Shared Value Business Case
Shared Value Business Case Approaches and Frameworks for Workforce Development Practitioners
Introduction This working document outlines a step-by-step guide on how to develop a shared value business case to quantify the business and social impact of inclusive employment
This working document provides instructions and guidance on processes and methods for developing a shared value business case with employer partners. This document will help facilitate rapid deployment of future workforce development programs through the use of the shared value framework. This is “living” document and needs to be updated after implementation of each programme to ensure new learning are incorporated for future engagement. While this document is not meant to serve as a substitute for actual subject matter involvement, we hope that it will be a useful tool for you and your teams. This document should not be viewed as a comprehensive summary on this topic and further information should be sought from: Michael Scruton ([email protected]) Dee Jadeja ([email protected])
Copyright © 2015 Accenture All rights reserved.
2
The Role of Business in Social Development New models of engagement are being developed – which build on core business operations and respond to both the growth and sustainability agenda Doing social good whilst doing mainstream business
Doing social good Philanthropy
CSR
Charitable actions for doing good outside firm’s immediate own business and no business benefits are sought.
Charitable actions using business resources for doing good outside firm’s own business and indirect business benefits are sought.
• Philanthropy
• Corporate Social Responsibility (CSR)
Doing Good Copyright © 2015 Accenture All rights reserved.
Inclusive Business
Leverage CSR
Core Business Conduct
Leveraging the firm’s competencies for doing social good (not business model).
Conducting existing business operations more responsibly (regulatory, social and environmental factors).
• Social Investment • CSR Innovation • Community Investment
• Inclusive Recruitment • Advocacy
New innovative business models that drive business value and respond to social or environmental issues
• Inclusive Business • Corporate Sustainability
Doing Good Business 3
Shared Value Framework Shared value of inclusive hiring is derived from combining business and social value drivers Drivers of economic value Increased Revenues Decreased Costs
Business Impact
Building Intangibles Program Sustainability
Shared Interests Shared Interests
Copyright © 2015 Accenture All rights reserved.
High retention of candidates will lead to reduced costs Brand equity increased and increased social standing within the community Revenues could be directed back to the training and inclusion of vulnerable people Drivers of social value
Social Return on Investment realized Develop youth talent
Societal Impact
New revenues realized from placement and from new shared value customers
Conversion into jobs enables companies to realize a social return The successes of the employees can inspire next generation youth
Life Skills equipped youth
The life skills they are equipped with will enable them to be better citizens
Inclusive socio-econ development
Break inter-generational cycle of poverty by employing the vulnerable and marginalized 4
Business Case for Inclusive Recruitment Inclusive recruitment can drive stakeholder value by increasing revenue, decreasing costs and increasing social value Objective
Impact
Business Drivers
Value Drivers Increase customer loyalty
Increase Revenue
Intangible assets/ brand image Acquire new customers
Business
Increase employee retention Drive Stakeholder Value
Decrease Costs
Decrease employee turnover Reduce training costs
Social
Improve livelihoods Increase Social Value
Improve inclusive hiring practices Improve human dignity
Copyright © 2015 Accenture All rights reserved.
5
Business Impact: Revenue Our experience has showed that employees from disadvantaged backgrounds are superior at driving revenue when measuring customer loyalty, brand image, and customer acquisition Illustrative
Business Drivers
Increase Revenue
Value Drivers
Metrics
Definition
Increase customer loyalty
Customer feedback
Service satisfaction survey
Customer retention
% of customers retained YOY
Intangible assets/ brand image
# of media reports
Count mentions of program in media
± brand association
Survey clients on brand association
% of new customers
customers acquired for new period
Increase # customers
compare customer acquisition
Acquire new customers
Copyright © 2015 Accenture All rights reserved.
6
Business Impact: Cost Employees from disadvantaged backgrounds will prove to be more effective when measuring employee retention, turnover and training costs versus the average employee Illustrative
Business Drivers
Decrease Cost
Value Drivers
Metrics
Definition
Increase employee retention
% retained
Employees retained for the year
Average tenure
Amount of time employees stay
% turnover
Number of employees that leave
Avg sourcing cost/ hire
Costs incurred hiring new people
Δ hours spent training
Change in time spent training
Avg training cost/hire
Costs incurred training new people
Decrease employee turnover
Reduce training Costs
Copyright © 2015 Accenture All rights reserved.
7
Social Impact Hiring these employees will fulfill the social goals of improving the lives of the vulnerable, conducting inclusive hiring practices, and overall improvement of human dignity Illustrative
Business Drivers
Increase Social Value
Definition
Value Drivers
Metrics
Improve lives of vulnerable
Youth to adult ratio
Measure vulnerable youth employed
Women to men ratio
Equal hiring of men and women
Δ inclusive hires
Change in number vulnerable hired
Improve Inclusive Hiring practices
Improve human dignity
Copyright © 2015 Accenture All rights reserved.
