1. HRD Presentation
BEE UNIT
14TH SEPTEMBER 2007

2. 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

3. 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

4. Top Management Distinction

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. THANK YOU