Social Return on Investment Analysis

Transcription

1 Social Return on Investment Analysis National Australia Bank School Based and Full Time Indigenous Traineeship Program 20 June, 2014

2 Table of contents Background 3 Assessment and Approach 4 Establishing scope and identifying stakeholders 5 Mapping outcomes 7 Evidencing outcomes and assigning them a value 10 Establishing impact 11 Calculating the SROI 12 Page 2

3 Background Context: Indigenous Australians have a history of underrepresentation in socioeconomic equality indicators. Australian Bureau of Statistics (ABS) data identifies that only 22% of Indigenous people aged 15+ have completed Year 12 (or equivalent), only 54% of Indigenous people aged are employed, and the unemployment rate of Indigenous Australians is more than three times that of non-indigenous Australians. 1 In 2008, the Council of Australian Governments ( COAG ) established Closing the Gap, a long-term framework targeting six key areas of disadvantage: Life expectancy and health Child mortality Early childhood education Child reading, writing and numeracy skills Year 12 completion rates Employment outcomes 2 NAB Indigenous strategy In support of these objectives, NAB has developed a reconciliation action plan that focuses on four key areas: Promoting financial inclusion by providing greater access to financial products and services Promoting access to opportunities that lead to careers in banking Improving Indigenous cultural understanding and respect Establishing partnerships to support Indigenous businesses Interviews with key NAB personnel identified that the Programs are operated with the following objectives: Providing employment opportunities to young Indigenous Australians Providing a gateway to future employment in the banking sector Providing skills and qualifications to support future employment Developing financial literacy and understanding of wealth creation, and diffusing these skills into the broader Indigenous community Recalibrating the perception of young Indigenous employees in the general community through employment in a customer-facing, mainstream role Through the Programs, trainees are provided with: Paid part time (school-based trainees) or full time (full-time trainees) employment Enrolment in a TAFE Certificate (Level II Business Administration for schoolbased trainees, Level IV Business Administration for full-time trainees Mentoring from NAB employees/external partners. Achievement of Year 12 qualifications is a condition of completion of the School-based Traineeship. Trainees are also required to complete the TAFE Certificate in order to complete the traineeship. The program has been in operation since 2009, and is currently forecast to recruit 60 school-based and 20 full-time trainees per year for the period of the assessment. Programs under assessment: EY was engaged to provide limited assurance services in relation to NAB s 2014 Reconciliation Action Plan. As part of these services, EY has conducted an assessment of the Social Return On Investment ( SROI ) generated by NAB s School- Based and Full-Time Trainee Programs ( the Programs ) against NAB expectations. This assessment has been performed to assist NAB in identifying, mapping and quantifying the outcomes of the Programs across a range of stakeholders, including trainees, their families and communities, and NAB employees. 1. Australian Bureau of Statistics, The Health and Welfare of Australia s Aboriginal and Torres Strait Islander Peoples, Oct 2010, 2. Coalition of Australian Governments, Closing the Gap in Indigenous Disadvantage, Page 3

4 Assessment approach: This document details the basis of preparation for the SROI assessment. The assessment has been performed in line with the SROI Principles and Methodology, as developed and maintained by the SROI Network. 1 The SROI Methodology is a framework for measuring and accounting for the social, economic and environmental value resulting from activities under assessment. It looks to measure and account for a broad concept of value beyond what can be captured in purely financial terms. Through extensive stakeholder engagement and associated research, the SROI Methodology allows practitioners to map, evidence and value financial and non-financial outcomes associated with projects and initiatives. This includes both positive and negative outcomes. SROI measures change in ways that are relevant to the people or organisations that experience or contribute to it. It tells the story of how change is being created by measuring social, environmental and economic outcomes and uses monetary values to represent them. This enables a ratio of benefits to costs to be calculated. SROI is primarily focused on value, rather than money. Money is used to express the value as it is a useful and widely accepted way of expressing value. In performing the assessment, we undertook the following procedures in line with the associated SROI Principles: 1. Established scope and identified key stakeholders 2. Mapped outcomes 3. Evidenced outcomes and gave them a value SROI Principles Involve stakeholders Understand what changes Value the things that matter Only include what is material 6. Reported our assessment 5. Calculated SROI 4. Established impact Do not over claim Be transparent Verify the result The following report has been compiled by the EY Melbourne Climate Change and Sustainability Services Team, and incorporated a peer review from members of our Perth Practice. 1. Documented in A guide to Social Return on Investment and supporting documents. See Page 4

