richardw@workforce.co.za

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By Daniel Orelowitz, Managing Director at Training Force

 

Having already created more than 82,000 work experiences while attracting over 2,200 corporate sign-ups that have assisted with more than 700 Broad-Based Black Economic Empowerment (B-BBEE) level-ups, the Youth Employment Service (YES) Initiative works toward making young South Africans employable. Through 12-month learnership and internship programmes, individuals gain quality work experience, with a minimum of 5% of learners absorbed into permanent employment at the end of their programme. In addition to equipping young individuals with skills that increase employability, the YES Initiative gives businesses with lower B-BBEE ranking the opportunity to boost their standing through efforts that identify and upskill top young talent with a view to joining their workforce.

Although the aim of this programme is to inspire corporates to focus on youth employability while gaining a B-BBEE scorecard advantage through improved post-learnership absorption, there are some factors for businesses to consider before taking the leap. Let’s look at what companies need to know before getting involved in such a win-win situation.

 

Addressing unemployment through enhanced employability

 

With their future heavily reliant on job readiness and ability to enter the labour market, South Africa’s youth is particularly vulnerable in an unstable economic climate. It is here that the YES Initiative, a South African Non-Profit Organisation (NPO) joint national initiative between business, government, and labour, can step in to address youth unemployment by upskilling individuals with real work experience that leads to increased job placement. All of which happens without state funding, relying entirely on the private sector to drive outcomes based on their desire to level up their B-BBEE score.

Upskilling and levelling up

 

For businesses that cannot advance their B-BBEE ranking, participation in the YES Programme is extremely attractive. Where businesses meet all the qualifying criteria and pre-conditions, which include delivering YES-specific learning programmes, they have the means to enhance their overall B-BBEE status by up to two levels. An enterprise can participate through facilitating 12-month work experience programmes for unemployed youth by either:

1. Sponsoring and hosting youth within their business
2. Sponsoring placements elsewhere within an existing SME/supply chain
3. Providing hosting to the benefit of a new SME

Maximising the potential of YES

 

Depending on the size of the business and its turnover, YES targets will differ. In meeting such targets, businesses can progress one additional recognition level on their B-BBEE scorecards when they absorb or arrange permanent employment to 2.5% of their facilitated YES employees.

Organisations that go above and beyond the target by 1.5% and permanently employ 5% of the target group will gain one level recognition enhancement and three bonus scorecard points, while those that double the target will be enhanced two levels on their B-BBEE scorecards. For companies that have limited physical resources for running YES programmes in-house, there is the option of sponsored host placements.

Working within programme parameters

 

There are several limitations in place to prevent businesses from utilising the programme incorrectly. When it comes to placing learners in permanent employment at the end of their 12-month work experience, the company must create a new role for the learnership participant to meet the B-BBEE requirements for their score. In other words, it cannot be used to replace an employee that has been dismissed, or to fill a position that has remained vacant for an extended period. By creating a new role for learner absorption, corporates are positioned to train up talent in their company ethos to fulfil their future skills needs.

Leveraging the power of YES

 

Along with gaining the B-BBEE score benefits and tax breaks, organisations can also benefit from the ability to develop much-needed skills across their business and industry, at a reasonable cost. For unemployed youth, these work experience programmes are a critical steppingstone toward job market readiness. Through the YES programme, individuals benefit from the opportunity to gain work experience in the real world and showcase themselves in a manner that is not possible through other avenues available to job seekers.

Taking the effort out of saying YES

 

Between calculating targets and overseeing learnership programme progress, there can be a lot for businesses to manage. Partnering with a training provider that specialises in youth development is a sure-fire way to ensure that the full benefits are unlocked – both for the company and the young individuals that participate in such learnerships. A specialist training partner makes all the difference in ensuring that the correct skills are developed, and that individuals have access to mentorship that will give them a sense of direction and purpose on the career path they have chosen. Furthermore, a training provider partner can also help businesses to navigate the placement requirement, ensuring that all learners are properly and permanently placed to maximise scorecard benefits without major hassle.

