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Aligning skills development to your business strategy By Marion Bell ([email protected] ) on behalf of HRD Training and Consulting

Aligning skills development to your business strategy By Marion Bell ([email protected])[email protected] on behalf of HRD Training and Consulting

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Page 1: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

Aligning skills development to your

business strategy

By Marion Bell([email protected])

on behalf of HRD Training and Consulting

Page 2: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)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

Page 3: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 1

The role of the SDF is to:1. Develop a Workplace Skills Plan (WSP)2. Promote, co-ordinate and implement

training interventions3. Report on skills development activities in

the Annual Training Report4. Option 1 and 35. Option 1, 2 and 36. None of the above

Page 4: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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.

Page 5: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 2

The training year runs from:

1. 1 July to 30 June2. 1 April to 31 March3. 1 January to 31 December

Page 6: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

Page 7: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 3

How many employees must a company have before they are required to establish a training committee:

1. 502. 1003. 2504. 500

Page 8: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 3

50 Employees

The training committee must be representative of all employees, unions and management.

Page 9: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 4

A Training Needs Analysis is used to determine the skills requirements for a particular job or position

1. True2. False

Page 10: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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.

Page 11: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 5

Which of the following methods could be used during a Training Needs Analysis?

1. Review of the Sector Skills Plan2. Questionnaires sent to managers3. Interviews with employees4. Review of the Employment Equity Report5. Analysis of the Organisation’s Strategic

Goals

Page 12: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 5

All the above

Don’t forget to also include the:Operational ObjectivesBEE RequirementsPossible Staff Movements (Succession Plans)Skills PrioritiesScarce and Critical SkillsJob DescriptionsPersonal Development PlansTraining Committee Minutes

Page 13: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 6Which of the following questions should NOT be included in the Questionnaires or Interviews:

1. A SWOT Analysis of the department2. Scarce and Critical Skills in the department3. New Technologies planned by the department4. Employment Equity requirements5. BEE requirements6. Learnerships required by the department7. Learning culture in the department8. Understanding of job requirements and how these link to

Strategic and Operational Objectives9. Training required10. Attitude towards training

Page 14: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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.

Page 15: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 7

The Training Needs Analysis Report does not need to be approved by the Training Committee – only by top management.

1. True2. False

Page 16: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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.

Page 17: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 8

What date is the WSP/ATR due each year?

Page 18: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

QUIZ – Question 8

30th June

Page 19: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

• 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?”

Compliance vs. Strategy

Page 20: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

Development of Organisations

Organisation Vision

Stakeholders

Strategic Objectives

Stakeholders and Directors

Operational Objectives

Managers

Page 21: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

• 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.

Operational Objectives

Page 22: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

– Scarce skills

– Critical skills

Page 23: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

Matrix for Training Priorities

Matrix that reflects the prioritisation of training needs

Planned training

interventions

Criteria for selection

Total score PriorityContribution to

vision and objectives

Reason

Alignment to skills priorities identified by

the SETA

ReasonContribution to motivation of employees

Reason Contribution to EE Plan Reason

Budgeting Course

8

Part of objectives is to

improve financial control in organisation.

10

SETA identified financial

training as a skills priority.

5Employees

already motivated.

9Development of T Sekhute is part of

EE Plan.32 2

Leadership Development Course

8

In management positions. Must have planning

skills.

5 Not identified. 5Employees

already motivated.

9 Both employees are on EE Plan. 27 3

Project Management Certificate Programme

10

Organisation plans to

implement huge projects.

10

SETA identified project

management training as a skills priority.

5Employees

already motivated.

9Development of T Sekhute is part of

EE Plan.34 1

MS Word Course 5 n.a. 5 Not identified. 9 Will motivate

employees. 5 Not part of EE Plan 24 4

Administration training

8

The organisation

needs administration

skills

10

SETA identified administration skills as a skills

priority.

0Will recruit

learners from outside.

