SROI Report Cards: Years Ending
•July 31, 2003
•July 31, 2004
•July 31, 2005
•July 31, 2007 (two year report)
•July 31, 2008
•July 31, 2009
SROI Report Card:
Inner City Renovation: Social Mission Overview
Goals
Methods
• Hire majority of ICR
employees from low –
income, inner city
neighbourhoods
• Recruit at least 60% of
employees from lowincome, inner city
neighborhoods
• Contribute to the
revitalization of
Winnipeg’s inner city
• Dedicate significant
proportion of contract
opportunities to inner city
projects
• Provide ‘quality’ jobs to
target employee group
• Pay market wages and
employee benefits
• Provide opportunities for
skill development and
internal career laddering
• Establish an ICR
employee ownership plan
once the enterprise has
stabilized and reached
profitability
• Establish apprenticeship
program, participatory
management training
and career laddering
structure
• Retain Employee Social
Support Worker
• Develop employee
steering committees and
regular staff social and
educational events
Success Metrics
• ICR maintains a 60%
employee average from
the target population
• Current and past target
employees are able to
lessen or eliminate need
for government financial
assistance
• Tangible progress made
regarding individual
target employee
sustainable livelihood
asset development
• ICR retains majority of
target employees while
reaching profitability
SROI Report Card: Year End 2003
Enterprise: Inner City Renovations
Location: Winnipeg MB
Financial Performance
Date of Inception: August 2002
Social Return On Investment
Total Sales Revenue:
$935,000
Average Change in Societal Contribution (Target Employees)
$13,600
Total Grants and Subsidies
$115,000
Average Number of Target Employees
18.5
Total Sales Revenue and Grants
$ 1,150,000
Total Change in Societal Contribution
$149,500
Total Operating Profit (Loss)
$(245,000)
Ongoing Portion of Societal Contribution
$74,000
Additional Social Support Infrastructure
$8,000
One Year SROI
41%
Total Investment Required to Date
$368,000
Annuity Multiplier
12
Projected Long Term SROI
241%
Overview of Business
• Renovation and construction company committed to the revitalization of
Winnipeg’s inner city residential housing and creating quality employment for
low income, inner city residents
• The company was started as a joint venture between five nonprofits
committed to inner city renewal
• Business provides full service renovations to both residential and commercial
customers in the inner city of Winnipeg
• The vision is to move the company into an employee ownership business
model after ICR has reached two consecutive years of profitability
Overview of Target Population
•
•
•
•
•
•
•
•
•
•
79% unemployed before ICR employment
60% receiving social assistance before ICR employment
90% male
Majority are aboriginal
11% high school graduates
58% have criminal record
37% had ever held a job for no more than 2 years
63% have dependent children
47% needed food bank services in the year prior to ICR employment
Few had bank accounts at hire – most used cheque cashing services
Sustainable Livelihoods Outcomes
•
•
•
•
•
•
•
•
Improved social connectedness through staff retreats and off-sites
Employee social committee has been created as first step toward
participative management
Staff have 24/7 access to crisis councilor
Employee wages average $12.75/hr compared to $6.75 minimum wage
Most employees use bank accounts rather than cheque cashing services
Only 5% of staff continue to use food banks and frequency has dropped
$2,000 invested in basic tools and safety equipment for target employees
Partnership created with local College for journeyman training
Employment Outcomes
•
•
•
•
•
•
•
•
•
Provided full time jobs for 26 individuals throughout yr 1
Peak employment of 19 individuals
Paid approx. C$480K in wages to target employees
Generated approx. C$67K in income tax from target employees
Experienced annualized employee turnover of 52%
Organized workforce into teams of 1 tradesmen and 2 target employees
Experienced ongoing challenges with attendance and productivity which
contributed to financial losses
Turnover stabilized by end of year
HR policies and employee handbook created
SROI Report Card: Year End 2004
Enterprise: Inner City Renovations
Location: Winnipeg MB
Financial Performance
Date of Inception: August 2002
Social Return On Investment
Total Sales Revenue:
$936,000
Total Grants and Subsidies
$48,000
Average Change in Societal Contribution (Target Employees)
$12,495
Average Number of Target Employees
9
Number of Target Employees in Sample Group
9
Total Sales Revenue and Grants
$ 984,000
Current Year Cost Savings to Society
$112,452
Total Operating Profit (Loss)
$(157,000)
Current Year SROI
50%
Additional Social Support Infrastructure
$20,000
Societal Payback Period
2 years
Total Investment Required for Year
Two
$225,000
Average (Year 1 and Year 2) SROI
22%
Cumulative (Year 1 and Year2) Societal Payback Period
4.6 years
Overview of Business
Overview of Target Population (sample group)
• Adapted the business model – particularly jobsite work processes
and crew composition- to compete fairly with the competition and
address productivity issues
•
55% aboriginal
•
100% male
•
44% have not finished high school
•
Average age is 45
•
