Aligning skills
development to your
business strategy
By Marion Bell
(marionbell@mweb.co.za)
on behalf of
HRD Training and Consulting
AGENDA
1.
Skills development and business strategy
2.
Pivotal Grants
3.
BBBEE and skills development
QUIZ – Question 1
The role of the SDF is to:
1.
Develop a Workplace Skills Plan (WSP)
2.
Promote, co-ordinate and implement
training interventions
3.
Report on skills development activities in
the Annual Training Report
4.
Option 1 and 3
5.
Option 1, 2 and 3
6.
None of the above
QUIZ – Question 1
Option 1, 2 and 3.
Some SDF’s don’t realise that they are also
responsible for the implementation of the
training – the SDF function does not end with
the submission of the WSP/ATR . Training
must be promoted, co-ordinated and
implemented by the SDF.
QUIZ – Question 2
The training year runs from:
1.
2.
3.
1 July to 30 June
1 April to 31 March
1 January to 31 December
QUIZ – Question 2
1 April to 31 March
This allows 3 months for the WSP/ATR to be
completed and submitted to the relevant SETA
QUIZ – Question 3
How many employees must a company
have before they are required to
establish a training committee:
1.
2.
3.
4.
50
100
250
500
QUIZ – Question 3
50 Employees
The training committee must be
representative of all employees, unions and
management.
QUIZ – Question 4
A Training Needs Analysis is used to
determine the skills requirements
for a particular job or position
1.
2.
True
False
QUIZ – Question 4
False
A Training Needs Analysis is used to determine
the training needs of the job incumbent, after
the skills requirements of the position have
been determined through a Skills Analysis.
QUIZ – Question 5
Which of the following methods could
be used during a Training Needs
Analysis?
1.
2.
3.
4.
5.
Review of the Sector Skills Plan
Questionnaires sent to managers
Interviews with employees
Review of the Employment Equity Report
Analysis of the Organisation’s Strategic
Goals
QUIZ – Question 5
All the above
Don’t forget to also include the:
Operational Objectives
BEE Requirements
Possible Staff Movements (Succession Plans)
Skills Priorities
Scarce and Critical Skills
Job Descriptions
Personal Development Plans
Training Committee Minutes
QUIZ – Question 6
Which of the following questions should
NOT be included in the Questionnaires or
Interviews:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
A SWOT Analysis of the department
Scarce and Critical Skills in the department
New Technologies planned by the department
Employment Equity requirements
BEE requirements
Learnerships required by the department
Learning culture in the department
Understanding of job requirements and how these link to
Strategic and Operational Objectives
Training required
Attitude towards training
QUIZ – Question 6
All the questions should be included in
the questionnaires and interview
sheets,
Once the document analysis, questionnaires
and interviews are completed the SDF
prepares a Training Needs Analysis Report.
QUIZ – Question 7
The Training Needs Analysis Report does
not need to be approved by the Training
Committee – only by top management.
1.
2.
True
False
QUIZ – Question 7
False
The Training Committee must approve the
Training Needs Analysis Report. The Training
Committee should also approve the Training
Providers used, the training budget (in
conjunction with the Finance Department)
and the Training Priorities, identified in the
Training Needs Analysis.
QUIZ – Question 8
What date is the WSP/ATR due each year?
QUIZ – Question 8
30th June
Compliance vs. Strategy
•
•
Most organisations go through the motions
of completing the WSP/ATR for reasons of
compliance – and to get 50% of their Skills
Development Levy returned
The prime objective should rather be –
“How can we use this process to assist
the organisation to achieve it’s
Strategic Goals and Objectives?”
Development of Organisations
Stakeholders
Managers
Strategic Objectives
Operational Objectives
Stakeholders and Directors
Organisation Vision
Operational Objectives
•
•
•
Managers (and HR) have a responsibility to
INTEGRATE the Strategic and Operational
Objectives into the actual work to be performed
by employees.
This crucial step is often missed – Strategic and
Operational Objectives are added or tacked on
as “Quarterly Objectives” or “Key Performance
Areas”, that are never translated formally to an
employee’s job description.
If the job description is updated, then the Skills
and Training Needs Analysis process is easily
facilitated.