5 1. Establishing scope and identifying key stakeholders Scope: The scope of the assessment was to perform a forecast of the SROI associated with the Programs over a three year duration from 2014, based on 2012 and 2013 historical performance. Stakeholder identification: A preliminary assessment of relevant stakeholders and expected impacts was performed based on interviews with the NAB Indigenous Employment Management Team and a literature review of academic studies and relevant SROI assessments. This assessment and expected stakeholder materiality was validated with the NAB Indigenous Employment Manager and Head of Indigenous Finance & Development. Subsequent stakeholder consultation was integrated into the Stakeholder Engagement Strategy. Based on the above, the following stakeholder map was developed: Table 1. Preliminary Impact Assessment Stakeholder Material? Description of anticipated impact: School-based trainee 4 Recruited under the Program and provided with paid part-time employment over a 24 month period, enrolment in TAFE Certificate II in Business Administration and mentoring from NAB and external partners. Group expected to be most impacted by the Program. Full-time trainee 4 Recruited under the Program and provided with paid full-time employment over a 12 month period, enrolment in TAFE Certificate III or IV in Business Administration and mentoring from NAB and external partners. Group expected to be most impacted by the Program. Trainee families 4 Families of trainees recruited under the Program. Expected to incur both direct (e.g. reduced financial burden) and indirect (e.g. diffusion of financial literacy) impacts as a result of having a family member associated with the Program. NAB Branch Manager 4 Hold primary responsibility for the trainees at the branch level. Expected to incur both direct (e.g. workload) and indirect (e.g. job satisfaction) impacts as a result of having a trainee at the branch in which they work. NAB Group 4 Through the Indigenous Finance and Development Team, responsible for the operation and funding of the Programs. The broad NAB corporation is the beneficiary of any work performed by the trainees. Group training organisation 4 Employed by NAB as a result of the Programs and have direct interaction with the trainee and their family. Expected to incur both direct (e.g. workload) and indirect (e.g. emotional) impacts and provide valuable input on the scope of changes resulting from the Program on other stakeholders. Trainee communities 6 Communities of trainees recruited under the Programs. Initially identified as being impacted indirectly through potential for rolemodelling, reduced truancy, school retention, etc. Discussions with stakeholders identified that validating these outcomes was highly problematic, and outside the scope of the assessment. The scale of the potential impacts in relation to the specific program were assessed to be immaterial. Australian Federal Government 6 A number of potential outcomes identified such as reduced welfare burden due to Indigenous employees being employed, increased tax revenue and reduced costs associated with Indigenous employment programs due to the Programs. As with trainee communities, validating these outcomes in light of the trainee population was highly problematic, however, and any associated impacts assessed to be immaterial. Page 5

