BBBEE Statement 300 - Skills Development
Skills development is a priority element of the BBBEE scorecard, if the sub-minimum of 40% of the target score under this element is not achieve an entity will drop by one level once the verification is concluded.
This element in the scorecard uses targets that are based on racial demographics of the national or provincial numbers of the actively working population Measuring the monetary spend, directly or indirectly on the development of core, scarce and critical skills and initiatives designed to develop the competencies of black people. In determining employers score, the targets should be further broken down into specific criteria according to the different race sub-groups within the definition of black.
Bonus points can be achieved if unemployed people that successfully completed a Learnership, Internship or Apprenticeship is absorbed into full-time employment.
Targets
The Skills Development Scorecard applies to targets based on:
- expenditure for training compared to total payroll
- headcount compared to total headcount for the number of people who receive training.
- points can be earned by training non-employed black candidates
- bonus points can be achieved if unemployed people that successfully completed a Learnership, Internship or Apprenticeship are absorbed into full-time employment
Requirements
Criteria that must be fulfilled for an employer to receive points on the Skills Development Element scorecard:
- Submission and approval of the Workplace Skills Plan (WSP), an Annual Training Report (ATR) and Pivotal Report to the employers SETA
- Implementation of Priority Skills programme of the employers SETA
The minimum requirement is 40% of the total weighting points for skills development, excluding bonus points, (20% weighting with a 5% bonus for certain criteria). Non-compliance to the threshold targets will result in the overall achieved B-BBEE status level being discounted.
It is further required that black women should form between 40% and 50% of the beneficiaries of the relevant elements of the BBBEE scorecard, and that black people with disabilities, black youth, black people living in rural areas, and black unemployed people also form part of the beneficiaries.
Learning Programme Matrix
The Learning Program Matrix defines the 7 categories (A to G) under which points can be earned as well as the percentage of spend that can be claimed
|
Cat |
Programme |
Narrative Description |
Delivery Mode |
Learning Site |
Learning Achievement |
|
A |
Bursaries or scholarships |
Institution based theoretical instruction alone – formally assessed by educational institutions established by or registered with the Department of Basic Education or the Department of Higher Education & Training. |
Institutional instruction |
Institutions such as universities and colleges, schools, ABET providers
|
Recognised theoretical knowledge resulting in the achievement of a degree, diploma or certificate issued by an accredited or registered formal institution of learning |
|
B |
Internships |
Institution based theoretical instruction as well as some practical learning with an employer or in a simulated work environment – formally assessed through the institution |
Mixed mode delivery with institutional instruction as well as supervised learning in an appropriate workplace or simulated work environment |
Institutions such as universities and colleges, schools, ABET providers and 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 |
|
C |
Learnerships |
Recognised or registered structured experiential learning in the workplace that is required after the achievement of a qualification – formally assessed by a statutory occupational or professional body |
Structured learning in the workplace with mentoring or coaching |
Workplace |
Occupational or professional knowledge and experience formally recognised through registration or licensing |
|
D |
Learnerships or Apprenticeships |
Occupationally directed instructional and work-based learning programme that requires a formal contract – formally assessed by an accredited body |
Institutional instruction together with structured, supervised experiential learning in the workplace |
Institution and workplace |
Theoretical knowledge and workplace learning, resulting in the achievement of a SAQA registered qualification, a certificate or other similar occupational or professional qualification issued by an accredited or registered formal institution of learning |
|
E |
Work-integrated 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 |
Workplace, institutional as well as ABET providers |
Credits awarded for registered unit standards, continued professional development, improved performance or skills (e.g. evidence of outputs based on Performance Development Programme) |
|
F |
Informal training |
Occupationally directed informal instructional programmes |
Structured information sharing or direct instruction involving workshops, seminars and conferences and short courses |
Institutions, conferences and meetings
|
Continuing professional development, attendance certificates and credits against registered unit standards (in some instances) |
|
G |
Informal training |
Work-based informal programmes
|
Informal training |
Workplace |
Increased understand of job or work context or improved performance or skills |
The Skills Development Element Scorecard
|
Category |
Skills Development Element |
Weighting points |
