The overlooked power of workplace social capital in work comp programs

When employers look to strengthen their workers compensation programs, they often focus on tangible elements such as claims management, medical networks, return-to-work protocols, or safety procedures. While these are essential, one critical factor is frequently overlooked - Workplace Social Capital (WSC). At its core, WSC refers to the quality of cooperative, trusting relationships among employees, supervisors, and management. It is the glue that binds teams, drives resilience, and can make the difference between a strong or weak safety culture, and a smoothly managed claim or a spiraling, costly one.

However, recent surveys by the National Safety Council (NSC) suggest that this focus is weakening and that employers are reverting to narrower, compliance-driven models that fail to meet the evolving needs of today's workforce. The NSC 2025 Membership Benchmarking Survey identified the top challenges facing employers as employee engagement (57 percent), safety culture (55 percent), and compliance among workers (47 percent). There was an eight percent drop in the number of respondents who strongly agreed that safety and health is an all-time core value (59 percent from 67 percent). Another primary concern is widening training gaps. Fewer full-time employees (-4 percent) and frontline supervisors (-5 percent) received hazard identification training. Training for part-time, contract, and temporary workers remains significantly lower.

Another NSC survey of non-managerial workers across a range of industries, Frontline Worker Perspectives on Musculoskeletal Disorder Prevention, revealed that nearly 30 percent of workers who experience pain at work do not report it, and safety leaders consistently view their workplace culture more positively than frontline employees. One-quarter don't know how to report pain or aren't sure if a reporting process exists. Communication failures and lack of employee involvement are at the heart of the issue. Workers feel most involved in improving job tasks and workflow but feel excluded from return-to-work processes and mental health initiatives. Surprisingly, experienced employees are less likely to understand their organization's safety programs, report pain promptly or feel confident in their workplace's injury prevention capabilities.

Trust deteriorates as it moves up the organizational hierarchy. While most workers trust their peers regarding safety matters, confidence drops significantly when it comes to senior leadership. A trust deficit has real cost consequences - workers are less likely to report injuries promptly, view the company's injury prevention and management efforts negatively, have longer absences, more frequently engage attorneys, and have higher claim costs.

Why WSC matters in injury management

Workers compensation isn't just about injuries and paperwork - it's about people. When an employee is hurt, their perception of how their supervisors and peers treat them significantly impacts both recovery and outcomes. A supportive environment fosters faster healing, smoother reintegration, and higher morale. Research across occupational health and organizational psychology consistently shows that employees embedded in high-trust, cooperative networks report less stress, recover more quickly, and are more likely to return to work successfully. Strong WSC strengthens communication, reduces fear of retaliation, and fosters collaboration in addressing workplace challenges.

One of the most challenging aspects of workers compensation is facilitating a safe and timely return to work. Here, WSC is often the game changer. Injured workers who feel valued by their employer and supported by colleagues are far more motivated to resume their roles. They trust that accommodations will be made in good faith, that their dignity will be preserved, and that co-workers will help them reintegrate. On the other hand, if the employee perceives hostility, mistrust, or indifference, they may resist returning, prolonging disability and escalating claim costs.

The link between WSC and injury prevention

WSC plays a powerful but often underestimated role in preventing incidents. In workplaces where employees trust one another and management, workers are more likely to speak up about hazards without fear of blame, share knowledge and safety practices openly, and look out for one another on the job. A comprehensive study of 11,000 employees at Japanese companies found that employees who give higher ratings for workplace social capital (WSC) have lower rates of occupational injury or illness at one-year follow-up. Relationships linking workplace teams to management had a 45 percent reduction in occupational illness or injury rates.

Building social capital in the workplace

• Foster transparent communication: Encourage openness around safety, health, mental health, and injury management.
• Reinvigorate safety culture: Reinforce safety as a core organizational value through mission statements, leadership modeling, and employee participation in safety discussions.
• Address engagement gaps: Empower employees through peer-led initiatives, safety committees, and recognition programs, while soliciting feedback and fostering cross-department collaboration. Regular safety meetings that include both management and frontline employees, appointment of employee safety champions, and involvement of workers in job hazard analyses all contribute to closing perception gaps.
• Expand training access: Increase training coverage for all employee types, including part-time, contract, and temporary workers, and use accessible formats like mobile and multilingual options.
• Train supervisors in empathy and support: A manager's response to injury often shapes the entire recovery experience.
• Promote peer support networks: Encourage employees to check in on injured colleagues, reinforcing care and connection.
• Remove barriers to mental health support: Access and perception are two of the toughest hurdles to mental health care. Weaving reminders about stress and support into toolbox talks, utilizing discreet digital tools like QR codes and telehealth apps, establishing peer networks, and providing supervisor training can help reduce the stigma.
• Recognize and reward cooperation: Incentives should value teamwork, not just individual performance.

Too often, work comp is managed as a transactional process. But behind every claim is a person whose experience is shaped by workplace relationships. By cultivating social capital - trust, cooperation, and support - employers can reduce injury risks, improve claim outcomes, and build a more resilient workforce.