Ratio hired to applied
Hiring more inclusive candidates
# vulnerable employed
Effective number of lives improved
Employee satisfaction
Satisfaction survey for employees
8
Metrics Revenue # of media reports
± brand association
% of new customers
Increase # customers
Method
(# customers at period end - # Survey designed new customer for to measure the period)/ (# of service provided customer at by employees period beginning)* 100%
Create google alerts and other press monitoring to count mentions of the program
Randomly survey customers on brand association, survey would give a list of descriptive adjectives both positive and negative to choose from
(total number of customers at year end – customers at last years end)/(customers at last years end) *100%
Compare last years new customer number to the current years and measure change
Data Type
Qualitative
Quantitative
Quantitative
Qualitative
Quantitative
Quantitative
Collection Type
Survey
Internal
External
Survey
Internal
Internal
Frequency
TBD
TBD
TBD
TBD
TBD
TBD
Data Source
TBD
TBD
TBD
TBD
TBD
TBD
Metric
Customer feedback
Customer retention
Copyright © 2015 Accenture All rights reserved.
9
Metrics Cost
Average tenure
Δ in hours spent training
Average training cost/hire
Metric
% retained
Method
S/((B + E)/2)*100% , (# employee at where S is the period end - # ∑ amount of number of new employee time each person separated for the period)/ (# stays employed/ employees and of employee at Total number of B and E period people represent the beginning)* beginning and 100% ending size of your workforce
(∑ (External Costs) + ∑ (Internal Costs))/Total Number of Hires in a Time Period
compare last years avg number of hours spent training employees to the current years and measure change
(∑ Training costs in a given time period)/Total Number of Hires in that time period
Data Type
Quantitative
Quantitative
Quantitative
Quantitative
Quantitative
Quantitative
Collection Type
Internal
Internal
Internal
Internal
Internal
Internal
Frequency
TBD
TBD
TBD
TBD
TBD
TBD
Data Source
TBD
TBD
TBD
TBD
TBD
TBD
Copyright © 2015 Accenture All rights reserved.
% turnover
Average sourcing cost/hire
10
Metrics Social Δ inclusive hires
Youth to adult ratio
women to men ratio
Method
employed # of youth (ages 1524) compared to # 24 and older
comparative # of women count of number compared to # of of inclusive hires men employed year over year (YOY)
Data Type
Quantitative
Quantitative
Collection Type
Internal
Frequency Data Source
Metric
# vulnerable employed
Employee satisfaction
# of vulnerable candidates hired/ Total # of vulnerable candidates that applied
# of vulnerable candidates employed each year
survey designed to measure satisfaction and happiness among employees
Quantitative
Quantitative
Quantitative
Quantitative
Internal
Internal
Internal
Internal
Survey
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
Copyright © 2015 Accenture All rights reserved.
Ratio hired to applied
11
Introduction This working document outlines a step-by-step guide on how to develop a shared value business case to quantify the business and social impact of inclusive employment
This working document provides instructions and guidance on processes and methods for developing a shared value business case with employer partners. This document will help facilitate rapid deployment of future workforce development programs through the use of the shared value framework. This is “living” document and needs to be updated after implementation of each programme to ensure new learning are incorporated for future engagement. While this document is not meant to serve as a substitute for actual subject matter involvement, we hope that it will be a useful tool for you and your teams. This document should not be viewed as a comprehensive summary on this topic and further information should be sought from: Michael Scruton ([email protected]) Dee Jadeja ([email protected])
Copyright © 2015 Accenture All rights reserved.
2
The Role of Business in Social Development New models of engagement are being developed – which build on core business operations and respond to both the growth and sustainability agenda Doing social good whilst doing mainstream business
Doing social good Philanthropy
CSR
Charitable actions for doing good outside firm’s immediate own business and no business benefits are sought.
Charitable actions using business resources for doing good outside firm’s own business and indirect business benefits are sought.
• Philanthropy
• Corporate Social Responsibility (CSR)
Doing Good Copyright © 2015 Accenture All rights reserved.
Inclusive Business
Leverage CSR
Core Business Conduct
Leveraging the firm’s competencies for doing social good (not business model).
Conducting existing business operations more responsibly (regulatory, social and environmental factors).
• Social Investment • CSR Innovation • Community Investment
• Inclusive Recruitment • Advocacy
New innovative business models that drive business value and respond to social or environmental issues
• Inclusive Business • Corporate Sustainability
Doing Good Business 3
Shared Value Framework Shared value of inclusive hiring is derived from combining business and social value drivers Drivers of economic value Increased Revenues Decreased Costs
Business Impact
Building Intangibles Program Sustainability
Shared Interests Shared Interests
Copyright © 2015 Accenture All rights reserved.
High retention of candidates will lead to reduced costs Brand equity increased and increased social standing within the community Revenues could be directed back to the training and inclusion of vulnerable people Drivers of social value
Social Return on Investment realized Develop youth talent
Societal Impact
New revenues realized from placement and from new shared value customers
Conversion into jobs enables companies to realize a social return The successes of the employees can inspire next generation youth
Life Skills equipped youth
The life skills they are equipped with will enable them to be better citizens
Inclusive socio-econ development
Break inter-generational cycle of poverty by employing the vulnerable and marginalized 4
Business Case for Inclusive Recruitment Inclusive recruitment can drive stakeholder value by increasing revenue, decreasing costs and increasing social value Objective
Impact
Business Drivers
Value Drivers Increase customer loyalty
Increase Revenue
Intangible assets/ brand image Acquire new customers
Business
Increase employee retention Drive Stakeholder Value
Decrease Costs
Decrease employee turnover Reduce training costs
Social
Improve livelihoods Increase Social Value
Improve inclusive hiring practices Improve human dignity
Copyright © 2015 Accenture All rights reserved.
