Why Calculating Social Value Matters More Than Ever
Calculating social value is no longer a nice-to-have. For organisations working in healthcare, construction, IT, education or professional services, it is a requirement for winning public sector contracts. Commissioners want to see measurable evidence, not just intention. Social Value Quality Mark (SVQM), is an nationally recognised framework that provides independent assurance. We look beyond the numbers to assess organisations for their social value approaches, behaviours, processes and delivery.
If you're wondering how to calculate social value, this guide introduces the core principles and structure we consider during Bronze, Silver, Gold and Platinum Accreditation.
Why Social Value Needs to Be Measured, Not Just Claimed
Social value is a strategic requirement in today’s procurement landscape. Under the Social Value Model and Procurement Act, bidders are expected to show how their work contributes to wider social, economic and environmental goals. For SMEs, this can be the difference between winning and losing work.
Beyond procurement requirements, accurate measurement allows you to understand where you are making the greatest difference. It supports you to understand the success of your programmes and plan for future investment.
Measuring your impact ensures:
- Clear alignment with public sector social value requirements
- Stronger tender responses supported by credible, verifiable evidence
- Reduced risk of unsupported claims or perceived “value washing”
- Better decision-making based on where you have the greatest impact for your people and communities
- Strategic investment is focussed on sustainable growth
SVQM helps you meet these expectations through an independently audited framework built on evidence, rigour and transparency.
Learn more about why accreditation matters
Step 1 – Define What Social Value Means in Your Organisation
Before you can calculate social value, it’s essential to explain social value in a way that resonates with both your team and stakeholders. Doing so builds a shared understanding and frames the positive changes you aim to achieve.
Begin by reflecting on how your organisation contributes to society. Social value looks different for every business. A digital firm might focus on digital inclusion or skills training. A contractor might emphasise local job creation or waste reduction.
SVQM encourages your organisation to make a series of commitments based on 9 social value themes. The themes help you:
- Tailor your strategy to your mission and sector
- Communicate impact internally and externally
- Map your activities to social value indicators that are meaningful, evidence-based, and aligned with public sector priorities
Not sure which themes apply to your work? Explore the nine SVQM themes used in accreditation to better understand how your organisation can demonstrate measurable impact.
Step 2 – Run a Gap Analysis to Identify Missing Value
Before you measure, understand where the gaps are. A gap analysis helps you:
- Identify where activities already create social value but are not tracked
- Spot quick wins and areas where new initiatives could be introduced
- Discover weaknesses in your approach, governance or processes
- Get ahead of SVQM accreditation by identifying and addressing key areas early
A gap analysis adds value for any organisation, regardless of where you are in your journey and whether or not you intend to seek accreditation. Many SMEs discover they are already generating social value — they just haven’t formalised it yet.
This exercise is also useful for organisations to measure progress over time and build a long-term social value strategy.
Step 3 – Set Key Value Indicators (KVIs)
Once you know your starting point, define what success looks like. This is where Key Value Indicators (KVIs) come in. Examples might include:
- Number of jobs created for local residents
- Tonnes of CO2 reduced or recycled
- Hours of volunteering or mentoring delivered
Indicators must be:
- Relevant to your organisation
- Linked to outcomes
- Capable of being tracked and evidenced
- SMART (Specific, Measurable, Achievable, Relevant and Time-Bound)
SVQM provides a reference list of indicators for each of the nine themes to support this step. These indicators also help explain social value in a way that is meaningful to stakeholders and commissioners alike.
When setting KVIs, keep in mind the bigger picture - the outcomes you are aiming for. For example, you may set a goal to deliver a number of skills workshops. The real value, though, comes from moving people into employment or education for self sufficiency, wellbeing and overall contribution to society.
A strong measurement framework should include proxy values, but what matters most is that your reported outcomes are clearly defined, evidence-based and aligned to social value indicators.
Step 4 – Decide When and How You Will Measure
Getting your timing right
When considering timing, you may need to be led by a specific business requirement - such as reporting to a client or Local Authority, or gathering together your evidence for accreditation.
Ideally, we recommend establishing a measurement and reporting ‘rhythm’ which is aligned to your financial year. The benefits of this approach mean:
- Social impact and value can be reported to your stakeholders alongside profits
- Measurement and tracking becomes integrated into the way you work
- Social Value insights can be fed into board meetings to help inform strategic decisions about how you invest, change and grow
Establishing qualitative and quantitative approaches
In social value, the story behind the numbers is just as important as hard metrics. You’ll want to balance quantitative and qualitative approaches for rigour and credibility. You should use qualitative data to help verify and explain your findings.
- Quantitative sources may include: surveys with specific choices; financial data (donations, investments, supplier spend); review rankings; gender pay gap, diversity and HR workforce data; outputs such as workshops delivered, people in attendance.
- Qualitative sources may include: open-question surveys; feedback; case studies; board minutes; interviews and testimonials.
Ethics, accuracy and transparency
Many less scrupulous organisations choose to capture and present data that tells a one-sided story - usually one that is overwhelmingly positive and avoids unpleasant truths about changes that still need to happen. Local Authorities are increasingly savvy to this and are applying additional scrutiny.
