establishing VR mental health specialists. VR counselors who also are specialists in 

mental illness and psychiatric rehabilitation can help improve employment outcomes for 

consumers. This approach has proven to be effective, and when withdrawn, leads to a drop 

in successful outcomes among people with serious mental illnesses. 

 Providing incentives for serving people with serious mental illnesses who are 

homeless. Acknowledging that these individuals require intensive, ongoing, and often 

repeated services, counselors who commit to serving this clientele could receive a reduction 

in their total caseload. 

Inclusion of Consumers 

Involving consumers as providers helps to ensure that policies and services reflect consumer needs and 

priorities. Consumers should be included as representatives at the highest levels of VR/mental health 

agencies, both in key policymaking decisions, and as key policymaking staff. In addition, consumers 

should be included as VR Staff. Most states utilize special civil service classifications that waive 

competitive test requirements for applicants with disabilities. Providing training opportunities and 

earmarking a block of these staff lines for VR offices statewide could encourage consumers to consider 

careers as VR counselors and aid in changing the system from the inside-out. 
67 

Linking VR with Mental Health and Homeless Services 

Providing access to VR services at the same places where people who are homeless and have serious 

mental illnesses receive other services, as well as providing training to staff who provide those services, is 

also recommended. Examples include: 

 Co-locating VR counselors. Co-locating VR counselors with mental health staff at 

provider agencies can increase service access. VR counselors could visit shelters and drop-in 

centers, where many homeless people with mental illnesses receive services, to provide 

information and begin the eligibility determination process; 

 Linking outreach teams and VR. Outreach teams can employ a vocational specialist as 

a member of the multi-disciplinary team to provide direct employment-related services and 

linkage to other services. By establishing a strong bond between the outreach team 

vocational specialist and VR counselor who is also a mental health specialist, issues such as 

rapid access, return eligibility, and better service coordination may be improved; and 

 Including shelters and drop-in centers in training. Orientation to VR services 

should be made available to shelters, outreach staff, and drop-in centers, not only to 

encourage awareness of VR services, but as a tool to reinforce work as a priority. If shelters 

can become VR vendors for work readiness assessments, both an early-stage orientation to 

work and a new funding source for case management staff might be achieved. 

Chapter Summary 

State Departments of Vocational Rehabilitation can be powerful allies in efforts to ensure that people with 

mental illnesses who are also homeless obtain and retain integrated employment. While many challenges 

to systems and services integration exist, effective relationships between mental health and homeless 

services providers and state VR agencies are occurring throughout the country. These partnerships often 

are based on efforts to develop understanding of each sector to commit resources to staff training, and to 

explore new funding mechanisms that acknowledge and support the often long-term needs of people with 

mental illnesses who are also homeless. 

Chapter 6 Notes 

1

 This Chapter contains material adapted from: Oulvey, G. “Reconcilable differences: The Federal/state vocational rehabilitation

system’s ability to collaborate in serving people who are homeless and mentally ill.” Paper prepared for the CMHS Sponsored 

Employment and Vocational Rehabilitation for Homeless People with Serious Mental Illnesses Workshop, Washington, DC, 

September 1999. 

2

 Bond, G.R., Drake, R.E., Mueser, K.T., and Becker, D.R. An update on supported employment for people with severe mental 

illness. Psychiatric Services 48(3): 335-46, 1997. 3

 Noble, J. H., Honberg, R.S., Hall, L.L., and Flynn, L.M. A Legacy of Failure: The Inability of the Federal State Vocational 

Rehabilitation System to Serve People with Severe Mental Illnesses. Washington, DC: National Alliance for the Mentally Ill, 

1997. 

4

 Albrecht, G.L. The Disability Business: Rehabilitation in America. Newbury Park, CA: Sage, 1992. 5

 Tarvydas, V., and Cottone R.R. A four level model of ethical practice. Journal of Applied Rehabilitation Counseling

22(4): 11-18, 1991. 

