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Skills Development- a real world update: An Update on Key Legislation affecting skills development Skills Development- a real world update: An Update on Key Legislation affecting skills development in South Africa Gizelle Mc Intyre Director: The Institute of People Development

Institute of People Development (IPD) The Institute of People Development (IPD) is committed to 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

Quick Question • • What brings you to the conference? a) Knowledge building b) Quick Question • • What brings you to the conference? a) Knowledge building b) Networking opportunities c) My boss made me attend

ROI • OK let’s make today worth your while…. . • Please turn to ROI • OK let’s make today worth your while…. . • Please turn to the person to your right and left and identify and consolidate 2 main ideas you would like me to focus on based on the following slide. • Please write them down on the paper provided.

Topics up for discussion • Current and proposed landscape: Skills Development • Legislation and Topics up for discussion • Current and proposed landscape: Skills Development • Legislation and Skills Development • PIVOTAL programmes, workplace learning and RPL • Broad-Based Black Economic Empowerment (BBBEE) Skills Development point requirements • What does the future hold?

Why do we do what we do? • Training for compliance begs the question Why do we do what we do? • Training for compliance begs the question – when will South Africa opt for a healthy skills development approach? • The key is to employ skills development is to : – foster better engaged workers, – build people’s proficiencies and – upskill the nation NOT to gain some BBBEE points or tick a tick box on your scorecard. • This process is garnering some cynicism and a feeling of exhaustion amongst the true believers of real skills development and transformation. Ironic, considering the points can still be gained with a focus on meeting real needs.

Acronyms are king! • • • • • ABET – Adult Basic Education and Acronyms are king! • • • • • ABET – Adult Basic Education and Training AQP – Assessment Quality Partner AIDS – Acquired Immunodeficiency Syndrome BBBEE – Broad-based Black Economic Empowerment CHE – Council on Higher Education COGTA – Department of Cooperative Governance and Traditional Affairs DHET – Department of Higher Education and Training DPSA – Department of Public Service and Administration DQP – Development Quality Partner DTI – Department of Trade and Industry FABCOS – Foundation of African Business and Consumer Services FET – Further Education and Training GDP – Gross Domestic Product HEI – Higher Education Institution HESA – Higher Education South Africa HIV – Human Immunodeficiency Virus HRDSSA – Human Resource Development Strategy for South Africa ICT – Information and Communication Technology • • • • • IPAP – Industrial Policy Action Plan JIPSA – Joint Initiative on Priority Skills Acquisition M&E – Monitoring and Evaluation NAMB – National Artisan Moderating Body NCV – National Certificate (Vocational) NSA – National Skills Authority NSDS – National Skills Development Strategy NGO – Non-governmental Organisation NQF – National Qualifications Framework NSF – National Skills Fund PIVOTAL – Professional, Vocational, Technical and Academic Learning QCTO – Quality Council for Trades and Occupations SEDA – Small Enterprise Development Agency SETA – Sector Education and Training Authority SLA – Service Level Agreement SMME – Small, Medium and Micro-sized Enterprises SSP – Sector Skills Plan

08: 45 – 10: 00: An Update on Skills Development Act and National Skills 08: 45 – 10: 00: An Update on Skills Development Act and National Skills Development Strategy III The session gives an update on the skills development Act, and the Skills development Policy frameworks for the benefit of SDFs such as follows; The skills development Act and amendments The Skills Levies Act Human Resource Development Strategy for South Africa National Skills Development Strategy III OUTCOMES

Legislative History Lesson • • • • SAQA – 1995 Employment Equity Act – Legislative History Lesson • • • • SAQA – 1995 Employment Equity Act – 1998 Skills Development Act - 1998 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 (‘BEE Act’) – 2004 Codes of Good Practice 2007 Skills Development Act (Amended) 2008 Amended B-BBEE Codes 2012 National Development Plan 2030 - 2013 White Paper for Post-School E & T - 2013 Guidelines on the Implementation of the SETA Grant Regulations - 2013 New Landscape proposed – 2015

The Current Situation In Education & Training • Skills Development has become a BBBEE The Current Situation In Education & Training • Skills Development has become a BBBEE scorecard conversation • The reality of the skills crisis is hitting us e. g. Eskom • Huge numbers of unemployed graduates • 7. 2 million people illiterate • New forms of illiteracy developing • Professional Bodies • Uncertainty about Setas • Graduate Programmes in companies • Short Course changes

Feedback from SETA and Industry/ Associations SAQA Act NQF Act Skills Development Act Quality Feedback from SETA and Industry/ Associations SAQA Act NQF Act Skills Development Act Quality Councils WSP from your company CULMINATING INTO THE NATIONAL SKILLS PLAN Sector Skills Plans Creating employment opportunities for properly skilled people Skills Development Levies Act Career and alignment information www. saqa. org. za

Proposed New Skills Development Landscape • • • With National Skills Development Strategy (NSDS) 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.