Compliance Target |
Key Measurement Principles |
|
2.1.1. Development Expenditure on any programme specified in the Learning Programme Matrix for black people as a percentage of the Leviable Amount |
||||
|
2.1.1.1. Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for black people as a percentage of Leviable Amount. |
6 |
3.5% |
The 3.5 % compliance target under paragraph 2.1.1.1 (Learning Programme Matrix), includes external training expenditure for unemployed black people. |
|
|
2.1.1.1. Skills Development Expenditure on Bursaries for Black Students at Higher Education Institutions |
4 |
2.5% |
Initiatives implemented under paragraph 2.1.1.1 (Learning Programme Matrix), cannot be counted under paragraph 2.1.1.2 (Bursaries) and vice versa. |
|
|
2.1.1.1. Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for black employees with disabilities as a percentage of Leviable Amount. |
4 |
0.3% |
|
|
|
2.1.2. Learnerships, Apprenticeships, and Internships |
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|
2.1.2.1. Number of black people participating in Learnerships, Apprenticeships and internships as a percentage of total employees. |
6 |
5% |
A trainee tracking tool has to be developed in order for the Measured Entity to score under paragraph 2.1.3 (absorbed learnerships, apprenticeships and internships)
|
|
|
Bonus points: |
||||
|
2.1.1. Number of black people absorbed by the Measured and Industry Entity at the end of the Internship, Learnership and Apprenticeship programme under Paragraph 2.1.2.1 (Learnerships, Apprenticeships and internships) |
5 |
100% |
If less than 100% of the trainees are absorbed under paragraph 2.1.3, (absorbed learnerships, apprenticeships and internships) the percentage achieved or absorbed will be recognised.
|
|
Legitimate Recognisable Training Expenses
Skills Development Expenditure includes any legitimate expenses incurred for any Learning Programme offered by the employer to black people evidenced by an invoice or appropriate internal accounting record.
Legitimate training costs such as accommodation, catering, travelling and the cost to the Measured Entity of employing a Skills Development facilitator or a training manager (non-exhaustive) cannot exceed more than 15% of the total value of Skills Development Expenditure. This does not apply to Skills Development Expenditure recognised in paragraph 2.1.1.2 (Bursaries).
- costs of training materials;
- costs of trainers;
- costs of training facilities including costs of catering;
- scholarships and bursaries;
- course fees;
- accommodation and travel; and
- administration costs such as the organisation of training including, where appropriate, the cost to the Measured Entity of employing a Skills Development facilitator or a Training Manager.
Salaries or wages paid to an employee participating as a learner in any Learning Programme constitute Skills Development Expenditure if the Learning Programme is a Learnership, Internship and Apprenticeship (Category B, C and D) of the Learning Programme Matrix or a stipend linked to a bursary programme in terms of paragraph 2.1.1.2 (Bursaries).
Expenses on scholarships and bursaries for black people do not constitute Skills Development Expenditure if the Measured Entity can recover any portion of those expenses from the employee or if the grant of the scholarship or bursary is conditional. A bursary or scholarship scheme is a grant made to or for students who are registered at educational institutions established by or registered with the Department of Basic Education or the Department of Higher Education & Training. Examples of legitimate training costs for a bursary or scholarship includes: payment of school, college or university fees, or a portion thereof; funding for textbooks or other learning materials; funding for subsistence or accommodation during the period of study. Despite the afore going, if the right of recovery or the condition involves either of the following obligations of the employee, the expenses are recognisable:
- the obligation of successful completion in their studies within the time period allocated; or
- the obligation of continued employment by the Measured Entity for a period following successful completion of their studies is not more than the period of their studies.
Mandatory sectoral training does not quality as skills development contribution i.e. health and safety in construction sector (non-exhaustive list)
Training outside the country in line with the Learning Programme Matrix under is measurable if it meets the South African Qualification Authority requirement for recognition.
BBBEE verification agencies would verify data and issue the BBBEE certificate of compliance
- Skills Development Element (Weighting 20 Points (plus 5 bonus points)) – Series 300
| Learnerships, Apprenticeships, and Internships | Weighting points | Compliance Target |
| Number of black people participating in Learnerships, Apprenticeships, and Internships as a percentage of total employees. | 6 | 5% |
| Bonus points: | Weighting points | Compliance Target |
| The number of black people absorbed by the Measured and Industry Entity at the end of the Internship, Learnership and Apprenticeship programme under Paragraph 2.1.2.1 (Learnerships, Apprenticeships, and Internships). | 5 | 100% |
Please note: Proof of submission and proof of approval ATRs and WSPs are prerequisites for scoring under the skills development element on the BBBEE scorecard