6 1. Establishing scope and identifying key stakeholders (cont.) Stakeholder Engagement Strategy: The stakeholder engagement strategy was developed taking into consideration the size of the stakeholder population, appropriate means of communication, and the type of information required to perform the assessment. The stakeholder engagement process was performed in two stages: Phase 1: Initial interviews with a sample of key stakeholders. The primary focus of this phase was to validate the preliminary impact map, stakeholder materiality assessment and develop the impact measurement questionnaire. An emphasis was placed on interviewing both current and previous trainees where possible, in order to get a broad assessment of associated outcomes. Attempts were made to contact past-trainees who had not completed the traineeship, but these were unsuccessful. Phase 2: Distribution of an online survey to school-based and full-time trainees, Branch Managers and Group Training Organisations. The primary focus of this phase was to measure the expected impacts across the different stakeholder populations. Limitations: As with any stakeholder engagement methodology, there are some limitations in the approach detailed above. Due to the nature of the impacts identified and the absence of existing measurement mechanisms for the majority of impacts, the incidence of associated outcomes and impacts for stakeholders were measured based on self-representation via online survey and interviews. This approach relies on the subjectivity of when identifying changes, as well as retrospective assessment of impacts that occurred. There are further limitations associated with the age of school-based trainees when seeking objective responses. However, in the absence of existing/ongoing measurement of impacts this was considered the most effective mechanism. Where possible, impacts were validated through representation for other stakeholders also (For example, Branch Manager observations of changes for trainees). Table 2. Stakeholder Engagement Strategy A summary of the scope of the stakeholder engagement process is detailed below: Stakeholder Schoolbased trainees Full-time trainees Trainee families NAB Branch Manager NAB Group Group training organisation Phase 1: Assessment validation Face-to-face and telephone interviews held with 9 Face-to-face and telephone interviews held with 7 Face-to-face and telephone interviews held with 2 Face-to-face and telephone interviews held with 5 Face-to-face and telephone interviews held with 2 Face-to-face and telephone interviews held with 5 Phase 2: Impact measurement Surveys distributed to 77 Surveys completed by 24 Surveys distributed to 10 Surveys completed by 5 * N/A Surveys distributed to 59 Surveys completed by 32 N/A Surveys distributed to 16 Surveys completed by 5 Trainee communities Face-to-face and telephone interviews held with 2 N/A * The relatively small response rate associated with full-time trainee survey meant that data should be considered indicative, rather than statistically representative. Where possible, results were supported by interview outcomes. Page 6

7 2. Mapping outcomes Program inputs and outputs: In order to assess the inputs and outputs of the program, it was necessary to make certain assumptions regarding the projected number of trainees to commence and complete the program, as well as the number reasonably expected to gain ongoing employment with NAB. The following outputs from the Programs were identified: Number of trainees commencing the program (based on budgeted trainee recruitment number) Number of trainees completing the program (based on budgeted trainee recruitment number adjusted by average historic retention rates) Number of trainees gaining ongoing employment with NAB (based on trainee completion number adjusted by average historic conversion rates). Based on the above, the key inputs to the Programs were identified as: Wages paid to trainees by NAB (inclusive of tax and superannuation) Wages paid to Indigenous Employment Management Team members to administer the program (split per Program based on information provided by NAB) Fees paid to Group Training Organisations to recruit and manage individual trainees Administration costs associated with recruitment of trainees (e.g. uniforms, onboarding costs, cultural awareness training provided to NAB employees, etc) Key considerations: Inputs were calculated based on cost and remuneration data provided by NAB. Wages and outcomes associated with the Programs were not considered for trainees that did not complete the program. This was due to issues associated with forecasting outcomes for those trainees with limited participation the program. (e.g. determining the improved confidence associated with a schoolbased trainee who completes 1 year of the 2 year traineeship is highly problematic). Onboarding costs and wages paid to the Indigenous Employment Management Team were included for all trainees, including those who did not complete the traineeship, as they were considered an important reflection of the overall cost of the Programs. Table 3. Programs inputs Program Input Description Input Cost ($) School-based trainee program Full-time trainee program NB: includes uniforms, probity, cultural awareness training for Branch Managers, and a share of NAB s Indigenous Employment Team Wages Table 3. Programs Outputs Onboarding costs & administration costs* 234,000 Wages paid to trainees 1,061,000 Fees paid to Group Training Organisations Onboarding costs & administration costs* 125,000 91,500 Wages paid to trainees 460,000 Fees paid to Group Training Organisations 107,500 Program Outputs Number (p/a) School-based trainee program Full-time trainee program Trainees commencing the program 60 Trainees completing the program 44 Trainees gaining ongoing employment with NAB Trainees commencing the program 20 Trainees completing the program 15 Trainees gaining ongoing employment with NAB 19 6 Page 7

