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Skills Development: a real world update

Skills Development: a real world update. Gizelle Mc Intyre Director: The Institute of People Development. Institute of People Development (IPD).

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Skills Development: a real world update

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  1. Skills Development: a real world update Gizelle Mc Intyre Director: The Institute of People Development

  2. Institute of People Development (IPD) The Institute of People Development (IPD) is committed to an ongoing process of achieving and maintaining its status as a "centre for learning excellence". • Primary Aim • To enhance the quality of workplace learning provision through the development of managers, supervisors and learning development practitioners. • The Institute strives to be a "change agent" by • Providing qualifications to managers, supervisors and learning & development practitioners • Offering recognition of prior learning (RPL) services to experienced learning & development practitioners • Conducting research projects designed to generate best practice products and processes through a continuous professional development (CPD) programme • Expanding the field of learning & development practices to the wider public through seminars, media releases, on-line resources and communities of practice workshops and consulting • Making available its learning facilities and resources in Midrand to its clients and stakeholders for the purposes of high quality learning provision

  3. Quick Question • What brings you to the conference? • a) Knowledge building • b) Networking opportunities • c) My boss made me attend

  4. ROI • OK let’s make today worth your while….. • Please turn to the person to your right and left and identify and consolidate 2 main ideas you would like me to focus on based on the following slide. • Please write them down on the paper provided.

  5. Topics up for discussion • Current and proposed landscape: Skills Development • Legislation and Skills Development • PIVOTAL programmes, workplace learning and RPL • Broad-Based Black Economic Empowerment (BBBEE) Skills Development point requirements • What does the future hold?

  6. Why do we do what we do? • Training for compliance begs the question – when will South Africa opt for a healthy skills development approach? • The key is to employ skills development is to : • foster better engaged workers, • build people’s proficiencies and • upskill the nation NOT to gain some BBBEE points or tick a tick box on your scorecard. • This process is garnering some cynicism and a feeling of exhaustion amongst the true believers of real skills development and transformation. Ironic, considering the points can still be gained with a focus on meeting real needs.

  7. Acronyms are king! • ABET – Adult Basic Education and Training • AQP – Assessment Quality Partner • AIDS – Acquired Immunodeficiency Syndrome • BBBEE – Broad-based Black Economic Empowerment • CHE – Council on Higher Education • COGTA – Department of Cooperative Governance and Traditional Affairs • DHET – Department of Higher Education and Training • DPSA – Department of Public Service and Administration • DQP – Development Quality Partner • DTI – Department of Trade and Industry • FABCOS – Foundation of African Business and Consumer Services • FET – Further Education and Training • GDP – Gross Domestic Product • HEI – Higher Education Institution • HESA – Higher Education South Africa • HIV – Human Immunodeficiency Virus • HRDSSA – Human Resource Development Strategy for South Africa • ICT – Information and Communication Technology • IPAP – Industrial Policy Action Plan • JIPSA – Joint Initiative on Priority Skills Acquisition • M&E – Monitoring and Evaluation • NAMB – National Artisan Moderating Body • NCV – National Certificate (Vocational) • NSA – National Skills Authority • NSDS – National Skills Development Strategy • NGO – Non-governmental Organisation • NQF – National Qualifications Framework • NSF – National Skills Fund • PIVOTAL – Professional, Vocational, Technical and Academic Learning • QCTO – Quality Council for Trades and Occupations • SEDA – Small Enterprise Development Agency • SETA – Sector Education and Training Authority • SLA – Service Level Agreement • SMME – Small, Medium and Micro-sized Enterprises • SSP – Sector Skills Plan

  8. Legislative History Lesson • SAQA – 1995 • Employment Equity Act – 1998 • Skills Development Act - 1998 • Skills Development Levies Act – 1999 • Skills Development Amendment Bill 2003 • A Strategy for Broad-Based Black Economic Empowerment was released in 2003. • Broad-Based BEE Act No. 53 of 2003 Broad-Based BEE Act No. 53 of 2003 (‘BEE Act’) – 2004 • Codes of Good Practice 2007 • Skills Development Act (Amended) 2008 • Amended B-BBEE Codes 2012 • National Development Plan 2030 - 2013 • White Paper for Post-School E & T - 2013 • Guidelines on the Implementation of the SETA Grant Regulations - 2013 • New Landscape proposed – 2015

  9. Current and New Landscape

  10. The Current Situation In Education & Training • Skills Development has become a BBBEE scorecard conversation • The reality of the skills crisis is hitting us e.g. Eskom • Huge numbers of unemployed graduates • 7.2 million people illiterate • New forms of illiteracy developing • Professional Bodies • Uncertainty about Setas • Graduate Programmes in companies • Short Course changes

