Skills Development Scorecard
Through the indicators listed below, in Table 1, the objective is to measure the extent to which the CA Sector (employers) desires to develop the competencies of Black Employees internally within the organisation, as well as externally (those not employed by the organisation). It is against this backdrop that Skills Development must contribute to achieving the country’s economic growth and social development goals, thereby enriching the creation of decent work and sustainable livelihoods.
This section of the scorecard requires that Measured Entities prove that programmes have been implemented which target the development of SETA-defined core, critical and scarce skills.
The Skills Development spend recognition is not restricted to SETA-acquired training only. The Learning Programmes Matrix lists Learning Programmes that result in tangible outcomes such as degrees, diplomas and certificates.
The Skills Development scorecard comprises four indicators: the first two measure monetary spend, whilst the third measures the number of Black Employees who are enrolled in Learnerships and/or structured work-based Learning Programmes as set out in the Learning Programmes Matrix. The fourth indicator measures the number of Black employees participating in training specified in the Learning Programmes Matrix.
In order to contribute to the achievement of the vision of the CA profession Sector Code and based on sound economic principles, sectoral characteristics and empirical research in line with the principles set out in paragraph 11.4, ten additional weighting points were allocated to the Skills Development Scorecard.
Five Weighting points have been allocated to one specific indicator, namely, bursary expenditure. The CA Sector’s aim of improving the pipeline numbers with the ultimate objective of increasing the output number of qualified Black CA(SA)s will only become possible if more funds are allocated to providing Black learners with bursaries. This was the motivation for the increase in the focus on Skills Development expenditure.
The other five Weighting points were allocated to the number of Black People participating in Learnerships, as this is a core requirement for becoming a CA(SA). However, the target for Learnerships, which is set at 2.5% is far too low for the CA Sector.
At present, the Learnership figure is 13%. A compliance target of 18% has been set (same as for the previous CA Sector Codes).
It should be noted that, as far as Learnership positions are concerned, this is the one area where the CA Sector can make a significant contribution (for the reasons stated above). Trainees who are developed and groomed for leading positions in the country and the economy make up the majority of the CA Sector Employees.
Key measurement principles
For the CA Sector Skills Development Scorecard, the following key measurement principles apply:
1.1 The following criteria must be fulfilled for the Measured Entity to receive points on the Skills Development Element scorecard:
1.1.1 Workplace Skills Plan, an Annual Training Report and Pivotal Report, all SETA approved; and
1.1.2 The implementation of a Priority Skills programme (of which CA(SA)s are considered priority skills specifically for Black People).1.2 The 6% compliance target in 3.1.1 includes external training expenditure for unemployed Black People.
1.3 A trainee tracking tool has to be developed for the Measured Entity to score points 3.4 of the Scorecard. If less than 100% of the trainees are absorbed, the percentage achieved or absorbed will be recognised proportionately.
- Demographic representation
2.1 The Compliance targets for 3.1.1, 3.3.1, 3.3.2, 3.3.3 and 3.3.4 are based on the overall demographic representation of Black People as defined in the Regulations of the EE Act and the Commission on Employment Equity Report, as amended from time to time.
2.2 In determining a Measured Entity’s score, the targets should be further broken down into specific criteria according to the different race subgroups within the definition of Black by the EE Act, on an equitable representation and weighted accordingly.
- Sub-minimum and discounting principle
3.1 A Measured Entity must achieve a minimum of 40% of the total weighting points of 30 points for Skills Development (40% of 30 points).
3.2 Non-compliance with the sub-minimum will result in the overall achieved B-BBEE status level being discounted by paragraph 11.3.
- Skills Development expenditure
4.1 This includes legitimate expenses incurred in any Learning Programme offered by a Measured Entity to its Employees, substantiated by an invoice or appropriate internal accounting record.
4.2 Skills Development Expenditure arising from Informal and workplace Learning Programmes or from Category F and G Learning Programmes under the Learning Programmes Matrix cannot represent more than 15% of the total value of Skills Development Expenditure.
4.3 Legitimate training costs, such as accommodation, catering and travelling (non-exhaustive) cannot exceed more than 15% of the total value of Skills Development Expenditure.
4.4 Salaries and wages paid to an employee participating as a learner in any Learning Programme only constitute Skills Development Expenditure if the Learning Programme is a Learnership, Internship and Apprenticeship (Category B, C and D) of the Learning Programme Matrix.
4.5 Mandatory sectoral training does qualify as a Skills Development Contribution, i.e. training for which continuous professional development (CPD) points can be earned.
4.6 Training outside the country, in line with the Learning Programme Matrix under annexure 300 (A), is measurable if it meets the South African Qualifications Authority requirements for recognition.
4.7 Legitimate recognisable training expenses are as follows:
4.7.1 Costs of training materials;
4.7.2 Costs of trainers;
4.7.3 Costs of training facilities, including costs of catering;
4.7.4 Scholarships and bursaries;
4.7.5 Course fees;
4.7.6 Accommodation and travel; and
4.7.7 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.4.8 Bursaries and Scholarships
4.8.1 Expenses on scholarships and bursaries can either be counted under 3.1 or 3.2.
4.8.2 Expenses on scholarships and bursaries do not constitute Skills Development Expenditure if the Measured Entity can recover any portion of those expenses from the employee or potential employee, or if the grant of the scholarship or bursary is conditional.
However, if the right of recovery or the condition involves either of the following obligations on the employee or potential employee, the expenses are recognisable:
4.8.2.1 The obligation of successful completion in their studies within the period allocated; and
4.8.2.2 The obligation of continued employment by the Measured Entity for a period following successful completion of their studies, provided it does not exceed the period of their studies.4.8.3 Bursary and scholarship expenditure includes all legitimate expenditure, similar to those mentioned above under legitimate recognisable training expenses.
A future article will discuss the Learning Programme Matrix, Bonus Points, and Measurement of Skills Development indicators.
