The deadline for the submission of the Mandatory Grant is at the end of April each year, depending on the size and complexity of your organisation there is a lot of work and planning that should been done and still needs to be done to ensure your organisations submission is approved. This submission is a big deal because it’s a key tool for planning and coordinating national skills development priorities in South Africa. Businesses of all shapes and sizes play a major role in shaping the future workforce of the country. It’s all about building a skilled, competent, and competitive workforce, which is critical for the country’s growth.
The submission and approval of the Work Skills Plan (WSP) and Annual Training Report (ATR) are crucial for unlocking the Skills Development Element of the Broad-Based Black Economic Empowerment (BBBEE) Scorecard. Without an approved WSP, you won’t score anything in the skills development category. So, let’s dive into what these components involve, the compliance requirements, and the impact on building a skilled, competent, and competitive workforce
Introduction to the Workplace Skills Plan (WSP)
The Workplace Skills Plan (WSP), forms part of an organisations Mandatory Grant submission to their respective SETAs, and it is a critical document that encapsulates an organisation’s plan for employee skill development over a twelve-month period. This plan goes beyond a mere formal requirement; it is a tangible expression of a company’s commitment to the ongoing growth and development of its workforce. In South Africa’s dynamic economy, where skill demands are constantly changing, the WSP is an essential tool for a competitive and relevant economy. Or it should be.
If your organisation is a registered business in South Africa, has an annual payroll of R500 001+, or 50+ employees. It is required that the organisation pay a 1% Skills Development Levy. If your organisation pays a Skills Development Levy; you can claim a portion of the full amount paid by submitting a WSP and ATR – known as a Mandatory Grant Submission. This is an annual submission on a date as prescribed by the Minister of Higher Education and Training. Currently the date is 30 April.
A WSP requires a thorough understanding of the organisation’s current skill levels, a clear vision of the skills required in the future, and a strong plan to bridge the gap between the two. It entails conducting a thorough analysis of the organisation’s workforce, identifying critical skill shortages, and planning interventions that will benefit not only the company but also the country’s overall economic framework. This highlights the South African government’s emphasis on workforce development as a key driver of economic growth and social progress. The WSP is more than just a document to be filed away; it is a strategic roadmap outlining how businesses intend to improve and enhance their employees’ skills in line with national development goals.
The WSP and Its Importance for BBBEE
The Workplace Skills Plan (WSP) emerges as a critical component in the context of Broad-Based Black Economic Empowerment (BBBEE). The Skills Development Element, an important component of the BBBEE scorecard, is dependant on an approved WSP submission. A comprehensive and targeted WSP plays an essential role in improving an organisations performance in this category, demonstrating its commitment to addressing the skills gap that exists among historically disadvantaged groups.
The integration of WSP with BBBEE goals goes beyond mere regulatory compliance; it represents a company’s strategic alignment with South Africa’s larger ambition to correct historical imbalances and promote inclusive economic growth. In this context, the WSP serves two functions, demonstrating the company’s efforts to develop employees, and serving as a strategic tool, ensuring that training investments are in line with BBBEE’s overall goals.
The WSPs Impact on Sector Skills Planning
Submission of a WSP and ATR should be more than a compliance exercise – which I am afraid to say it has been for a long time. These are critical documents that provide data for SETAs and DHET to plan more efficient and effective skills development interventions, workplace-based learning interventions, qualifications development, and what skills interventions and skills programmes are funded and where funding is needed.
This is a great opportunity to make the SETAs aware of where we need skills and what the blockages are for fill hard-to-fill vacancies. Where and what type of interventions would make a significant impact, and (possibly) where there could be cross-skilling from one sector to another – this last bit would require a more collaborative approach between SETAs (I live in hope).
The WSP submission is an organisations opportunity to let the SETA know where the industries skills gaps are and what skills will be needed in the future. There is a lot of data the SETAs don’t have and cannot access; over the last 24 years the lack of transparency and accountability has caused a deep rift between business and SETAs. Most organisations now put in minimal effort in completing and submitting their WSP. Human Resource and Learning and Development teams will need to up their game. Learning and development should no longer treat this as a once-a-year tick box exercise.
