Skills development legislation, strategies, best practice principles, training administration, the roles, responsibilities and function of a Training Committee and core training processes

1. SKILLS DEVELOPMENT AND THE ROLE
OF TRAINING COMMITTEES
CHARLES COTTER PhD, MBA, B.A (Hons), B.A
www.slideshare.net/CharlesCotter
CITY LODGE NEWTOWN, JOHANNESBURG
23 APRIL 2018
SKILLING S.A

2. PRESENTATION OVERVIEW
• Learning Objective #1: NSDS III, TRAINING LEGISLATION AND
LEVY/GRANT SYSTEM
• Learning Objective #2: ROLE AND FUNCTION OF TRAINING
COMMITTEE
• Learning Objective #3: CORE TRAINING PROCESSES – SKILLS
AUDIT AND TNA
• Learning Objective #4: WSP, SSP AND ATR
• Learning Objective #5: B-BBEE SCORECARD AND LEARNERSHIPS
• Learning Objective #6: FUTURE FIT L&D (SLP)

3. OBJECTIVE #1:
NSDS III, TRAINING LEGISLATION AND
LEVY/GRANT SYSTEM

4. NATIONAL SKILLS DEVELOPMENT
STRATEGY III (GOALS)
• Goal 1: Establishing a credible institutional mechanism for skills planning
• Goal 2: Increasing access to occupationally-directed programmes, both intermediate level
as well as higher level professional qualifications
• Goal 3: Promoting the growth of a public FET college system that is responsive to sector,
local, regional and national skills needs and priorities
• Goal 4: Addressing the low level of youth and adult language and numeracy skills to enable
additional training
• Goal 5: Encouraging better use of workplace-based skills development
• Goal 6: Encouraging and supporting cooperatives, small enterprises, worker-initiated, NGO
and community training initiatives
• Goal 7: Increasing public sector capacity for improved service delivery and supporting the
building of a developmental state
• Goal 8: Building career and vocational guidance

5. SKILLS DEVELOPMENT ACT
(ACT 97 OF 1998)
• The Skills Development Act (SDA) and regulations provide for a new
approach to training and development, which aims to benefit both
employers and employees. These regulations impact on skills development
in organizations in that that they set out provisions for:
 Sector skills planning;
 Workplace skills planning;
 Funding of skills development;
 Involvement of trade unions and employee representatives in the skills
development process;
 Learnerships;
 Skills programmes; and
 Reporting on skills development implementation.
• The SDA aims to develop and improve the skills base of the South African
workforce and to transform workplaces into sites for quality life-long
learning initiatives and programs.

6. PURPOSE OF
THE SDA
• To develop and grow skills for the
workplace
• To increase levels of investment in
education and training
• To encourage employers to use the
workplace as an active learning
environment and promote skills
development (thus improving
employment prospects for all)
• To encourage workers to
participate in learnerships and
other training programmes

7. ACHIEVEMENT OF PURPOSES OF THE SDA
• The development of training and development programmes which
provide workers with qualifications recognized in the National
Qualifications Framework (NQF)
• The formation of learnerships
• The appointment of Skills Development Facilitators (SDF) in all
organizations
• The establishment of Sector Education and Training Authorities (SETAs)
responsible for encouraging and guiding planning and coherent skills
development in all sectors of the economy
• The establishment of the National Skills Development Authority which
advises the Minister of Labour on the national skills development policy
and strategy and then liaise with the SETA’s on the same

8. SKILLS DEVELOPMENT LEVIES ACT
(ACT 9 OF 1999)
• The SDLA provides for the levy payment system to fund skills development and
increase employer investment in skills development. It impacts on skills
development in organizations in that they are required to pay 1% of monthly
remuneration in the form of a levy.
• In terms of section 3 of the SDLA every employer is required to pay a skills
development levy and the South African Receiver of Revenue will be the national
collection body. Subject to certain compliance criteria, employers may claim back
these as much as 70% of these paid levies in the form of grants, namely:
 The nomination and appointment of a Skills Development Facilitator (SDF),
 Compilation, submission and implementation of a Workplace Skills Plan (WSP)
and
 Addressing the training needs contained in their organizational Equity Report
as well as qualifying for discretionary grants.
• Exclusion from payment of the levy will be on the basis of a certificate of
exemption gazetted by the Minister of Higher Education and Training in
consultation with the Ministers of Finance and Provincial and Local Government.

9. WHERE DOES THE MONEY GO?
• SARS collects all SDLs of which 20% goes to the National Skills Fund and 80% to the
SETAs.
• SETAs retain 10.5% for their own administration, 0.5% the Quality Council for
Trades and Occupation (QCTO) for quality assurance, 20% is dispersed back to
compliant and participating employers (Mandatory Grant) and allocate 49% to
their Pivotal pool of funds.
• 80% of this Pivotal pool of funds is available to employers in the form of a Pivotal
Grant (subject to application and success submission of a Pivotal Grant Plan) and
20% is reserved for Discretional funding of compliant employers (subject to
application/allocation).
• Non-compliant or non-participating employers’ Mandatory Grant is swept into the
discretionary pool.
• SETAs may also apply for additional funding from the National Skills Fund for
special projects. Should the SETA not use the funds at their disposal they are swept
back to the National Skills Fund (NSF).