8 2. Mapping outcomes (cont.) Stakeholder outcomes: Based on the interviews performed and preliminary literature review, outcomes were determined for each material stakeholder group through development of associated theories of change. These outcomes were validated by each of the relevant stakeholders. Table 4. Stakeholder Outcomes Stakeholder Outcome Rationale School-based and full-time trainees Improved financial literacy and understanding of wealth creation Increased employability Ongoing employment at NAB Increased earning potential for trainees Income during traineeship TAFE accreditation Improved self-esteem and sense of confidence Improved social and communication skills Improved sense of cultural identity Improved mathematical abilities On-the-job training and exposure to the banking environment develops trainees financial literacy skills (e.g. understanding of bank accounts, financial products, etc) as well as an understanding of wealth creation (e.g. budgeting techniques, saving behaviours, etc). Skills learned over the course of the traineeship as well as the associated work experience improve the ability of the trainees to attain other employment. Upon completion of the traineeship, many trainees are offered permanent employment with NAB. Those trainees that do not take up permanent employment with NAB are expected to have higher earning potential as a result of work experience and qualifications received through the traineeship. Trainees are provided with a wage over the course of their employment at NAB. Trainees are provided with enrolment in a Business Administration TAFE course as part of the traineeship. Completion of the course is a requirement of the traineeship. Trainee confidence improves due to the security associated with meaningful employment, improved work performance over the course of the traineeship, and the experience of successfully operating in an unfamiliar environment. Trainees improve social and communication skills through interaction with colleagues, managers and customers. In many branches, trainees Indigenous background is actively recognised and encouraged, and trainees are encouraged to involve themselves in cultural activities. Trainees are required to apply arithmetic throughout the course of their duties, resulting in improved mathematical abilities Page 8

9 2. Mapping outcomes (cont.) Stakeholder Outcome Rationale Full-time trainees (only) Family NAB Branch Managers Increased stress Increased financial literacy through interaction with trainee Improved job satisfaction Several full-time trainees identified additional stress associated with meeting the requirements of the traineeship (e.g. adapting to a professional workplace, performance expectations, etc). NB: This was not a material issue identified by school-based trainees. Trainees disseminate the financial literacy and wealth creation knowledge gained through participation in the traineeship to family members through advice and discussion. Branch Managers report improved job satisfaction through involvement in the traineeship, and in particular the benefits for trainees resulting from ongoing management and mentoring. NAB Group Labour for the duration of the Programs NAB receives the ongoing labour of the trainees paid for employment in the Programs. Group Training Organisations (GTO) Remuneration for coordinating the Program GTOs are paid a fee per hour for each trainee recruited and employed in the Programs. Page 9

10 3. Evidencing outcomes and assigning them a value Indicators and data collation: As noted above, the primary means of measuring the outcomes identified through Phase 1 of the stakeholder engagement strategy was through distribution of online surveys. Online surveys were distributed to all current school-based trainees, full-time trainees, relevant Branch Managers and Group Training Organisations. The surveys looked to establish both the incidence and scale of outcomes through use of Likert-scale questions. Where possible, multiple questions were used to cross-reference a potential outcome. Third-party validation was also applied to support impact assessments (i.e. Branch Manager perspective of impacts associated with trainees). Incidence of outcomes was determined through addition of Agree and Strongly Agree responses to determine the proportion of the sample which had identified the outcome, and applying that proportion to the forecast trainee intake. For example, where 28% of school-based survey identified a significant positive change to communication skills, and 62% identified a positive change, it was forecast that 90% of school-based trainees were likely to experience improved communication skills. Given the small sample size of the current full-time trainee population (10), and the relatively low response rate to the online survey, survey responses were validated against outcomes from Phase 1. See Table 2 for detail of interview and survey sample size details. Duration: Duration of outcomes were assessed on an outcome-specific basis. No outcomes were forecast beyond the 3 year period of assessment. See Table 5 for details of indicators, anticipated outcome duration, and associated rationale. Some outcomes that we anticipated to be highly represented, did not come through from the stakeholder engagement process as strongly as expected. These include: Increased sense of cultural identity (39% SBTs, 25% FTTs) Improved mathematics skills (54% SBTs, 75% FTTs) Diffusion of financial literacy amongst friends and family (43% SBTs, 100% FTTs) Improved job satisfaction (SBT Branch Managers 43%, FTT Branch Managers 48%) Interviews identified that several trainees had attributed improved physical and mental health outcomes to participation in the traineeship these outcomes were not reflected in survey results, however. Potential data collation improvements: The measurement of these outcomes could be strengthened through the use of ongoing mechanisms with trainees. For example, the use of annual psychological and physical assessments to provide a more objective measurement of outcomes associated with confidence, mental wellbeing, improved physical health, etc. The use of these kinds of measurement techniques are also likely to support greater differentiation of outcomes based on the scale of the outcome (i.e. how much confidence improved). Based on the stakeholder engagement process, we also expect that the strongest benefits from the program are being experienced by certain groups in the population. These include those with lower socioeconomic backgrounds, and poorer school performance. This is difficult to substantiate without more detailed assessment of the trainee population, which could potentially be performed as part of the recruitment/induction process. Understanding these intricacies is likely to provide NAB with the ability to better target the Programs, and generate a higher SROI. Key findings: Excluding those outcomes that apply to all trainees (e.g. income paid) the following outcomes were strongly reported as being received by trainees: Improved financial literacy (90% SBTs, 100% of FTTs) Improved employability (93% SBTs, 100% of FTTs) Improved confidence and self-esteem (86% SBTs, 100% of FTTs) Improved social and communication skills (72% SBTs, 100% FTTs) Financial proxies: For several outcomes, such as income paid to trainees or labour provided by trainees to NAB a market-price is already established (i.e. dollars paid, cost of labour). For the majority of outcomes, the development of skills or capabilities does not have a readily available market price. In light of the limited access to trainees, we have applied a revealed preference approach to valuing these outcomes. Market-prices for tradeable goods (e.g. relevant courses, counselling, etc.) that provide the same or similar impacts have been assumed where appropriate for each of the relevant outcomes. See Appendix B for details of relevant financial proxies and associated rationale. Page 10