Proposed New Skills Development Landscape Changes to Funding • • 80% of the current 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 fulfill the same reporting obligations as the private sector so as to qualify for funding from the National Skills Fund

Legislation and Skills Development Legislation and Skills Development

Employment Equity • The purpose of this Act is to achieve equity in the 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

Employment Equity and Skills Development • Compliancy is the name of the game…. – 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?

Implications of equity policies and BBBEE driving skills development • Are we training only 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?

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

Employment equity, gender equity and disability equity The Broad-Based Black Economic Empowerment (B-BBEE) Amended 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.

Employment equity, gender equity and disability equity • Gender – Black female employees in Employment equity, gender equity and disability equity • 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.

Disability Disability

Skills Development Levy (SDL) SDL is a levy imposed to encourage learning and development Skills Development Levy (SDL) SDL is a levy imposed to encourage learning and development in South Africa and is determined by an employer's salary bill. Who must pay SDL? • If the company has staff registered for PAYE and the annual payroll exceeds R 500 000 per annum, the company must register with SARS and pay a skills levy of 1% of the monthly payroll. If the company does not fall within these criteria, it does not have to pay levies or register with SARS. • Where an employer expects that the total salaries will be more than R 500 000 over the next 12 months, that employer becomes liable to pay SDL.

Skills Development Levy (SDL) How much do you need to pay? • 1% of Skills Development Levy (SDL) How much do you need to pay? • 1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments). How to determine which SETA your company belongs too? • Each SETA has a mandate to serve the Sector Industry Classification Codes (Sic Codes) under its control as determined by the Department of Higher Education from time to time. (See Government Gazette 33756 dated 11 November 2010) What happens to the SDL Levy? • The levies are distributed via SETA.

Skills Development Levy (SDL) Why are you using this as a forecast of training 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 100 000. 00 per annum • – this means his contribution is 1000 for the year • – can this really be your training budget for Joe?

HRD Strategy HRD Strategy

10: 00 -11: 00 an update on the South African Qualifications Authority (SAQA) legislation 10: 00 -11: 00 an update on the South African Qualifications Authority (SAQA) legislation and standards National Qualifications Framework Act No. 67 of 2008 Simplifying the NQF apparatus in order to speed up the achievement of NQF objectives An update on SAQA processes Evaluation of foreign qualifications OUTCOMES

Quality Councils CHE (NQF 5 -10) SAQA QCTO (NQF 110) Umalusi (GETC & FET Quality Councils CHE (NQF 5 -10) SAQA QCTO (NQF 110) Umalusi (GETC & FET NQF 2 -4)

NQF Level Sub-Framework and Qualifications Types (GG : 36003 – 14 Dec 2012) Umalusi NQF Level Sub-Framework and Qualifications Types (GG : 36003 – 14 Dec 2012) Umalusi and CHET 10 Doctoral Degree (Professional) As required CHE 9 Master’s Degree (Professional) As required UMALUSI 8 Bachelor Honours Degree Post Graduate Diploma Bachelor’s Degree Occupational Certificate (Level 8) 7 Bachelor ‘s Degree Advanced Diploma Occupational Certificate (Level 7) 6 Diploma Advanced Certificate Occupational Certificate (Level 6) 5 Higher Certificate Occupational Certificate (Level 5) 4 National Certificate Occupational Certificate (Level 4) 3 Intermediate Certificate Occupational Certificate (Level 3) 2 Elementary Certificate Occupational Certificate (Level 2) 1 General Certificate Occupational Certificate (Level 1) QCTO 29