5 Will not contribute directly. 23 5

Page 24: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

• Liaise with the relevant SETA

Page 25: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

Discussion PointDo you face any obstacles

when performing your SDF functions?

How do we bridge these challenges?

Page 26: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

Page 27: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

Page 28: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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.

Page 29: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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 College graduates subject to verification by the SETA to a maximum of 10% of total levies paid by the employer.

• In addition, subject to sub regulation (1), a SETA may allocate additional pivotal grant funds to an employer for pivotal programmes, should the employer have spent more than 3% of their payroll on training as reported in the pivotal training report and verified by the SETA.

Page 30: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

Other conditions of the Act

1. 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.

2. 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.

3. If the employer does not claim a mandatory grant within the time period specified in sub regulation (2), the SETA must transfer the employer's unclaimed mandatory grant funds to the pivotal grant fund.

Page 31: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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 employer-

1. has registered with the Commissioner in terms of section 3 (1) of the Skills Development Levies Act;

2. 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;

3. 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;

4. 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;

5. 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 Accounting Authority based on guidelines provided by DHET; and the WSP and ATR are approved by relevant organised labour structures.

Page 32: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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!

Page 33: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

What do you, as the SDF, need to

do… to claim maximum BBBEE points through

skills development?

Page 34: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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 current BBBEE status according to the DTI (Department of Trade and Industry) Codes of Good Practice.

Page 35: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

Combined to form “2. Employment

Equity”Employment Equity 15 Points 15 Points

Skills Development 15 Points 15 Points 3. Skills Development

Preferential Procurement

20 Points 25 Points Combined to form “4. Supplier

Development”Enterprise Development

15 Points 20 Points

Socio-Economic Development

5 Points 5 Points 5. Socio-Economic Development

Page 36: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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 programme targeted to developing priority skills generally and specifically for black employees.

Any bursaries to be repaid by employees, partially or completely, do not constitute expenditure by the organization for Skills Development

Page 37: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

Learning Programme MatrixCat Narrative Description Delivery Mode Learning Site Learning Achievement

A

Institution-based theoretical instruction alone – formally assessed by the institution

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

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

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 recognized through registration or licensing

D

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 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

E

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 and some institutional as well as ABET providers

Credits awarded for registered unit standards

F

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)

GWork-based informal programmes Informal training Workplace Increased understand of job or work context or improved

performance of skills

Page 38: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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 workplace programmes.)

Page 39: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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)

Page 40: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

2. Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for black employees with disabilities as a percentage of the leviable amount using adjusted recognition for gender

3. Number of black employees participating in Learnership or Category B, C and D Programmes as a percentage of total employees using the adjusted recognition for gender.

Page 41: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

The Skills Development Scorecard

Indicator Point

s Target1. 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 6

3% of leviable amount

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

0.3% of leviable amount

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 6

5% of entire workforce

Page 42: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

Page 43: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

Page 44: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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.

Page 45: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

– Scholarship/Bursary costs to be reimbursed by the employee

Page 46: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

Example of a Schedule for Element 1 and 2

Types of Training Courses

Learning Programme

Matrix Category

ABET Programme

Total Number of Attendees

Number of Black

People Attended

Number of Black

Women Attended

Number of Black

Disabled People

Attended

Costs

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 A No 1 1 1 0 9000Total Training Cost 30250.00

Page 47: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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

– Certified copies of ID’s

– Might ask to interview trainee

Page 48: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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 determine the BBBEE status. (Suggestion for 2012 – all 5!)

3. Generic Entity (Large Entity)

A generic scorecard will be completed annually for all organizations with an annual turnover of more than R35 million – on an annual basis.

The organization will be required to be verified on all seven of the BBBEE elements.

Page 49: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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:

Page 50: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

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)

Page 51: Aligning skills development to your business strategy By Marion Bell (marionbell@mweb.co.za)marionbell@mweb.co.za on behalf of HRD Training and Consulting

Any Questions????