Retained 57% of original target employee base recruited from
community-based training program
•
Retained 32% of target employees recruited in year one
•
For 38%, ICR is the longest they have been at one job
• Decreased losses before grants and subsidies from Year 1 to Year 2
by $155,000
• Decreased operating loss from Year 1 to Year 2 by $89,000
• 70% ($654,000) of business in housing and 30% ($282,000)of
business in commercial
Sustainable Livelihoods Outcomes (sample group)
• 100% reported that working at ICR is a positive influence in their lives
• 100% reported being more financially secure than before working at ICR
• 63% reported that employment at ICR has increased their abilities in
money management
• 100% reported that their levels of technical (carpentry) skills have
improved and 75% reported that they are now able to perform technical
tasks or managerial duties that they could not when they were first hired
• 63% reported working at ICR has a positive impact on their mental health
• 100% reported an increased social connectedness since working at ICR
Employment Outcomes
•
Peak employment of 13 target employees
•
Established apprenticeship program at ICR
•
44% of target employees established career laddering pathways
•
100% view ICR as a good career opportunity
•
For 38% of target employees, ICR is the longest they have been at
one job
•
100% reported that through their work they were directly contributing
to their local community
SROI Report Card: Year End 2005
Enterprise: Inner City Renovations
Location: Winnipeg MB
Financial Performance
Date of Inception: August 2002
Social Return On Investment
Average Change in Societal Contribution (per Target Employee):
9,700
Average Number of Target Employees:
14
$232,500
Number of Target Employees in Sample Group:
14
Total Sales Revenue and Grants:
$ 1,710,500
Current Year Cost Savings to Society:
135,800
Total Operating Profit (Loss):
$(3000)
Cumulative Cost Savings (prior to year 3):
$261,952
Total Cost Savings to Date:
$397,752
Cumulative SROI:
47%
Total Sales Revenue:
$1,478,000
Total Grants and Subsidies:
Additional Social Support Infrastructure:
$13,600
Total Investment Required for Year Three:
$249,100
Total Investment to Date:
$842,000
Overview of Business
Overview of Target Population (sample group)
• Increased total revenues by 37% from last year
•
54% aboriginal
• Grew commercial revenues from 30% to 50% of total revenues
•
Average age is 42
• ICR is the major contractor for commercial and renewal projects in
Winnipeg’s inner city, particularly Selkirk Ave
•
100% male
•
46% have not finished high school
• Renovated over 40 homes in inner city for joint venture partners
•
50% have criminal records
• Manitoba Residential Construction Training Institute recognizes ICR
as preferential employer for training graduates
•
Retained 25% of original target employee base recruited in Year one
Employment Outcomes
Sustainable Livelihoods Outcomes (sample group)
•
Maintained 63% target/non target employee ratio throughout Year 3
• Established multi-stakeholder partnership to deliver Canada’s first
company run savings/asset development program
•
Average target employee wage of $10.68 and average hourly wage for
all staff of $12.90 over 3 years
• ICR target employee completed first year apprenticeship and earned one
of the highest grades in the class
•
Developed customized education training support to prepare target
employees to quality for apprenticeship program
• Two target employees formally recognized by Aboriginal community at
Elders; ceremony
•
Established partnership with Louis Riel Arts & Technology Centre
where ICR is a work placement for students in the Construction Trades
& Technology Program
•
Winnipeg Aboriginal community formally recognizes ICR as a business
connected at the community level
• Target employee able to be reunited with his children because of his now
stable livelihood
SROI Report Card: Two year period ending July 2007
Enterprise: Inner City Renovations
Location: Winnipeg MB
Social Return On Investment
Financial Performance
Total Sales Revenue:
$3,146,259
Total Grants and Subsidies
$296,892
Total Sales Revenue and Grants
$ 3,443,151
Total Operating Profit (Loss)
Average Change in Societal Contribution (Target Employees)
$11,932
Average Number of Target Employees
16.5
Number of Target employees in Sample Group
10
Current Year Cost Savings to Society
$196,878
$(2,812)
Additional Social Support Infrastructure
$7,837
Cumulative Cost Savings (yrs 1-3)
$397,752
Total Investment for Years Four & Five
$307,541
Total Cost Savings to Date
$594,630
Total Investment Required to Date
$1,149,541
Cumulative SROI
52%
Overview of Business
• Increased total sales revenues by an average of 13.5% per year over the past
five years
• Completed more than 175 projects since start-up
• Generated more than $6.5 million in earned revenue since start-up
• Paid out more than $2.5 million in wages and benefits to its employees
Overview of Target Population
•
•
•
•
•
•
Sustainable Livelihoods Outcomes
•
•
•
•
•
•
•
•
Date of Inception: August 2002
Four target employees were registered in the Apprenticeship Carpentry
training program
Six employees participated in savings program in 2006
Employees at ICR are recognizing the benefits of secure employment and a
regular pay check.