This is a big topic but here are some pointers for transparent measurement practices:
- When carrying out a survey, ensure you capture an appropriate sample - this should typically be about 10% of your stakeholder groups
- Avoid leading questions
- Add an option for anonymity - so that respondents feel able to be honest
- Ensure you have considered accessibility - is the survey in a format and location that allows for diverse participation?
- Give credit to external partners and volunteers
- Report negative impacts as well as positive ones
- Be clear about the level of influence you’ve had - don’t overclaim for positive impact that may have happened anyway
- Be honest about changes/improvements that still need to happen
Our partners at Social Value Business can support you with your engagement and measurement approaches.
Step 5 – Measure Inputs, Outputs, Outcomes and Impact
To understand the value of your activity, measure more than delivery. Use this structure:
- Inputs: Time, money, expertise invested
- Outputs: Activities delivered (e.g., employability workshops delivered)
- Outcomes: The change created (e.g., greater understanding of and desire to work in your industry)
- Impact: Long and short-term difference made (e.g. more people entering jobs or training, retaining employment)
- Value: The benefit estimated in financial terms, (e.g. value of employment) or social terms (increased independence, wellbeing).
This model ensures consistency and makes your impact easier to explain to commissioners, partners and auditors. It also provides the backbone of a strong social value audit, helping you track the social and environmental impact your organisation delivers.
By quantifying your outcomes, you can communicate the social and (where relevant) financial return your work delivers more effectively.
Step 6 – Align with SVQM Assessment Standards
At SVQM, calculating social value is part of a bigger picture. Our social value audit assesses not just what you measure but how you plan, report, and embed social value across your organisation.
SVQM applies a set of guiding principles to inform how social value is evaluated during audit. These principles help assess the credibility, consistency and integration of social value across your organisation.
- PLAN: Social value planning is aligned to business goals with the right processes, skills, and infrastructure in place.
- DEMONSTRATE: Strategies and activities are delivered with clear, positive, measurable outcomes. They are managed for continuous improvement.
- CALCULATE: Both financial and non-financial value is reported transparently, using recognised social value indicators. Positive and negative values are reported.
- ECO SYSTEM: Stakeholders, suppliers, and partners are engaged meaningfully and ethically, with clear evidence of impact.
- REPORT: Social value is reported fairly and consistently, including both positive and negative outcomes. Trust levels are reported.
- PERFORMANCE MANAGE: Social value insights drive strategic decisions and continuous improvement. All departments are actively engaged.
- TRUST: Fairness, inclusion, and ethical decision-making are embedded across your organisation.
- INFLUENCE & LEADERSHIP: The organisation uses its influence to drive positive change, internally and externally.
- CULTURE: Employees at all levels are actively involved in creating social value.
These standards reflect the values of legitimacy, transparency and ethics that underpin every SVQM accreditation.
Discover how we define high standards in our award criteria
Step 6 – Ensure Your Methodology Is Audit-Ready
You may already be using a calculator or tool to measure your impact, whether it's a bespoke model, a sector-specific solution or an off-the-shelf option. But how do you know what’s needed to support social value accreditation?
This step is about verifying the quality of your approach. SVQM does not require one specific calculator. We accept evidence based on all methodologies, for example National TOMs, MeasureUp, Global Value Exchange, SROI, HACT or industry specific examples. We also accept evidence from a variety of tools - from simple Excel sheets, to Impact Reporting, Thrive, Loop and industry-specific examples.
We look at whether your methodology and resulting calculations are:
- Transparent and based on credible evidence
- Proportionate, based on the size of your organisation and its stakeholder groups
- Aligned with social value indicators and outcomes
- Supported by evidence, such as case studies, survey data, testimonials and board meeting minutes
- Consistent over time
- Adjusted to take into account things like the level of influence you’ve had versus that of other parties.
Your measurement approach is a key element of any successful social value audit. If you're unsure, our Pre-Audit Service is designed for Silver and above accreditation to help you assess your readiness and ability to measure impact in a way that stands up to scrutiny.
Step 7 – Report Transparently and Prepare for Accreditation
The final step is to turn your data into a credible report and make it publicly available. You should report any negative outcomes as well as the positives - this could include your carbon footprint, for example, or other services that have been unintentionally displaced as a result of your initiatives.
High‑quality social value reporting helps you:
- Show transparency
- Build trust with buyers and funders
- Strengthen your bid with evidence‑based outcomes
SVQM audits evaluate how effectively you communicate your impact. Clear reporting is essential for progressing from Bronze to Silver or Gold. Every social value audit builds on your ability to report both qualitative and quantitative outcomes clearly.
This approach supports compliance with the Procurement Act and alignment with national social value priorities.
If you need support to measure and report social value in line with best practice and the requirements of SVQM, our partners at Social Value Business can help. Learn more about reporting
Ready to Start? Take the First Step
Whether you're measuring social value for the first time or looking to strengthen procurement bids, we’re here to support you.
Start by speaking with our team. If you’re already at Bronze, book a Pre-Audit Assessment to check your readiness for Silver or above.
Not sure where to begin? Learn more about SVQM accreditation levels to find the best starting point for your organisation.
