|Maximising your BBBEE scorecard through Skills Development Solutions
Our clients require a growth strategy that also fits in with their Broad Based Black Economic Empowerment (BBBEE) statutory requirements and training young, unemployed and/or disabled adults will achieve both of these objectives. In the process, our clients also assist with the socio-economic development of their local communities.
Formal training leads to the growth/improvement prospects of a person’s intellectual, social and moral actions. It formulates attitudes and builds skills needed to empower individuals to face the challenging situations of everyday life. This means that the training of unemployed and/or disabled individuals as part of our clients BBBEE statutory requirements uplifts the greater society as well as assisting the sponsoring organisations in growing their talent pool and improving company productivity.
Why train unemployed and/or disabled individuals as part of your BBBEE requirements?
- Unemployed individuals are readily available from local communities
- Unemployed individuals are more flexible in adjusting to training schedules – they are available for full-time programmes therefore enabling programmes to be completed sooner
- Individuals from outside the company provide a fresh outlook and new ideas and are free from company politics
- Learners are taught norms, values and attitudes required in a formal working environment to benefit the greater society
- Local communities become more employable
- By having a talent pool trained in a company’s specific industry, companies lower costs on recruitment and training for the near future
- Training through Learnerships maximises the Skills Development element on a company’s BBBEE scorecard
How does CPT assist our clients in training unemployed and/or disabled individuals?
CPT will recruit, pre-assess and place individuals according to a company’s demographic requirements.
By collaborating with local communities and organisations, CPT is able to recruit individuals from all the major areas in South Africa. These individuals are pre-assessed to ensure that they are able to cope and complete the required learning programmes, both mentally and physically. CPT will mentor and assist them throughout their studies, and provide additional services such as transport and lunches if/when needed. These learners may be trained on CPTs premises or at the client’s, depending on the need.
CPT will assist with the completion and submission of learner agreements to the relevant Seta, provide all learning material and stationery, the Portfolio of Evidence, complete with all assessment tools and guidelines, continual assessment throughout the learning programme, internal moderation of Portfolios and submit to Seta for quality assurance purposes, and finally apply for certification. CPT will deliver the certificates upon receipt from the Seta.
Skills development is a priority element which amounts to 20 points (and 5 bonus points) of the total BBBEE scorecard points. The minimum of 40% of the points within this element must be scored to avoid dropping a level. Companies can only score points on skills development if there is sufficient evidence indicating that previously disadvantaged people are being trained in scarce and critical skills. This means that a company can include training conducted on any person that satisfies the definition of previously disadvantaged as per the BEE Codes of Good Practise regardless of employment status.
Please note the following important amendments to the codes:
- Points increased from 15 to 20 (plus 5 bonus points).
- Spend has increased from 3% to 6% for total leviable amount (the total annual salary payroll)
- Trainees do not need to be permanent employees.
- Only 15% of your training spend can be used on internal/non accredited training.
- Learnerships must account for 5% of staff headcount, 100% gainful employment equals 5 bonus points.
Training is one of the easiest ways to boost your B-BBEE rating for maximum points. Any grant funding received from your SETA still becomes part of your expenditure. Learnerships increase your training spend without increasing costs and increase your B-BBEE score. You can claim points for training in skills development, supplier development or enterprise development. You can score in two of the above three elements for one contribution. Learnerships for disabled employees allow you to score in all three elements.
What are the limitations?
Only 15% of the value of informal, uncertified training will count towards total training expenditure. Accommodation, catering and travel costs will also be limited to 15% of the total value.
For your claim on any training to be valid, you will be required to submit proof to your verification agency of your registration with your seta as well as proof of submission of your workplace skills plan and report. You will be required to submit your emp 201’s for the measurement period to enable the verification agency to calculate the targets. For more information contact firstname.lastname@example.org or 0860 278 278.