Establishing Training Priorities
•
Establish what training most supports the organization
priorities… consider:
–
Organisation’s Vision
–
Strategic Objectives
–
BBBEE Reporting
–
Alignment to Employment Equity Plan
–
Improved performance
–
Improved motivation
–
Alignment to the skills priorities identified by the SETA
Matrix for Training Priorities
Matrix that reflects the prioritisation of training needs
Criteria for selection
Planned
training
interventions
Reason
Alignment to
skills priorities
identified by
the SETA
8
Part of
objectives is to
improve
financial
control in
organisation.
8
In management
positions. Must
have planning
skills.
Project
Management
Certificate
Programme
MS Word
Course
Budgeting
Course
Leadership
Development
Course
Administration
training
Contribution to
vision and
objectives
Total
score
Priority
Development of T
Sekhute is part of
EE Plan.
32
2
9
Both employees
are on EE Plan.
27
3
Employees
already
motivated.
9
Development of T
Sekhute is part of
EE Plan.
34
1
9
Will motivate
employees.
5
Not part of EE Plan
24
4
0
Will recruit
learners from
outside.
5
Will not contribute
directly.
23
5
Reason
Contribution
to motivation
of employees
10
SETA identified
financial
training as a
skills priority.
5
10
Organisation
plans to
implement
huge projects.
5
n.a.
8
The
organisation
needs
administration
skills
Reason
Contribution to EE
Plan
Reason
5
Employees
already
motivated.
9
Not identified.
5
Employees
already
motivated.
10
SETA identified
project
management
training as a
skills priority.
5
5
Not identified.
10
SETA identified
administration
skills as a skills
priority.
Promote, Co-ordinate and Implement
Training
•
•
•
•
Promote a learning culture in the organisation
Provide managers and employees with training
related information
Schedule training interventions
Co-ordinate training interventions and logistical
arrangements
•
Evaluate training interventions
•
Keep all training records for possible audits
Discussion Point
Do you face any obstacles
when performing your
SDF functions?
How do we bridge these
challenges?
Pivotal Grants
•
•
12 January 2012, Blade Nzimande,
Minister of Higher Education and Training
announced his intention to repeal the
SKILLS DEVELOPMENT ACT, 1998 (ACT
NO. 97 OF 1998)
Changes include
–
Introduction of Pivotal Grants
–
Tighter control of monies not paid out for
mandatory and discretionary grants
New Grant Structure
Grant Types
2005 – 2010 (NSDS II)
2011 – 2016 (NSDS III)
Mandatory Grants
50%
WSP & ATR = 40%
Pivotal Grant = 10%
Pivotal Grants
N/A
As above - Pivotal Grant 10%
Discretionary
Grants
20% according to defined
criteria per SETA
20% according to defined criteria
per SETA
What are Pivotal Grants
•
•
•
•
•
Mandatory Grants are being reduced from 50% to
40% of the Skills Development Levy.
The balance of 10% of the Skills Development Levy
can only be claimed if “formal” study is completed.
Formal study includes university and FET courses
that include structured learning at work – e.g.
apprenticeships, learnerships, internships, skills
programmes. Please refer to your SETA.
Formal study excludes short courses and non-unit
standard aligned training.
Open to all race groups, employed and unemployed.
Additional Pivotal Funds
•
A SETA must allocate a pivotal grant
to an employer for a learning
programme at a level determined by
the Director General through a
general circular to all SETAs to fund
learners on pivotal programmes
inclusive of funding of University of
Technology students and FET
Other conditions of the Act
1.
2.
With effect from 31 March 2013 all
surplus funds in a SETA for each
financial year must be transferred to the
pivotal grant fund within 10 working
days after 31 August annually.
With effect from 31 March 2013 all
surplus funds in a SETA for all previous
financial years must be transferred to
the pivotal grant fund within 10 working
days.
More conditions…
A SETA must not pay a mandatory grant and pivotal grant to an employer who is
liable to pay the skills development levy in terms of section 3 (1) of the Skills
Development Levies Act, unless the employer1.
2.
3.
4.
5.
has registered with the Commissioner in terms of section 3 (1) of the Skills
Development Levies Act;
has paid the levies directly to the Commissioner in the manner and within the
period determined in section 6 of the Skills Development Levies Act;
is up to date with the levy payments to the Commissioner at the time of
approval and in respect of the period for which an application is made;
has submitted a Workplace Skills Plan and pivotal training report (PTR) that
contributes to the relevant SETA sector skills plan as contemplate in section 10
(1) of the Act within the timeframes prescribed in regulation 5 (2) of these
Regulations;
with effect from 1st April 2012, has submitted and implemented its workplace
skills plan for the previous financial year to the extent that it satisfies the criteria
for implementation that must be established and approved by the SETA
When will this come into effect?
