Three tips to help you comply with the new B-BBEE codes
Late last year, Trade and Industry Minister Rob Davies unveiled the amended Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice.
The codes provide the basis on which the B-BBEE rating of a company is calculated. In our previous reports, we explained that the move to revise the codes is because current B-BBEE policies aren't achieving their true objectives.
With these new codes, government hopes that giving established companies incentives and disincentives — through the codes — to pull new black entrants into their supply chains will foster the growth and capacity of black manufacturers.
Your key role at the moment is to ensure your company gets in line with these new codes before they take effect on 1 May 2015.
How do you do this?
Here are three tips to help you comply with the new B-BBEE codes so you can avoid harsh penalties.
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Here are the three B-BBEE compliance areas that you need to know about
Tip #1: Improving economic opportunities
According to Lia Marus, the editor of HR Pulse, the pillars in the old B-BBEE codes of ownership, employment equity and management control are given less points in the new B-BBEE codes.
So if you engage service providers who are new entrants to the market and are involved in employment and social change, you'll get more points than if you merely hire providers who practise B-BBEE compliance.
Tip #2: Job creation
In the old B-BBEE codes, there was more of an emphasis on job creation than on learnerships. With the new codes, if you offer a learnership in your company and employ the graduates of this learnership, you'll receive more B-BBEE points because you're creating jobs, says Marus.
Tip #3: Upskilling people is huge
In the new B-BBEE codes, you have to spend 6% of your payroll on skills development while in the old B-BBEE codes you were only required to spend 3%. However, now you don't have to spend this 6% only on employees – you can spend it on anyone.
The bottom line: Government is serious about transformation in the workplace. It'll slap you with harsh penalties if you don't get in line with the new B-BBEE codes. So use the tips we've given you to comply. And remember, the new B-BBEE codes take effect from 1 May 2015.