HET Framework (2013) Postgraduate 9 Professional Masters (180) 8 Undergraduate 10 Professional Doctorate (360) HET Framework (2013) Postgraduate 9 Professional Masters (180) 8 Undergraduate 10 Professional Doctorate (360) Post Graduate Diploma (120) 7 Advanced Diploma (120) 6 Advanced Certificate (120) 5 Higher Certificate (120) Doctoral Degree (360) Research Masters(180) Professional Bachelors Degree (480) Honours Degree (120) Professional Degree (360) BTech/Bachelors Degree (360) Professional Diploma (240) Diploma(360) Professional Diploma (240)

NQF & OFO Map - Source QCTO 2012 9 - 10 • 2 Professionals 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

OQF Level descriptors: To determine level of tasks Level Typical activities Role Workplace Focus OQF Level descriptors: To determine level of tasks Level 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 -1 yr 5 Maintain efficiencies Stability and consistency Systems 3 -6 mth 4 Setup processes and solve process problems Process management Process data 1 -3 mth 3 Adjust, maintain and oversee Procedures Productivity 1 wk 2 Monitor, support Operations Machinery 1 day 1 Perform elementary tasks Task Machines, tools 1 day

Career Ladder Example NQF Level 8 -10 68 5 Continued Professional Development Graduate Development Career Ladder Example NQF Level 8 -10 68 5 Continued Professional Development Graduate Development Programmes First Line Manager Management Research And Development General Management Purchasing Logistics Production SHEQ Manager Core Skills plus Manager Finance Occupational Core plus Technician Manager Technician 4 Team Leader/ Artisan/ Supervisor 3 Supervisor Operator Core Skill Professional Skill Technical Specialist 2 1 New Product Development Business Development Specialist Occupations after first Degree New Entrant Induction Raising the Bar Foundational Learning Certificate Mathematical Literacy and Communication Skilled technical worker Preparing unemployed for access

NQF Architecture National Qualifications Framework Level Sub-Framework and qualification types Higher Education Qualifications Sub. NQF Architecture National Qualifications Framework Level Sub-Framework and qualification types Higher Education Qualifications Sub. Framework General and Further Education and Training Qualifications Sub. Framework Doctoral Degree (Professional) * 9 Master’s Degree (Professional) * 8 Bachelor Honours Degree Postgraduate Diploma Bachelor’s Degree Occupational Certificate (Level 8) 7 Bachelor’s Degree Advanced Diploma Occupational Certificate (Level 7) 6 Diploma Advanced Certificate Occupational Certificate (Level 6) 5 Higher Certificate Occupational Certificate (Level 5) 4 National Certificate Occupational Certificate (Level 4) 3 Intermediate Certificate Occupational Certificate (Level 3) 2 Elementary Certificate Occupational Certificate (Level 2) 1 General Certificate Occupational Certificate (Level 1) * Qualification types beyond Level 8 on the OQSF have not been determined. Occupational Qualifications Sub-Framework 10

Some key achievements for the 2015/16 financial year Celebrating 20 years of implementing the Some key achievements for the 2015/16 financial year Celebrating 20 years of implementing the NQF 35

A snapshot of the NLRD as at 31 March 2016 Celebrating 20 years of A snapshot of the NLRD as at 31 March 2016 Celebrating 20 years of implementing the NQF 36

Zimbabwe India 18. 7% Lesotho Nigeria 12% DRC 6. 1% United Kingdom 9. 6% Zimbabwe India 18. 7% Lesotho Nigeria 12% DRC 6. 1% United Kingdom 9. 6% USA 3. 7% Swaziland 9. 1% Thailand 3. 3% 2. 4% Pakistan 2. 3% 2. 1% Chart showing top 10 countries from where qualifications that were compared and recognised originated More than two-thirds (69%) of qualifications that were compared and recognised, originated from 10 of 154 countries. 37

DRC Ghana Rest of Africa 40 Nigeria 8 Cameroon 7 5 Swaziland 5 5 DRC Ghana Rest of Africa 40 Nigeria 8 Cameroon 7 5 Swaziland 5 5 Pakistan Other countries (excl, Africa) 5 9 12 Lesotho Angola Zimbabwe India 4 5 3 Bangladesh 111 misrepresented foreign qualifications = 0. 5% of total verified 3 41% on NQF level 4 23% on NQF level 7 Chart showing countries/regions whose qualifications are being misrepresented Celebrating 20 years of implementing the NQF 38

