The challenge: Make alternative ways of social return more attractive to entrepreneurs.
Description of the problem
The municipality of The Hague puts a lot of projects out to tender, which leads to new job opportunities. Social return is compulsory for companies that win a municipal tender (above the European tender threshold, in the future this will also apply to tenders below this limit). This means that they have to spend part of the money that they get with their contract on hiring people that face difficulties accessing the labor market. As a result, more students and other people seeking employment can find a job or internship.
Ideally, a company creates direct paid employment for people with a distance to the labor market. However, in reality this is not always possible, for example, due to a lack of candidates. In that case there are alternative options such as:
Currently, companies hardly use these alternative options. The reason for this is because companies are still unfamiliar with them and the municipality does not always refer to them.
If we also start implementing social return for lower tenders (below the limit of € 221,000), these alternative possibilities will become more important. With these amounts it is more difficult to create social return through direct employment, thus alternative options will become more important.
Social return leads to more social impact when these alternative options can be used. How can we facilitate the ‘customer journey’ of our contractors in an efficient way that ultimately leads to optimization of social return? This is the first challenge we face. A company that has to create social return needs to be accountable for it, even when they create social return in a different way, for example by purchasing products or services from social entrepreneurs. How can we realize this in a more transparent and efficient way? Which (technological) solutions can analyze and interpret the social return on investment, making it traceable and thus increase its legitimacy? This is the second challenge.
From a company’s perspective: if a company wants to contribute to a better city by meeting the requirement of 5% social return in the tender, then we want to be able to help this company achieve this. How can transparency in services play a role in this?
What are we looking for?
What are we not looking for?
How is social return currently registered or analysed?
This is possible with the help of Wizzr from Provijf.
How does social return work? What steps do the municipality and the company take?
Where can I find more information about the current policy of social return?