Social return on investment
Social Return On Investment, SROI, is a way to monetise the value of the social impact in financial terms. GTS does this by following a 5 five step plan for each of its 3 key measurements of employment, Education and skill acquisition along with the Living Wage and living hours contracts. We compare that social value to the cost of making each project happen which allows us to reflect only the primary returns and quantify them as financial equivalent returns (£)
The 5-step plan
- Understand stakeholder needs and match them to your organisation’s objectives
This may be a customer who has a required definition of there returns such as community benefits, or CSR. Or it could be an investor or partner organisation who hold shared values but seek certain delivery on agreed target demographics.
- Decide how to measure outputs against the objectives
GTS prefers to measure its outputs in primary forms that can be directly quantified such as the national average wage vs the living wage or the value of living hours contracts vs zero hours contracts
- Putting ourselves in our stakeholders’ shoes leads us to new ways of understanding value creation
Through exploring the requirements of SROI for our stakeholders and investigating the metrics that they wish us to report on
- Report on the whole process, not just the numbers
Whilst on the website we only report the SROI in (£) we also deliver reports to all of our customers at frequent intervals which shows how we have made the journey to the quantifiable numbers that we report and these are based around the inputs, outputs, and the targeted outcomes of the project.
- Government statistics and other data can be used to calculate how you create social impact
GTS feels that it is key to draw against the socioeconomic evidence produced by the regional and national governments to quantify all of our SROI as this enables us to justify that the impact is meaningful through its alignment with the goals and challenges of that public authority.
With our suite of specialist services, we have the toolkit to deliver peace in real-time.