Supplier Diversity Impact - Plain and Simple
As followers of Proximo know, we do a lot of work around the economic impact of Supplier Diversity. We have collected data from thousands of suppliers who work for dozens of companies about their workforce numbers so that we can correlate to those numbers of our client’s diverse spend.
But this is not an article about our process. You can read about that elsewhere on this site.
This is about the findings of some of those numbers. What is the best way to talk about the findings? By making the numbers plain and simple for everyone to understand. And what is easy to understand? Let just talk about “impact” in human terms. We can all understand the value of someone having a job and how that job in turn impacts someone’s family and community.
Through our research, Proximo estimates that for every million dollars in diverse supplier spend, 10 jobs are created. That is a good start. Ten people - ten families - supported. These jobs also average just over $65,000 per year. Now think about that. The median salary in the US was just over $51,000 in Q4 of 2020[1]. So, jobs supported via Supplier Diversity efforts are making a difference.
By our estimates, these jobs generate $124,000[2] in economic impact through tax revenue which funnels back into local communities in the form of assistance, education, and other areas that build communities.
This is just a small amount of aggregate data we have, and we hope to be able to produce some other data that you can use to talk about the impact of Supplier Diversity - in a way that is plain and simple to understand.
For questions, contact info@proximo.com.
Bureau of Labor and Statistics. https://www.bls.gov/news.release/pdf/wkyeng.pdf
In keeping with our view on people, we are only talking about the impact of those above-average wages paid to people. The impact through B2B spend and company taxes paid by a diverse supplier is more.