•
•
•
The legislation is apparently on hold until
next year
Some of the SETA’s are implementing for
the current training year (2012/2013),
others have said they would wait for the
2013/2014 training year.
Check with your SETA!
What do you, as the
SDF, need to do…
to claim maximum
BBBEE points
through skills
development?
What is BBBEE?
•
•
•
Broad-Based Black Economic
Empowerment is a process of assisting
and educating previously disadvantaged
black individuals to enable them to
contribute to the economy.
Black individuals is a generic term which
means Africans, Coloureds and Indian
people who are South African citizens.
A scorecard is a verified report on your
Elements of the BBBEE Scorecard
Element
Up to 2010
2011
Proposed changes
2012
Ownership
20 Points
20 Points
1. Ownership
Management
Control
10 Points
Consolidated with
Employment Equity
Employment Equity
15 Points
15 Points
Skills Development
15 Points
15 Points
3. Skills
Development
Preferential
Procurement
20 Points
25 Points
Enterprise
Development
15 Points
20 Points
Combined to form
“4. Supplier
Development”
Socio-Economic
Development
5 Points
5 Points
Combined to form
“2. Employment
Equity”
5. Socio-Economic
Development
4. Skills Development
•
•
This is money spent developing black
individuals to increase their knowledge and
skills in the business environment.
To score points:
 The
organization must be registered with
the relevant SETA.
 The
organization must have workplace
skills plan in place.
 The
organization must have implemented a
Learning Programme Matrix
Cat
A
B
C
D
E
Narrative Description
Institution-based theoretical instruction
Institutional instruction
alone – formally assessed by the institution
Institution-based theoretical instruction as
well as some practical learning with an
employer or in a simulated work
environment – formally assessed through
the institution
Learning Site
Learning Achievement
Institutions such as universities Recognised theoretical knowledge resulting in the
and colleges, schools, ABET
achievement of a degree, diploma or certificate issued by an
providers
accredited or registered formal institution of learning
Mixed mode delivery with
Institutions such as universities
institutional instruction as well and colleges, schools, ABET
as supervised learning in an
providers and workplace
appropriate workplace or
simulated work environment
Recognised or registered structured
Structured learning in the
experiential learning in the workplace that is workplace with mentoring or
required after the achievement of a
coaching
qualification – formally assessed by a
statutory occupational or professional body
Workplace
Theoretical knowledge and workplace experience with set
requirements resulting in the achievement of a degree
diploma or certificate issued by an accredited or registered
formal institution of learning
Occupational or professional knowledge and experience
formally recognized through registration or licensing
Occupationally-directed instructional and
work-based learning programme that
requires a formal contract – formally
assessed by an accredited body
Institutional instruction
Institution workplace
together with structured
supervised experiential learning
in the workplace
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
Occupationally-directed instructional and
work-based learning programme that does
not require a formal contract – formally
assessed by an accredited body
Structured, supervised
experiential learning in the
workplace which may include
some institutional instruction
Credits awarded for registered unit standards
Occupationally-directed informal
instructional programmes
Structured information sharing Institutions, conferences and
or direct instruction involving meetings
workshops, seminars and
conferences and short courses
Continuing professional development attendance
certificates and credits against registered unit standards (in
some instances)
Work-based informal programmes
Informal training
Increased understand of job or work context or improved
performance of skills
F
G
Delivery Mode
Workplace and some
institutional as well as ABET
providers
Workplace
Learning Programme Matrix
•
•
The Learning Programme Matrix serves as a
comprehensive guide on the types of Training
Programmes that should be embarked upon
The Learning Programme Matrix is not an
exhaustive list of such Learning Programmes
•
•
Training should be accredited by a local or
international accreditation body
Only expenditure on learning programmes as per
the Learning Programme Matrix are considered.
Category G may only account for 15% (Informal
Recent and suggested changes to
the Skills Development Component
•
•
•
•
Broadened the beneficiary base to include
external skills development initiatives
Broadened the learnership sub-element to
include apprenticeships and internships
Provided definitions for learnerships,
apprenticeships, internships and absorption and
other supporting definitions
Removed work-based training that does not
require a formal contract from the Learning
Programme Matrix (namely: categories F and G)
The Skills Development Elements
The Skills Development Scorecard
comprises 3 elements
1.
