If you bid for public sector work, significant changes are coming. This October, the Social Value Model (SVM) – a framework used by the UK government to integrate social value when deciding who to award public contracts to – is being updated. These updates could pose new challenges for smaller businesses and those based outside major cities like London, Manchester, and Birmingham.
So, what do you need to know? And how can these changes help you enhance employee experience and embed social value at the heart of your organisation?
The Institute of Internal Communication highlights that when employees feel involved and connected to their organisation’s purpose, they shape a positive workplace culture and drive social value from within. That internal engagement could now be a real differentiator.
A new set of rules
Last week’s SVP-led webinar broke it down:
- Updates to the Social Value Model (led by Cabinet Office) are increasing the emphasis on social impact in government contract bids.
- Delivering the lowest price or the best quality is no longer enough. From now on, your organisation’s positive social impact – how you benefit the community – will play a much bigger role in the decision-making process.
- For larger contracts, you’ll need at least three Key Performance Indicators (KPIs), commonly linked to local social value.
These changes mean organisations will need to show genuine social impact in their public sector bids, something that can’t be achieved without the involvement of your team. Clear internal communication and proactive employee engagement are vital. When your people understand and buy into these changes, you’re more likely to deliver on your social value commitments – and strengthen your bids for public sector work.
Social value isn’t a box-ticking exercise anymore. It’s strategic, with accountability baked in.
The London (or Leeds, or Liverpool) bias
Here’s where it gets tricky for smaller suppliers or those outside major cities. Buyers want to see positive community impact in their postcode – through things like hyper-local apprenticeships, volunteering, or supply chain spend – which is much easier to deliver if you already live and work there.
Larger firms or city-based SMEs have a head start – they’ve got the networks, the local knowledge, and the relationships to act fast. For regionally based companies, it means building those connections almost from scratch, often on top of already stretched resources.
It’s not game over, but the playing field is sloping – for now.
What smart bidders are doing differently
Panellists from AWS and Roche, speaking at the webinar, agreed that success is about planning, partnership, and precision, not just promises on paper.
Here’s our advice for SMEs and regional players:
Start with research
Understand the buyer’s real local priorities and challenges. And why not research what’s important to your people, too – making a difference to causes they connect with will help boost engagement.
Build local alliances
Team up with community groups, charities, or smaller businesses – tap into your team’s existing connections to make this easier and more authentic. After all, your people are your biggest influencers.
Don’t overpromise
Bids are now measured and reported publicly. Be realistic and specific about what you can deliver, name who’s responsible, and make sure commitments are properly resourced. It’s important to consider this in any internal communications too – be transparent, or you might find there’s a sudden dip in engagement, no matter how good the cause.
Emphasise scalable and virtual offers
Consider skills support, mentoring, and work experience you can deliver online – these are flexible for businesses of all sizes and locations.
Get your team involved early
Create two-way feedback loops, encourage volunteering and community days, and give employees a voice in telling your organisation’s social impact stories.
Is this fair?
It’s a big question. The move towards local value is well-intentioned, but there’s a risk it could favour city-based organisations and those with bigger bid teams. If left unchecked, good businesses elsewhere might be crowded out, undermining the “levelling up” ambitions these policies aim to support.
But change also brings opportunity. This is a chance for a real cultural shake-up – a moment to align your employee engagement strategies, rethink your organisation’s customer and community experience, and ensure everything feels joined up and purpose-driven.
Those who adapt, collaborate, and clearly evidence their local value – wherever ‘local’ happens to be – will continue to cut through.
We can help. Get in touch.
Written by Tilly Eckersley, Junior Account Manager at Definition.