Premier Verification - Business Media MAGS

Sunday Times Consulting

Premier Verification

SPONSORED: We spoke to the Managing Director of Premier Verification in Johannesburg, Bridget Ntombela. This is what she had to say about the Management and Control element on the B-BBEE Scorecard.

What is the objective/purpose of this element?

‘The main purpose of this element is to encourage or influence companies to improve the level of representation of Black People (as defined in the B-BBEE codes) in all levels of management in the company. This includes Top Management (i.e., Executive Directors and Non-Executives), Senior, Middle and Junior Managers as well as Black Disabled persons. This is then based on the racial and gender make-up of the country as per the CEE reports, which are further broken down at a provincial level.

The targets below are based on the EAP (Economically Active Population) to calculate the overall representation of Black People per levels of management as defined in the Employment Equity Act. This is then supported by the company’s submissions of the EEA2 report to the Department of Labour (DOL). There have been recent changes in the Employment Equity Act and employers are encouraged to keep abreast with the changes as they will have an impact on the submission and the compliance of other legislations, including the B-BBEE Act.

Depending on the company’s head office, they can choose whether to use the Provincial EAP (provided that the majority of the employees are situated in that province or the National EAP to calculate the score.

EAP targets apply to Senior, Middle and Junior Management.  The rest of this scorecard does not distinguish between different categories of Black People but does distinguish between Black Men and Black Women.

EAP targets are measured in percentages.  To approximate the correct distribution of race and gender, a company would have to be very large indeed. It’s not easy but there is a possibility that an entity can achieve full points in any element that is subject to the EAP targets.

If a company does not differentiate between Other Executive Management and Senior Management, Senior Management may be included in Other Executive Management.

  • Executive Directors – sit on the Board and are involved in the day-to-day running of the business.
  • Non-Executive Directors – sit on the Board and are not involved in the day-to-day running of the business.
  • Other Executive Management – do not sit on the Board, but are higher than Senior Management, this is generally your MANCO.

This is not a priority element that means if a sub-minimum of 40% of the target score is not the achieved there will be no discounting of the final verified score by one level.

This element has a pre-requisite and failure to comply will result in the entity not scoring points under Management Control. A company needs to submit their EE reports on yearly basis to the Department of Labour (DOL). These can be submitted online between October and mid-January of every year.

It’s quite important for companies to understand the meaning of Black People in terms of the EE Act and the B-BBEE legislation. As defined in the Employment Equity Act 5 of 1998, people who have a long-term or recurring impairment, including sensory or mental impairment, which substantially limits their prospect of entry into or advancement in employment are considered to be disabled. Company’s must make reasonable accommodation to assist the employee so that the disability does not affect their progress in the workplace. Employers are encouraged to seek the assistance and advice of technical experts to determine whether an impairment is substantially limiting. Alternatively, an applicant or employee may be able to provide information that is deemed sufficient for this purpose, such as a doctor’s report by a medical doctor. Such documentary evidence would also be required to earn points on the B-BBEE scorecard for employing and training disabled Black Persons.

The B-BBEE codes also test substance of the evidence hence a sample of employees are selected for interviews.’

This element measures the demographics of a company’s employees against specified targets:

Code Series 200 – Management Control

Measurement Category & Criteria Weighting Points Compliance Targets
2.1 Board participation:
2.1.1 Exercisable voting rights of black board members as a percentage of all board members 2 50%
2.1.2 Exercisable voting rights of black female board members as a percentage of all board members 1 25%
2.1.3 Executive black directors as a percentage of all executive directors 2 50%
2.1.4 Executive black female directors as a percentage of all executive directors 1 25%
2.2 Other executive Management:
2.2.1 Black executive Management as a percentage of all executive management 2 60%
2.2.2 Black female Executive Management as a percentage of all executive management 1 30%
2.3 Senior Management
2.3.1 Black employees in Senior Management as a percentage of all senior management 2 60%
2.3.2 Black female employees in Senior Management as a percentage of all senior management 1 30%
2.4 Middle Management
2.4.1 Black employees in Middle Management as a percentage of all middle management 2 75%
2.4.2 Black female employees in Middle Management as a percentage of all middle management 1 38%
2.5 Junior Management
2.5.1 Black employees in Junior Management as a percentage of all junior management 1 44%
2.5.2 Black female employees in Junior Management as a percentage of all junior management 2 2%

Should you be interested in Premiers services. Please visit their website www.premierverification.com or contact a Verification Analyst on 010 591 0591.

You might be interested in these articles?

You might be interested in these articles?