Structuring your succession plan to cater for BEE - what you need to know
Every company needs to plan for the inevitable: Losing a key employee who's vital to company's success.
But here in South Africa, succession planning is a little more tricky.
After all, not only do you need to have a plan in place in case an employee resigns, you also have Broad-Based Black Economic Empowerment (B-BBEE) requirements to fulfil.
Helen Zille's resignation from the DA over the weekend is proof of this. In a media statement yesterday, she said she's stepping down from the party to open the way for a black candidate to broaden the Democratic Alliance's electoral appeal
Do you need to do the same?
Should your align your company's succession plan with B-BBEE so that you don't lose your status when a key player resigsn?
Here's why our labour experts say it's vital...
********** The B-BBEE codes are changing – will you be prepared? **********
Will your company be able to do business after 1 May 2015?
B-BBEE codes are changing, and come 1 May 2015 your company could find itself unable to do business with ANY BEE-compliant company because its BEE level has dropped significantly.
Do you know how to avoid this?
There's a simple way to ensure a smooth transition.
Succession planning must be directly linked to your B-BBEE charter and scorecard
One of the biggest problems companies face these days is that, to meet their B-BBEE and Employment Equity requirements, they appoint inexperienced leaders and managers to take over a job when someone leave. (A look at government and all the recent scandal surrounding appointments made without the right qualifications is proof of this.)
And that's where it's become evident that an organisation hasn't given their succession plan enough thought.
After all, if your industry requires you to have a certain BEE score and you achieved this, in part, because a certain percentage of your management team falls into the previously disadvantaged group, you're entire business could be in trouble if they leave.
And that's why you need to implement succession planning strategies to ensure the movement of black candidates into management positions. You also need to put in place retention strategies and mentorship programmes for black employees so management has passed on vital skills to key staff members long before they even think about leaving your company.
Just remember that, for purposes of B-BBEE, 'management' refers to the proportion of black people who control the direction of the business as well as those in top management who control day-to-day operations.
So sit down with your HR department to draw up a company profile that illustrates all these position. Then work out what your company needs to do to keep your BEE status stable.
If you don't, you could be hit with a situation where you need to pass on the torch to a BEE candidate and can't.
Note: 5 of 1 vote