Premier Verification

What is the objective/purpose of this element?

‘Skills Development, in context of B-BBEE, is to encourage entities to develop and train both employees and those that aren’t employed (by the entities) to strengthen their skills base.  The intention behind this element is to enhance career paths for the employed and create employment opportunities for the unemployed. The Skills Development Act provides businesses with a solid framework to implement learning strategies that will improve South African workforce’s skills.

It’s a strategic priority for businesses that wish to attain favourable BEE level’, says Bridget, ‘It is imperative for businesses to comply with the B-BEEE requirements and meet the requirements of the Skills Development Act.’

Is Skills Development considered a Priority Element on the Broad-Based Black Economic Empowerment (B-BBEE) Codes?

‘Yes. Skills Development is a priority element on the B-BBEE Codes. The Scorecard encourages corporates to aim for a minimum of 40% of their contribution to Skills Development which will ensure they attain (or retain) the best possible BEE level.’

What are the pre-requisite requirements?

‘Any entity wishing to claim skills development points on the BEE scorecard must submit (and have proof of) their Workplace Skills Plan, also known as WSP, their Pivotal Plan and their Annual training report. These submissions must be made annually and prior to the deadlines set out by each body. Unfortunately, failure of submission results in the scorecard receiving zero points and by not meeting the subminimum requirements, they will also be discounted by one B-BBEE level.

How is this measured?

‘Entities can earn up to 25 points on the scorecard which includes 5 bonus points for absorption. People ask what is meant by ‘Absorption’. The easiest way to explain absorption, is that it is measurable by the entity’s ability to successfully secure a long-term contract of employment for the employee, learner, intern, or apprentice. To maximise the skills points, the entities need to achieve points as per breakdown of the scorecard.’

‘It is very important for entities to prioritise skills development as an element’ says Ntombela.

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Extract of the skills development scorecard based on a generic scorecard.

Code Series 300 – Skills Development