11 4. Establishing impact When considering the potential impact of each of the outcomes identified above on the SROI of the Programs, we took into account potential impacts associated with: Deadweight: the amount of the outcome expected to have occurred without the Programs taking place Attribution: the amount of the outcome that can be attributed to other people or organisations Drop-off: the amount of the outcome that is likely to be less or the same in future years. (i.e. the decline in the impact of the outcome over time) Displacement: the amount of the outcome that has displaced other outcomes. NB: Based on our assessment there was no displacement associated with the Programs Interviews and surveys were targeted to provide an indication of expected deadweight, attribution and drop-off. Assumptions have been allocated in line with the following scales: Attribution: Category 1. The outcome can not be attributed to any other person or organisation 2. The outcome can be attributed to a limited extent to other person(s) or organisation(s) 3. The outcome can be attributed to a meaningful extent to other person(s) or organisation(s) 4. The outcome can be mostly attributed to other person(s) or organisations(s) 5. The outcome can be wholly attributed to other person(s) or organisation(s) Assigned attribution (%) 0% 25% 50% 75% 100% Deadweight: Drop-off: Category Assigned deadweight (%) Category Assigned attribution (%) 1. The outcome would not have occurred without the activity 0% 1. The outcome lasts for the duration of the assessment period 0% 2. The outcome would have occurred to a limited extent without the activity 25% 2. The outcome drops off by 25% from the first year after the end of the traineeship 25% 3. The outcome would have occurred in to a meaningful extent without the activity 50% 3. The outcome drops off by 50% from the first year after the end of the traineeship 50% 4. The outcome would have occurred in the most part without the activity 75% 4. The outcome drops off by 75% from the first year after the end of the traineeship 75% 5. The outcome would have wholly occurred in the absence of the activity 100% 5. The outcome drops off by 100% from the first year after the end of the traineeship 100% Further detail of these assumptions can be found at Appendix C. Page 11