6

 Bevilaqua, J.J. The state vocational rehabilitation agency: A case for closure. Journal of Disability Policy Studies 10(1): 90-98, 

1999. 
68 

7

 Keller, E. Testimony to U.S. House of Representatives Committee on Ways and Means, Subcommittee on Social Security, on 

H.R. 3433, the Ticket to Work and Self Sufficiency Act of 1998. Washington, DC, March 17, 1998. 8

 Noble, et al., op. cit. p. 67. 

9

 Ibid. 

10 Conley, R.W. Severe mental illness and the continuing evolution of the Federal-state vocational rehabilitation program. 

Journal of Disability Policy Studies 10(1): 99-126, 1999. 11 Oulvey, G. and Ingraham, K. The 32-State Survey. Unpublished document. 12 Conley, op. cit., p. 68. 

13 Oulvey, G. and Ingraham, K., op. cit., p. 68. 

14 Rivard, J.C., Akabas, S. H. Evaluation of the “Linking Supportive Housing and Vocational Rehabilitation Systems” Project. 

New York, NY: Center for Social Policy and Practice in the Workplace, Columbia University School of Social Work, 1999. 15 Ibid. 

16 Rivard and Akabas, op.cit., p. 68. 
69 

Chapter Seven 

The Right to Work1

everal Federal statutes (discussed below) provide a foundation to help people with disabilities move 

from lives of dependency and despair to lives of independence and hope. A number of excellent 

resources provide detailed information about these statutes. The purpose of the discussion that follows, 

however, is to provide highlights of these key statutes. Readers are encouraged to consult the documents 

and Internet sites referenced for more information. 

Rehabilitation Act of 1973 

The Rehabilitation Act of 1973 (as amended in 1992) promotes the philosophy, principles, and practices 

of integrated employment for people with disabilities by affirming: 

 Respect for individual dignity, personal responsibility, self-determination, and pursuit of a 

meaningful career, based on the informed choice of individuals with disabilities; 

 Respect for privacy, rights, and equal access for individuals with disabilities; 

 Inclusion, integration, and full participation of individuals with disabilities; 

 Support for the involvement of family, advocates or authorized representatives, if desired or 

requested by the individual with a disability; and 

 Support for individual and systemic advocacy and community involvement. 

The 1992 amendments support the provision of individuals with disabilities with the tools necessary to 

help them make informed choices and receive equal opportunities in such areas as employment, 

independent living, finances, and self-sufficiency. 

S 
70 

Rehabilitation Act Amendments of 1998 

The Rehabilitation Act Amendments of 1998, part of the Workforce Investment Act of 1998 (see below), 

amended and extended the authorization of the Rehabilitation Act of 1973 for five years.2

 Key provisions 

of the new statute included expanded customer choice, streamlined administrative procedures, and 

increased employment outcomes. In particular, the Amendments called for the development of innovative 

approaches to expand and improve VR services, particularly for individuals with the most significant 

disabilities. Eligibility was streamlined by establishing presumptive eligibility for individuals who receive 

Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). While this does not 

entitle individuals to services, it recognizes they are a group with the most severe disabilities who will 

apply for VR services. 

In addition, eligible individuals have the option either to develop their own Individualized Plan for 

Employment (IPE), or request the assistance of a qualified VR counselor. To increase successful 

employment outcomes, the Amendments recognize telecommuting, self-employment, and small business 

operation as legitimate employment outcomes. 

The Americans with Disabilities Act3

The Federal Americans with Disabilities Act of 1990 (ADA) is one of the most sweeping statutes for 

people with disabilities since the Rehabilitation Act of 1973. The law prohibits discrimination against, 

and guarantees equal opportunities for, qualified people with disabilities in employment, government 

programs and services, public accommodations and services, and in telecommunications. This statute is 

not an affirmative action law, but rather a Federal statute designed to guarantee qualified people with 

disabilities a “level playing field”. 

The ADA promotes full-inclusion for individuals with disabilities, and stresses empowerment, dignity, 

respect, and independence. As Federal legislation, the ADA has been developed to help people 

understand not just their responsibilities to individuals with disabilities, but also the rights with which 

every person with a disability is endowed. 

