Social value refers to the positive impact a business has on society beyond its financial bottom line. It encompasses the broader benefits to the community, environment, and overall well-being of individuals. This can include initiatives like sustainable practices, community engagement, and efforts to improve public health and education.

Want to learn more about social value? You can read our blog on that here

Internal Social Value

Internal social value focuses on the positive impact a business creates within its own workforce and internal operations. This includes initiatives that enhance employee well-being, foster a supportive and inclusive workplace culture, and improve job satisfaction. By prioritising internal social value, businesses aim to create a healthy, productive, and motivated workforce.

Enhancing Social Value Within the Workforce

Promoting Diversity and Inclusion

Companies with diverse executive teams are 25% more likely to have above-average profitability than their competitors.

Implementing policies and practices that promote diversity and inclusion can have a significant impact. A diverse and inclusive workplace fosters innovation and creativity, as employees from different backgrounds bring unique perspectives and ideas. Additionally, if your business is seen as inclusive and fair, it is also seen as more attractive to top talent, which can give a competitive edge in the job market.

Training and Apprenticeships

Developing your people and ensuring a robust pipeline of skilled employees is key to future-proofing any business. Setting apprenticeship targets linked to client contracts, managing the spend on training against budget, and recording skills levels to aid succession planning and personal and professional development planning are all methods of developing the workforce.

Health, Safety, and Well-being Initiatives

Employee well-being is a multifaceted concept that includes physical health, mental health, and overall job satisfaction. Initiatives such as wellness programs, mental health support, health and safety training, or team-building days are all ways of promoting employee well-being. Healthier employees are more productive, and by reducing stress and promoting a positive work environment, you can boost overall productivity. Effective health and well-being programs lead to fewer sick days, reducing costs associated with absenteeism. Employees who feel their well-being is prioritized are also more likely to stay with the company, lowering turnover rates and saving on recruitment and training costs. Overall, a strong commitment to health, safety, and well-being makes a company more attractive to current and potential employees, giving it a competitive edge in the job market.

Using ESG Data to Improve Workplace Social Value

Investing in different internal social value initiatives is crucial, but tracking their impact can be challenging. Using technology to track initiatives can provide valuable insights into various aspects of workplace health.

Metrics such as gender and ethnic diversity, pay equity, and representation in leadership positions provide insights into the inclusivity and fairness of the workplace. Additionally, data on employee training, professional development, and apprenticeship programs can highlight the company's investment in its workforce's growth and future readiness. Health and safety metrics, including the frequency of workplace accidents and the availability of wellness programs, help assess the overall well-being of employees.

By regularly monitoring these metrics, companies can identify areas for improvement, set measurable goals, and demonstrate their social return on investment. This data-driven approach not only enhances internal social value but also strengthens the company's reputation and attractiveness to top talent.

The Commercial Impact of Enhanced Employee Well-being

Investing in employee well-being through ESG initiatives is not just the right thing to do; it also makes good business sense:

1. Increased Productivity: Healthier, happier employees are more productive. By reducing stress and promoting a positive work environment, you can boost overall productivity.
2. Lower Turnover Rates: Employees who feel valued and supported are less likely to leave. Lower turnover rates mean reduced recruitment and training costs, as well as the retention of valuable institutional knowledge.
3. Enhanced Reputation: Companies that prioritize ESG initiatives, including employee well-being, are viewed more favourably by customers, investors, and other stakeholders. A strong reputation can lead to increased customer loyalty and attract socially conscious investors.
4. Compliance and Risk Management: ESG reporting helps companies stay compliant with regulations and standards related to workplace health and diversity.

How SustainIQ Can Help

People are central to every successful organisation. Investing in their professional development and looking after their health and well-being is critical to attracting new talent into your organisation and retaining the skills and experience you already have. Ensuring your company’s workforce is reflective of wider society by focusing on diversity and inclusion is also a critical building block to success.

At SustainIQ, we understand that true sustainability goes beyond commitments to the planet—it's about giving back to your people and communities and creating social value. With our People, Health & Diversity pillar, you can track all health, safety, and well-being initiatives company-wide. Measure staff engagement with each initiative, determine key beneficiaries, and track the causes invested in across the organisation.

Developing your people and ensuring a robust pipeline of skilled employees is key to future-proofing any business. Training, placements, and apprenticeships can be recorded and tracked in SustainIQ to provide a detailed record of professional development across the company. SustainIQ can help you:

• Demonstrate social return on investment.
• Set apprenticeship targets linked to client contracts and monitor progress in real time.
• Manage the spend on training against budget.
• Record skills levels to aid succession planning and personal and professional development planning.

SustainIQ helps you measure diversity at all levels of your organization, ensuring you are creating a diversity, equality, and inclusion (DEI) strategy that involves all employees. Use SustainIQ to:

• Track the diversity characteristics of your workforce.
• Set goals and monitor progress against them.
• Record diversity and inclusion policies, programs, and initiatives and track their impact.

Enhancing employee well-being through ESG initiatives is a win-win for both employees and businesses. Investing in your employees is investing in your company's future. By prioritising their well-being, you not only foster a positive workplace culture but also drive sustainable business growth.

Have a look at our case study on how our customer, JP Corry, used SustainIQ to track community investment in one their projects.