By Siobhan Goss, Head of Corporate Social Responsibility, Matrix Workforce Management Solutions
As the Head of Corporate Social Responsibility at Matrix, I’ve had the opportunity to witness the increasing importance of social value within the procurement process. Social value is no longer an optional consideration; it is now a significant factor in public sector procurement. The evolution of social value from what it was a decade ago to where it stands today reflects its growing significance in delivering benefits beyond financial outcomes. For suppliers tendering for UK public sector contracts, understanding and embracing social value is key.
One thing I always emphasise when speaking to colleagues across various functions is the importance of understanding the relevance of social value, even in areas where it might not traditionally be considered. Public sector organisations are increasingly posing questions to suppliers about how they will deliver social value. When those bids come in, social value is evaluated with growing emphasis, and I believe that getting feedback and insights from across your organisation can help you respond effectively.
With the future changes planned by the new Procurement Act scheduled for early next year, we are likely to see a greater focus on social value in procurement. The flexibility and innovation that the new legislation will provide will allow us to explore new ways of delivering and evaluating social value outcomes. I’m particularly interested to see how this will develop once the act comes into full force. For suppliers, this presents an opportunity to be creative and demonstrate how their offerings can go beyond just goods and services, creating a broader impact on society.
One of the challenges that the public sector might face is ensuring that they strike the right balance between what they ask of suppliers and what is realistically achievable. There is an emphasis on pushing suppliers to deliver genuine, measurable social value outcomes. But at the same time, we need to ensure that these outcomes are tangible and tailored to the needs of the communities we serve. It’s not just about ticking boxes – it’s about delivering value where it is needed most.
I think it’s important for suppliers to understand that, while the public sector may outline certain expectations, the real beneficiaries of social value initiatives are the communities themselves. In my view, engaging directly with these communities is crucial. It’s all too easy for procurement professionals to assume they know what’s best, but often, the best insights come from the people on the ground – local schools, charities, and community organisations that are already doing fantastic work. Engaging with these groups will not only make your social value efforts more impactful but also more relevant.
The open procurement approach that we will have under the new Act will allow for more innovation and flexibility. This is where suppliers can differentiate themselves. For instance, we are already seeing higher weightings placed on social value in procurement evaluations. Previously, the weightings for social value might have been a mere 2%, but with the new framework, we are hoping to see weightings of 5%, 10%, and even 15%. This higher emphasis reflects a shift in mindset, where social value is seen as an integral part of the procurement decision, not an afterthought.
Of course, there is no golden rule when it comes to social value weightings. The key is to find the right balance that works for both the procuring body and the suppliers. While 2% might not have made much difference, weightings in the 10-15% range start to feel more meaningful. However, these weightings must be aligned with clear goals and not applied arbitrarily. The social value element should be relevant to the contract and specific to the needs of the community. This tailored approach ensures that the social value offered is appropriate to the size of the contract and that it aligns with the goals of the public sector body.
My advice to suppliers is simple: don’t be insular. Social value isn’t something you should develop in isolation. Engaging with the wider community and understanding their needs is key to delivering meaningful outcomes. When planning your bid, think about how you can involve local stakeholders, such as schools and charities. Have you consulted them about what they need? These conversations don’t need to be time-consuming, but they can make a huge difference. Even small initiatives, like offering career talks at local schools, can have a significant impact. It’s about proportionality and finding the right balance between big-ticket items like apprenticeships and smaller but equally impactful initiatives.
When it comes to social value, collaboration is crucial. Many organisations in the public sector have their own social value champions—people who are focused on delivering regional or community benefits. For those that don’t, there is a wealth of knowledge and best practices to be shared. One of the strengths of the public sector is its willingness to collaborate and share ideas, and I encourage suppliers to tap into this. Speak with your peers, share ideas, and learn from one another. The more open we are to learning from others, the better we can deliver social value.
And finally, social value should not be seen as an additional burden or a box-ticking exercise. It represents an opportunity for suppliers to show how they can make a real difference to the communities they serve. By engaging with local stakeholders, tailoring your social value offerings, and collaborating with others in the sector, you can ensure that your bids not only meet but exceed expectations. Social value is here to stay, and I urge all suppliers to embrace it fully.
For more information on Social Value visit:teammatrix.com/social-value/
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