Focusing on what’s important: youth skills development

 

For businesses, it’s essential to commit to youth skills development as they are the future of every workforce in every industry. I’ve seen first-hand how much untapped potential is waiting to be nurtured in South Africa’s youth. All they need is someone to take a chance on them and give them a foot in the door to prove themselves. For individuals who lack the resources or the means to get a foot in the door otherwise, the YES Initiative is the ideal opportunity. It is also an ideal opportunity for businesses to contribute in a meaningful way to talent and skills development in the country, while leveraging several other corporate benefits at the same time.

By Daniel Orelowitz, MD of Training Force

 

Technology has always been a significant disruptor in the manufacturing sector, and as the rapid acceleration of digitalisation continues, the fourth industrial revolution (4IR) is once again changing the game. Robotics and automation are taking over many previously manual processes, making roles that were once fulfilled by human staff redundant. This reduces the cost of labour and, in turn, the cost of manufacturing, therefore increasing profitability for manufacturers. However, it also means that new roles are being created, and there is a technology-related skills gap that needs to be addressed through appropriate training and skills development initiatives.

 

Automating the future

 

Robotic automation can be used to significantly enhance systems and processes, making manufacturing faster, cheaper and more efficient while improving the quality of products as well as worker safety. Some of these roles include welding, assembly, packing, shipping and handling of raw materials, including hazardous chemicals.

 

As artificial intelligence, machine learning and robotics continues to advance, robots will be able to take on a broader range of manufacturing tasks. However, while this is beneficial for the manufacturing sector as a whole, it has the potential to leave many previously employed people short of work. The required skill sets are changing – people need to know how to work with machines, rather than how to make specific products, and upskilling has become critical.

 

New skills for a new world

 

While machines take over mundane, repetitive and rules-based tasks, machines also require configuration, handling, management and maintenance, which in turn requires people. It has become imperative to upskill employees on new, technology-based skills such as these, because new job roles will be created as automation increases. There is also a growing skills gap when it comes to basic computer skills, because as digitalisation becomes more prevalent, aspects such as paperwork become computer-based.

 

The reality is that technology is taking away certain jobs while creating others, and alternative skills are essential to ensure continued employment and employability. Rather than hiring new people with new skills, those loyal workers who have become trusted business assets should be upskilled wherever possible. Not only will this allow them to add further value to a business they have developed loyalty to over the years, it will also give them greater opportunity to find future employment should their role become redundant.

 

People at the heart

 

The manufacturing sector is changing, but people are still at the heart of it, and it is imperative to give people the skills they need to continue to be productive and employable in a technology-driven future. Training initiatives need to become aligned with new skill sets required by 4IR as a matter of priority, so that the manufacturing sector can remain competitive and that its people can remain employable.

 

Companies have a responsibility to train their staff to ensure they remain relevant in the new world, and a moral obligation to help people develop skills that will enable them to continue being productive and employable. The benefit of upskilling and training from within is that these are people who already know the business, they understand the dynamics and processes, and will be able to assimilate their new skills a lot faster than hiring externally.

 

However, in order to get maximum benefit from training and development, these initiatives need to be aligned not only with skills required by the 4IR, but also skills required by the business. A trusted training partner can help to develop a training plan and roadmap for the future, to drive business forward while upskilling staff to remain relevant and adaptable in a world where technology is the future and is always changing.

By Daniel Orelowitz, Managing Director at Training Force

 

If you are running a business in South Africa and employing people, then you are probably familiar with the various taxes and levies that you are required to pay on a monthly basis, including the Skills Development Levy (SDL).

 

You are also likely to know that the SDL is a compulsory payment of 1% of your monthly payroll which gets paid over to the South African Revenue Service (SARS). You might even know that this money is then split between the different Sector Education and Training Authorities (SETAs) that your company is part of as a funding mechanism.

 

Yet, from personal experience, I can tell you that this is just about all that most companies know about the SDL – it’s a tax that is paid monthly and disappears into the ether. But do you actually understand why you are paying the SDL? And do you realise that this gives you access to funds for training?

 

Most employers probably don’t. The sobering fact is that the vast majority of South African employers do not use, understand or even know about the SDL, or that it entitles them to claim a portion of this money back from their SETA.

