Navigating Transition in DES

As the Disability Employment Services (DES) sector prepares for significant changes following the tender process, the road ahead will be marked by transitions, adjustments, and collaboration. With contracts consolidating from approximately 930 to 450, providers are likely to face a mix of opportunities and challenges—including shifts in market share, staff redeployment, and participant transitions.

In our next article from the series ‘The DES Roadmap: From Tender to Transformation’, we share Peter Bacon’s insights on these complex transitions. As the CEO of Disability Employment Australia (DEA), Peter brings a wealth of experience and advice for providers looking to navigate this period with resilience, focus, and an emphasis on collaboration.

The importance of collaboration among providers

In a competitive environment, collaboration might seem counterintuitive. However, Peter highlights its critical role in ensuring a smooth transition for all stakeholders—especially participants.

“The way star ratings used to work, rating organisations against each other, made collaboration challenging,” Peter explains. 

“But now, with the bid process behind us and star ratings gone, there’s an opportunity for providers to work together in a collegiate way.”

This is especially important during periods of staff and participant transitions. Outgoing and incoming providers need to collaborate to ensure participants and staff have a smooth transition. 

Collaboration can also extend to premises and resources. Instead of competing for new sites, Peter suggests providers explore ways to roll into existing locations or share infrastructure to minimise disruption.

Prioritising participant wellbeing during transitions

Participant outcomes and experiences must remain at the heart of DES services, even during transitions. Peter is particularly concerned about participants who have been in ongoing support for many years and may be affected by provider changes.

“The transition needs to be extremely well-managed,” says Peter. 

“This is a more vulnerable client group than you see in Workforce Australia, and we need to provide stability and continuity of care.”

To achieve this, Peter encourages providers to think ahead:

• Communicate with participants early about potential changes

• Work closely with other providers to ensure handovers are thorough and well-documented

• Advocate for government-led workshops and consultations to clarify and streamline transition arrangements.

Planning for multiple scenarios

One of Peter’s key recommendations is for providers to prepare for a range of outcomes, even those they may not want to consider.

“You could have a good tender result in terms of increasing market share but still lose half your ESAs,” he explains. 

“Movement is inevitable, and providers need to plan accordingly.”

This planning includes:

• Financial modelling to account for potential losses or redundancies

• Redeployment strategies to retain key staff in adjacent or growing areas

• Exploring opportunities to scale other services, such as NDIS employment supports, to offset potential losses.

The role of leadership in driving change

Peter believes strong leadership is essential during this period of change. Leaders must balance empathy with reality, supporting their teams while preparing them for what lies ahead.

“Honest communication is vital,” says Peter.

“Don’t offer false certainty, but remind your teams that this is a growing sector with stable funding and the opportunity to make a meaningful impact.”

Peter also stresses the importance of investing in staff development, particularly around new service expectations. 

“Government has noted that there’s room for improvement in training and professional competence in the DES sector. If organisations aren’t all over that, they need to start now,” he says.

Collaboration as the path forward

As DES providers brace for change, Peter’s message is clear: collaboration, preparation, and a focus on participant outcomes will be the keys to success.

“This sector is built on values of inclusion and support. By working together, providers can create smoother transitions, stronger outcomes, and a more cohesive DES landscape,” he says.

With these insights, providers can not only navigate the challenges ahead but also seize the opportunity to reshape this important employment program for the better.

Need help navigating transition?

If your organisation needs support with financial modelling, redeployment strategies, or service delivery planning, Prospert’s consulting services are here to help. With expertise in the DES sector, we can guide you through this critical period with tailored advice and actionable strategies. Contact us today to start planning your path forward.