What is social capital?

Social capital is the idea that a group will achieve more if group members trust each other to cooperate.

Robert D. Putnam, the political scientist who founded the theory, describes social capital as the collective or economic benefit derived from members of a group working together.

For example, most people stop at red lights even where it would make them late for an appointment or no police officer is around.

This happens because people believe that:

• road rules are designed to make travel safer for everyone (trust in the system)
• other people usually adhere to the rules (trust in one another)
• everyone is safest when everyone cooperates.

People adhere to the rules of the system even when it disadvantages them personally because they trust others to make the same sacrifices.

How does social capital impact on return to work?

The return to work process suffers from a severe lack of social capital.

Workers compensation requires many organisations with different specialties to work closely together.

Personal injury is complex and unpredictable. Rehabilitation providers and employers often distrust claimants while claimants fear that no-one is looking out for their interests.

A lack of trust can lead to administrative burdens. Disputes and legal issues are more likely to crop up. Resources drain away in unnecessarily drawn-out cases.

Insurance agents are at the centre of the return to work process, but frequently fail to communicate with others. A case study in Queensland showed that return to work rates lifted when claims agents took a more active interest in their clients, for example, by returning phone calls.

Injured workers will take more advice, communicate more freely and co-operate better with procedures if they believe the rehabilitation team is there to help them.

Projects perform more efficiently where managers understand the importance of managing interpersonal relationships, according to Tas Yong Koh in the journal Accident Analysis and Prevention.

A manager who values relationships will have less tension with her staff. Fewer formal agreements are required to set out expectations. Where agreements are written, disputes arise less often.

The costs of poor social capital can be direct or indirect.

Direct costs are easier to see and calculate: time taken to write unnecessary agreements, follow up calls, drawn-out disputes etc.

Indirect costs are more difficult to recognise but their impact is often more damaging. Indirect costs include loss of goodwill and co-operation. The cost is subtle and spreads over the system, affecting multiple areas.

Indirect costs are most frequently overlooked when chasing short-term gains.

Social capital operates on a systemic level. As soon as one person’s trust is broken, they are less likely to be co-operative, leading others to lose trust in them. The system as a whole must promote trust if return to work rates are to improve.

How to build social capital

Building social capital requires a team effort but an individual can lay a foundation for increased trust in a number of ways:

• Institute fair, predictable and reasonable procedures and guidelines. Knowing the outcome of an action encourages trust in the process. People who believe in the process are more likely to co-operate. The more people co-operate, the more co-operation becomes the norm.
• Encourage and respect input from everyone involved.From a supervisor’s perspective, workers who feel respected will be more motivated to work towards a project’s success. From a rehabilitation provider’s outlook, valuing other professionals encourages a free flow of information and fewer delays.
• Convince those involved that the process is valuable. People need to understand the importance of what they are doing and why they are doing it. This reduces frustration and boosts the likelihood of everyone joining in.
• Lead by example. It is difficult to trust someone who seems hypocritical. Modelling desired behaviour is one way to seem trustworthy.
• Show concern/interest in an employee’s recovery.Contacting an employee to wish them well is a small gesture that can have a big impact on how the employee views returning to work. Making that person feel part of the team can encourage them to focus on their recovery rather than their disability.

Promoting social capital is a radical departure from the usual approaches to improving return to work rates. Rather than time or resources, it calls for a commitment to consistency, fairness and mutual respect.

If policies and procedures are the rocks of the return to work system, social capital is the mortar that holds the system together. The system cannot get stronger unless we strengthen what binds us together.