 

Money is tight

 

In a COVID-19-battered world, where cashflow is a challenge for many businesses, I know that this probably got your attention. In fact, SETAs have two grants from which employers can claim, and this essentially is a pool of funds that they have access to and are entitled to.

 

So firstly, we have the Mandatory Grant from which a company can claim back 20% of the 1% of payroll they paid over as their SDL. In simple terms, if you paid R100 000 in SDL, you get back R20 000. This might not be a massive amount, but as my dad always says: “Better in your back account than the taxman’s.”

 

Secondly – and this gets better – as an employer, you can also potentially receive Discretionary Grant (DG) funding from your SETA. All you need to do is apply for training interventions, be it learnerships, bursaries, skills programmes or internships. Since this is a discretionary grant, your SETA will determine your refund amount based on your application.

 

How do I get funding?

 

So why are you paying your SDL and not seeing a cent back? Well, to apply for the funding, companies must submit an Annual Training Report (ATR), which is based on the training that they conducted in the previous financial year. Additionally, you also have to submit a Work Skills Plan (WSP) which details your intended training over the next 12 months.

 

The annual deadline for claiming from the Mandatory Grant is 30 April, so your WSP and ATR must be submitted correctly by this date. There is no set deadline for DG funding applications, but each SETA will announce its own DG funding window for companies to apply. But to be able to apply for this funding, you need to have submitted your WSP and ATR by the deadline. What’s more, successful WSP and ATR submissions will gain you Black Economic Empowerment (BEE) skills development points. See where this is going?

 

Overwhelming process

 

Unfortunately, the honest truth is if you’re feeling overwhelmed by the mammoth task of fulfilling the procedural requirements of skills development, then you probably should. It is an onerous undertaking. So, how can you make your own life easier? You could hire or upskill someone to be a Skills Development Facilitator (SDF), who can do your applications for you.

 

On the other hand, you could use a consultant or specialist training company that is proficient in these processes and will ensure that everything is done and submitted properly – and let me just stress that getting it right is rather important. Due to the sheer volume of applications that the SETAs receive each year, those that are completed incorrectly simply get binned.

 

We find ourselves in economically turbulent times and a lot of businesses feel as though they cannot afford to spend money on training, because when budgets get slashed, skills and marketing get cut. But you also want your business to grow. Therefore, you have to ensure that your staff is reskilled, upskilled and tech-ready as needed. Thus, understanding and optimising your SDL has never been more important.

 

Feel free to reach out to me if you would like some advice on how you can leverage the benefits of paying your SDL, enabling you to make a difference and upskill your business.

 

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Why is it important for your company to submit Mandatory Grants?

 

Every year Levy Paying Organizations need to submit their Annual Training Report (also known as ATR) and Workplace Skills Plan (also known as WSP) BY 30 April. When you submit your WSP/ATR in time, then 20% of the taxes you pay (Skills Development Levies/SDL) is designated as mandatory grants to fund education and training programmes contained in the WSP and ATR. When you fail to submit on time, the following consequences apply to your business:

 

• You cannot claim any points on your Skills Development which is a Priority Component of your BEE Scorecard, which results in an automatic level drop in your Scorecard
• You are no longer eligible to claim the training spend back in the form of mandatory grants from your relevant SETA
• You may not be eligible to receive discretionary grant awards

Training Force has a team of specialists to assist you!
For Mandatory Grants Guidance, contact your nearest Training Force Branch!

 

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By Daniel Orelowitz, MD of Training Force

Any business that offers learnerships, internships, skills programmes and apprenticeships need to deal with various Sector Education and Training Authorities (SETAs). This can, however, be a complicated task. There are currently 21 different SETAs in South Africa, and they all have different processes and systems. In addition, for qualifications to be recognised by the SETA, training needs to be delivered by an accredited institution. Partnering with the right training provider can help to ease the complexity of navigating SETAs while delivering quality, accredited training that contributes to economic growth and sustainability.

