HRD Presentation BEE UNIT 14TH SEPTEMBER 2007

THE CODES OF GOOD PRACTICE FOR BROAD – BASED BLACK ECONOMIC EMPOWERMENT HUMAN RESOURCE DEVELOPMENT CODE 200 – MANAGEMENT CONTROL CODE 300 – EMPLOYMENT EQUITY CODE 400 – SKILLS DEVELOPMENT

CODE 200 & 300 – MANAGEMENT CONTROL & EMPLOYMENT EQUITY Management Control measures effective control by black people Setting Targets for Board Representation and Executive Involvement of black people Employment Equity Employment Equity is the participation of black people that are employed in companies at Junior, Middle and Senior Management levels Alignment with existing legislation – Employment Equity Act and Skills Development Act Alignment with Economically Active Population targets In order for a company to score points at a particular category on the Employment Equity Scorecard they must have a minimum of 40% of the target in that category

Top Management Distinction

CODE 200 : THE GENERIC MANAGEMENT CONTROL SCORECARD Element Weighting Compliance Targets Ownership 20 points 25% +1 Management control 10 points (40% to 50%) Employment Equity 15 points (43% to 80%) Skills Development 3% of payroll Preferential Procurement 70% Enterprise Development 3% (NPAT) Socio-Economic Development 5 points 1% (NPAT) TOTAL 100 points

CODE 300 : THE GENERIC EMPLOYMENT EQUITY SCORECARD Element Weighting Compliance Targets Ownership 20 points 25% +1 Management control 10 points (40% to 50%) Employment Equity 15 points (43% to 80%) Skills Development 3% of payroll Preferential Procurement 70% Enterprise Development 3% (NPAT) Socio-Economic Development 5 points 1% (NPAT) TOTAL 100 points

Examples If company has the following Black Managers and that 50% in each category are Black women 20 Senior Managers 30 Middle Managers 20 Junior Managers In order for this company to start scoring points on the scorecard they would have to achieve 40% of the target in that category Example Scorecard: Measurement Category Weighting points Compliance target Minimum 40% requirement Points allocated Senior Management 5 43% 17.2% 2 Middle Management 4 63% 25.2% 1.6 Junior Management 68% 27.2% Total points 5.2 points

CODE 400 – SKILLS DEVELOPMENT Alignment with Skills Development Act Parity principle - Inclusion of black women which encourages companies to promote them within companies Measurement of Skills Development in companies using the Learning Programme Matrix as released by Department of Labour Alignment of skills development initiatives for both the Skills Development Act and the Broad-Based Black Economic Empowerment Act The Scorecard ensures that all targeted beneficiaries are skilled Measures both skills spend and output through clearly defined outcomes of skills development programmes

CODE 400 : THE GENERIC SKILLS DEVELOPMENT SCORECARD Element Weighting Compliance Targets Ownership 20 points 25% +1 Management control 10 points (40% to 50%) Employment Equity 15 points (43% to 80%) Skills Development 3% of payroll Preferential Procurement 70% Enterprise Development 3% (NPAT) Socio-Economic Development 5 points 1% (NPAT) TOTAL 100 points

Narrative Description Examples The Codes require companies to spend 3% of total payroll to skill black employees, the Codes further require companies to have at least 5% of total black employees on training as per the Learning programme Matrix provided by the Department of Labour. The following are example of the types of skills that qualify under the Codes Cat Narrative Description Delivery Mode Learning Site Learning Achievement A Institution-based theoretical instruction alone – formally assessed by the institution Institutional instruction Institutions such as universities and colleges, schools, ABET providers Recognised theoretical knowledge resulting in the achievement of a degree, diploma or certificate issued by an accredited or registered formal institution of learning B Institution-based theoretical instruction as well as some practical learning with an employer or in a simulated work environment – formally assessed through the institution Mixed mode delivery with institutional instruction as well as supervised learning in an appropriate workplace or simulated work environment Institutions such as universities and colleges, schools, ABET providers and workplace Theoretical knowledge and workplace experience with set requirements resulting in the achievement of a degree, diploma or certificate issued by an accredited or registered formal institution of learning

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