ICR continues to provide a social calendar of events in order to encourage
social connections for staff and their families e.g. spring retreat, staff
Christmas party, family picnic etc.
In addition to the normal health plan covering extended health benefits ICR ‘s
upgraded health plan now includes life insurance and long term disability. One
employee has accessed this long term disability due to a health challenge.
Direct payroll deposit ensured that all employees are utilizing bank accounts
Hep C vaccinations were provided to all employees in 2006
One employee has obtained a valid driver’s licence which he did not previously
have.
67% aboriginal
Average age is 42
6% female
75% have not finished high school
50% have criminal records
46% of original target employee base recruited in Year 1 are still with
ICR
Employment Outcomes
•
•
•
•
•
•
Maintained average 66% target/non target employee ratio throughout
Years 4 & 5
Average target employee wage of $13.56 and average hourly wage for
all staff of $14.51 over the past two years. As of July 31, 2007 average
hourly wage for all staff was $15.29
This wage increase for target employees is a 27% increase over the
average wage calculated in 2005
Career building opportunities have resulted in a target employee moving
from entry level employee with few job skills to journeyman supervisor
Target employees continue to enjoy their work at ICR and most view
ICR as a good career opportunity
Long term employees noted an improvement in their technical skills
SROI Report Card: Year End July 31 2008
Enterprise: Inner City Renovations
Location: Winnipeg MB
Social Return On Investment
Financial Performance
Total Sales Revenue:
$1,374,641
Total Grants and Subsidies
$84,592
Total Sales Revenue and Grants
$ 1,459,233
Total Operating Profit (Loss)
Date of Inception: August 2002
Average Change in Societal Contribution (Target Employees)
$7,211
Average Number of Target Employees
9.7
Number of Target employees in Sample Group
10
Current Year Cost Savings to Society
$69,942
Cumulative Cost Savings (to 2007)
$594,625
Total Cost Savings to Date
$664,567
Cumulative SROI
52%
$(34,592)
Additional Social Support Infrastructure
$6,700
Total Investment for Year Six
$125,884
Total Investment Required to Date
$1,275,525
Overview of Business
•
•
•
•
•
Both revenues and profits were down marginally
Completed more than 225 projects since start-up
Generated more than $8 million in earned revenue since start-up
Paid out nearly $3 million in wages and benefits to its employees
Inner City Development was awarded the 2008 Employer of the Year Award in
recognition of outstanding contribution to Manitoba Apprenticeship training.
• Inner City Development received honourable mention in the 2008 Manitoba
Excellence in Sustainability Award for outstanding achievement and leadership
in the Business Category by the Manitoba Round Table for Sustainable
Development.
Sustainable Livelihoods Outcomes
•
•
•
•
•
Three target employees were registered in the Apprenticeship Carpentry
training program
Employees at ICR are recognizing the benefits of secure employment and a
regular pay check.
ICR continues to provide a social calendar of events in order to encourage
social connections for staff and their families e.g. sporting & recreational
events, staff Christmas party, family picnic etc.
In addition to the normal health plan covering extended health benefits ICR ‘s
upgraded health plan now includes life insurance and long term disability. One
employee has accessed this long term disability due to a health challenge.
