Enjoy the Benefits of Skilled Employees – EconoBEE Newsletter – 28 November 2007
Enjoy the Benefits of Developing the Skills of your Employees
By Thapelo Motloung
The Skills Development Act provides employers the opportunity of deriving benefits for their organizations if they set up and maintain an integrated skills development programme. The benefits include claiming back up to 70% of the skills development levies paid up as well as, if properly aligned, enhancing the company’s skills development points on the organisation’s BEE scorecard.
These benefits are available to companies whose annual salary bill is over R500 000, pay their skills development levies (1% of monthly payroll) to SARS and who submit a Workplace Skills Development Plan and an Annual Training Report. Furthermore, the Skills Development Act requires the company to appoint either an internal or external Skills Development Facilitator to compile and submit the WSP and ATR to the relevant SETA.
Statistics indicate that currently, as much as R800million has not been claimed back by companies either as a result of non-compliance or perceptions that claiming presents too many hassles. These payments are then viewed as a form of taxation. All the monies that have not been claimed are paid into a Discretionary Grant Fund for use on SETA projects. Some of it is paid out as discretionary grants to companies who qualify.
On compiling the WSP, it is essential that cognisance be taken of the company’s strategic objectives, operational requirements, career pathing, transformation imperatives, productivity and/or the desired impact on employee morale.
Meanwhile the Government says that its skills acquisition plan, which placed a number of unemployed graduates with various multinationals both locally and abroad is working very well. Through this programme, a number of South African students are currently in training programmes abroad to acquire skills in information, communications, telecommunications, engineering, finance, science, technology and various other disciplines.
The German Ambassador to South Africa, Dieter Haller, says that” many countries place too much emphasis on academic learning and not enough on learning in the workplace”. Haller contends that the dual system has been very successful in Germany for many decades now. This ensures that workplace learning is an equal partner with academic learning.
Another German politician, Cornelia Pieper, feels that the more SA invests in its people’s education the greater it will prosper in the future. It is a challenge that they also have in Germany as 9% of German children leave school without a qualification.
Pieper states that Germany is also experiencing a skills shortage and that it currently needs 28 000 engineers.
“Lifelong learning has never been more important than it is today. Education is key in determining how effective a company is in adapting to new workplace technologies. Economic growth depends on quality education for children and continuing education for adults. Only those countries who invest in education will be able to take advantage of an economic upswing” says Pieper.
Skills Development Facilitator Support
Thapelo Motloung of Dinoka can provide the required skills development services to your company. Dinoka HR and Skills can assist you with; liasing with the relevant SETA on behalf of the company, assist with the claiming of training spend, compile and submit the WSP and ATR on behalf of the company and act as a Skills Development Facilitator for your company.
Two Reasons for Implementing BEE
There are two reasons for implementing Broad-Based Black Economic Empowerment (BEE) in your company:
1) Ethical/moral: This relates to uplifting and assisting the rest of our population. The arguments for this are social and political, which I will not get into now.
2) Business – it will assist you in doing business and making a profit: Business is about providing the right product/service at the right price. Part of doing business, and getting more business is giving your customers what they want. Many entrepreneurs get so excited about their own products they forget to ask if that is really what their customers want.
What does BEE mean to your business?
B-BBEE is a reality and affects many businesses in SA. Some businesses find it easy to comply with, while others are anti the concept and are therefore unable to comply.
Have your say: What does BEE mean to your business? (BEE Expert Group – Registration Required).
Dinoka – Enterprise Development Newsletter
Putting Enterprise Development to Work
By Nhlanhla Damoyi
Welcome to the first edition of Dinoka newsletter on Enterprise Development.
In this issue we discuss Enterprise Development as defined by Code 600 of Codes of Good Practice. We also look at progress achieved to date, and we pose the question: what is the best way to overcome the challenges of implementing an Enterprise Development Project?
ABVA – Competition Commission Compliant
As regular readers will know we have laid a complaint with the Competition Commission alleging anti-competitive behaviour against ABVA and its members.