Broad-based black economic empowerment (B-BBEE) is a points-based initiative introduced by the South African government to distribute wealth more equally. The South African National Accreditation System (SANAS) – the regulatory body that oversees B-BBEE verification agencies – recently issued a change to one of the pillars of the initiative; the skills development denominator.
This change relates to the calculation of the five-point bonus for businesses that offer skills development to employees. “Absorption” bonus points can now be awarded to companies that secure formal permanent or long-term employment for learners, or for helping learners to proceed with further education and training.
This change not only places a focus on training and upskilling black people in South Africa, but it is also an attempt to reduce unemployment rates in the process. Skills development is one of the harder pillars of the B-BBEE scorecard because of the financial costs placed on the business by implementing well-structured learning programmes. This is where Executrain can help your business meet its B-BBEE goals.
Training and development for employees is an excellent step towards transformation and improvement, but it can be hard for businesses in the post-Covid era where budgets are tight. The inclusion of the bonus points to the B-BBEE scorecard will help companies in this regard as they can still meet their B-BBEE goals by sponsoring learners or providing them with jobs.
Skills development should be viewed as an ongoing exercise that makes employees better at their jobs and more proficient in a multitude of business aspects. This not only makes your company more effective and efficient, but it also helps to build confidence and loyalty in your employees. By providing them with various training opportunities, they are more likely to stay with your company and climb the ladder of success.
This is a core tenet of the B-BBEE initiative; bettering the lives of previously disadvantaged South Africans through education and skills development. It empowers citizens to further their knowledge and, at the end of the day, B-BBEE-compliant companies and the South African economy stand to benefit from a more skilled workforce.
The modern business environment is highly competitive so having a motivated staff contingent is vital to success. We give companies and their employees the skills and knowledge they need to seize opportunities and stay relevant in the digital era. These include over 1000 business courses and computer skills programmes.
If you want to include skills development in your business offering to employees, then choose ExecuTrain for your training needs. We’ll help you meet your B-BBEE goals and stay compliant going forward. For more information or to enrol in a course, please contact us today.
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