Direct payroll deposit ensured that all employees are utilizing bank accounts
Overview of Target Population
•
•
•
•
•
•
50% aboriginal
Average age is 40
13% female
45% have not finished high school
23% have criminal records
35% of original target employee base recruited in Year 1 are still with
ICR
Employment Outcomes
•
•
•
•
•
•
Maintained average 62% target/non target employee ratio throughout
Year six
Average target employee wage of $15.50 and average hourly wage for
all staff of $15.90 over the past year.
This wage increase for target employees is a 14% increase over the
average wage calculated in 2006/2007
Career building opportunities have resulted in a target employee moving
from entry level employee with few job skills to journeyman supervisor
Target employees continue to enjoy their work at ICR and most view
ICR as a good career opportunity
Long term employees noted an improvement in their technical skills
SROI Report Card: Year End July 31 2009
Enterprise: Inner City Renovations
Location: Winnipeg MB
Social Return On Investment
Financial Performance
Total Sales Revenue:
$1,509,963
Total Grants and Subsidies
$56,910
Total Sales Revenue and Grants
$ 1,566,873
Total Operating Profit (Loss)
Average Change in Societal Contribution (Target Employees)
$6,381
Average Number of Target Employees
12
Number of Target employees in Sample Group
12
Current Year Cost Savings to Society
$76,569
Cumulative Cost Savings (to 2008)
$664,567
Total Cost Savings to Date
$741,136
Cumulative SROI
55%
$108,026
Additional Social Support Infrastructure
$6,700
Total Investment for Year Seven
$63,610
Total Investment Required to Date
$1,339,135
Overview of Business
•
•
•
•
•
Date of Inception: August 2002
Revenues increased by 9.8%
Profit has contributed to reducing the accumulated deficit
Completed more than 255 projects since start-up
Generated more than $9.3 million in earned revenue since start-up
Paid out nearly $4 million in wages and benefits to its employees
Overview of Target Population
•
•
•
•
60% aboriginal
Average age is 40
33% of original target employee base recruited in Year 1 are still with
ICR
Hired employee with a disability (intellectual) that has worked with
current employees
Sustainable Livelihoods Outcomes
Employment Outcomes
•
•
•
•
•
Four target employees were registered in the Apprenticeship Carpentry
training program
Two employees took a project management course
ICR continues to provide a social calendar of events in order to encourage
social connections for staff and their families e.g. sporting & recreational
events, staff Christmas party, family picnic etc.
Employees have indicated that they feel they are getting along better with
others as a result of their employment with ICR
Note: Target Employee (defined): Inner city resident – Low income
•
•
•
•
Maintained average 60% target/non target employee ratio throughout
Year seven
Average target employee wage of $15.75 and average hourly wage for
all staff of $16.50 over the past year which is $6.75 more than minimum
wage
This wage increase for target employees is a 1.6% increase over the
average wage calculated in 2008
Target employees continue to enjoy their work at ICR and most view
ICR as a good career opportunity
Long term employees noted an improvement in their technical skills
SROI Report Card:
Definitions and Methodology
Total Investment Required to Date
Total operating losses + Grants and Subsidies + Additional Support Infrastructure
= Total Investment Required
• Represents all cash injections in the business
Change in Societal Contribution (Target Employees)
• Difference between the direct societal “cost” or “benefit”
contributed by the employee before hire versus after hire
Ongoing Portion of Societal Contribution
Annual Social Assistance Before Hire - Annual Income Tax Paid Before Hire +
Annual Income Tax Paid After Hire
= Change in Societal Contribution
Annual Income Tax Paid After Hire - Annual Income Tax Before Hire
• The component of the change in financial position that can be
measured beyond year one
= Ongoing Portion of Societal Contribution
Annuity Multiplier
• Projected value of ongoing new income tax contributions
generated by target employee in the future
Current Year SROI
• Return on investment generated by the current year change in
target employee financial position
Projected Long Term SROI
• SROI generated by extrapolating the ongoing portion of the
change in employee financial position into the future
Total Change in Societal Contribution / Total Investment Required
=Current Year SROI
Ongoing Portion of Societal Contribution * Annuity Multiplier / Total investment
Required
=Projected Long Term SROI
Data Gathering Process
• Target employees are interviewed to obtain a baseline socioeconomic data
• Data is gathered regarding employment and sustainable livelihood status prior at hire
• A second survey is taken at the end of each year to determine changes for target employees
• Only target employees who are employed for more than three months are considered for SROI calculations