  11. Career and alignment information www.saqa.org.za SAQA Act NQF Act Skills Development Act Feedback from SETA and Industry/ Associations WSP from your company CULMINATING INTO THE NATIONAL SKILLS PLAN Sector Skills Plans Skills Development Levies Act Creating employment opportunities for properly skilled people

  12. Proposed New Skills Development Landscape • With National Skills Development Strategy (NSDS) III finishing its five year life-span in 2016 (now extended to March 2018), it was expected that a fine-tuning of the key skills development institutions would take place to support the new NSDS. • The proposed new landscape is however a significant evolution in the institutional landscape and one which therefore requires significant consideration and discussion among stakeholders. • The Department of Higher Education & Training (DHET) published on 10 November 2015 a draft proposal for a new National Skills Development landscape which would take effect on 1 March 2018. • The proposal is a government gazette with a deadline of 20 January 2016 for public comments.

  13. Proposed New Skills Development Landscape • The title of the DHET document is "Proposal for the New National Skills Development Strategy (NSDS) and Sector Education & Training Authorities (SETAs) Landscape (NSLP 2015)". What changes are proposed? • SETAswould be absorbed into the Department of Higher Education & Training but constituted as Specialised Delivery Units (Section 7B of the Public Service Act) • They would become permanent structures, rather than have 5 year renewable life-spans • They would remain 21 in number (no immediate mergers but clustered into five synergistic groupings) • SETA Boards would remain unchanged but have greater representation from government departments in line with a stronger public sector focus

  14. Proposed New Skills Development Landscape Changes to Funding • 80% of the current SETA Discretionary Grant would be shifted to the National Skills Fund (equivalent to the entire current PIVOTAL Grant) • Employers would still be able to apply for the 20% Mandatory Grant (unchanged) and 10% of the remaining Discretionary Grant (renamed Sector Specific Grant) • SETA administration costs would remain at 10% of the Skills Development Levy, but likely reduced over time as a shared services unit realises bulk savings, and as other bodies take up previous SETA functions, such as Skills Planning • Public sector organisations would spend 1% of their personnel budget on quality assured education and training leading to NQF qualifications and fulfill the same reporting obligations as the private sector so as to qualify for funding from the National Skills Fund

  15. Quality Councils

  16. CHE UMALUSI QCTO

  17. HET Framework (2013)

  18. NQF & OFO Map - Source QCTO 2012

  19. OQF Level descriptors: To determine level of tasks

  20. NQF Level Career Ladder Example 8-10 Continued Professional Development Management Research And Development Specialist Occupations after first Degree General Management Graduate Development Programmes New Product Development Business Development Purchasing Logistics 6-8 Production Finance SHEQManager Manager First Line Manager Occupational Core plus Technician Core Skills plus Manager 5 Technician Supervisor Team Leader/ Artisan/ Supervisor Core Skill Professional Skill 4 Technical Specialist 3 Operator Skilled technical worker Foundational Learning Certificate Mathematical Literacy and Communication 2 Preparing unemployed for access Raising the Bar Induction New Entrant 1

  21. Knowledge / theory Practical Work experience External, summative assessment (to be conducted by AQP) Occupational Qualification Registered SAQA QCTO Curriculum Model DQP/ INDUSTRY Occupational Purpose Curriculum components Assessment Specifications. Qualification document

  22. Flow chart NQF 6 NQF 4 NQF 5 OFO: 242402 OFO: 242401 OFO: 242401

  23. Level 10 Level 9 Level 8 Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Qualifications Framework NQF Doctoral Degree OQF Masters Degree CHE-HEQC Master Postgraduate Diploma Professional Qualifications s Degree HEQF Bachelor Degree Advanced Diploma Eg, National Skills Certificates Eg, National Occupational Awards Diploma Advanced Certificate Advanced National Certificate (Vocational) Higher Certificate Advanced National Certificate (Vocational) 5 Incl. subject / unit certificates National Senior Certificate (Grade 12) Adult National Senior Certificate National Certificate (Vocational) 4 QCTO GFETQF Units of learning to be accumulated National Certificate (Vocational) 3 UMALUSI National Certificate (Vocational) 2 General Education & Training Certificate (Grade 9) Adult National Senior Certificate

  24. Skills Development Process

  25. Legislation and Skills Development

  26. Employment Equity • The purpose of this Act is to achieve equity in the workplace by- (a) promoting equal opportunity and fair treatment in employment through the. elimination of unfair discrimination; and. (h) implementing affirmative action measures to redress the disadvantages in 25.Oct 19, 1998

  27. Employment Equity and Skills Development • Compliancy is the name of the game…. • Do you have an Employment Equity Plan and is it up to date? • Have you done a Skills Audit in order to analyse you workforce profile? • Do you have quarterly committee meetings? • Have you submitted your EE reports? • Have you submitted your WSP/ATR?

