Meet SROI requirements with Motopp

More and more organizations are facing Social Return on Investment (SROI) requirements. But what exactly does SROI entail, why is it important, and how can you as an organization easily comply with it? In this blog, we explain it clearly and show how Motopp can help you see SROI not only as an obligation, but as an opportunity to make social impact.

What is SROI and why is it important?

Social Return On Investment is an instrument through which governments, encourage companies to make social impact. The purpose of SROI is to offer people with a distance to the labor market more opportunities for sustainable employment. This can be done by employing them directly, but also through apprenticeships, traineeships or other forms of social participation.

Finding the right solution to meet the SROI obligation is often complicated for companies. Organizations can customize their SROI obligation as long as they demonstrably contribute to employment and development for these target groups. Many municipalities offer support through an SROI advisor. This advisor will help you find suitable partners and fulfill your obligation in a way that suits your organization. One way to meet the SROI obligation is to employ someone with a distance to the labor market within your organization.

The challenges of SROI for organizations

In addition, many organizations do not have the expertise, time or resources to assist people with a distance to the labor market. It is also difficult for some organizations to find the right balance between achieving social goals and maintaining healthy operations.

Another common problem is that organizations simply don’t know where to start. How do you find suitable candidates? How do you make sure they can integrate well into your organization? And how do you report your efforts in a way that meets SROI requirements? More and more clients are demanding fulfillment of Social Return in their projects. Thanks to our PSO30+ status, we contribute directly to the fulfillment of this obligation.

What is the PSO30+ certification?

The Prestatieladder Socialer Ondernemen (PSO) is a hallmark that measures how socially organizations do business. Companies that receive PSO certification are recognized for their efforts to help integrate people with a distance to the labor market into the work process. PSO30+ status is the highest rung on the performance ladder and means that Motopp not only meets the standards, but also demonstrably employs or actively supports more than 30% of employees from these target groups.

This commitment to social entrepreneurship translates into concrete actions. One of the ways Motopp fulfills the PSO30+ certification is to employ status holders and newcomers. Through this inclusive approach, our Motoppers make a significant contribution to achieving SROI obligations and our shared SROI ambition.

Together we create maximum social impact and employment for vulnerable groups: By working with status holders, your organization offers opportunities to a vulnerable group of people who have difficulty accessing society, to the labor market. Together, we contribute in this way to the creation of employment opportunities for status holders, enabling them to achieve economic self-sufficiency and we promote their integration into society.

How does the SROI obligation work?

Social Return On Investment (SROI) is an important but sometimes complex obligation for many companies in government tenders. Fulfilling this obligation goes beyond simply meeting a percentage: it requires sustainable and effective fulfillment. But how does it work?

When a company receives an order from a (semi-)government organization, it may have an SROI obligation attached to it. This means that a percentage of the contract sum – often between 5% and 10% – is spent on social employment. This can be done in various ways, such as:

• Employing people with a distance to the labor market (such as status holders and newcomers).

• Collaborating with social enterprises that already employ these target groups.

• Offering training or development opportunities such as apprenticeships.

Companies can customize their SROI obligation, as long as they demonstrably contribute to employment and development for these target groups. Government agencies monitor compliance with the agreements and whether the social impact is actually realized.

Penalty for non-compliance with SROI obligation

If you as an organization do not fulfill your SROI obligation, the relevant government agency can impose sanctions. The specific measures vary by municipality and tender, but a common sanction is the imposition of a fine equal to the unrealized SROI value. This means that the amount the company should have invested in social initiatives is claimed as a penalty.

As an organization, you need to stay well informed when participating in government tenders with applicable SROI obligations and the potential consequences of not complying. Failure to comply with these obligations can not only result in financial penalties, but also affect your organization’s reputation and future public procurement opportunities.

From obligation to valuable contribution

Many organizations view SROI as an onerous obligation, when in fact it offers opportunities to make a social impact and attract valuable employees. We support companies in finding, training and coaching motivated candidates who perfectly match the needs of the organization. This not only makes it easier to meet SROI requirements, but also ensures long-term reinforcement of the team.

Operational support

At Motopp, we take the work off companies’ hands by actively supporting the operational fulfillment of SROI. This means that we not only advise on the right approach, but also actually participate in the implementation. We help with:

• Recruiting and selecting suitable candidates

• Setting up development programs that contribute to sustainable employability

• Providing coaching sessions and guidance to the candidate in the workplace

Triple Win

Besides fulfilling the SROI obligation, social entrepreneurship also offers other benefits, such as Social Return is more than a checkbox. It offers a unique opportunity and impact for:

Motoppers:

• Access to the labor market: Status holders get the opportunity to gain work experience and further develop in a professional environment.

• Integration and social inclusion: By working and being part of a team, status holders are able to integrate more quickly to the local culture and community.

• Financial independence: Status holders are empowered to earn their own living and be less dependent on social services.

Organizations:

• Diversity and inclusion: Motopp’s services contribute to diversity in the workplace and enrich the organization with different perspectives and cultures.

• Potential talent pool: Status holders may have undiscovered talents and skills that can be valuable to companies.

• Corporate social responsibility: Companies can show their commitment to social issues by providing opportunities for status holders and contributing to their integration.

Society:

• Reducing dependency: Enabling status holders to generate their own income reduces pressure on social services and government budgets.

• Social cohesion: Promoting the integration of status holders contributes to an inclusive society and can help reduce prejudice and discrimination.

Making an impact together

By working with us, SROI becomes not just an obligation, but an opportunity to make social impact and strengthen the company. We ensure that the fulfillment is efficient and valuable, both for the organization and for the people who get new opportunities as a result.

Want to know how we can support your company with SROI? Contact us and discover the possibilities!