The Retail Motor Industry, the BBBEE codes, and skills development

In this article Marinda Clack looks at the challenges faced by the Retail Motor Industry (RMI) in South Africa when it comes to compliance with the BBBEE codes.

BBBEE spotlight on the retail motor industry

In the last quarter of 2016 the new BBBEE codes were in the spotlight with changes that has a serious impact on the industry, and member of the RMI could find it near impossible to maintain a level 4 BEE rating. Companies are now being forced into some sort of ownership transaction, which could take years to finalise. For many industries, like the RMI, it is equally difficult to find black-owned businesses with which to trade for the procurement element of the BEE scorecard. And even this option usually has lengthy legal and regulatory processes to follow if suitable black-owned businesses are found.

It is still possible to maintain a good BEE rating through skills development

What the RMI should be focussing on while solving the dilemma of ownership and preferential procurement, is skills development. As a priority element of the scorecard, skills development programmes will enable your business to earn the maximum points under the skills development element, thereby helping your business’ overall rating. With Triple E Training as your training partner, your business will also be able to train community-based learners, which will have a further positive impact on the socio-economic development element of the scorecard.

Other benefits to your business include contributions to key legislative documents like the Workplace Skills Plan, and the Annual Training Report. Because we are a fully accredited level 2 BEE provider, you will also earn points towards the preferential procurement element of your BEE scorecard.

Is earning points for BEE the only advantage to skills development?

There are many advantages to skills development both for the employer developing its staff, and the employees being developed. Because the employer now has better skilled staff, work is completed faster, with less mistakes, increasing the level of productivity which leads to a more profitable business. Your business also qualifies for tax incentives and rebates. What better return on investment can any business ask for?

On the other hand: the employee that is being developed feels important because the business invested in him, which generally results in employees who take more pride in their work, experiencing an enhanced level of job satisfaction, leading to higher staff retention.

Businesses often express a concern about staff leaving after training. If an employee leaves once he is up-skilled it is likely that he was planning on leaving even before the training started. This is the reason it is so important to conduct a thorough analysis before embarking on any skills development programme.

For more information on our skills development programmes call us on 010 597 7611 or send an email to info@eee.co.za.