  28. Implications of equity policies and BBBEE driving skills development • Are we training only for EE reports and BBBEE points? • What about critical, customised/industry specific skills? • What about the providers who don’t comply but provide what we need?

  29. Our Current Picture • The Employment Equity Commission for South Africa has released its 2015/16 report

  30. Employment equity, gender equity and disability equity The Broad-Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice was gazetted on 12 October 2013 and came into effect on 1 May 2015. • Employment Equity no longer stands alone as an individual element. Employment Equity has been incorporated with Management and Control and carries 15 points for both Generic and Qualifying Small Enterprise (QSE) businesses. • Points are only allocated for employees in management positions. • The calculations for management and control are complex and require attention to the Economic Active Population (EAP). These targets are set in accordance with each province according to racial demographics of the said province.

  31. Employment equity, gender equity and disability equity • Gender • Black female employees in management are awarded points as a separate indicator on the scorecard. • Disabled employees • Only black employees with disabilities are given recognition, and are measured as an indicator on the scorecard. • The definition of black people with disabilities according to the Employment Equity Act is: “People who have long-term or recurring physical or mental impairment which substantially limits their prospects of entry into, or advancement in, employment.” A doctor must medically certify the nature of the disability and the duration thereof before a black employee can be termed disabled.

  32. Disability

  33. Skills Development Levy (SDL) SDLis a levy imposed to encourage learning and development in South Africa and is determined by an employer's salary bill. Who must pay SDL? • If the company has staff registered for PAYE and the annual payroll exceeds R500 000 per annum, the company must register with SARS and pay a skills levy of 1% of the monthly payroll. If the company does not fall within these criteria, it does not have to pay levies or register with SARS. • Where an employer expects that the total salaries will be more than R500 000 over the next 12 months, that employer becomes liable to pay SDL.

  34. Skills Development Levy (SDL) How much do you need to pay? • 1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments). How to determine which SETA your company belongs too? • Each SETA has a mandate to serve the Sector Industry Classification Codes (Sic Codes) under its control as determined by the Department of Higher Education from time to time. (See Government Gazette 33756 dated 11 November 2010) What happens to the SDL Levy? • The levies are distributed via SETA.

  35. Skills Development Levy (SDL) Why are you using this as a forecast of training you will be able to do for the year? • Joe earns 100 000.00 per annum • – this means his contribution is 1000 for the year • – can this really be your training budget for Joe?

  36. PIVOTAL Grants and Workplace Learning

  37. PIVOTAL Programmes • Government Gazette No. 35940 of 3 December 2012 on Sector Education and Training Authorities(SETAs) Grant Regulations regarding monies received by a SETA and related matters, published by the Minister of the Department of Higher Education and Training (DHET). • National Skills Development Strategy III (NSDS III) 2011 – 2016. The PIVOTAL grant is aimed at: • Improving the quality and quantity of labour market information received by the various SETAsin the form of workplace skills plans, annual training reports and PIVOTAL training reports to inform planning. • Promoting National Qualifications Framework (NQF) registered and quality assured PIVOTAL programmes that address priority scarce and critical skills identified in the various SETA Sector Skills Plan (SSP).

  38. PIVOTAL Programmes PIVOTAL programmes definition • Professional, vocational, technical and academic learning programmes that result in qualifications or part qualifications registered on the National Qualifications Framework (NQF) that address critical and scarce skills needs.

  39. PIVOTAL Programmes • Professional learning programmes shall mean programmes that lead to designations that are registered by professional bodies. • Vocational learning programmes shall mean programmes that lead to a trade and/or the National Certificate Vocational (NCV). • Technical learning programmes shall mean programmes that are occupationally-directed and registered by the SETA; such programmes include apprenticeships, Learnerships and skills programmes. • Academic learning programmes shall mean programmes that lead to academic qualifications such as certificates, Higher Certificates, Diplomas and Degrees.

  40. Workplace Integrated Learning

  41. Workplace Learning: 70-20-10 model

  42. BBBEE and Skills Development

  43. Revised BBBEE Points The amendments to the Codes (came into effect October 2014) significantly change the manner in which a firm’s BBBEE status (or level) will be calculated, as the number of BBBEE points required to achieve a particular BBBEE level has been increased.

  44. Revised BBBEE Elements • 1. OWNERSHIP • 2. MANAGEMENT CONTROL • 3. EMPLOYMENT EQUITY • 4. SKILLS DEVELOPMENT • 5. PREFERENTIAL PROCUREMENT • 6. ENTERPRISE DEVELOPMENT • 7. SOCIO-ECONOMIC DEVELOPMENT. The amendments to the Codes reduce the number of elements to five by fusing the enterprise development/preferential procurement and management control/employment equity elements.

  45. WEIGHTING • The weighting for each of the five new elements are set out in the following table:

  46. BBBEE Scorecard and Skills Development

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