The ADA has a number of key employment-related provisions and definitions: 

 Covered entities: The ADA applies to employers with 15 or more employees, 

employment agencies, labor organizations, or joint labor management committees engaged 

in an industry affecting commerce. Employers with fewer than 15 employees are exempt. 

 Definition of “disability”:4 Any physical or mental impairment that substantially limits 

one or more major life activities; a record of such impairment; or being regarded as having 

such impairment. Related definitions include: 

– Physical or mental impairment: (a) any physiological disorder or condition, 

cosmetic disfigurement, or anatomical loss affecting one or more of the following 

body systems: neurological, musculoskeletal, special sense organs, respiratory 

(including speech organs), cardiovascular, reproductive, digestive, genito-urinary, 

hemic and lymphatic, skin, and endocrine; and/or (b) any mental or psychological 

disorder such as mental retardation, organic brain syndrome, emotional or mental 

illness, and special learning disabilities. 
71 

– “Substantially limits”: (a) an inability to perform a major life activity (caring for 

oneself, performing manual tasks, walking, seeing, hearing, speaking, breathing, 

learning, and working) that an average person in the general population can perform; 

(b) significantly restricted as to the condition, manner, or duration under which an 

individual can perform a particular major life activity as compared to the average 

person in the general population. 

 Qualified individual: An individual with a disability who, with or without reasonable 

accommodation, can perform the essential functions of the employment position. Essential 

functions are defined as tasks that are fundamental, not marginal. 

 Discrimination: No place of employment shall discriminate against a qualified individual 

with a disability with regard to application procedures, hiring, promotions and transfers, 

training, compensation, fringe benefits, layoffs, terminations, or other terms, conditions, and 

privileges of employment. 

 Reasonable accommodation: Modifications to the job application process, the work 

environment, or job that will enable the qualified individual with a disability to perform the 

essential functions and enjoy equal benefits and privileges of employment. Employers do not 

need to provide accommodations if they can demonstrate that doing so would result in an 

undue hardship. 

 Undue hardship: The ADA requires that a reasonable accommodation be made, where 

requested, unless the employer can demonstrate that the accommodation would impose an 

undue hardship on the business (Sec. 102(b)(5)(A)). “Undue hardship” means the requested 

action will lead to significant difficulty or expense when considered in light of business size 

and type, number of employees, and nature and cost of accommodation. 

On June 22, 1999, the Supreme Court’s Olmstead v. LC ruling indicated that, in appropriate 

circumstances, the ADA requires the placement of people with disabilities in a community-integrated 

setting whenever possible. The Court concluded that “unjustified isolation,” e.g., institutionalization when 

a doctor deems community treatment equally beneficial, “is properly regarded as discrimination based 

upon disability.”5

Workforce Investment Act of 1998 

The Workforce Investment Act (WIA) of 1998 is a landmark law that has changed the Nation’s workforce 

preparation and employment system.6

 Together with the Personal Work and Responsibility Act of 1996—

the centerpiece of welfare reform—WIA sets the stage to move thousands of unemployed or 

underemployed individuals back into the nation’s workforce. It sets forth changes to funding streams, 

target populations, delivery systems, accountability, long-term planning, labor market information 

system, and governance structure, and gives states greater authority over training and employment 

programs. Responsibility for providing services under the Act is assumed by local Workforce Investment 

Boards (WIBs) which play a key role in identifying demand for occupations, linking employers and 

jobseekers, and contracting for services for special needs jobseekers. 

A key provision of Title I of the Act is the establishment of “one-stop career centers,” the focus of local 

workforce development services that replaces Job Training and Placement Administration (JTPA) “reemployment centers.” Title IV links Rehabilitation Act programs to state and local workforce 
72 

development systems to facilitate access for people with disabilities to mainstream training and 

employment services. For people with mental illness who are homeless, the implications of the link and 

consolidation of local employment services are significant. 