12 5. Calculating the SROI Based on the SROI assessment detailed above, we identified the following value creation per stakeholder group and outcome: School-based traineeship Stakeholder Outcome Present value ($)* Full-time traineeship Stakeholder Outcome Present value ($)* School-based trainees Improved financial literacy and understanding of wealth creation 61,400 Full-time trainees Improved financial literacy and understanding of wealth creation 19,900 Increased employability 308,700 Increased employability 88,700 Ongoing employment at NAB (converted trainees) 529,900 Ongoing employment at NAB (converted trainees) 528,300 Increased earning potential for trainees (non-converted trainees) 348,600 Increased earning potential for trainees (non-converted trainees) 396,200 Income for traineeship 755,700 TAFE accreditation 25,800 Income for traineeship 287,900 TAFE accreditation 14,900 Improved self-esteem and sense of confidence 201,800 Improved self-esteem and sense of confidence 56,100 Improved social and communication skills 28,800 Improved social and communication skills 9,500 Improved sense of cultural identity 4,700 Improved mathematical abilities 12,000 Family Increased financial literacy 7,400 NAB Branch Manager Increased job satisfaction 56,800 NAB Group Benefits of trainee labour 1,279,600 GTOs Fees 244,400 Total: 3,865,600 * Present values have been determined through the application of a 2.5% discount rate, in line with Reserve Bank of Australia projections * School-based traineeship higher total value is driven by the higher population of the trainee population (i.e. 44 as compared to 15), and is not reflective of greater per value per trainee Improved sense of cultural identity 500 Improved mathematical abilities 4,600 Increased stress -5,700 Family Increased financial literacy 2,900 NAB Branch Manager Increased job satisfaction 9,900 NAB Group Benefits of trainee labour 554,000 GTOs Fees 104,900 Total: 2,072,600 Page 12

13 5. Calculating the SROI (cont.) Based on the SROI assessment detailed above, we identified the following value creation per stakeholder and outcome: School-based trainee program: Outcomes for NAB and Group Training Organisations (41% of total outcomes) GTO: Fees received, 6.3% Branch Manager: Job satisfaction, 1.5% School-based trainee program: Outcomes for trainees and family (59% of total outcomes) SBT: Improved self-esteem, 5.2% Other benefits (3.6%) include: Improved social and communication skills (SBT) TAFE accreditation (SBT) Increased sense of cultural identity (SBT) Improved mathematical skills (SBT) Improved financial literacy (SBT, Family) SBT: Income received, 19.5% SBT: Increased employability, 8.0% SBT: Enhanced earning potential post-nab, 9.0% NAB: Trainee labour, 33.1% SBT: Ongoing employment at NAB, 13.7% Page 13

14 5. Calculating the SROI (cont.) Based on the SROI assessment detailed above, we identified the following value creation per stakeholder and outcome: Full-time trainee program: Outcomes for NAB and Group Training Organisations (33% of total outcomes) GTO: Fees received, 5.1% Branch Manager: Job satisfaction, 0.5% Full-time trainee program: Outcomes for trainees and family (67% of total outcomes) FTT: Improved self-esteem, 2.7% FTT: Increased employability, 4.3% Other impacts (2.4%) include: Improved social and communication skills (FTT) TAFE accreditation (FTT) Improved mathematical skills (FTT) Improved financial literacy (FTT, Family) Increased stress (FTT) FTT: Ongoing employment at NAB, 25.5% FTT: Income received, 13.9% NAB: Trainee labour, 26.7% FTT: Enhanced earning potential, 19.1% Page 14

15 5. Calculating the SROI (cont.) Based on the above, the following SROI was identified for each program: Social Return on Investment Ratio Program Forecast SROI for 3 years from FY2014 Range based on sensitivity analysis School-based traineeship ($) Full-time traineeship ($) 1 : : Indirect impacts such as diffusion of financial literacy to family members and improved job satisfaction for branch managers were difficult to measure, and as such conservative assumptions have been applied to estimate these impacts. There is scope to improve the measurement, and potentially valuation, of these impacts as part of the Programs in future. If the outcomes associated with income paid to trainees, GTO fees and labour provided to NAB are extracted from the Assessment, an SROI of 1:10.75 is calculated for the school-based traineeship program, and 1:12.33 for the full-time traineeship program. The financial literacy and understanding of wealth creation developed by trainees is likely to have further benefits during the course of their careers, well beyond the 3 year assessment period. Insights: The key driver of the higher SROI attributable to the full-time traineeships program is the higher earning potential of full-time trainees upon completion of the traineeship, and that this occurs in years 2 and 3 of the assessment Impacts associated with the incomes paid to trainees, including labour benefits to NAB and fees payable to GTOs make up the bulk of the SROI. This is to be expected in an employment program, particularly over a 3 year assessment period. The economic benefits attributable to NAB, the trainees and the GTOs were included in the assessment on the basis that the Programs are additional to existing employment programs at NAB. Indigenous trainees are funded by NAB Group, and are not included in Branch Manager resourcing allowances. In the absence of the Programs, NAB would not have received the benefit of the trainees labour. To be consistent with this approach, the costs associated with employing the trainees have been included as inputs. Benefits associated with the wages paid to trainees have been adjusted to take into account potential earnings in the absence of the Programs. Trainees under both programs reported relatively consistent improvements to communication and social skills, and confidence and self-esteem. These outcomes were the most commonly cited outcomes during stakeholder engagement. Page 15

