Impacts on Firm Productivity by Retaining Worker Knowledge and Capacity Through Disability Management Programs

Helping employees return to work following an injury or illness is a moral imperative, and usually a legal requirement, but is it economically beneficial to the firm? While there is intuitive awareness that disability management programs can be economically beneficial, particularly by retaining and resecuring the knowledge and capacity of employees, there is limited evidence to support that claim. The literature lacks insight into the logic and mechanisms through which disability management programs are economically beneficial. To provide such insight, this study undertakes an exploratory analysis of disability management programs concerning productivity as a firm-level performance factor. The data is sourced from a Canadian national database statistically representing more than 650,000 firms. The findings indicate there are differential impacts of disability management programs on firm productivity and this relationship is moderated by business strategy.