Verify your Qualifications 72 543 qualifications verified in 2015/16 Celebrating 20 years of implementing Verify your Qualifications 72 543 qualifications verified in 2015/16 Celebrating 20 years of implementing the NQF 39

International Initiatives African Qualifications Verification Network World Reference Levels Technical assistance to Namibia Groningen International Initiatives African Qualifications Verification Network World Reference Levels Technical assistance to Namibia Groningen Declaration Network Addis Convention Validation of teacher professional standards Celebrating 20 years of implementing the NQF 40

11: 00 - 11: 20: Mid – Morning Tea/ Coffee 11: 00 - 11: 20: Mid – Morning Tea/ Coffee

11: 20 – 13: 00: Quality Council for Trades and Occupations (QCTO) legislation and 11: 20 – 13: 00: Quality Council for Trades and Occupations (QCTO) legislation and Recognition of Prior Learning Introduction to the Quality Council for Trades and Occupations An update on RPL and best practice on the same for SDFs Role of the QCTO Relationship with other frameworks OUTCOMES

QCTO Curriculum Model DQP/ INDUSTRY Occupational Purpose Knowledge / theory Practical Work experience External, QCTO Curriculum Model DQP/ INDUSTRY Occupational Purpose Knowledge / theory Practical Work experience External, summative assessment (to be conducted by AQP) Occupational Qualification Registered SAQA Curriculum components Assessment Specifications. Qualification document

Flow chart NQF 4 NQF 7 NQF 5 Occupational Trainer • Adapt and facilitate Flow chart NQF 4 NQF 7 NQF 5 Occupational Trainer • Adapt and facilitate learning • Establish and meet learner needs • Perform internal assessments OFO: 242402 Training and Development Practitioner • Plan workplace learning delivery • Design and facilitate learning • Establish organisation training needs • Conduct external assessments OFO: 242401 Training and Development Professional • Design OD interventions • Measure learning success/impact on the organisation • Talent management • Assessment design • Moderation of external assessment OFO: 242401

Skills Development Process Assessment (Performanc e Managemen t) Skills Needed to fulfil strategy Do Skills Development Process Assessment (Performanc e Managemen t) Skills Needed to fulfil strategy Do needs analysis/Skills Audits of current staff Company Strategy/Vision Workplace Application Design Solutions Implement Solutions (Training/Coaching/Mentoring)

ROLE OF THE SDF ROLE OF THE SDF

What is the role of an SDF? • • • Facilitate the development of What is the role of an SDF? • • • Facilitate the development of employees in the organisation and the strategies of the organisation equally and fairly. Acquire the resources to accredit and evaluate learnerships and skills programs in the organisation. Evaluate the skills development needs of the employees and organisation and continually evaluate the implementation of identified needs. Advise the employees and the employer on external and internal skills strategies as well as the progress of the skills development of the organisation. Be a training committee leader and lead the process of organisational skills development and employee development. Act as SDF administration and check all SETA documentation before submitting. Set up a training committee. Advise the organisation on the implementation of the WSP. Advise the organisation on the quality assurance requirements of the relevant SETA. Serve as contact person between the organisation and the external SDF and SETA. Chair the skills development planning committee or training committee.

What is the role of an SDF? • • • Bring the company policies What is the role of an SDF? • • • Bring the company policies in line with the regulations as laid down by the Skills Development Act. Assist in the creation of a performance management system for the organisation where no performance management system exists. Generate the key performance areas relevant to training and development for the performance management system. Complete an individual development pathway for all employees, as well as the skills requirement and learning pathway. Create a portfolio of evidence for all employees that will receive training in the company. Complete the workplace skills plan, interim training reports and annual training reports and submit it to the correct SETA, before the deadline. Formalise the qualifications of employees through recognition of prior learning. Train employed staff in order to claim the skills development levies from the SETA Register Learnership Programs by training and unemployed people. Claim their skills development levies from their SETA and claim the Tax rebates as stipulated for Learnerships.

