1. Implications of equity policies driving Skills Development
Gizelle Mc Intyre
The Institute of People Development

2. Institute of People Development (IPD)
The Institute of People Development (IPD) is committed to an ongoing process of achieving and maintaining its status as a "centre for learning excellence".
Primary Aim
To enhance the quality of workplace learning provision through the development of managers, supervisors and learning development practitioners.
The Institute strives to be a "change agent" by
Providing qualifications to managers, supervisors and learning & development practitioners
Offering recognition of prior learning (RPL) services to experienced learning & development practitioners
Conducting research projects designed to generate best practice products and processes through a continuous professional development (CPD) programme
Expanding the field of learning & development practices to the wider public through seminars, media releases, on-line resources and communities of practice workshops and consulting
Making available its learning facilities and resources in Midrand to its clients and stakeholders for the purposes of high quality learning provision

4. Introduction
Implications of equity policies driving skills development
Employment equity, gender equity and disability equity
BBBEE and skills development
The BBBEE scorecard

5. Legislative History Lesson
SAQA – 1995
Employment Equity Act – 1998
Skills Development Act
Skills Development Levies Act – 1999
Skills Development Amendment Bill 2003
A Strategy for Broad-Based Black Economic Empowerment was released in 2003.
Broad-Based BEE Act No. 53 of 2003 Broad-Based BEE Act No. 53 of 2003 (‘BEE Act’) – 2004
Codes of Good Practice 2007
Skills Development Act (Amended) 2008
Amended B-BBEE Codes 2012
National Development Plan
White Paper for Post-School E & T
Guidelines on the Implementation of the SETA Grant Regulations
New Landscape proposed – 2015
Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important.
Introduce each of the major topics.
To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

6. The Current Situation In Education & Training
Skills Development has become a BBBEE scorecard conversation
Huge numbers of unemployed graduates
New forms of illiteracy developing
Professional Bodies
Uncertainty about Setas
Graduate Programmes in companies
Short Course changes
The role of the SDF

7. Proposed New Skills Development Landscape
With National Skills Development Strategy (NSDS) III finishing its five year life-span in 2016 (now extended to March 2018), it was expected that a fine-tuning of the key skills development institutions would take place to support the new NSDS.
The proposed new landscape is however a significant evolution in the institutional landscape and one which therefore requires significant consideration and discussion among stakeholders.
The Department of Higher Education & Training (DHET) published on 10 November 2015 a draft proposal for a new National Skills Development landscape which would take effect on 1 March 2018.
The proposal is a government gazette had a deadline of 20 January 2016 for public comments.

8. Proposed New Skills Development Landscape
"Proposal for the New National Skills Development Strategy (NSDS) and Sector Education & Training Authorities (SETAs) Landscape (NSLP 2015)".
What changes are proposed?
SETAs would be absorbed into the Department of Higher Education & Training but constituted as Specialised Delivery Units (Section 7B of the Public Service Act)
They would become permanent structures, rather than have 5 year renewable life-spans
They would remain 21 in number (no immediate mergers but clustered into five synergistic groupings)
SETA Boards would remain unchanged but have greater representation from government departments in line with a stronger public sector focus

9. Proposed New Skills Development Landscape
Changes to Funding
80% of the current SETA Discretionary Grant would be shifted to the National Skills Fund (equivalent to the entire current PIVOTAL Grant)
Employers would still be able to apply for the 20% Mandatory Grant (unchanged) and 10% of the remaining Discretionary Grant (renamed Sector Specific Grant)
SETA administration costs would remain at 10% of the Skills Development Levy, but likely reduced over time as a shared services unit realises bulk savings, and as other bodies take up previous SETA functions, such as Skills Planning
Public sector organisations would spend 1% of their personnel budget on quality assured education and training leading to NQF qualifications and fulfil the same reporting obligations as the private sector so as to qualify for funding from the National Skills Fund

10. Employment Equity
The purpose of this Act is to achieve equity in the workplace by- (a) promoting equal opportunity and fair treatment in employment through the. elimination of unfair discrimination; and. (h) implementing affirmative action measures to redress the disadvantages in 25.Oct 19, 1998

11. Employment Equity and Skills Development
Compliancy is the name of the game….
Do you have an Employment Equity Plan and is it up to date?
Have you done a Skills Audit in order to analyse you workforce profile?
Do you have quarterly committee meetings?
Have you submitted your EE reports?
Have you submitted your WSP/ATR?

12. Implications of equity policies and BBBEE driving skills development
Are we training only for EE reports and BBBEE points?
What about critical, customised/industry specific skills?
What about the providers who don’t comply but provide what we need?