Complicated landscapes

SETAs play a vital role in South Africa, offering vocational training and skills transfer in line with the National Development Plan. Any business that offers skills development as part of Broad-Based Black Economic Empowerment (B-BBEE) needs to get involved with at least the SETA involved in their particular industry, but often those for other industries as well. The issue is that there is no centralised system for SETAs and the systems and processes are frequently changing.

In addition, the process for registration is complicated and can take months. This means that enrolling learners can be onerous, especially when they are engaging in qualifications that are part of a different industry – for example, a manufacturing enterprise sending learners for business and technology training. For many businesses, a dedicated team for training and development just is not feasible, and a lack of time and expertise to handle these complexities is a common problem.

Negative impacts

Challenges around dealing effectively with SETAs can negatively impact training objectives. If the processes are not conformed to, the SETA may reject registrations, and the entire process must start again, causing significant delays. The complicated registration process can hold the process up, resulting in the late registration of learners, which can, in turn, affect B-BBEE scores for the year due to a lack of skills development points. The learners themselves also suffer, as they are not able to start their skills development programmes.

The external moderation of learners can also prove to be a stumbling block because this requires accredited personnel, and without this external moderation, the SETA will not award the learner with their certificate or qualification.

Your training partner is invaluable

Short of having an entire team in-house to be accredited and run and manage learnership processes with SETAs, a training partner is an invaluable resource. Not only do they have the accreditations to be able to handle the process from end to end, but they also dedicate resources toward dealing with complex registration.

As the core business of a training partner is to facilitate training, they will also take over the entire admin-intensive process of registrations, ensuring they are completed correctly according to the different requirements of the different SETAs. An effective training partner will have a team focused exclusively on registrations, making sure that documents are accurate and correct before submission so as to avoid possible problems. They will also follow up, make sure that everything is in order, and that there are no delays so that learners can start on time and B-BBEE points can be allocated correctly.

When it comes to navigating the complexities of SETAs, partners are critical. Make sure that you partner with an experienced, accredited training provider with the expert knowledge of the ins and outs of the various SETAs. This is essential in navigating this important, yet often frustrating and time-consuming element of business in South Africa.

By Daniel Orelowitz, MD at Training Force, a company within the Workforce Training and Consulting Cluster, part of Workforce Holdings

 

The Fourth Industrial Revolution (4IR) is a digital revolution that has massive transformative potential. Technology is rapidly evolving, and if used correctly, it can improve both the spend and quality of business operations. However, without the right skills within the business, technology is either used ineffectively or not used at all, which can be detrimental.

 

In addition, those without the skills to thrive in a digital world will fall behind in terms of employability. Skills development has thus become even more critical, for businesses to grow, for employees to remain appropriately skilled, and for South Africa to become increasingly competitive on a global stage.

 

Skills at the heart of managing change

 

The digitalisation of 4IR is a massive shift for business. The systems and technology not only improve efficiency and enhance productivity, they also remove traditional geographical boundaries and make doing business globally much easier.

 

They also change the way businesses operate, which makes adapting crucial. Proper change management, including skills development and training, is a big part of this. If employees are not empowered with the skills required to use new technology, the end result is often resentment, lack of adoption, and even higher staff turnover.

 

The other challenge is that, across the board, jobs that were previously done by people are increasingly being taken over by technology. These are typically low skill, mundane and repetitive tasks that automation makes far more efficient. However, if employees are not upskilled beyond the level of machines, they will no longer be able to add value to a business.

 

New skills, new opportunities, and new challenges

 

As technology evolves, the need for skills such as developers, computer operators and other technical skills grows, and even gives rise to new job descriptions that did not exist in the past. However, if people do not even have basic computer skills, they will be left far behind.

 

Not many companies in South Africa are geared for this shift, and at a basic education level, South Africa faces significant challenges. The digital divide is still a real problem, particularly in the rural areas, which means that, when confronted with technology, people are often apprehensive because they do not know what to do with it. Skills development, again, is absolutely critical. We need to train people from the ground up, empowering them to build, grow and maintain relevant skills.

