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The importance of skills development in the new BBBEE codes - and how to score well in this element...

by , 21 July 2015
The new BBBEE codes came into play on 1 May 2015. They introduce the concept of 'priority elements'. They include ownerships, skills development, and supplier and enterprise development.

In simple terms: You need to get above 40% in these elements. If you don't your rating will drop a level.

You'll also drop a level if less than 10% ownership is black. This drop is automatic. So if you want to get a good rating, you need to concentrate on these priority elements. And, in particular, skills development! A good rating is a 7 or 8.

Read on for some handy tips on how to achieve this...

The relevance of skills development in context of new BBBEE codes

The amended codes are in play already. A business's 2016 (or sooner) rating will be based on the current financial year it's in. For example, if your business has a financial year from 1 March to 28 February, the codes would've already been in effect for the month of March 2015.
The amended codes put a lot of  emphasis on assisting hard skills to black employees and black unemployed persons. The result is that little weight (maximum 15%) goes to soft skills (such as customer service, fire fighting, etc.).
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How to score well in skills development

Want your business to score well in the skills development element? Here are some helpful tips…
  • Give serious consideration to the scarce and critical skills facing your business. Report them to your SETA as part of the WSP.
  • Make provision for learnerships, apprenticeships and internships. Make provision for the utilisation of black people in these programmes.
  • Set out a timetable for training. Measure progress on a monthly basis.
  • Utilise the services of black people with disabilities. Provide them with training.
  • Keep proper, up-to-date records of employee information.
  • Retain the people that were in learnerships wherever possible.
  • Try and marry internal training to an existing accredited training programme.
  • Incorporate skills development as part of your wider BBBEE plan. Monitor progress every month.

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