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Implications of equity policies driving Skills Development

Implications of equity policies driving Skills Development. Gizelle Mc Intyre The Institute of People Development. Institute of People Development (IPD).

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Implications of equity policies driving Skills Development

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  1. Implications of equity policies driving Skills Development Gizelle Mc Intyre 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. Introduction • Implications of equity policies driving skills development • Employment equity, gender equity and disability equity • BBBEE and skills development • The BBBEE scorecard

  4. 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

  5. The Current Situation In Education & Training • Skills Development has become a BBBEE scorecard conversation • Huge numbers of unemployed graduates • New forms of illiteracy developing • Professional Bodies • Uncertainty about Setas • Graduate Programmes in companies • Short Course changes • The role of the SDF

  6. 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 had a deadline of 20 January 2016 for public comments.

  7. Proposed New Skills Development Landscape "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

  8. 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 fulfil the same reporting obligations as the private sector so as to qualify for funding from the National Skills Fund

  9. 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

  10. 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?

  11. 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?

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

  13. NQF & OFO Map - Source QCTO 2012

  14. OQF Level descriptors: To determine level of tasks

  15. 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

  16. Skills Development Process

  17. 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. 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).

  18. 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.

  19. Workplace Integrated Learning

  20. Workplace Learning: 70-20-10 model

  21. 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?

  22. 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. • 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.

  23. 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.

  24. 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.

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

  26. BBBEE Scorecard and Skills Development

  27. Learning Programme Matrix

  28. Skills Planning and the Learning Programme Matrix Create a Skills plan that comprises the following: Measurement of Skills Development indicators A = (B ÷ C) x D Where: A = score for any given indicator as referred to in the scorecard B = adjusted recognition for gender C = Target for the applicable indicators as referred to in the scorecard D = Weighting for the applicable indicators as referred to in the scorecard

  29. BBBEE and Skills Development • With a weighting of 25 points in total, this is an element to focus on. • The 6% of payroll spend requirement can be used for optimal ROI by projecting talent needs per race and gender category and using the money in bespoke projects such as bursaries, internships, learnerships, apprenticeships and other programmes. • The ability to thereafter integrate the said individuals into employment is crucial and adds the additional 5 bonus points. This makes proper pre-assessment practices essential to give you the best chance of converting the said persons into full employment. • There is a limit of 15% (of the total soend amount claimed) in claiming expenses associated with the skills development (eg travel, accommodation and catering) and furthermore, mandatory training (e.g. FICA, FAIS, OHS) is not recognized. Uncertified learning is also capped at 15% of the total spend claim.

  30. The BBBEE Players

  31. Amended Broad -Based Black Economic Empowerment Codes Of Good Practice October 2012 The thresholds for Exempted Micro Enterprises and Qualifying Small Enterprises have been adjusted as follows: • EME increased from R5 million to R10 million • QSE: R5 million -R35 million to R10 million - R50 million • Large entities: R50 million and above

  32. Qualifying Small Enterprises (QSE’s) Qualifying Small Enterprises (QSE’s) are defined by the Codes as companies with an annual total turnover of between R 5 million and R35 million. • Government has singled out small enterprises as vital in the fight for job creation and economic growth. According to the Small Enterprise Development Agency (SEDA), small enterprises already contribute approximately 35% of the country's gross domestic product (GDP) and employ over half the number of people who work in the private sector. • Aiming to ease the regulatory burden on small enterprises, the Codes require QSE’s to comply with ONLY four out of seven elements on the QSE scorecard. • And while every company qualifying for measurement under the Codes must maintain a scorecard, the codes have further eased the BEE compliance burden by setting lower targets for these companies. • Unlike the Generic Scorecard, the QSE Scorecard allocates an equal 25% weighting to each of • the seven elements, or pillars, of B-BBEE. As QSE’s only have to elect four of the elements, • selected elements of compliance total 100%.

  33. Exempted Small & Micro-enterprises Exempted Small & Micro Enterprises (EME’s) are defined by the Codes, as companies with an annual total turnover of R 10 million or less. • EME’s have a BEE recognition of a Level 4 contributor and those, which are either 50%, owned by black people or 50% owned by black women are promoted to a Level 3 contributor. • They also automatically qualify for procurement

  34. Our Future Reflexive Practical Foundational

  35. Thank you! “Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning.” ― Mahatma Gandhi

  36. Contact Details Institute of People Development 011 315 2913 www.peopledev.co.za gizellem@peopledev.co.za

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