13. Our Current Picture
The Employment Equity Commission for South Africa has released its 2015/16 report

15. NQF & OFO Map - Source QCTO 2012
9 - 10
2 Professionals
7- 8
1 Managers 6
3 Technicians and Associate Professionals
3 - 5
6 Skilled Agricultural, Forestry, Fishery, Craft & Related Trades Workers
7 Plant and Machine Operators and Assemblers
3 Service and Sales Workers
4 Clerical Support Workers
1 - 2
8 Elementary Occupations

16. OQF Level descriptors: To determine level of tasks
Typical activities
Role
Workplace Focus
Time 10
Envisioning future scenarios
Visionary leadership
Future shape of organisation, industry, profession
10-15 years 9
Set and implement strategies
Leading and directing
The 'business landscape' or profession
5-10 years 8
Manage or design systems
Resource management
Policy, resource allocation
3-5 years 7
Manage or design processes
Changed practices
New technology, systems
1-3 years 6
Develop and implement changes
Optimisation
Improvements
6 mth -1yr 5
Maintain efficiencies
Stability and consistency
Systems
3-6mth 4
Setup processes and solve process problems
Process management
Process data
1-3mth 3
Adjust, maintain and oversee
Procedures
Productivity
1wk 2
Monitor, support
Operations
Machinery
1 day 1
Perform elementary tasks
Task
Machines, tools

17. Career Ladder Example 8-10 6-8 5 4 3 2 1 Continued Professional
NQF Level
8-10
Continued Professional
Development
Management
Research And Development
Specialist Occupations after first Degree
General Management
Graduate Development Programmes
Logistics
Purchasing
New Product Development
Business Development
6-8
Production
Finance
SHEQ Manager
Manager
First Line Manager
Occupational Core plus Technician
Core Skills plus Manager 5
Technician
Supervisor
Team Leader/
Artisan/
Supervisor
Core Skill
Professional Skill 4
Technical Specialist 3
Operator
Skilled technical worker
Foundational Learning Certificate
Mathematical Literacy and Communication 2
Preparing unemployed for access
New Entrant
Induction
Raising the Bar 1

18. Skills Development Process
Company Strategy/Vision
Skills Needed to fulfil strategy
Do needs analysis/Skills Audits of current staff
Design Solutions
Implement Solutions (Training/Coaching/Mentoring)
Workplace Application
Assessment (Performance Management)

19. PIVOTAL Programmes PIVOTAL programmes definition
Professional, vocational, technical and academic learning programmes that result in qualifications or part qualifications registered on the National Qualifications Framework (NQF) that address critical and scarce skills needs.
Government Gazette No of 3 December 2012 on Sector Education and Training Authorities(SETAs) Grant Regulations regarding monies received by a SETA and related matters, published by the Minister of the Department of Higher Education and Training (DHET).
According to NSDS III and the new SETAs Grant Regulations regarding monies received by a SETA and related matters (Government Gazette No ), PIVOTAL programmes refer to:

20. PIVOTAL Programmes
Professional learning programmes shall mean programmes that lead to designations that are registered by professional bodies.
Vocational learning programmes shall mean programmes that lead to a trade and/or the National Certificate Vocational (NCV).
Technical learning programmes shall mean programmes that are occupationally-directed and registered by the SETA; such programmes include apprenticeships, Learnerships and skills programmes.
Academic learning programmes shall mean programmes that lead to academic qualifications such as certificates, Higher Certificates, Diplomas and Degrees.
According to NSDS III and the new SETAs Grant Regulations regarding monies received by a SETA and related matters (Government Gazette No ), PIVOTAL programmes refer to:

21. Workplace Integrated Learning
How does this fit into compliance?

22. Workplace Learning: 70-20-10 model
70%
Learn and Develop Through Experience
On-the-Job
Work Integrated Learning
Just-in-Time coaching
POEs that are workplace orientated
20%
Learn and Develop through others
Occupationally directed Learning
Mentoring and Coaching
Informal Feedback
Action Learning
Professional Networks
10%
Learn and Develop through Structured Courses and Programmes
Workshops
Professional Development
Academic studies
E-Learning

23. Skills Development Levy (SDL)
Why are you using this as a forecast of training you will be able to do for the year?
Joe earns per annum
– this means his contribution is 1000 for the year
– can this really be your training budget for Joe?

25. Employment equity, gender equity and disability equity
The Broad-Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice was gazetted on 12 October 2013 and came into effect on 1 May 2015.
Employment Equity no longer stands alone as an individual element. Employment Equity has been incorporated with Management and Control and carries 15 points for both Generic and Qualifying Small Enterprise (QSE) businesses.
Points are only allocated for employees in management positions.
The calculations for management and control are complex and require attention to the Economic Active Population (EAP). These targets are set in accordance with each province according to racial demographics of the said province.
Gender
Black female employees in management are awarded points as a separate indicator on the scorecard.
Disabled employees
Only black employees with disabilities are given recognition, and are measured as an indicator on the scorecard.
The definition of black people with disabilities according to the Employment Equity Act is: “People who have long-term or recurring physical or mental impairment which substantially limits their prospects of entry into, or advancement in, employment.” A doctor must medically certify the nature of the disability and the duration thereof before a black employee can be termed disabled.