16 5. Calculating the SROI (cont.) Sensitivity Analysis: Given the reliance of the assessment on assumptions to quantify and value the impacts of the Programs, sensitivity analysis has been performed over key assumptions. The following scenarios were assessed, and the resulting SROI detailed below: Scenario: School-based traineeships ($) Full-time traineeships ($) Base case: All trainees recruited, completing the traineeship Increasing overall trainee intake by 50% Halving project management costs (i.e. wages of Indigenous employment team and fees to GTOs) Halving proxy applied for improved confidence Halving proxies for ongoing employability and enhanced earning potential Increasing deadweights for employment and enhanced earning potential to 25% Utilising financial proxies for increased self-esteem and confidence from NAB s African Inclusion Internship program SROI Limitations: There are a number of limitations that should be considered when reviewing this assessment, these include: Subjectivity of assessment: As with any forecast SROI, there is subjectivity associated with the forecast of potential outcomes. This assessment has been formed based on surveyed experiential outcomes identified by stakeholders. While this reliance on stakeholders identifying historic benefits is not perfect, it was considered the most appropriate approach in the absence of existing measurement mechanisms. Where possible, first-hand experience of outcomes has been verified against 3 rd party perspectives (e.g. trainee outcomes tested against Branch Managers and GTOs) Incidence vs scale: Surveys provide a reasonable approach to determining the incidence of an outcome across a sample population. Given the different backgrounds, experiences and perspectives of stakeholders, measuring the scale of an outcome is more problematic under this approach. This has not been attempted for this assessment scale of impact has been assessed based on the application of professional judgement. Sample size: Given the relatively small size of the current full-time trainee population, surveyed outcomes identified should be treated as indicative rather than representative. Interview results were used to supplement survey outcomes where appropriate. Indirect impacts: Anecdotal evidence was provided around some of the indirect outcomes resulting from the Programs (for example, benefits of role-modelling in the Indigenous community, diffusion of financial literacy, etc). Where appropriate, conservative assumptions have been applied to estimate the impacts of these outcomes. Where evidence was inconsistent, these outcomes have not been considered in the assessment. Benefits: While the quantum of value under an SROI assessment is subject to assumption, the underlying process of interviewing stakeholders to understand key impacts of the programs is enlightening. It provides useful information to direct NAB s efforts in future, or to refine program elements to focus on areas where value is maximised. Excluding inputs and outcomes associated with wages paid to trainees Page 16

17 5. Calculating the SROI (cont.) Limitations (ctd): The scope of services described above are advisory in nature and thus do not constitute an audit or review in accordance with the Australian Auditing Standards. The Assessment relies on the representations of stakeholders with regards to inputs, outcomes and associated impacts; and formal data collation mechanisms to measure the impacts identified were not in existence to conduct an assessment of historical performance. Therefore, a forecast has been conducted based on anticipated performance. Surveys and interviews have been relied upon to estimate the impacts and outcomes associated with the Programs. While the incidence of direct outcomes can be estimated through use of surveys and interviews, it is difficult to accurately measure the scale of outcomes in the absence of existing measurement frameworks. As a result, a standard quantum of change for each outcome has been estimated based on interviews and surveys with relevant stakeholders. This Report is for information only for NAB management and provides findings related only to the scope of services described above and for no other purpose. We disclaim any responsibility for the use of our advice for a different purpose or in a different context. We disclaim all liability to any other party for all costs, loss, damage and liability that the other party may suffer or incur arising from or relating to or in any way connected with the contents of this Report or the reliance upon this Report by the other party. Page 17

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