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Crucial Skills Development changes to B-BBEE Scorecard Elements

Are you aware?

In March 2018 proposed changes were published on some of the B-BBEE scorecard Skills Development Elements (Government Gazette 41546). This means that your current Skills development project may be in jeopardy if you are not ready to implement your training in line with these changes.

For people whose primary concern is business and not BEE, the changes may be a bit bewildering. Don’t be concerned, we are here to help you in two ways; firstly by explaining what has changed and secondly by detailing how skills development can work for your business.

Skills Development; Amended 29 March 2018 Gazette 41546
  • Skills Development Expenditure on Bursaries
  • (WSP) Workplace Skills Plan must be submitted
  • Bonus points don’t count
  • Category F & G training programmes increased from 15 to 25%

To ensure that your training counts use a provider that is registered and accredited with the Department of Higher Education and Training.

In order to receive points on the Skills Development Element of the Scorecard, the following criteria must be met:
  1. Workplace Skills Plan, an Annual Training Report and a Pivotal Report which are SETA approved
  2. Implementation of Priority Skills programme generally, and more specifically, for black people

This means that you have to plan ahead. Businesses that plan will benefit more from their training than those who leave it all to the last minute.

Preparing for something before it happens is wise. Make training a priority on your yearly calendar, and you never have to worry about the verification process again.

Skills Development changes to B-BBEE Scorecard

Important things to note:

  • No double-dipping allowed for 2.1.1.1 and/or 2.1.1.2
  • No double-dipping allowed for 2.1.2.1 and/or 2.1.2.2
  • No Points will be awarded without submitted (WSP) Workplace Skills Plan
  • The measured entity must achieve a min of 40% of the total weighting points EXCLUDING bonus points (40% of the 20 Points)
  • Stipends linked to a bursary programme in terms of 2.1.1.2 can count towards skills development spend.

Let’s get going with your (WSP) Workplace Skills Plan

“The labour force needs skills development and training more than you may be aware.”

What are the benefits of Workplace Skills Development?

The government, in their Draft National Youth Policy 2020, sets out a number of goals and commitments to advance youth development including learnerships and internships focused on raising the skills capacity of young people through Sector Education and Training Authorities.

An ideal learnership is made up of workplace experience and a formal qualification.

How will your business benefit?

  • Your business will be enhanced with employees who have attained new skills that were scarce before. The relevant SETA will be able to assist you in finding the right skills that need the most upliftment.
  • Skilled employees give you an edge as you would be cultivating essential skills.
SATS introduced incentives that will encourage companies to introduce learnerships in the workplace. Section 12H of the Income Tax Act allows employers to claim between R20 000 and R40 000 when you start a learnership in your company. When the learnership is completed successfully, another allowance (between R20 000 and R40 000) may be claimed. However, the latter may only be claimed if the qualification is passed.

In addition to the Learnership Tax Incentive mentioned above, the Employment Tax Incentive (ETI) is another mechanism which seeks to encourage employers to hire young work seekers. The ETI can be claimed by employers, monthly, for employees between the ages of 18 and 29. Employees who qualify must have been hired on or after 1 October 2013. If the ETI claim is successful, employers will receive a deduction on their PAYE for each qualifying employee while leaving the wage earned by the employee unaffected.

Triple E Training is here to assist

Most people long for better opportunities. Making good things happen is a collective responsibility. A functional Workplace Skills Plan will enable social partners and government to contribute towards employment creation, social development and economic growth.

We, at Triple E Training, have the necessary expertise to develop the competence of your employees and improve the quality of education and training.

Our Workplace Education, plus your Workplace Skills Plan makes the perfect team. No matter what you need: Basic Adult Education and Training (AET), Foundational Learning Competence (FLC), on-the-job Learnerships, or any combination of the above, we have the right training solution for your company’s individual needs.

Call Triple E Training on 011 668 4300 for pre-training assessment to final certification – we come to you!

“The vision implies that by growing the economy, people will be drawn in and create work; raising the standard of living for all, especially the poor.”

Understanding Skills Development

It is possible to cut down a tree with a hammer, but it takes about 30 days. If you exchange the hammer for an axe, you can cut it down in about 30 minutes. The difference between 30 minutes and 30 days is ‘skill’. Jim Rohn

Skills Development will result in real life improvement for employees and greater business opportunities for companies. There are many ways to use skills development, learnerships and training as part of your empowerment strategy.

