Inclusive B-BBEE Skills
Development Strategies
Deon Oberholzer
CEO
29 February 2016
What we will talk about
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Recent developments in B-BBEE
Sector Codes and timelines
Summary of the Skills Development element
Potential integrated strategies
Sector Codes
• Section 9(1) Effective
– Tourism Sector
• Section 9(5) (Out for public comment: All closed)
– MAC Sector
– Property Sector
– Forestry Sector
– Agri-BEE
• Repealed on 17 February 2016
– Chartered Accountancy Sector
– Construction Sector
• Lost in translation or soon to be released?
– ICT Sector
– Integrated Transport Sector
– Financial Services
Time lines for Compliance
• Sector Codes remain valid until
replaced or repealed
• Financial year end prior to
replacement or repeal
–Previous/current Sector Codes
• Financial year end thereafter
–Amended Sector Codes if replaced
–Amended Codes if repealed
B-BBEE
STRATEGIC ADVANTAGE
OR
UNWELCOME TAX?
Bottom line for QSEs
• White QSEs will have to do Ownership and
Skills Development to get a half-decent score.
• With no Black Ownership and no Black Top
management, the most points possible is 68.
This is a Level 7, but you drop to Level 8
• A company that got a level 1 for full points on
EE, PP, ED and SED only will get 42 points max
(Level 8) and drop a level to non-compliant.
Skills
Development
Main points
• Demographic profiling in Management and Skills
(Not QSE)
• Priority elements penalty (Also QSE)
• Skills Development at 25 points (QSE = 30)
• Skills Development at 6% (QSE 3%)
• People with disabilities 4 points from 0.3% (QSE 3
from 0.15%)
• Return of salary concession
Some highlights
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Skills not restricted to staff
Points for unemployed
Training Tracking Tool
15% maximum for F (Workshops, Conferences and
meetings) & G (Informal and Workplace training)
• 15% cap on accommodation, catering and travelling
• International training meets SAQA requirements
• Costs to include SDF or a training manager.
Economically Active Population
Commission for Employment Equity Report 2013/2014
African
Coloured
Indian
White
Total
Male
40.3%
5.6%
1.9%
6.2%
54.0%
Female
34.9%
5.0%
1.2%
4.6%
46.0%
Total
75.2%
10.6%
3.1%
10.8%
100.0%
Economically Active Population
Black Only
Male
Female
Total
African
45.3%
39.3%
84.6%
Coloured
6.3%
5.6%
11.9%
Indian
2.1%
1.3%
3.5%
Total
53.8%
46.2%
100.0%
Skills Development - Generic
Existing
Codes
Measurement Category and Criteria
Points Target
New Codes
Points
Target
Skills development spend on black people
6
3%
8
6%
Skills development for black employees with
disabilities
3
0.30%
4
0.3%
Black employees: Learnerships or category B, C
and D
6
5%
Black employees in learnerships,
apprenticeships or internships
4
2.5%
Black unemployed in any training in matrix
4
2.5%
Bonus: Learners absorbed at end of the
programme
5
100%
Skills Development Total
15
25
Skills Development - QSE
Measurement Category and Criteria
Existing Codes
New Codes
Points
Target
Points
Target
25
2%
15
3%
Skills development spend on black women
7
1%
Skills development spend on disabled
3
0.15%
Absorption of Learners
5
100%
Skills development spend on black people
Skills Development Total
25
30
Learnership, Internship and
Apprenticeship
Name
Description
Assessment
Learnership
Institution- based theoretical instruction
as well as some practical learning with an
employer or in a simulated work
environment
formally assessed
through the
institution
Internship
Recognised or registered structured
experiential learning in the workplace
that is required after the achievement of
a qualification
formally assessed by
a statutory
occupational or
Professional body
Apprenticeship
Occupationally- directed instructional and formally assessed by
work-based learning programme that
an accredited body
requires a formal contract
Learner Absorption
a measure of the Measured Entity's ability
to successfully secure formal permanent or
long-term contract employment for the
Learner or to assist the Learner's proceed
with further education and training;
Skills Development Strategies
• B-BBEE Priorities
–Maximum B-BBEE points
–Minimum additional costs
–Maximum salary inclusion
–Maximum business benefit
–Maximum Tax rebates & subsidies
–Maximum SETA grants
–SETA funded vs self funded
Integrated Strategies
• People centred Strategy
–Promotion
–Development
–Recruitment
–Pre recruitment
People centered Strategy
• Resources include:
–Skills Development to develop staff with key skills
–Skills Development for bursaries for recruitment
–Socio Economic Development to develop prerecruitment (early bursaries)
–SETA Funding
–Learner Salaries
Steps for Skills Development
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Company headcount
Management profile and challenges/opportunities
LIA headcount for max points
Unemployed training headcount for max points
Demographics or just gender?
African first, then Coloured, maybe Indian?
Disabled budget for max points
Learnerships, Internships & Apprenticeships
Maximise salary concessions
Remaining budget based on business needs
Questions and
closing thoughts?
Book on our next B-BBEE Strategy
Workshop - 16 March
[email protected]
www.vericom.co.za