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Incorporate skills development into your performance reviews to meet your new B-BBEE responsibilities!

by , 28 February 2013
Ownership is a crucial aspect of Broad-Based Black Economic Empowerment. That's why Liberty Holdings is celebrating an impressive increase in its recently announced BEE normalised headline earnings. But with new codes of good practice for Broad-Based Black Economic Empowerment (BBBEE) being implemented, this isn't the only area to focus on...

Liberty Holdings's BEE normalised headline earnings per share came in at 1,328c from a restated 957c in the previous year.
 
This is an impressive 38% increase in the BEE normalised headline earnings to R3.8bn for the year ended 31 December 2012, says iAfrica
 
Confused? 
 
BEE normalised headline earnings, which exclude certain one-time items and take into account the impact of its black economic empowerment (BEE) shareholder scheme, is Liberty's main performance measure, explains the Business Day's BD Live website. 
 
That's why BBBEE or Broad Based Black Economic Empowerment is fast becoming a business imperative, says EconoBEE.
 
And with further changes expected in the area of Broad-Based Black Economic Empowerment or B-BBEE as part of employment equity later this year, it's a good time to make sure your company's B-BBEE policy is up to scratch.
 
Because Minister of Trade and Industry Rob Davies unveiled new codes of good practice for Broad-Based Black Economic Empowerment (BBBEE) in October 2012, says Andrew Bizzell Chairman of the BEESA Group, on the CGF Research Institute website. 
 
This is helpful as the revised codes contain a framework for determining the B-BBEE scorecard and guidelines, as well as the biggest area of confusion so far – how companies will be measured once the codes are implemented.
 
Focus on these three aspects of B-BBEE implementation to improve your BEE score!
 
Three priority elements are also being introduced to help with B-BBEE implementation. These are ownership, skills development and enterprise and supplier development.
 
This might make it harder to retain your existing B-BBEE status. 
 
BEE Scorecard explains that if your business turnover is less than R5 million per year and you've been in business for less than a year, you'll still automatically qualify for a Level 4 BBBEE certificate. 
 
And if your percentage of black shareholders is above 50%, you automatically qualify for a Level 3 BBBEE certificate.
 
But it's the higher levels of true company transformation that are becoming even harder to attain.
 
That said, you can work on the skills development aspect.
 
Makes sure your skills development strategy is effective by incorporating it into your performance reviews!
 
If your employee development or training has been 'hodge-podge up to now, with 'no consideration given to the performance reviews, the business achievements and shortcomings, skills development assessments or the like', it's time to make a change, says the Labour Bulletin.
 
The easiest way to do this is to make sure your training efforts are regarded as a performance management tool.  
 
That's because the purpose of training is to provide business-critical, job-related skills and knowledge to those employees that do not have them.
 
This will, in turn, enhance productivity and ultimately to ensure the sustained profitability of the business.
 
So use your next performance review cycle to identify which skills your employees need to improve on, and schedule appropriate training for these needs.
 
You'll be meeting the skills development aspect of Broad-Based Black Economic Empowerment and you'll have more efficient employees to boot!


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