Impact of Workers Injury Compensation on Employee Productivity

Running head: INDEPENDENT RESEARCH PROJECT
INDEPENDENT RESEARCH PROJECT
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Background and Introduction.................................................................................................2
2. Literature review...................................................................................................................3
3.0 Research Methodology.........................................................................................................8
4.0 Findings and discussion.....................................................................................................12
5.0 Recommendations and Implementation.............................................................................16
6.0 Conclusion..........................................................................................................................18
References................................................................................................................................20
Appendix..................................................................................................................................23
Interview Transcript.................................................................................................................23

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1. Background and Introduction
1.1 Background Context
The purpose of the research study is to investigate the impact of the workers injuries
compensation towards the employees productivity. Workers injury compensation is one form
of insurance that provides wage replacement as well as medical benefits to the employees
injured during the course of employment in exchange for relinquishment of employee’s right
for suing their employer for negligence (Berecki-Gisolf, et al., 2012). The general damage for
punitive damages, suffering and pain for the employer negligence are usually not included in
the workers injury compensation plans. Moreover, in this case employers negligence is not
considered as an issue. The trade- off between the lack of recourse and assured coverage is
termed as “the compensation bargain”. This compensation bargain solved one of the issue
which is issue of employers becoming insolvent owing to high damage awards. This study
manly intends to focus on how the workers injury compensation act impacts the productivity
of employees.
1.2 Research Problem
One of the problems that occurred during the research has been that the few managers
of the enterprise did not want to reveal any kind of information regarding their workers injury
compensation package. As a result, the detailed information regarding the impact of workers
injury compensation towards employees productivity cannot be obtained.
Research purpose
The main purpose of the research study is to investigate whether there is a positive
relationship between the workers injury compensation and employees productivity. The

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research study provides an overview on how the concept of workers compensation motivates
the employees to work in the enterprise.
Aims and Objectives
The main aim of the research study is to determine how the injury compensation of
workers drive their productivity in the enterprise. The objectives of the research study are –
 To recognize the factors which determines the workers compensation packages in an
enterprise
 To ascertain the impact of workers injury compensation on the employees
performance
 To investigate whether there is relationship between workers compensation and
employees productivity
1.3 Significance of the Research
The research study has huge significance as it brings froth the fact that the workers
compensation variables improve the employees productivity, reduce staff turnover cost, build
brand loyalty with the employees. This study focuses on how the workers compensation has
become one of the basic objectives of HRM (human resource management) of the
organization as it increases employees productivity (Berber & Slavić, 2016).
1.4 Scope of the Report
The scope of the research study is huge as it facilitates the managers of the enterprise
to know about how the workers compensation can be improve the employees performance
and create profit for the enterprise. It helps the managers of the organization to design their
workers compensation policies for retaining their employees.

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2. Literature review
Introduction
This section of the research study review the literature of present knowledge
involving theoretical contributions and the substantive findings on the area of workers injury
compensation and its impact on the employees productivity. The review focuses on the
concept of compensation and the role of compensation administration, characteristics of
workers injury compensation system, impact of workers injury compensation on employees
productivity and performance and theories relating to workers compensation.
Concept of workers injury compensation
Workers compensation refers to the compensation that is provided to the employees
who suffer from injury or any work related disease during the course of their employment
without the requirement to show that the employers has been negligent. Odunlade, (2012)
opines that recoverable workers compensation cannot be reduced if a worker is negligent
except in those situation where the employee is injured owing to their serious as well as
wilful misconduct or self- indicted injury. Since no negligence component exists to
employees compensation claim, the workers compensation payment becomes highly modest.
Moreover, the workers of an organization can receive damages in terms of medical expenses,
weekly payments, huge compensation, of they are actually assessed as an individual
impairment threshold. Samnani & Singh, (2014) found out that the workers injury
compensation generally differs depending on the enterprise size.
The Work Injury Compensation Act (WICA) mainly let the workers make claims for the
injuries relating to work without having to file civil suit that is under the common law. The
WICA mainly covers all domestic or foreign workers who is mainly under the service
contract or apprenticeship contract regardless of the salary, nationality and age. It does not

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mainly civer independent contractors as well as self- employed persons, local workers and
uniformed personnel. The compensation can be claimed for compensation if the workers have
been contracted a disease or injure owing to work. The workers basically remains eligible to
claim for the compensation even if-
 The workers no longer work for employers
 If the accident happen when the worker stays on overseas assignment
Characteristics of workers injury compensation system
Employees compensation benefits are the kind of no- fault insurance where the
employers usually agrees to provide benefits to the injured workers. Odunlade, (2012) states
that the aspect of no- fault leaves the employers right to challenge all kinds of claims on the
ground that injury of workers do not take place during his employment or the injured worker
does not return to work. There are five kinds of benefits that are mainly paid under workers
injury compensation system. Firstly, the medical benefits are given to the injured workers
Secondly, the benefits for temporary total disability are usually paid to the injured employee
who cannot work but full recovery can be expected
Thirdly, the benefits for permanently total disabled are given when the individual is restricted
permanently from all kinds of working conditions.
Fourthly, the benefits for permanently partial disability are paid for the expected injuries even
after healing period for resulting in physical environment and decrease in actual earnings.
Most of the enterprise buys insurance against their workers injury compensation
claims either from the private insurance bearer or the government based on the respective
state. The premiums are mainly paid by the employers as total payroll percentage. Samnani &
Singh, (2014) found out that small employers charges premium depending on experience of