26. Revised BBBEE Points
The amendments to the Codes (came into effect October 2014) significantly
change the manner in which a firm’s BBBEE status (or level) will be calculated, as the number of BBBEE points required to achieve a particular BBBEE level has been increased.
BBBEE Level
CODES 1
≥100 points 2
≥95 but <100 points 3
≥90 but <95 points 4
≥80 but <90 points 5
≥75 but <80 points 6
≥70 but <75 points 7
≥55 but <70 points 8
≥40 but <55 points
NON-COMPLIANT
<40 points

27. Revised BBBEE Elements
1. OWNERSHIP
2. MANAGEMENT CONTROL
3. EMPLOYMENT EQUITY
4. SKILLS DEVELOPMENT
5. PREFERENTIAL PROCUREMENT
6. ENTERPRISE DEVELOPMENT
7. SOCIO-ECONOMIC DEVELOPMENT.
The amendments to the Codes reduce the number of elements to five by fusing the enterprise development/preferential procurement and management control/employment equity elements.

28. WEIGHTING
The weighting for each of the five new elements are set out in the following table:

29. BBBEE Scorecard and Skills Development

30. Learning Programme Matrix
Cat
Narrative description
Delivery mode
Learning site
Learning achievement A
Instruction-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
Instruction-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 resulting in the achievement of a degree, diploma or certificate issued by an accredited or registered formal institution of learning C
Recognised or registered structured experiential learning in the workplace that is required after the achievement of a qualification – formally assessed by a statutory occupational or professional body
Structured learning in the workplace with mentoring or coaching
Workplace
Occupational or professional knowledge and experience formally recognised through registration or licensing D
Occupationally directed instructional and work-based Learning Programme that requires a formal contract – formally assessed by an accredited body
Institutional instruction together with structured, supervised experiential learning in the workplace
Institutions and workplace
Theoretical knowledge and workplace learning, resulting in the achievement of a South African Qualifications Authority registered qualification, a certificate or other similar occupational or professional qualification issued by an accredited or registered formal institution of learning E
Occupationally directed instructional and work-based Learning Programme that does not require a formal contract – formally assessed by an accredited body
Structured, supervised experiential learning in the workplace which may include some institutional instruction
Workplace and some institutional as well as ABET providers
Credits awarded for registered unit standards F
Occupationally directed informal instructional programmes
Structured information sharing or direct instruction involving workshops, seminars and conferences and short courses
Institutions, conferences and meetings
Continuing professional development, attendance certificates and credits against registered unit standards (in some instances) G
Work-based informal programmes
Informal training
Increased understanding of job or work context or improved performance or skills

31. Skills Planning and the Learning Programme Matrix
Create a Skills plan that comprises the following:
Measurement of Skills Development indicators
A = (B ÷ C) x D
Where:
A = score for any given indicator as referred to in the scorecard
B = adjusted recognition for gender
C = Target for the applicable indicators as referred to in the scorecard
D = Weighting for the applicable indicators as referred to in the scorecard

32. BBBEE and Skills Development
With a weighting of 25 points in total, this is an element to focus on.
The 6% of payroll spend requirement can be used for optimal ROI by projecting talent needs per race and gender category and using the money in bespoke projects such as bursaries, internships, learnerships, apprenticeships and other programmes.
The ability to thereafter integrate the said individuals into employment is crucial and adds the additional 5 bonus points. This makes proper pre-assessment practices essential to give you the best chance of converting the said persons into full employment.
There is a limit of 15% (of the total soend amount claimed) in claiming expenses associated with the skills development (eg travel, accommodation and catering) and furthermore, mandatory training (e.g. FICA, FAIS, OHS) is not recognized. Uncertified learning is also capped at 15% of the total spend claim.

33. The BBBEE Players

34. EME increased from R5 million to R10 million
Amended Broad -Based Black Economic Empowerment Codes Of Good Practice October 2012
The thresholds for Exempted Micro Enterprises and Qualifying Small Enterprises have been adjusted as follows:
EME increased from R5 million to R10 million
QSE: R5 million -R35 million to R10 million - R50 million
Large entities: R50 million and above

35. Qualifying Small Enterprises (QSE’s)
Qualifying Small Enterprises (QSE’s) are defined by the Codes as companies with an annual total turnover of between R 5 million and R35 million.
Government has singled out small enterprises as vital in the fight for job creation and economic growth. According to the Small Enterprise Development Agency (SEDA), small enterprises already contribute approximately 35% of the country's gross domestic product (GDP) and employ over half the number of people who work in the private sector.
Aiming to ease the regulatory burden on small enterprises, the Codes require QSE’s to comply with ONLY four out of seven elements on the QSE scorecard.
And while every company qualifying for measurement under the Codes must maintain a scorecard, the codes have further eased the BEE compliance burden by setting lower targets for these companies.
Unlike the Generic Scorecard, the QSE Scorecard allocates an equal 25% weighting to each of
the seven elements, or pillars, of B-BBEE. As QSE’s only have to elect four of the elements,
selected elements of compliance total 100%.

36. Exempted Small & Micro-enterprises
Exempted Small & Micro Enterprises (EME’s) are defined by the Codes, as companies with an annual total turnover of R 10 million or less.
EME’s have a BEE recognition of a Level 4 contributor and those, which are either 50%, owned by black people or 50% owned by black women are promoted to a Level 3 contributor.
They also automatically qualify for procurement

37. Our Future
Reflexive
Practical
Foundational

38. Thank you!
“Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning.”  ― Mahatma Gandhi

39. Contact Details
Institute of People Development