The importance of skills development in the new BBBEE codes - and how to score well in this element...
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.).
The ONE checklist that'll show you if you're complying with all 26 changes to the Employment Equity Act...
There are still many businesses that don't know exactly what the 26 amendments are or even how to apply them.
But, if you employ more than 50 people or if your turnover is over the Employment Equity Act threshold for your industry, you need to comply with each and every one of them.
Find out how here...
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.