The key objective of Skills Development is to establish a labour force with the necessary knowledge and skills. It aims to increase the productivity of the labour force. Skill and knowledge influence growth and development. Skills development improves the efficiency of the workforce in overall production and empowers individuals while progressing their social acceptance.

Why you should invest in Skills Development.

Although government requirements like the B-BBEE Codes of Good Practice and the Skills Development Act encourage businesses to implement skills development and learnership programmes, the benefits for companies should be sufficient motive for them to participate without feeling forced.

Surely it is better to do something because you want to rather than because you have to.

The critical skills gap that causes a void in various industries can be addressed through skills development. Skills development can raise the labour force’s employability levels when implemented correctly. Staff members with little or no work experience can be up-skilled; enabling the individual and building the company.

Increased skills will lead to better productivity.
Becoming aware of the damage that a skills shortage will have on our economy will motivate businesses to participate in skills development programmes to establish a skilled labour force.

Triple E Training offers Learnership solutions which train unskilled South Africans. Learners are equipped to make a positive contribution to their place of employ.

Skills gaps exist in various sectors in SA; for this reason, empowering the labour force is essential. Up-skilling your staff through Learnerships means that the new work-based skills they obtain are filling the gaps in vital areas of our economy.

The reasons for companies to implement skills development initiatives amongst their employees are plentiful.

  • Increased morale and job satisfaction
  • Greater employee motivation
  • Reduced employee turnover
  • Improved efficiency resulting in financial gain
  • Higher capacity to adopt new technology and methods
  • Improved innovation in strategies and products
  • Risk management opportunities through diverse training, i.e. sexual harassment, HIV.

Benefits for the Employee

There is no need to look outside your business for the skills you may be lacking. The skills you seek may exist within your workforce, they are simply to be discovered and developed. There are benefits to developing your existing workforce rather than hiring new people.
Consider what you need vs what you have:
You have employees who work for you, who are familiar with your company and your way of doing things; they are good workers who fit in with the dynamic of your company. You know them, and they know you. They are already on your payroll. You need someone with a specific skill; let’s say your business has grown and you need a forklift operator.

The choice is yours…

  • Sign on someone new; (including the expense of a new wage) and hope they make it through the probation period?
  • Alternatively; look amongst your existing staff for someone who wants to be up-skilled and train them instead.

Why invest time and money in the future of your staff?

  1. Better customer service. You know that service can make or break your business. Excellent customer service starts with your team. Your customers deserve to be helped by knowledgeable, confident staff, with the backing of support staff that are equally as skilled in their particular areas of expertise. Great customer service guarantees an effective supply chain and the best customer/client experience.
  2. Committed, motivated employees enjoy greater job fulfilment and therefore, improving motivation and morale.
  3. Increased productivity and efficiency.
  4. Lower recruitment costs.
  5. Reduced absenteeism and employee turnover.
  6. Create a positive impression for other businesses looking for new partners/suppliers.
  7. Your willingness to invest in skills development will guarantee you a pool of skilled workers.
  8. A more significant commitment, in the form of skills development, builds trust with your employees and reinforces the relationship between their accomplishments and your business’s success.
It’s a definite win-win situation for your business and your employees.
SKILLS DEVELOPMENT ACT NO. 97 OF 1998 CHAPTER 5 SKILLS PROGRAMMES 20. Skills programmes. (1) For the purposes of this Chapter, a “skills programme” means a skills programme that is occupationally based; when completed, will constitute a credit towards a qualification registered in terms of the National Qualifications Framework as defined in section 1 of the South African Qualifications Authority Act; uses training providers referred to in section 17 (1) (c); or complies with the prescribed requirements.

Custom-made solutions for training your employees or the unemployed

Skills Development is a priority element in the new B-BBEE scorecard. Businesses must meet the minimum of 40% target or stand a chance of dropping a level on the overall scorecard.

Are you feeling a slightly overwhelmed by all of this? Are sure your training complies with these amendments?

Contact us, and we’ll not only call you back, but we’ll send one of our experts to ensure your spend will not go to waste!

Triple E Training specialises in training solutions to help your company earn the maximum benefit on your BEE Scorecard for Skills Development. Training includes all elements such as Socio-Economic Development and Supplier/Enterprise Development.

Triple E Training can deliver training on-site for your employees as well as coordinate community projects off-site.