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Want to maximise your B-BBEE points? Do these four things...

by , 17 December 2013
The Broad-Based Black Economic Empowerment (B-BBEE) codes set out in 2007 set targets for companies who wish to be measured against the scorecard for employment equity and other elements. If you're one of these companies, read on to discover the four things you can do to maximise your B-BBEE points.

According to Econo Bee, the B-BBEE scorecard is an essential tool which contributes to the success of your business.

The site adds 'the key to this success lies in the number of B-BBEE points you're able to earn during your B-BBEE rating.'

Here are four things you must do to maximise your BBBEE points

#1: Prepare information for your employment equity report

Rating agencies use your employment equity profile to do their audit.

The Practical Guide to Human Resources Management says the law requires all companies who have a turnover of more than 35 million per year submit this report to the Department of Labour.

Companies with less than 150 employees must submit their reports before 1 October of each year that ends with an even number, for example, 2012. In other words, every second year…

Companies with more than 150 employees must submit their reports before 1 October of every year.

Rating agencies use the audited financial figures for the following measurement criteria:

  1. Ownership;
  2. Management;
  3. Skills Development;
  4. Procurement;
  5. Enterprise Development; and
  6. Socio-Economic Development.

#2: Grade your employees correctly

Because the rating agencies use the Employment Equity Report, they don't only count managers. They also include professional people who may not have any subordinates. The EEA Form, EEA9, gives a comparison with the most commonly used grading and job evaluation systems.

Make sure you allocate your employees correctly, particularly in the Middle Management and Junior Management categories.

#3: Take the job description into account when you decide on the correct classification

In many companies, the job title is not descriptive of the employee's full job requirements.
For example, in many organisations the receptionist just answers the phone and greets visitors.

In other companies, she performs many of the duties of an office manager and may even have management responsibility for the tea and messenger functions.

This could mean you should add her in the Junior Management category. Your Employment Equity Committee must evaluate the job and decide on the correct level to classify her into.

#4: Constantly re-evaluate your BBBEE targets

Keep track of the targets and check variances monthly. Employees leave and you quickly fill their vacancies. It's therefore important to evaluate the effect of staff changes to your targets and to be aware of how this may affect your score.

Doing these four things will help ensure your maximise yourB-BBEE points.

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