As the Workforce Investment system evolves, performance standards and accountability could help 

increase access to mainstream workforce investment services for people who are homeless and have 

serious mental illnesses. Areas for adaptation suggested by the Corporation for Supportive Housing 

include:7

 Outcome orientation. Such an orientation is essential for service providers to employ 

people with mental illnesses who are homeless and to participate in the workforce 

development system. However, the benchmarks used to measure vocational progress must 

account for the multiple barriers that challenge this population. For example, when 

measuring employment outcomes, benchmarks might include counting the number of hours 

worked per quarter (rather than measuring job retention in terms of months) and recognizing 

credentials acquired over an extended period of time. 

 Accountability measures. One of the greatest obstacles for people with multiple barriers 

interested in accessing the workforce investment/JTPA system is the performance 

accountability required for service providers and participants. Providers that offer 

employment services to people with multiple barriers have been unable to compete for 

contracts because expected performance outcomes are unrealistic and do not reflect the 

pathway to success for this population. Furthermore, outcomes and indicators do not allow 

for flexibility or the more incremental process of most consumers. When employment 

programs are designed more specifically for people with multiple barriers and allow for 

slower progress, even those with long histories of mental illness, substance abuse, and/or 

homelessness, should be able to find and keep jobs. 

Partner agencies selected under the Workforce Investment Act (WIA) to deliver specialized 

one-stop services and training are held accountable for performance in entry into 

unsubsidized employment; retention in unsubsidized employment (six months after entry 

into employment); and earnings received in unsubsidized employment (six months after 

entry into employment). 

 Performance benchmarks. To ensure strong performance success and labor market 

appropriateness, the local WIB, in partnership with providers, should review and evaluate 

performance rates of those agencies offering services to people with multiple barriers. The 

following provides recommendations for adjusted performance benchmarks in serving 

people with multiple barriers: 

– Successful placement into employment should include temporary and part-time 

work and should measure work hours on a quarterly basis. For example, a total of 

100-130 work hours for the first quarter might qualify as a successful placement. This 

encourages incremental participation in the workforce for people who are not able to 

maintain full-time employment due to the range of issues associated with multiple 

barriers. 

– Retention in the same job for longer than six months may be unrealistic for many 

individuals with multiple barriers. A more appropriate benchmark must reflect the 

total number of hours worked per quarter over a four-quarter period. The total hours 

worked per quarter could be evaluated to determine the trend in hours worked by the 
73 

participant over time. Trends that show an increase in total hours worked per quarter 

beyond the initial 100-130 hours might qualify as successful work retention. 

– The definition of earnings needs to be expanded to capture other critical 

components beyond wages. When evaluating earnings beyond the second quarter of 

employment, other areas to be reviewed should include: advanced employment status 

(e.g., advancing from temporary to permanent; from part-time to full-time); advanced 

benefits status (e.g., attaining medical coverage, paid sick leave and vacation, pension 

contributions); increased wages/earnings (e.g., increased earning rate, bonuses); and 

increased working hours. 

 Overall performance. In addition to the short-term performance indicators WIA requires 

local communities to track, WIBs might also develop a tracking tool to monitor the progress 

of people with multiple barriers while in the labor market. This tool might include the WIA 

performance benchmarks measured over an extended period of time (e.g. 3-5 years), and 

might consider disincentives that now exist within government benefit structures and how 

they affect this population’s motivation toward employment. 

Ticket to Work/Work Incentives Improvement Act of 1999 

Perhaps the most significant disincentive to work faced by people receiving Supplemental Security 

Income (SSI) or Social Security Disability Insurance (SSDI) is the loss of cash benefits and medical 

coverage. SSI/SSDI cash benefits, even when combined with housing and medical subsidies, are 

insufficient to move individuals above the poverty level. Often, when individuals earn enough to make 

them ineligible for disability benefits, their income must be sufficient to replace both cash assistance and 

health care coverage. Because many consumers are employed in entry-level jobs that do not offer health 

insurance benefits, they are obliged to keep their income below a level that endangers their SSI/SSDI 

eligibility. Moreover, many are afraid to risk the loss of benefits, and therefore remain unemployed. 

