Disability Divide Between Employee and Employer Views
Author: Council for Disability Awareness
Published: 2013/05/25 - Updated: 2026/02/25
Publication Type: Research, Study, Analysis
Category Topic: Employment - Related Publications
Contents: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This research, published by the Council for Disability Awareness (CDA), presents findings from two surveys - one of 553 human resources professionals conducted in 2012 and one of 1,006 employees conducted in 2010 - examining how employers and workers perceive the likelihood, duration, and financial impact of an income-threatening disability. The study found major disconnects: 84 percent of HR professionals identified earning ability as an employee's most valuable financial asset, yet more than half believed their workers had never considered preparing for disability, and both groups significantly underestimated the actual odds of becoming disabled. The findings are directly relevant to workers with disabilities, seniors approaching retirement, and anyone relying on employer-provided benefits, as they highlight how widespread gaps in disability education and insurance planning leave millions of wage earners financially vulnerable to an illness or injury that interrupts their income - Disabled World (DW).
- Topic Definition: Disability Divide
The disability divide refers to the measurable gap between how employers and employees perceive the risk, duration, and financial consequences of a disability that interrupts a worker's ability to earn income. Research by the Council for Disability Awareness found that both groups significantly underestimate the likelihood of experiencing a disabling illness or injury, while also holding sharply different expectations about how long a disability would keep someone out of work and how prepared employees are to handle lost income. This divide results in widespread under-preparation among workers, many of whom lack adequate disability insurance coverage, and highlights a need for better workplace education about income protection planning, particularly for employees with existing disabilities, older workers, and those without sufficient savings to withstand even a short-term loss of earnings.
Introduction
Employee and Employer Disability Divide - New Research Shows Disability Divide Between Employee and Employer Perceptions
Council for Disability Awareness study shows greater need for education and guidance about disability benefits.
Despite some common ground, there are also clear divides between employer and employee perceptions around the likelihood and impact of an income-threatening disability, according to findings released by the Council for Disability Awareness (CDA).
Main Content
Of the 553 human resources (HR) professionals surveyed in the 2013 Disability Divide: Employer Study*, 84 percent said the ability to earn an income was their employees' most valuable financial resource, more valuable than retirement savings, homes or medical insurance. But more than half (53 percent) thought their employees "had never really thought about preparing for disability," and only a quarter (26 percent) said their employees are "prepared to withstand a disability that causes them to lose their income."
"The Disability Divide study identified distinct differences between employer and employee perceptions about disability," said Barry Lundquist, president of the CDA. "Bridging this gap calls for education and advice about the risk of disability, the consequences of income loss and the importance of income protection planning."
Other key findings from the report included:
- Forty-eight percent of employees said they didn't have enough information about purchasing disability insurance.
- The surveyed HR professionals and employees both significantly underestimate the odds of a disability occurring.
- Most HR professionals surveyed (60 percent) thought their typical employee could only financially survive for three months or less without a paycheck.
- A majority of HR professionals (72 percent) said it was their responsibility to help employees understand their benefits but fewer (57 percent) said they should provide direction or recommendations on choosing benefits.
- A large majority (84 percent) of HR professionals thought that most disabled workers would return to work within six months. In comparison, 68 percent of employees said disability would keep someone out of work for a year or longer and 31 percent of employees thought a disabled employee would never return to work.
"The survey shows that employees need information and guidance about disability, and they are looking to HR professionals for help," said Lundquist. "These insights provide HR professionals with an opportunity to help employees protect their financial security by offering education about their risks and guidance with their benefit choices."
Council for Disability Awareness (CDA)
CDA is a nonprofit organization dedicated to educating the American public about the risk and consequences of experiencing an income-interrupting illness or injury. The CDA engages in research, communications and educational activities that provide information and helpful resources to wage earners, employers, financial advisers, consultants and others who are concerned about the personal and financial impact a disability can have on wage earners and their families.
*Editor's Note: For this study, CDA conducted an online survey of 553 HR professionals who handle non-medical employee benefits at their organization. Respondents were offered a small incentive to participate in CDA surveys. Respondents to the survey in August 2012 were all HR professionals who helped to make benefits decisions for their organizations or provided benefits information to their employees. Employee responses were from a 2010 CDA employee survey, which included 1,006 respondents between the ages of 18 and 68.
Insights, Analysis, and Developments
Editorial Note: The core problem this study identifies is not that disability insurance is unavailable but that the conversation around it is barely happening. When nearly half of employees say they lack enough information to even purchase disability coverage, and most HR professionals admit their workers could not survive three months without a paycheck, the gap between risk and preparation is enormous. What makes this particularly concerning for people with disabilities and older workers is that these are the populations most statistically likely to experience an income-interrupting event, yet they are often the least equipped to absorb the financial blow. Bridging the disability divide requires employers to move beyond simply offering benefits on a menu and toward actively educating their workforce about the real probability of disability, the true duration of lost work time, and the financial consequences of being unprotected - Disabled World (DW).Attribution/Source(s): This quality-reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally authored by Council for Disability Awareness and published on 2013/05/25, this content may have been edited for style, clarity, or brevity.