Since its inception, the South African Government has made use of the incentives provided by Broad Based Black Economic Empowerment (B-BBEE) to encourage businesses to become a part of what we at Lanham-Love Consulting have termed The South African Project – namely, our collective attempts to make South Africa the best possible version of herself she can be. It truly is the cornerstone of the efforts made to educate and train the large sector of the population that was previously disadvantaged.
“B-BBEE aims to accelerate the participation of black people in the economy by encouraging change in the following key areas of business: Ownership, Management Control, Employment Equity, Preferential Procurement, Enterprise Development, Socio-economic Development and Skills Development,” says Angie Lanham-Love, CEO of Lanham-Love Consulting. “In fact, Skills Development is one of the simplest – and most strategic – ways that you can ensure that you maximise your return on your B-BBEE investment. By leveraging your contribution to the Skills Development aspect of the B-BBEE Scorecard, you can effectively benefit twice over.”
So, what are the best practices you can put in place in your business to ensure that you leverage your Skills Development spend to boost your B-BBEE ratings to optimal effect?
“Firstly, Skills Development is considered to be a priority element of the B-BBEE Scorecard,” says Lanham-Love. “This means that over 40 percent of Skills Development targets set out in this element need to be achieved in order to score points. Points are allocated for your Skills Development spend on bursaries for black students at institutes of higher education, such as universities and TVETS; apprenticeships, learnerships and internships; the absorption of sponsored students into your workforce following their education; and, of course, further education programmes for your current black employees.”
“This latter aspect is so vital, Lanham-Love Consulting has even gone so far as to open The LLC Academy, which designs and implements Skills Development programmes directly in line with your B-BBEE strategy,” says Lanham-Love. “This is where you can benefit twice over – not only will you benefit in terms of your B-BBEE Scorecard – you will also benefit from a workforce with increased knowledge and motivation!”
“Essentially, we would recommend that you do not sleep on the benefits of investing in Skills Development,” says Lanham-Love. “Not only do you benefit from the points allocated, the Mandatory and Discretionary Grants you can gain access to, and the tax benefits you could accrue – the end result is, additionally, a workforce that is upskilled and equipped to better serve your business, and a population that is equipped to further benefit the economy and South Africa as a whole.”
When implemented correctly, B-BBEE supports job creation, global competitiveness, and economic growth. It also has the potential to reduce the burden on entrepreneurs and help to create a more skilled workforce. If you need a hand with the Skills Development aspect of your B-BBEE Scorecard, Lanham-Love Consulting can help! Speak to our consultants today to make sure that you are maximising your B-BBEE benefits.