Others will take jobs, even it means losing their benefits, in the hope that they will not need medical 

coverage, or will be financially able to purchase it if they do. 

The Ticket to Work Program8

This statute directs the Social Security Administration (SSA) to establish the Ticket to Work program 

(TTW) enabling SSI and SSDI recipients to obtain vocational rehabilitation services, employment 

services, and other support services from a network of their choice. Individuals receive a “ticket to work” 

that they can assign to a network of providers offering services they wish to purchase. SSA enters into 

agreements with one or more organizations in the public or private sector that will serve as “managers” to 

assist SSA in administering the program in a given locality. These managers will recommend network 

providers (public or private entities) to SSA, which is then responsible for the selection and contracting 

process. After entering into agreements with SSA, the networks assume responsibility for coordination 

and delivery of services to consumers. 

The network can be a one-stop delivery system established under the Workforce Investment Act of 1998, 

a single provider of such services, a consortium of a group of service providers, state vocational 

rehabilitation agencies, or other public or private agencies. The providers develop and implement 

individual work plans with each beneficiary that include a statement of the individual’s vocational goal, 

services and supports necessary to accomplish that goal, terms and conditions related to the provision of 
74 

those services and supports, rights and remedies available to participants in the TTW, and the 

participant’s right to modify his/her work plan if needed. 

SSA makes payments to networks in one of two ways. It can use either an outcome-based payment 

system or an outcome-milestone payment system. Under the outcome-based payment system, an 

employment network is paid a percentage (not to exceed 40%) of the national average SSI or SSDI 

payment for each month the beneficiary does not receive a benefit payment due to work activity, for a 

period not to exceed 60 months. The outcome-milestone payment system combines outcome payments 

with payments for achieving one or more milestones toward assisting the beneficiary in achieving 

permanent employment. However, if the employment network is paid under the outcome payment system, 

the total amount of payments cannot exceed the 40% standard. A key provision of this statute prohibits 

SSA from initiating continuing disability reviews (CDRs) during the period that a beneficiary is utilizing 

the TTW. 

State VR Participation 

State VR agencies can elect to participate in the TTW Program as an employment network, providing 

services under Title I of the Rehabilitation Act of 1973. If VR is not the designated network, a written 

agreement is required between the VR agency and the network, prior to acceptance of any referral from 

the latter, assigned as the beneficiary’s Ticket to Work. On the Federal level, the Secretary of Education 

and the Social Security Administration will jointly prescribe regulations that specify the terms of such 

agreements between VR agencies and employment networks. Without such agreements in place, 

payments to employment networks on behalf of individuals referred to state VR agencies as part of their 

IEP, will not be authorized. 

Since, in the past, state VR agencies were responsible for the provision of employment services for those 

individuals receiving SSI/SSDI, the TTW/WIIA provisions will potentially heighten competition. While it 

is difficult to determine with certainty what impact the legislation will have upon VR service provision 

for people with mental illnesses, it may provide opportunities to implement local flexibility and include 

recommendations to improve the relevance and appropriateness of VR services for this group of 

individuals. 

Elimination of Work Disincentives 

The Ticket to Work/Work Incentives Improvement Act (TWWIA) addresses many of the work 

disincentives that people with disabilities have fund to act as barriers to obtaining, keeping, and 

advancing in jobs. SSDI or SSI beneficiaries using a TTW will not be scheduled for medical continuing 

disability reviews (CDRs) as long as they are using the TTW. In response to the extraordinarily long 

delays in re-establishing disability and health benefits after they have been terminated, TWWIA allows 

requests for reinstatement. Although benefits counseling assistance is available for individuals with 

disabilities, or providers who wish to help clients manage work and benefits, this assistance is often 

insufficient. As a result, SSA has been directed to establish a corps of SSDI and SSI work incentive 

specialists to provide accurate information to disabled beneficiaries about the full range of Social Security 