Who may be a SDF? • Someone employed within an organisation • Someone appointed Who may be a SDF? • Someone employed within an organisation • Someone appointed from outside the organisation • Someone who works with a number of organisations

How to select an SDF? • • • • Authority (Middle to Senior Management) How to select an SDF? • • • • Authority (Middle to Senior Management) Experience (Aged between 35 and 65 years) Credibility Assertiveness Flexibility Organised Problem solver Supportive Sensitive and empathic Able communicator Have an organisational background Have some training background Have some Human resource development background. Have some financial background Have Leadership qualities Have developmental interest

The functions of a SDF • Assist the organisation to develop a training policy, The functions of a SDF • Assist the organisation to develop a training policy, and establish a training budget (% of payroll) • Assist the organisation to develop a workplace skills plan • Submit the WSP to the relevant SETA • Advise the employer on the implementation of the WSP • Assist in reporting on the implementation of the WSP • Advise on quality assurance requirements • Serve as a resource with regard to all aspects of skills development e. g. Promote & gain commitment • Liaise with the relevant SETA • Ensure that accurate learner records are maintained

PIVOTAL Grants and Workplace Learning PIVOTAL Grants and Workplace Learning

PIVOTAL Programmes • • Government Gazette No. 35940 of 3 December 2012 on Sector PIVOTAL Programmes • • Government Gazette No. 35940 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). National Skills Development Strategy III (NSDS III) 2011 – 2016. The PIVOTAL grant is aimed at: • Improving the quality and quantity of labour market information received by the various SETAs in the form of workplace skills plans, annual training reports and PIVOTAL training reports to inform planning. • Promoting National Qualifications Framework (NQF) registered and quality assured PIVOTAL programmes that address priority scarce and critical skills identified in the various SETA Sector Skills Plan (SSP).

PIVOTAL Programmes PIVOTAL programmes definition • Professional, vocational, technical and academic learning programmes that 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.

PIVOTAL Programmes • Professional learning programmes shall mean programmes that lead to designations that 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.

WORKPLACE INTEGRATED LEARNING WORKPLACE INTEGRATED LEARNING

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

BBBEE and Skills Development BBBEE and Skills Development

Revised BBBEE Points The amendments to the Codes (came into effect October 2014) significantly 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 NONCOMPLIANT <40 points

Revised BBBEE Elements • • 1. OWNERSHIP 2. MANAGEMENT CONTROL 3. EMPLOYMENT EQUITY 4. 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.

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

BBBEE Scorecard and Skills Development BBBEE Scorecard and Skills Development

Learning Programme Matrix Cat A B C D E Narrative description Delivery mode Learning Learning Programme Matrix Cat A B C D E Narrative description Delivery mode Learning site Learning achievement Instruction-based theoretical instruction alone – formally assessed by the institution Institutional instruction Recognised theoretical knowledge resulting in the achievement of a degree, diploma or certificate issued by an accredited or registered formal institution of learning 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 Structured learning in the workplace with mentoring or coaching Institutions such as universities and colleges, schools, ABET providers and workplace Workplace Occupational or professional knowledge and experience formally recognised through registration or licensing Institutional instruction together with structured, supervised experiential learning in the workplace Institutions and workplace Structured, supervised experiential learning in the workplace which may include some institutional instruction Structured information Workplace and some institutional as well as ABET providers 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 Credits awarded for registered unit standards 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 Occupationally directed instructional and work-based Learning Programme that requires a formal contract – formally assessed by an accredited body Occupationally directed instructional and work-based Learning Programme that does not require a formal contract – formally assessed by an accredited body Occupationally directed informal Institutions, 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 Continuing professional development,

Skills Planning and the Learning Programme Matrix Create a Skills plan that comprises the 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

BBBEE and Skills Development • With a weighting of 25 points in total, this 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. • •

Amended Broad -Based Black Economic Empowerment Codes Of Good Practice October 2012 The thresholds 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 R 5 million to R 10 million • QSE: R 5 million -R 35 million to R 10 million - R 50 million • Large entities: R 50 million and above

Exempted Small & Micro-enterprises Exempted Small & Micro Enterprises (EME’s) are defined by the 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

Our Future Reflexive Practical Foundational Our Future Reflexive Practical Foundational

To Summarise • To Summarise • "Gross National Happiness is more important than Gross National Product" by Jigme Singye Wangchuck, King of Bhutan.

Thank you! “Man often becomes what he believes himself to be. If I keep 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

Contact Details Institute of People Development 011 315 2913 www. peopledev. co. za gizellem@peopledev. Contact Details Institute of People Development 011 315 2913 www. peopledev. co. za [email protected] co. za