Human Resource Issues in Social Enterprises

Temi OdesanyaMarketing Assistant

Social Enterprise in the UK• 62,000 social enterprises in the UK • Combined turnover £27bn• 5% of all businesses with employees in the UK• Contribute £8.4bn to the UK economy

– Data from the Annual Survey of Small Business 2005-2007– Social Enterprise Coalition

Social enterprises, WISEs and Social Firms…

Social Enterprise

WISEs

Social Firms

Civil Societyaka the Third Sector

Creation of quality, paid, sustainable employment for individuals furthest away from the labour market

What is a Social Firm

specific social purpose is to create paid employment for severely disadvantaged

people in the labour market

• Origins can be traced back to Italy and Germany in the 1960’s

• Social Firms UK formed in 1999 as the national umbrella support organisation

• Growing sector - 32% growth since 2006

History

Target Groups• Mental health issues• Learning disabled• Sensory deprivation and

physically disabled

• Homeless• Ex-offenders• Ex-substance misuse

• Growth: 5 to >180 businesses over 10yrs

'96 '99 '03 '05 '06 '070

20

40

60

80

100

120

140

Social Firms

Emerging Social Firms

Progress

Social Firms are Values Led

• Enterprise: “business that support” rather than “project that trades”

• Employment: social & economic integration through employment and market wages

• Empowerment: supportive environment, real opportunities and meaningful work

Social Firm Features

Tend to be small Utilise standard business practice

Need support in the early years

Initially led by an entrepreneurial spirit• Social Entrepreneur

External from parent organisation

Impact• 1750+ FTE jobs created, 58% held by severely

disadvantaged people• An average of:– 582 trainees– 427 service users– 311 volunteers

benefited from Social Firm placements each week• Mapping Report 2010

Proving that value - and changing lives

Example: Six Mary’s Place Guesthouse saves the NHS alone average £21k pa per person with a MH problem

employed

Proving that value - and changing lives

Example: Blue Sky Development & Regenerationsaves the Prison Service £200,000 pa per person that does not re-offend.

(employed over 350 people since 2005 with a re-offend rate of 15%- compared to 60% average)

Proving that value - and changing lives

Example:Millrace ITFor every £1 invested, £7.40 of social value is created each year:•reduced health care costs•reduced benefit costs• and increased taxes collected

Examples of Social Firm businesses

• Travel agency • Printers & design• Recycling• Guesthouses• Contract gardening• Contract cleaning• Transcription agencies• Market research companies• www.justbuy.org.uk

The role of WISEs• Work preparation, training, Intermediate Labour Market

schemes, job placement• Some WISE’s create jobs• Have potential to deliver significant numbers (collectively)

under government programmes• Some well known WISE’s:

– FRC Group– Big Life Company– Acumen Development Trust– STRIDE– The Wise Group

HR Issues• The same as any other business• Cost of 1:1 support (can be £3000 pa)• Balance between business needs and social

mission• Need to celebrate when good staff leave• Pressure on manager– Need involved boards with correct business skills

HR Issues - SpeakUp• Rewards management

• Learning & development

• Employee relations • Motivation

• Equality & diversity

HR Issues – Buster’s Café

• Health & safety

• Diversity & equality

• Motivation

• Employee relations

• Learning & development

HR Issues – Lippy People

• Health & safety

• Diversity & equality

• Motivation

• Employee relations

• Learning & development

Attracting good employees• Based on ability to do the job

• Integrated workforce– Staff need to understand and buy into social mission

• Pay in line with industry norm

• Not different from other small businesses

Motivation• Empowerment is the 3rd value pillar of the

sector• Equal: pay, terms , conditions• Support• Good practice in appraisal and

development• Involvement in business decisions as

appropriate and desired• Management of stress• Whatever can be done without additional

finance thrown at it!

Contact:Temi Odesanya• 01737 231 360• www.socialfirmsuk.co.uk• info@socialfirmsuk.co.uk• Facebook• Twitter: @socialfirmsuk• LinkedIn• Blog