Skills development: Benefits to businesses and good for B-BBEE (Broad Based Black Economic Empowerment)

Becoming B-BBEE compliant is one of the best investments a company can make and one of the best ways to make positive contributions towards the South African economy. In the B-BBEE context Skills Development refers to a tailored contribution to the development of core, scarce and critical skills of black people. These contributions include internal and external training initiatives. Skills development is one of the five elements of the B-BBEE scorecard and a priority element. Learnerships, internships, short courses, and work-based training all forms part of skills development and training. All of this affords employees to be upskilled making positive contributions to their companies and it also affords unemployed, disabled, and black South Africans opportunities to enter the workspace. The following is what the skills and development allocates points for: 
  • Skills Development spend on learning programmes for black people in general and black employees with disabilities. 
  • bursaries for black students at Higher Education institutions. 
  • learnerships, internships and apprenticeships for black people. 
  • the absorption of black people into the workforce of the measured company or into the industry at the end of the learnership, internship and apprenticeship programmes.  

Skills development is one of the easiest elements to gain points on. It is also a good focus for B-BBEE and an effective way to boost your overall scorecard. The more points earned for skills development the more a businesses’ overall scorecard will be improved. Implementing training and development can contribute up to 20 points of a company’s B-BBEE rating and could potentially add 5 bonus points it therefore has a total weighting of 25 points. The ownership and management control elements often prove to be challenging especially for small to medium sized businesses to maintain their scores, focusing on the skills development element is therefore a terrific way to amplify their scores.  

Skills development does not only prove to be good for the B-BBEE scorecard but also offers numerous benefits to businesses who are B-BBEE compliant. The benefits of staff or employee training include:  

  • Higher job satisfaction and employee morale 
  • Increased employee motivation. 
  • Increased effectiveness in processes, resulting in financial gain. 
  • The ability to adopt modern technologies and methods required to cater to the needs of customers. 
  • Improved business performance. 
  • Increased employee loyalty and engagement thus reduced employee turnover. 

The learnership incentive is an important development tool for encouraging greater employment and up skilling of the South African workforce. Not only are you empowering the human capital of South Africa, you will also be lowering your effective tax rate. Furthermore, when implemented correctly Skills Development Act and the Learnership TAX Incentive will minimize your expenditure. The Skills development element of the B-BBEE scorecard affords businesses further benefits such as a competitive edge, tax benefits, rebates, and grants.  

Contact Cenfed Consulting Agency today for B-BBEE compliance and to benefit from the skills development element. Marketing@cenfed.co.za  

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Client Testimonial

"I would like to thank all the staff at Cenfed/Chamberlink for their professional and friendly service.

We have dealt with numerous BEE verification agencies and have found that Cenfed has a proper procedure that they stick to. We have never experienced the BEE verification process in this manner before and have come to the realisation that Cenfed are doing it correctly.

Thank you for your patience and advice and the wonderful manner in which Yolandi Storm conducted herself with the on site audit.

We would recommend Cenfed to anyone in need of assistance with their BEE verification."

Monique Beets - Accounting Clerk
TMF Construction & Electrical CC