11. DISCRETIONARY GRANTS
• Discretionary grants are paid to applicants at the discretion of the SETA’s for
Skills Development Projects, linked to scarce and critical skills and are
awarded to companies that apply for training that falls within the SETA’s
skills development practices objectives and targets.
• Availability of projects and grants are subject to the SETA’s board discretion
and may be reduced, withdrawn or cancelled, upon informing the industry
of SETA’s intention to do so.
• The types of training programs that a company can apply for are:
 bursaries
 internships
 learnerships
 work placements

12. PIVOTAL GRANTS
• A Professional, Vocational, Technical and Academic learning programmes (Pivotal)
grant is a type of Discretionary grant that is purely awarded to learners that have
never studied in the direction that they want to follow. This grant has been made
available to assist school leavers, unemployed learners and employed learners
that wants to follow a new or different career path.
• The purpose of Discretionary and Pivotal grants are to encourage employers,
accredited training providers and stakeholders to contribute towards
the achievement and objectives of these establishments.
• Discretionary & Pivotal Grants are available to the following applicants:
 Companies that are up-to-date with their levy payments
 Discretionary grants are available to employers, training providers and workers and the
unemployed
 Accredited Education and Training Providers and emerging training providers within the
SETA sector.
 Other associations or organizations that meet the criteria for the payment of such a
grant.

13. MANDATORY GRANTS
• In order to qualify for a Mandatory Grant, a company must submit
an ATR and WSP to the respective SETA no later than 30 June –
this constitutes a Mandatory Grant Application.
• These grants may be given to projects, programmes and research
activities if they support the implementation of the sector skills
plan that each Seta has developed.
• In terms of the skills development grant regulations, a Mandatory
Grant is a grant payable to levy paying companies upon submission
and approval of a WSP and ATR. In terms of section 6(3), the SETA
shall pay 50% of the total levies paid back to the employer upon
approval of the WSP and ATR.
• Payments for mandatory grants shall be made quarterly.

14. QUALIFICATION CRITERIA FOR GRANTS
• The following would disqualify an employer from
receiving mandatory training grants:
Non-payment, or irregular payments of the skills levy.
Non submission, or late submission of the WSP
Non submission or late submission of the
implementation report
Both the WSP and the implementation report must be
submitted timeously to release the payment of the
mandatory grant

17. GRANT TOWARDS THE COST OF
LEARNERSHIPS
• Any employer may seek a grant from a SETA to support the implementation of
learnerships
• Each SETA will determine the level of the grant
• Details of the grant will be registered with the Department of Labour when each
learnership is registered
• There are two possible types of grants to support learnerships:
 The first is a grant to offset the costs of implementing the learnership (e.g. off the job
education and training provider fees).
 The second is a grant that may be paid to subsidise the learner’s allowance if the
learner was unemployed immediately before starting the learnership.
• It is a matter for each SETA to decide how many and which applications it will
support.
• Each SETA will need to make its decisions in the light of the priorities of its sector
skills plan and the amounts of money it has available to support learnerships.

18. GRANT RECOVERY BY EMPLOYERS
• An employer seeking recovery of a grant against the levy payment must meet the
eligibility criteria for grant recovery. An employer:
 Must have registered with the Commissioner for the South African Revenue Services in
terms of section 5 of the Skills Development Levies Act, 1999
 Must have paid the levies directly to the Commissioner or the Seta in the manner and
within the period determined in section 6 of the Skills Development Levies Act
 Must be up to date with the levy payments to the Commissioner or the SETA at the time
of approval and payment of a grant
• Unclaimed levy funds which arise as a result of non-payment of grants to
employers who fail to comply with the relevant terms and conditions for grant
recovery or who fail to submit a valid application for grant disbursement within six
months of the final date may be used by the SETA for:
 Grants to employers for training in specific high need areas:
 Sector support expenses
 Incentives to encourage participation in the skills development levy scheme
 Any other purpose to promote the objectives of the Sector Skills Plan and national
priorities

19. LEARNING ACTIVITY
1
• Syndicate group
discussion:
• Evaluate the current
degree of legislative
compliance of the GEP.
• Identify gaps and
recommend improvement
strategies to address
these process gaps.

20. OBJECTIVE #2:
ROLE AND FUNCTION OF TRAINING
COMMITTEES

22. SKILLS DEVELOPMENT FACILITATOR (SDF)
RESPONSIBILITIES
• The role of the SDF is to offer expert advice to management about what
training can and cannot achieve
• “Training is not the Alpha and Omega and the cure for all organizational
ills.” (Charles Cotter, 2015)
• To facilitate the training needs assessment (TNA) process so that it is a
participative, transparent and in-house consulting role.
• The benefits of implementing skills development strategies within an
organization should not be limited to the benefit of claiming grants. SDF’s
should take the responsibility of identifying, researching and
communicating the longer-term people benefits of a holistic skills
development strategy to all stakeholders.
• A very important function of the SDF is to establish a Training Committee
for the enterprise or company.

