While it’s proven that diversity in the workplace brings better employee morale and retention, not every company has taken advantage of the benefits. But whether your company has just started a diversity program to meet quotas or has been doing it for years, one thing is clear: keeping track of supplier diversity is hard.
Between chasing down all the subcontractor certifications, trying to standardize those documents, and organizing all your spreadsheets and Google Docs, it can be a hassle just to know whether or not you even meet the requirements of your clients. A huge chunk of your day becomes just wrangling paperwork instead of taking your business to the next level.
The worst part? It might still not be good enough.
Why? You could still be missing the below:
1. Various Classifications of Diversity
- Is your subcontractor a MBE (Minority Business Enterprise)? WBE? SDVOB? Or any other type of diverse subcontractor that needs to be
- Are you keeping track of all of them separately?
- Are you aware of the differences?
- MBE (Minority Business Enterprise) is a business which is 51% is owned, operated, and controlled by citizens or permanent resident aliens who are Black, Hispanic, Asian-Pacific, Asian-Indian or Native American
- WBE (Women Business Enterprise) is the above, except owned/operated/controlled by women
- SDVOB is the above, except owned/operated/controlled by a veteran who has a service-connected disability as determined by the Department of Veteran Affairs or Department of Defense
- None of the above can exceed 300 full-time equivalent (FTE) employees and none of the owners can have a net worth over $15 million
2. Proper Certifications
- Have you made sure that all your diverse suppliers are properly certified?
- Have they been certified through an agency or are they self-certified?
- What type of certification do they have? National Minority Supplier Development Council (NMSDC)? Women’s Business Enterprise National Council (WBENC)?
3. Second Tier Tracking
- Do you need to keep track of Tier 2 programs?
- If so, do you have the proper systems set up to tabulate not just your subcontractors, but your subcontractors’ subcontractors?
4. Double-Counting Spend
- How do you account for suppliers which fall in multiple categories?
- In every category they qualify for?
- In just one category?
- Some other rule?
5. Adhering to All the Requirements
- Can you keep track of all the different requirements needed by various clients
- For example, New York targets 30% MWBE and 6% SDVOB participation
Luckily, you don’t have to do this alone. Constrafor’s Diversity Tracking system helps you keep tabs on everything invoice and diversity related under one easy-to-use software platform. Constrafor From storesing all your subcontractors’subcontactors’ certification in one single place, to tabulatestabulating the spending on each individual diverse subcontractor (and their subcontractor), and makesing sure you it meets the quota for every project., Constrafor helps you reduce all of that pesky paperwork.
Even better, Constrafor’s tool canould help you generate quick reports that canould be presented to auditors, clients, and prospects – so that your business can begin reaping the rewards of diversity, instead of being burdened by it.