Skills Development is a priority element of the Broad-Based Black Economic Empowerment Scorecard. This is because one of the key elements of B-BBEE is the recognition that, without a move towards the education of the previously disadvantaged populace, there is no way that South Africa will be able to move forward in the way in which it deserves.
“As Skills Development accounts for 25 points on the B-BBEE Scorecard, it is more than worth your while to focus on this aspect of B-BBEE,” says Angie Lanham-Love, CEO of Lanham Love Consulting. “Points for Skills Development are allocated for monies spent on educational programmes for black people; bursaries for black students in tertiary education; learnerships, internships and apprenticeships for black people; and the absorption of said students into your company or industry, at the end of the aforementioned programme.”
“40% of the target set out in the Skills Development element must be achieved in order not to incur a penalty on your B-BBEE scorecard,” says Lanham-Love. “But there are other benefits to creating a focus on skills development in your organisation. These include mandatory and discretionary grants, as funded by the SETA relevant to your company’s priorities, as well as potential tax deductions.”
“For companies with a sufficiently large payroll, the submission of your Workplace Skills Plan (WSP) and your Annual Training Reports (ATR) is what is required in order to qualify for Mandatory Grant payments,” says Lanham-Love. “If you are deemed compliant, your approved Mandatory Grants will result in 20% of your skills development levy contribution for the financial year in which the application is submitted being refunded.”
“Furthermore, between 40% and 60% of your training costs can be claimed back through Discretionary Grants,” says Lanham-Love. “These are distributed at the discretion of the relevant SETA for Skills Development projects related to scarce and essential skills. In addition to grants, tax benefits for learnerships can be obtained, the value of which is dependent on the NQF level of the candidate.”
Lanham-Love Consulting recognises the potential of the Skills Development B-BBEE ‘Brick’ and has catered to this aspect extensively. “One of the challenges our clients face is ensuring that money and time spent on Skills Development is maximised on the scorecard,” says Lanham-Love. “In order to provide our clients with peace of mind, we opened The Lanham-Love Consulting Academy in 2017. The LLC Academy designs and implements Skills Development programmes directly in line with your B-BBEE strategy and equips staff at every level with the skills necessary for true transformation.”
Lanham-Love Consulting assists companies in developing an effective consulting strategy for maximum B-BBEE benefit. To find your “best-fit” solution, we engage with you and explore your specific transformation needs. Speak to our consultants for a B-BBEE Solution that works for you, and benefits all involved.