Revisit and adapt your overall B-BBEE Strategy
Benefit from the implementation of a smart procurement policy
Your company’s B-BBEE compliance level is what makes it more attractive as a service provider to other companies. Similarly, your company should have a procurement policy where you procure services from companies that have a favourable B-BBEE status. It is the only element on the B-BBEE scorecard where you do not have to spend additional money. You merely need to procure from the ‘right’ service providers to maximise the impact on the Enterprise and Supplier Development (ESD) element of your scorecard.
For example, if you procure services from a Level 2, 51% Black Owned, QSE, you will receive 125% recognition for your spend. What does this mean? Here is an example.
Spend cleverly on the Skills Development Element of your Scorecard
Avoid spending your skills development funds on external people. Identify a skills development initiative that assists with both B-BBEE compliance and helps your employees cope with the challenges placed on them in the context of the VUCA world and COVID-19.
- There is a smaller cash outlay on the initiative and you can count the monthly salary bill of all employees that are on the programme, for a whole year! Including salaries of part of your skills spend will get you to your spend target very quickly and a whole lot more effectively than if you didn’t.
- Your employees will be equipped with the skills they need to thrive at work, at home and in the VUCA world in general. This will have a direct impact on their sense of well being and productivity.
- Placing more senior employees on the initiative means you can count higher salaries towards meeting your skills spend targets. This means relative to a smaller cash outlay, there is an even larger salary portion that counts towards meeting your skills spend target. This means, cheaper B-BBEE points.
Contact Angie on 083 300 4167 or email me on angie@lanham-love.co