For decades, the conversation around skills development in South Africa has been dominated by legislative frameworks like the Skills Development Act (SDA), the Skills Development Levies Act (SDLA), and other empowerment initiatives like B-BBEE. These laws, designed to bridge the country’s skills gap and uplift the workforce, have often felt more like a checkbox exercise than a tangible means of business transformation. Despite all the rhetoric about creating skills pipelines and empowering the workforce, the reality is that the results have been underwhelming.
So, what’s different now? Well, it’s about time we shift from the same old narrative and focus on how businesses can turn skills development into a strategic tool that not only complies with the law but actually drives growth. Here’s a no-nonsense breakdown:
1. The Skills Gap Is Still There—But So Are the Opportunities
Yes, South Africa’s skills gap is still real, and the skills development programmes in place have failed to fully address it. The workforce isn’t as prepared as it should be for the current demands of industries, with many sectors still struggling to find employees who have the right technical and soft skills.
However, businesses have a unique opportunity here: Instead of waiting for the education system to catch up, companies can take matters into their own hands. The current framework supports businesses with skills development levies that can be reinvested into training, meaning companies have a resource to develop talent that aligns with their needs—not what’s been dictated by outdated policy goals.
2. Levies Aren’t Just for Compliance—They’re an Untapped Resource
The Skills Development Levy is often seen as a burdensome tax, but when used strategically, it’s not just a compliance tool—it’s a valuable resource for developing a workforce that is aligned with business needs. The challenge, however, is that many businesses fail to see the potential of these levies because they’re either using them to fund generic, off-the-shelf training programs or simply disregarding them entirely.
Instead of relying on a broad “one-size-fits-all” approach, companies should use these funds to create targeted, customised learning experiences that directly address skills shortages. Focus on what your business needs—not what’s required by the law. This is where the real growth happens.
3. The Compliance Checkbox Culture: It’s Time to Move Beyond It
The ongoing emphasis on meeting compliance standards has led to a culture where skills development feels like a “tick-the-box” exercise—fill in the forms, attend the training sessions, and then get the certificate. But this approach hasn’t moved the needle in addressing the real challenges businesses face, such as retaining skilled employees or adapting to rapidly changing technologies.
To break free from this cycle, businesses need to shift their thinking: skills development must align with business objectives. It’s about making sure your employees have the skills that will directly contribute to your company’s success, not just meeting legal requirements. If companies continue to see this process as a compliance obligation rather than an investment, we will remain stuck in the same place.
4. The Reality of Youth Unemployment: It’s Not Just About Filling Roles
Yes, South Africa has one of the highest youth unemployment rates globally, and the government has been pushing for skills development to address this issue. But let’s face it: simply filling roles with young people, even with training, won’t magically solve the unemployment crisis. What is needed is targeted skills training that is relevant to industry needs and paired with actual opportunities for growth within organisations.
Businesses need to be more intentional about how they engage with young talent. Skills development should be part of a broader strategy that includes mentorship, leadership programs, and clear career paths. Only then can we begin to see real, long-term impact—not just filling jobs, but building careers.
5. B-BBEE and Transformation: A Necessary but Overused Tool
B-BBEE has been part of the legislative framework for over 20 years. While it has played a role in shifting the economic landscape, the truth is that it’s often seen as a box to tick for businesses trying to improve their scorecard. Too many organisations treat B-BBEE compliance as a paperwork exercise rather than an opportunity to transform both their workforce and their business culture.
To turn this around, companies must use B-BBEE as a catalyst for genuine transformation. It should encourage businesses to not just train a few black employees for the sake of compliance, but to create lasting, meaningful change that builds leadership across all levels of the organisation.
6. The Future of Work: Are We Preparing for It or Just Talking About It?
The future of work in South Africa is already here—automation, AI, and digitisation are all rapidly reshaping industries. But how many businesses are actually preparing their workforce for these changes? The current skills development framework provides a structure, but companies must be willing to go beyond traditional training to embrace new forms of learning. Whether it’s digital literacy, critical thinking, or adaptability, businesses need to ensure their teams are ready for the challenges ahead.
If South African companies want to stay relevant and competitive, they need to treat skills development as a core business strategy. This isn’t just about checking the compliance box; it’s about preparing your workforce for the next wave of change.
Yes, the legislative framework is there, but it’s the responsibility of businesses to make sure that skills development isn’t just a regulatory requirement—it’s a growth strategy. The opportunities are clear: unlock the full potential of your workforce by aligning training with business objectives, harnessing the power of the Skills Development Levy, and embracing transformation as part of your strategy.
At GH Skills Solutions, we believe that South African businesses can thrive if they take a proactive, strategic approach to skills development. It’s time to stop the cycle of compliance and start focusing on what truly drives business success: a skilled, adaptable, and forward-thinking workforce.