Skills Development Expenditure
on Learning Programmes
specified in the Learning
Programme Matrix for black
employees as a percentage of
the leviable amount using
adjusted recognition for gender
The Skills Development Scorecard
Indicator
1. Skills Development Expenditure on Learning Programmes
specified in the Learning Programme Matrix for black
employees as a percentage of leviable amount using the
recognition for gender adjusted
2. Skills Development Expenditure on Learning Programmes
specified in the Learning Programme Matrix for black
employees with a disability as a percentage of leviable amount
using the recognition for gender adjusted
3. Number of black employees participating in Learnerships or
Category B, C and D Programmes as a percentage of total
employees using the adjusted recognition for gender
Points
Target
6
3% of leviable
amount
3
0.3% of leviable
amount
6
5% of entire
workforce
•
Adjusted Recognition for Gender
(ARFG)
Black women
–
ARFG is applied to the calculation for black women in Learning
Programmes
–
Black representation is halved and the black female representation is
added
–
Black female representation is limited to 50% of the prescribed target for
that element
Disabled Employees
•
Disabled employees have …
–
A physical or mental impairment
–
Which is long-term or recurring and
–
Which substantially limits their ability to work
•
Only expenditure on black disabled people can be claimed
•
The target is only 0.3% of the leviable amount
Leviable Amount…
•
•
•
The BEE auditor will audit a claim by the measured entity in
terms of Skills Development Expenditure for black employees.
The final accepted result will be expressed as a percentage of
the “leviable amount”.
The “leviable amount” bears the meaning as defined in the
Skills Development Levies Act of 1999 as determined using
the Fourth Schedule to the Income Tax Act and is essentially
the entire payroll of the measured entity in the financial year
under review.
Only expenditure on learning programmes as per the skills
matrix is accounted for and can be claimed. The claim for
“Category G” training is limited to 15% of the total claim.
Skills Development Expenditure
•
100% of Certified Learning Programmes
(Uncertified are capped at 15%)
•
Facilitator costs
•
Venue costs
•
Administration and Stationary costs
•
Meals and Refreshments
•
Costs not included:
–
Employee’s salary and travel expenses
Example of a Schedule for Element 1 and 2
Learning
Number of Number of
Total
Types of Training Programme
ABET
Black
Black
Number of
Matrix
People
Women
Courses
Programme
Attendees
Category
Attended Attended
Number of
Black
Disabled Costs
People
Attended
Policies and
Procedures
G
No
120
53
23
5
2950
Microsoft Excel
E
No
33
12
19
2
3300
Super Selling
F
No
25
14
9
0
15000
MBA
Total Training
Cost
A
No
1
1
1
0
9000
30250.00
Documentation and Information
Required
•
•
Internal Training:
–
Attendance registers
–
Certified copies of ID’s
–
Proof of costing of internal training
–
Bursary agreements
–
Might ask to interview trainee
External Training:
–
Proof of payment
–
Proof of attendance
Types of Enterprises
1. Exempt Micro Enterprise (EME) – (Small Entity)

Annual turnover is less than R5 million. These
organizations automatically 100% BBBEE compliant to a
BBBEE level 4.

If there is 50.01% or more black ownership, then
automatically 110% BBBEE compliant to a BBBEE level
3.
2. Qualifying Small Enterprise (QSE) – (Medium Entity)

The Annual Turnover is between R5 million and R35
million.

The QSE can use four of the seven elements to
BBBEE Levels



•
The BBBEE levels are broken down in 9
levels by an Accredited Verification Agent.
Level 1 being the highest ranking
contribution level and Non-Compliant
Contributor being the lowest.
Based on the overall performance of a
Measured Organization
The BBBEE points are as follows:
BBBEE Points and Levels
BBBEE Status
2010
2011
Recognition
Level
Level 1
> 100 points
> 100 points
135%
Level 2
> 85 but < 100 points
> 90 but < 100 points
125%
Level 3
> 75 but < 85 points
> 85 but < 90 points
110%
Level 4
> 65 but < 75 points
> 80 but < 85 points
100%
Level 5
> 55 but < 65 points
> 75 but < 80 points
80%
Level 6
> 45 but < 55 points
> 70 but < 75 points
60%
Level 7
> 40 but < 45 points
> 55 but < 70 points
50%
Level 8
> 30 but < 40 points
> 40 but < 55 points
10%
Level 9
< 30 points
< 40 points
0%
Code 10
Certificate Expired
Code 11
Spend excluded (client once-off payments, internal
spend)
Any Questions????