 

A problem for every business

 

All businesses need to invest in training all of their staff and upskilling them in technology, because without these skills in the future, they will not be able to contribute to the workforce. It is also important to continue to provide training, because as technology evolves, the skills required to use it will change. Skills development helps to grow the people within a business, which is more cost effective than continually hiring new skills, and it also provides opportunities for people to better their lives through upskilling.

 

If organisations in South Africa do not take steps to address these challenges, they will fall further and further behind, with inefficient processes, lack of agility and a growing margin for error. The skills required will obviously differ depending on the organisation, but regular training has become a must have. Not only that, but skills transfer needs to take place for training to be effective, so the right training partner with the correct accreditations is also a must.

 

Companies that can adapt quicker to the changes brought about by 4IR will be more successful, but in order to adapt they need the right people with the right skills. Looking internally and upskilling people already in a company is not only easier than finding new skills externally, it also creates opportunities and fosters greater loyalty.

 

Ultimately, all businesses will win if they work to upskill their employees, because everyone will have a more skilled pool of resources to draw on. This in turn will improve South Africa’s competitiveness and economic prospects. However, having the right training partner is essential to ensure that skills development takes place successfully.

By Daniel Orelowitz, MD at Training Force, a company within the Workforce Training and Consulting Cluster, part of Workforce Holdings

 

August 2021

 

The Fourth Industrial Revolution (4IR) is a digital revolution that has massive transformative potential. Technology is rapidly evolving, and if used correctly, it can improve both the spend and quality of business operations. However, without the right skills within the business, technology is either used ineffectively or not used at all, which can be detrimental.

 

In addition, those without the skills to thrive in a digital world will fall behind in terms of employability. Skills development has thus become even more critical, for businesses to grow, for employees to remain appropriately skilled, and for South Africa to become increasingly competitive on a global stage.

 

Skills at the heart of managing change

 

The digitalisation of 4IR is a massive shift for business. The systems and technology not only improve efficiency and enhance productivity, they also remove traditional geographical boundaries and make doing business globally much easier.

 

They also change the way businesses operate, which makes adapting crucial. Proper change management, including skills development and training, is a big part of this. If employees are not empowered with the skills required to use new technology, the end result is often resentment, lack of adoption, and even higher staff turnover.

 

The other challenge is that, across the board, jobs that were previously done by people are increasingly being taken over by technology. These are typically low skill, mundane and repetitive tasks that automation makes far more efficient. However, if employees are not upskilled beyond the level of machines, they will no longer be able to add value to a business.

 

New skills, new opportunities, and new challenges

 

As technology evolves, the need for skills such as developers, computer operators and other technical skills grows, and even gives rise to new job descriptions that did not exist in the past. However, if people do not even have basic computer skills, they will be left far behind.

 

Not many companies in South Africa are geared for this shift, and at a basic education level, South Africa faces significant challenges. The digital divide is still a real problem, particularly in the rural areas, which means that, when confronted with technology, people are often apprehensive because they do not know what to do with it. Skills development, again, is absolutely critical. We need to train people from the ground up, empowering them to build, grow and maintain relevant skills.

 

A problem for every business

 

All businesses need to invest in training all of their staff and upskilling them in technology, because without these skills in the future, they will not be able to contribute to the workforce. It is also important to continue to provide training, because as technology evolves, the skills required to use it will change. Skills development helps to grow the people within a business, which is more cost effective than continually hiring new skills, and it also provides opportunities for people to better their lives through upskilling.

 

If organisations in South Africa do not take steps to address these challenges, they will fall further and further behind, with inefficient processes, lack of agility and a growing margin for error. The skills required will obviously differ depending on the organisation, but regular training has become a must have. Not only that, but skills transfer needs to take place for training to be effective, so the right training partner with the correct accreditations is also a must.

 

Companies that can adapt quicker to the changes brought about by 4IR will be more successful, but in order to adapt they need the right people with the right skills. Looking internally and upskilling people already in a company is not only easier than finding new skills externally, it also creates opportunities and fosters greater loyalty.

 

Ultimately, all businesses will win if they work to upskill their employees, because everyone will have a more skilled pool of resources to draw on. This in turn will improve South Africa’s competitiveness and economic prospects. However, having the right training partner is essential to ensure that skills development takes place successfully.