Shared Value Business Case. Approaches and Frameworks for Workforce Development Practitioners

Transcription

1 Shared Value Business Case Approaches and Frameworks for Workforce Development Practitioners

2 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 (michael.c.scruton@accenture.com) Dee Jadeja (dee.jadeja@accenture.com) Copyright 2015 Accenture All rights reserved. 2

3 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 Doing social good whilst doing mainstream business Philanthropy CSR Leverage CSR Core Business Conduct Inclusive Business 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. Leveraging the firm s competencies for doing social good (not business model). Conducting existing business operations more responsibly (regulatory, social and environmental factors). New innovative business models that drive business value and respond to social or environmental issues Philanthropy Corporate Social Responsibility (CSR) Social Investment CSR Innovation Community Investment Inclusive Recruitment Advocacy Inclusive Business Corporate Sustainability Doing Good Doing Good Business Copyright 2015 Accenture All rights reserved. 3

4 Shared Value Framework Shared value of inclusive hiring is derived from combining business and social value drivers Drivers of economic value Business Impact Increased Revenues Decreased Costs Building Intangibles Program Sustainability New revenues realized from placement and from new shared value customers 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 Shared Interests Shared Interests Societal Impact Social Return on Investment realized Develop youth talent Life Skills equipped youth Inclusive socio-econ development Drivers of social value Conversion into jobs enables companies to realize a social return The successes of the employees can inspire next generation youth The life skills they are equipped with will enable them to be better citizens Break inter-generational cycle of poverty by employing the vulnerable and marginalized Copyright 2015 Accenture All rights reserved. 4

5 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 Business Acquire new customers 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

6 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 Value Drivers Metrics Definition Increase customer loyalty Customer feedback Customer retention Service satisfaction survey % of customers retained YOY Increase Revenue Intangible assets/ brand image # of media reports ± brand association Count mentions of program in media Survey clients on brand association Acquire new customers % of new customers Increase # customers customers acquired for new period compare customer acquisition Copyright 2015 Accenture All rights reserved. 6

7 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 Value Drivers Metrics Definition Increase employee retention % retained Average tenure Employees retained for the year Amount of time employees stay Decrease Cost Decrease employee turnover % turnover Avg sourcing cost/ hire Number of employees that leave Costs incurred hiring new people Reduce training Costs Δ hours spent training Avg training cost/hire Change in time spent training Costs incurred training new people Copyright 2015 Accenture All rights reserved. 7

8 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 Value Drivers Metrics Definition Improve lives of vulnerable Youth to adult ratio Women to men ratio Measure vulnerable youth employed Equal hiring of men and women Increase Social Value Improve Inclusive Hiring practices Δ inclusive hires Ratio hired to applied Change in number vulnerable hired Hiring more inclusive candidates Improve human dignity # vulnerable employed Employee satisfaction Effective number of lives improved Satisfaction survey for employees Copyright 2015 Accenture All rights reserved. 8

9 Metrics Revenue Metric Customer feedback Customer retention # of media reports ± brand association % of new customers Increase # customers Method Survey designed to measure service provided by employees (# customers at period end - # new customer for the period)/ (# of customer at 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 Copyright 2015 Accenture All rights reserved. 9

10 Metrics Cost Metric % retained Average tenure % turnover Method (# employee at period end - # new employee for the period)/ (# of employee at period beginning)* 100% amount of time each person stays employed/ Total number of people S/((B + E)/2)*100%, where S is the number of separated employees and B and E represent the beginning and ending size of your workforce Average sourcing cost/hire ( (External Costs) + (Internal Costs))/Total Number of Hires in a Time Period Δ in hours spent training compare last years avg number of hours spent training employees to the current years and measure change Average training cost/hire ( 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. 10

11 Metrics Social Metric Youth to adult ratio women to men ratio Δ inclusive hires Ratio hired to applied # vulnerable employed Employee satisfaction Method employed # of youth (ages 15-24) compared to # 24 and older # of women compared to # of men employed comparative count of number of inclusive hires year over year (YOY) # 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 Data Type Quantitative Quantitative Quantitative Quantitative Quantitative Quantitative Collection Type Internal Internal Internal Internal Internal Survey Frequency TBD TBD TBD TBD TBD TBD Data Source TBD TBD TBD TBD TBD TBD Copyright 2015 Accenture All rights reserved. 11