work incentives provisions, many of which have existed for some time but are largely unknown to 

providers and beneficiaries alike.9
75 

Expanded Availability of Health Care Benefits 

States now have an opportunity to implement a Medicaid buy-in program for working individuals with 

disabilities who are at least 16, but not more than 65 years of age. States can liberalize limits on 

individuals’ resources and income without affecting their cash benefits or health care assistance, and can 

provide the opportunity for employed individuals with medically determinable impairments (as 

determined by the Department of Health and Human Services) to buy into Medicaid if they are no longer 

eligible for SSDI or SSI disability benefits due to medical improvement. For purposes of the Medicaid 

buy-in, states are required to collect premiums or other cost-sharing charges by use of a sliding-scale 

system. In addition, the Act provides a four and one-half year extension of premium-free Medicare Part A 

coverage beyond the four years provided under current law for SSDI beneficiaries who return to work. 

Chapter Summary 

These important statutes safeguard the rights of people with disabilities, including people with mental 

illness who are homeless, to access employment opportunities and advance in their jobs and careers. In 

addition to providing new hope and possibility for this population, these initiatives represent the Federal 

government’s commitment to investing in the potentially powerful, yet underutilized, workforce of people 

with disabilities. 

For more information on these important pieces of legislation, particularly those that have yet to be fully 

implemented, the following websites may be useful: 

U.S. Department of Education, Rehabilitation Services Administration 

http://www.ed.gov/offices/OSERS/RSA/

U.S. Department of Justice, Americans with Disabilities Act 

http://www.usdoj.gov/crt/ada/adahom1.htm

U.S. Workforce.org 

http://usworkforce.org

Social Security Administration 

http://www.ssa.gov/work

Chapter 7 Notes 

1

 This chapter contains original material authored by Gary E. Shaheen, M.P.A., Advocates for Human Potential, Delmar, NY and 

John Rio, Corporation for Supportive Housing, New York, NY. 

2

 See http://www.ed.gov/offices/OSERS/RSA/Policy/Legislation/index.html. 3

 Bruyere, S. “Legislation Supporting the Rights of Individuals with Disabilities.” In Bianco, C., and Shaheen, G. Integrated 

Employment for People with Serious mental illness: A Rehabilitation and Recovery-Based Approach. Ithaca, NY: Cornell 

University, 1997. 

4

 The ADA is modeled after Section 504 of the Rehabilitation Act of 1973, which offers this definition of a disability. 5 “New Freedom Initiative.” President George W. Bush, Washington, DC, February 2001. 6

 U.S. Department of Labor Employment and Training Administration. An Overview of the Workforce Investment Act of 1998. 

Washington, DC: U.S. Department of Labor, 1998. 7

 In examining the impact of the WIA on people with mental illnesses who are homeless, the Corporation for Supportive Housing 

made the following set of assumptions and recommendations, which they provided specifically for this document. 
76 

8

 House of Representatives Passes H.R. 1180, The Ticket to Work and Work Incentives Improvement Act of 1999. Social 

Security Administration Legislative Bulletin: 106-11, November 24, 1999. 9

 For more information on work incentives, see MacDonald-Wilson, K.L. Financial Empowerment for People with Serious 

Mental Illness: How to Use the Social Security Work Incentives. Training Manual. (Eighth Edition, D.L. Nicolellis, Editor). 

Boston, MA: Boston University Center for Psychiatric Rehabilitation, 2001. 
77 

Appendix 

The following persons either contributed original material or made editorial recommendations: 

Gary Shaheen, Carol Bianco, Isaac Brown, Susan Cole, Judith Cook, Tony Falco, Carrie Kaufman, Mimi 

Kravitz, Ting Mintz, Gene Oulvey, John Rio, Eric Sells, Amy Shanty, Andrea White, Jim Winarski. 

Employment Programs Cited in the Text 

Additional information on related topics can be found at: 

The National Resource Center on Homelessness and Mental Illness 

(800) 444-7415 

http://www.nrchmi.samhsa.gov

Please contact the agencies listed below for more information on the programs discussed in this toolkit. 

