1. Inclusive B-BBEE Skills Development Strategies
Deon Oberholzer
CEO
29 February 2016

2. What we will talk about Recent developments in B-BBEE
Sector Codes and timelines
Summary of the Skills Development element
Potential integrated strategies

3. Sector Codes Section 9(1) Effective
Tourism Sector
Section 9(5) (Out for public comment: All closed)
MAC Sector
Property Sector
Forestry Sector
Agri-BEE
Repealed on 17 February 2016
Chartered Accountancy Sector
Construction Sector
Lost in translation or soon to be released?
ICT Sector
Integrated Transport Sector
Financial Services

4. Time lines for Compliance
Sector Codes remain valid until replaced or repealed
Financial year end prior to replacement or repeal
Previous/current Sector Codes
Financial year end thereafter
Amended Sector Codes if replaced
Amended Codes if repealed

5. B-BBEE strategic advantage or unwelcome tax?

6. Bottom line for QSEs
White QSEs will have to do Ownership and Skills Development to get a half-decent score.
With no Black Ownership and no Black Top management, the most points possible is 68. This is a Level 7, but you drop to Level 8
A company that got a level 1 for full points on EE, PP, ED and SED only will get 42 points max (Level 8) and drop a level to non-compliant.

7. Skills Development

8. Main points Demographic profiling in Management and Skills (Not QSE)
Priority elements penalty (Also QSE)
Skills Development at 25 points (QSE = 30)
Skills Development at 6% (QSE 3%)
People with disabilities 4 points from 0.3% (QSE 3 from 0.15%)
Return of salary concession

9. Some highlights Skills not restricted to staff Points for unemployed
Training Tracking Tool
15% maximum for F (Workshops, Conferences and meetings) & G (Informal and Workplace training)
15% cap on accommodation, catering and travelling
International training meets SAQA requirements
Costs to include SDF or a training manager.

10. Economically Active Population Commission for Employment Equity Report 2013/2014
Male
Female
Total
African
40.3%
34.9%
75.2%
Coloured
5.6%
5.0%
10.6%
Indian
1.9%
1.2%
3.1%
White
6.2%
4.6%
10.8%
54.0%
46.0%
100.0%

11. Economically Active Population Black Only
Male
Female
Total
African
45.3%
39.3%
84.6%
Coloured
6.3%
5.6%
11.9%
Indian
2.1%
1.3%
3.5%
53.8%
46.2%
100.0%

12. Skills Development - Generic Measurement Category and Criteria
Existing Codes
New Codes
Measurement Category and Criteria
Points
Target
Skills development spend on black people 6 3% 8 6%
Skills development for black employees with disabilities 3
0.30% 4
0.3%
Black employees: Learnerships or category B, C and D 5%
Black employees in learnerships, apprenticeships or internships
2.5%
Black unemployed in any training in matrix
Bonus: Learners absorbed at end of the programme 5
100%
Skills Development Total 15 25

13. Skills Development - QSE Measurement Category and Criteria
Existing Codes
New Codes
Measurement Category and Criteria
Points
Target
Skills development spend on black people 25 2% 15 3%
Skills development spend on black women 7 1%
Skills development spend on disabled 3
0.15%
Absorption of Learners 5
100%
Skills Development Total 30

14. Learnership, Internship and Apprenticeship
Name
Description
Assessment
Learnership
Institution- based theoretical instruction as well as some practical learning with an employer or in a simulated work environment
formally assessed through the institution
Internship
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
Apprenticeship
Occupationally- directed instructional and work-based learning programme that requires a formal contract
formally assessed by an accredited body

15. Learner Absorption
a measure of the Measured Entity's ability to successfully secure formal permanent or long-term contract employment for the Learner or to assist the Learner's proceed with further education and training;

16. Skills Development Strategies
B-BBEE Priorities
Maximum B-BBEE points
Minimum additional costs
Maximum salary inclusion
Maximum business benefit
Maximum Tax rebates & subsidies
Maximum SETA grants
SETA funded vs self funded

17. Integrated Strategies
People centred Strategy
Promotion
Development
Recruitment
Pre recruitment

18. People centered Strategy
Resources include:
Skills Development to develop staff with key skills
Skills Development for bursaries for recruitment
Socio Economic Development to develop pre- recruitment (early bursaries)
SETA Funding
Learner Salaries

19. Steps for Skills Development
Company headcount
Management profile and challenges/opportunities
LIA headcount for max points
Unemployed training headcount for max points
Demographics or just gender?
African first, then Coloured, maybe Indian?
Disabled budget for max points
Learnerships, Internships & Apprenticeships
Maximise salary concessions
Remaining budget based on business needs

20. Book on our next B-BBEE Strategy Workshop - 16 March
Questions and closing thoughts?
Book on our next B-BBEE Strategy Workshop - 16 March
Thank You