Diversity Spend Tracking: What is it and What are the Benefits?
Diverse supplier spend refers to the amount of money an organization spends with diverse-owned businesses when purchasing products and services. A number of professional operations likely track their diversity spend as part of an obligation to be transparent and fiscally responsible, but most businesses are most likely not tracking its diversity spend as frequently or closely as some other financial metrics. We can say from vast experience in this arena, including producing some of the most popular diversity spend tracking software, that this is a mistake – tracking diversity spend closely represents something far beyond yet another burden of management. If strategically approached, the tactic can actually be considered an asset that can be leveraged elsewhere.
To provide an idea of how powerful this tactic is, let’s take a look at the three primary benefits of such diversity spend tracking.
Improves Relations with Customers/Clients
Customers/clients, in the identical fashion of how business owners desire a working relationship with a diverse base of suppliers, always prefer to work with organizations that put a priority on diversity. Boasting the ability to highlight such spend (while watching it break down in ways that divulge one’s true commitment to diversity) can bolster a corporate image in ways that impact a bottom line directly.
Maintains Regulatory Compliance
A company is, depending on the scope of the operation and the industry it operates within, subject to a variety of federal and state regulations which demand that it spend a given amount on diversity; there are even some cases which involve the scrutiny of six separate regulatory bodies. The accuracy and auditability of such spend figures need to redefine perfection, especially with that kind of spotlight being thrown on the business, and that’s only achievable when they’re subjected to strict oversight.
Highlights the Genuine Impact of Diversity
What’s one of the biggest issues with regard to most diversity spend tracking initiatives? It’s really not that they’re absent, but rather that they are “shallow” – they utilize simplistic metrics and a plethora of questionable reporting to deliver data that seems good from the outside looking in, but are of little use to insiders. Taking the time and making an effort to expand the breadth and depth of tracking initiatives highlights the genuine impact diversity has on revenue and market share.
The bottom line is that only once this type of data is in place can organizations make what can be considered meaningful efforts to improve how diversity spending is approached.
To learn more, including the intricacies of diversity spend tracking software, visit iQuantum at https://www.iquantum.ai/