By Rehemah Nakiryowa
It is a well-known fact that when employees feel cared for and well treated, employee health and morale is at its highest and in turn, the company grows tremendously.
Studies have repeatedly shown that employees that feel safe at work are the more productive of the bunch.
Employees are not only a company’s most valuable asset but also biggest risk, so it is important to treat them as valuable as they are.
Among the basic requirements for employee welfare in most companies is the Worker’s Compensation policy.
Not only does it provide coverage for employees in the event of workplace death, disability, illness or injury and mitigate financial risks in the case of lawsuits, its benefits go far and wide.
The security and peace that an employee feels knowing that they are taken care of in the event of any workplace incident is incomparable.
This insurance can provide a safety net for both permanent workers and contractors.
Permanent workers may benefit from the policy if they suffer a work-related injury or illness that requires medical treatment or time off work.
Workers’ compensation can provide coverage for medical expenses, lost wages, and other expenses related to the injury or illness.
In some cases, this cover may also provide disability benefits if the injury or illness results in a permanent impairment.
Contractors may also benefit from workers’ compensation insurance, depending on their employment status.
If a contractor is considered an employee under the law, their employer may be required to provide workers’ compensation insurance coverage.
This can provide the contractor with similar benefits to those received by permanent workers in the event of a work-related injury or illness.
It’s important to note that the specific benefits and requirements for workers’ compensation insurance can vary depending on the state or country in which the worker is employed.
In some cases, workers’ compensation insurance may not be available for contractors, or the requirements for coverage may differ from those for permanent employees.
It’s always a good idea for workers, whether permanent or contracted, to understand their rights and the insurance coverage available to them in their particular situation.
Employees not only feel secure and appreciated with the safety net that Worker’s Compensation provides but it is also a major factor for employee retention, a positive work culture and morale boost as expounded below.
Improved morale: Undoubtedly, the success of an organization is dependent on the morale of its employees. The worker’s compensation policy creates an automatic sense of security at the back of any employees’ mind which results into an overwhelming confidence to face the days tasks. Employees are fully engaged, present and productive.
Safety culture: A workers’ compensation program is an indication of a safe and healthy workplace.
As this program usually includes an employee sensitization of the cover benefits and exclusions, employees in turn are mentally built to be cautious of any occupational hazards present in the workplace and how best these can be avoided or prevented.
Employee attraction and retention: In the current cut-throat job market, one of the desired on-boarding benefits by employees is the worker’s compensation policy.
It not only creates trust and a sense of belonging to the employee but also demonstrates an employer’s commitment and dedication to the safety and well-being of their staff.
Increased loyalty: Every employer looks at longevity of the employees hired, and employees are more inclined to remain at a company where they feel appreciated.
The worker’s compensation cover indirectly results into brand or company loyalty because of the added layer of job security and in turn leads to a reduction in turnover rates.
In the long run, a loyalty culture is built with this insurance cover.
In summary, the significance of workers’ compensation insurance extends beyond the financial assistance by also providing comfort to the employee and creating a positive employee-employer relationship.
Therefore, businesses should make this coverage a priority and communicate its advantages to their workforce to enjoy the benefits of improved employee morale.