Boley Centers for Behavioral Health Care, Inc. 

1236 Dr. Martin Luther King St., N. 

St. Petersburg, FL 33705 

727-821-4819 

727-822-6240 (fax) 

Paula J. Hays, Executive Director 

Boley Centers for Behavioral Health Care, Inc. 

Supported Employment Program 

2901 44th Ave., N. 

St. Petersburg, FL 33715 

727-821-4819 

727-528-8511 (fax) 

Curtis Anderson, Director of Vocational Services 

Marlena Gallagher, Supported Employment 

Supervisor 

The Employment Intervention Demonstration 

Program (EIDP) Coordinating Center 

UIC Mental Health Services Research Program 

104 South Michigan Ave., Suite 900 

Chicago, IL 60603 

312-422-8180 

312-422-0740 (fax) 

Judith A. Cook, Ph.D., Principal Investigator 

Community Access, Inc. 

666 Broadway, 3rd Floor 

New York, NY 10012 

212-780-1400 

212-780-1412 (FAX) 

Steve Coe, Executive Director 

Community Counseling Center 

101 Bacon Street 

Pawtucket, RI 02860 

(401) 722-3560 x244 

Fax: (401) 724-3120 

Michael Braet, Manager of Rehabilitation Services 

Center for Urban Community Services 

120 Wall St., 25th Floor 

New York, NY 10005 

212-471-0720, x7067 

212-252-1741 (fax) 

Andrea White, Associate Director 

Community Vocational Enterprises 

450 Sansome St., 10th Floor 

San Francisco, CA 94111 

415-544-0424 

415-544-0351 (fax) 

John Brauer, Executive Director 
78 

Corporation for Supportive Housing 

50 Broadway, 5th Floor 

New York, NY 10004 

212-986-2966 X287 

212-986-6552 (fax) 

John Rio, Program Director, National 

Employment Initiatives 

Double Trouble in Recovery 

Mental Health Empowerment Project, Inc. 

261 Central Avenue 

Albany, NY 12206 

518-434-1393 or 1-800-MHEP-INC 

Howie Vogel, Program Director 

Lakefront SRO 

Employment Services 

4753 N. Broadway, Suite 632 

Chicago, IL 60613 

773-506-8212 

773-506-8655 (fax) 

Nancy Isaac, Director of Employment Services 

LAMP Village 

527 S. Crocker 

Los Angeles, CA 90013 

213-488-0031 

213-683-0969 (fax) 

Mollie Lowery, Executive Director 

Life Link, Inc. 

2325 Cerrillos Rd. 

Santa Fe, NM 87505 

505-438-0100, x12 

505-438-6011 (Fax) 

Carol Luna-Anderson, Director 

Joe Clark, Employment Programs Coordinator 

Montana University Affiliated Rural Institute 

on Disabilities 

Corbin Hall - Room 52 

The University of Montana 

Missoula, MT 59812 

(406) 243-2454 

Cary Griffin, Director of Special Projects 

Project HOME 

1845 N. 23rd St. 

Philadelphia, PA 19121 

215-235-3110, x19 

215-235-4441 (fax) 

Kristin Starr, Director of Adult Education & 

Workforce Services 

Project Renewal, Inc. 

200 Varick St. 

New York, NY 10014 

212-620-0340 

212-243-4868 (fax) 

Kiltie Bedford, Director of Program 

Administration 

Michelle Fontaine, Supported Employment 

Program Coordinator 

Rehabilitation Support Services, Inc. 

COACH Program 

314 Central Avenue 

Albany, NY 12206 

518-464-1511 

518-464-9198 (fax) 

Ed Butz, Division Director 

Sharon Bellinger, Program Coordinator 

For more information please contact: 

SAMHSA’s National Mental Health Information Center 

1-800-789-2647 

www.mentalhealth.samhsa.gov
SMA 03-3834 14022.0603.G30215