5
Business Impact: Revenue Our experience has showed that employees from disadvantaged backgrounds are superior at driving revenue when measuring customer loyalty, brand image, and customer acquisition Illustrative
Business Drivers
Increase Revenue
Value Drivers
Metrics
Definition
Increase customer loyalty
Customer feedback
Service satisfaction survey
Customer retention
% of customers retained YOY
Intangible assets/ brand image
# of media reports
Count mentions of program in media
± brand association
Survey clients on brand association
% of new customers
customers acquired for new period
Increase # customers
compare customer acquisition
Acquire new customers
Copyright © 2015 Accenture All rights reserved.
6
Business Impact: Cost Employees from disadvantaged backgrounds will prove to be more effective when measuring employee retention, turnover and training costs versus the average employee Illustrative
Business Drivers
Decrease Cost
Value Drivers
Metrics
Definition
Increase employee retention
% retained
Employees retained for the year
Average tenure
Amount of time employees stay
% turnover
Number of employees that leave
Avg sourcing cost/ hire
Costs incurred hiring new people
Δ hours spent training
Change in time spent training
Avg training cost/hire
Costs incurred training new people
Decrease employee turnover
Reduce training Costs
Copyright © 2015 Accenture All rights reserved.
7
Social Impact Hiring these employees will fulfill the social goals of improving the lives of the vulnerable, conducting inclusive hiring practices, and overall improvement of human dignity Illustrative
Business Drivers
Increase Social Value
Definition
Value Drivers
Metrics
Improve lives of vulnerable
Youth to adult ratio
Measure vulnerable youth employed
Women to men ratio
Equal hiring of men and women
Δ inclusive hires
Change in number vulnerable hired
Improve Inclusive Hiring practices
Improve human dignity
Copyright © 2015 Accenture All rights reserved.
Ratio hired to applied
Hiring more inclusive candidates
# vulnerable employed
Effective number of lives improved
Employee satisfaction
Satisfaction survey for employees
8
Metrics Revenue # of media reports
± brand association
% of new customers
Increase # customers
Method
(# customers at period end - # Survey designed new customer for to measure the period)/ (# of service provided customer at by employees period beginning)* 100%
Create google alerts and other press monitoring to count mentions of the program
Randomly survey customers on brand association, survey would give a list of descriptive adjectives both positive and negative to choose from
(total number of customers at year end – customers at last years end)/(customers at last years end) *100%
Compare last years new customer number to the current years and measure change
Data Type
Qualitative
Quantitative
Quantitative
Qualitative
Quantitative
Quantitative
Collection Type
Survey
Internal
External
Survey
Internal
Internal
Frequency
TBD
TBD
TBD
TBD
TBD
TBD
Data Source
TBD
TBD
TBD
TBD
TBD
TBD
Metric
Customer feedback
Customer retention
Copyright © 2015 Accenture All rights reserved.
9
Metrics Cost
Average tenure
Δ in hours spent training
Average training cost/hire
Metric
% retained
Method
S/((B + E)/2)*100% , (# employee at where S is the period end - # ∑ amount of number of new employee time each person separated for the period)/ (# stays employed/ employees and of employee at Total number of B and E period people represent the beginning)* beginning and 100% ending size of your workforce
(∑ (External Costs) + ∑ (Internal Costs))/Total Number of Hires in a Time Period
compare last years avg number of hours spent training employees to the current years and measure change
(∑ Training costs in a given time period)/Total Number of Hires in that time period
Data Type
Quantitative
Quantitative
Quantitative
Quantitative
Quantitative
Quantitative
Collection Type
Internal
Internal
Internal
Internal
Internal
Internal
Frequency
TBD
TBD
TBD
TBD
TBD
TBD
Data Source
TBD
TBD
TBD
TBD
TBD
TBD
Copyright © 2015 Accenture All rights reserved.
% turnover
Average sourcing cost/hire
10
Metrics Social Δ inclusive hires
Youth to adult ratio
women to men ratio
Method
employed # of youth (ages 1524) compared to # 24 and older
comparative # of women count of number compared to # of of inclusive hires men employed year over year (YOY)
Data Type
Quantitative
Quantitative
Collection Type
Internal
Frequency Data Source
Metric
# vulnerable employed
Employee satisfaction
# of vulnerable candidates hired/ Total # of vulnerable candidates that applied
# of vulnerable candidates employed each year
survey designed to measure satisfaction and happiness among employees
Quantitative
Quantitative
Quantitative
Quantitative
Internal
Internal
Internal
Internal
Survey
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
Copyright © 2015 Accenture All rights reserved.
Ratio hired to applied
11