Linking your WSP with your BBBEE scorecard implementation
To ensure the effectiveness of the WSP’s it should seamlessly align with the company’s strategic objectives and industry demands, serving as a blueprint for addressing skill gaps and ensuring the relevance and efficacy of training initiatives.
A well-developed Workplace Skills Plan that will meet compliance requirements, enable a more data informed BBBEE skills expenditure, the upskilling and reskilling of the existing workforce ensuring continuous employment through continuous development of staff, and improving the organisations performance.
Company Information: Provide details about the organization, including its name, registration details, and industry sector.
Workforce Analysis: Conduct a thorough analysis of the current workforce. Identify skills gaps and areas where training and development are needed.
Industry Analysis: Keep up to date with local and international progress of your industry and future business opportunities. Where are the opportunities and what skills and competencies will be needed.
It is important to remember that this is not a static document, it should be evolving and iterating along with your business. Analysing and documenting changes and movements will assist when submitting the ATR, the following year. This data is needed for SETAs to gain insights into your industry, directly from your organisation.
An effective WSP should address an organisation’s current and future skills needs, which requires a keen understanding of both the current industry landscape and future trends. This goes beyond simply identifying current deficiencies; it entails a proactive approach to anticipating the skills that will be required in the future, considering technological advancements, and changing market dynamics. The identification of these gaps is critical in shaping the WSP’s strategic training and development component, which transforms the plan from analysis to actionable strategies that will impact your industry and organisation.
The WSP’s core focus is on strategic training and development initiatives that are tailored to fill identified skill gaps. These programmes, which range from on-the-job training to accredited Occupational Qualifications, Part-Qualifications and Skills programmes, to Diploma’s and Degrees. The effectiveness of these training programmes is increased when they are designed to align with the organisation’s overall strategic goals. For example, if a company’s strategy includes technological innovation, the WSP should prioritise training in relevant technology domains. This alignment ensures that skills development efforts directly benefit the organisation’s performance and competitiveness
Compliance and Penalties
Without a WSP submission that organisation will not be able to claim the Mandatory Grant portion of the Skills Development Levy back. Failing to submit a WSP will have a negative impact on a company’s BBBEE score, under the Skills Development Element. If the deadline is missed, the organisation will have to wait for the next annual submission. Given the importance of a positive BBBEE rating in securing business opportunities, particularly with government and public sector entities, this can lead to missed opportunities and a reduced competitive advantage in the market.
Conclusion
In today’s business environment, the Workplace Skills Plan (WSP) must be viewed as more than just a compliance requirement, but also as a strategic tool for workforce development and empowerment. Businesses that view the WSP through a broader lens are better positioned to realise its full potential. A well-crafted WSP that aligns with a company’s strategic objectives acts as a road map for developing a skilled and adaptable workforce. This alignment is essential because it ensures that skills development efforts meet current industry standards while also preparing the workforce for future challenges and opportunities. As a result, the WSP becomes an integral part of a company’s strategy, significantly increasing its agility and resilience in a constantly changing market environment.
The global economy’s dynamic nature also necessitates an ever-changing and adaptable workforce. A strategically aligned WSP allows businesses to anticipate and effectively respond to changing skill demands. This proactive approach to workforce development not only improves a company’s competitiveness but also ensures its long-term viability. Investing in employee development through a thoughtfully designed WSP demonstrates a company’s dedication to its human capital, which is frequently its most valuable asset. Companies that prioritise skills development not only improve operational efficiency and innovation capacity but also contribute to overall economic development by providing their workforce with relevant and up-to-date skills.
The WSP should be central to any company’s long-term growth and development strategy. Its importance extends beyond regulatory compliance, affecting every aspect of a company, from operational efficiency to market competitiveness and employee satisfaction. Companies that successfully integrate their WSP into their strategic planning demonstrate foresight and commitment to not only their immediate goals but also to the larger goal of developing a skilled and empowered workforce. In this way, the WSP becomes more than just a document or a requirement; it serves as a catalyst for continuous improvement and innovation within the organisation, resulting in both individual and collective success.