23. THE COMPOSITION AND CONSTITUTION
OF TRAINING COMMITTEES
• Employers with more than 50 employees must establish an in-company forum for
consultation with regard to skills development. This consultative forum should be
established or an existing forum used if this is appropriate, e.g. existing employment equity
forum.
• The training committee is comprised of three constituent parties i.e. employee
representatives from designated groups, non-designated groups, all occupational categories
and levels, employer representatives e.g. senior management and representatives of
organized labour/representative trade unions
• The number of employee and employer representatives may be equal. However, the
employer representatives must not be more than the employee representatives.
• This committee, as a whole, should reflect the interests of employees from all occupational
categories in the organization's workforce. At least one employee representative must
represent one of the major Organising Framework for Occupations (OFO) codes, unless
there are no employees in the major OFO category.

24. THE COMPOSITION AND CONSTITUTION
OF TRAINING COMMITTEES
• The employee representative must be an employee of the organisation who is nominated or
elected by the employees, and must not be in a management position.
• The employee representative’s responsibility is to discuss the skills development matters
with employees within the organisation, and present employee skills development
requirements and aspirations to the Training Committee for discussion and/or
implementation.
• It is important to note that a though the SDF is a critical member of the Training Committee,
he/she cannot be nominated as the employee or employer representative. The SDF must
play a coordination and advisory role and remain objective at all times.
• It is important that workplace consultative structures be consulted in the appointment of a
SDF; the compilation of the WSP and be involved in the monitoring of training and
consulted on the presentation of the implementation report.

25. CONSULTATION
• Consultation should start as early as possible in the process of workplace skills planning and
is a central concern for the SDF. This is fundamental to the success of the national skills
development strategy.
• It is important that employees are consulted about the person(s) to be designated as SDF,
the WSP and the report on the implementation of the WSP.
• Proper consultation includes:
 The opportunity to meet and report back to employees and management
 Reasonable opportunity for employee representatives to meet with the employer
 The request, receipt and consideration of relevant information
 Adequate time allowed for each of the above steps
 Ongoing interaction with and accessibility to senior management with regard to workplace skills issues is
critical to the success of this process.
• The frequency of consultative forum meetings will vary from employer to employer
depending on size, sophistication, existing levels of diversity, and what has already been
accomplished in the workplace with regard to skills development.
• Meetings should, however, take place regularly and employers should allow time off for
these meetings.

26. TRAINING COMMITTEE RESPONSIBILITY IN
SKILLS DEVELOPMENT
• #1: Ensure that the organisation has a Training Policy and that it is
aligned with the SDA regulations.
• #2: Ensure that the development & implementation of the WSP is
aligned to the organizational strategic Mission and Vision.
• #3: Keep the envisaged training & development of employees abreast
with the long-term organizational transformation objectives.
• #4: Ensure that the WSP is aligned to the organizational Employment
Equity Plan and Business Plan.
• #5: For the benefit of the organization, take cognisance of BBBEE
requirements.
• #6: Establish training priorities for the organization based on its short
and long term needs.
• #7: Align training to the Sectoral Skills Plan, learnerships, career
pathways, accredited national qualifications, etc.
• #8: Communicate the completed WSP to other employees in the
organization.

27. TRAINING COMMITTEE RESPONSIBILITY IN
SKILLS DEVELOPMENT
• #9: Monitor the implementation of the WSP.
• #10: Periodically revise the WSP.
• #11: Implement the development of employees in the
organization and the strategies of the organization fairly and
equally.
• #12: Acquire/identify the required resources to evaluate the
training programs in the organization.
• #13: Evaluate the skills development needs of the employees
and organization and continually evaluate the implementation of
identified needs.
• #14: Develop and implement external and internal skills
development strategies.
• #15: Monitor the progress of the organizational skills
development.
• #16: Develop and implement correctional actions where
required.

28. TRAINING COMMITTEE RESPONSIBILITY IN
SKILLS DEVELOPMENT
• #17: Ensure that the skills needs of the organization are
identified.
• #18: Ensure that all staff has been classified according to
the OFO.
• #19: If required, ensure that that there is a skills
performance system in the organization.
• #20: If and where required, ensure that there is an
individual development pathway for all employees, as well
as the skills requirement & learning pathway.
• #21: Where applicable, ensure that a portfolio of evidence
has been developed for all employees that receive training
in the organization.
• #22: Ensure that at least all of the Mandatory Grant is spent
on skills development.

29. LEARNING ACTIVITY
2
• Syndicate group discussion:
• Evaluate the current degree
of compliance of the
constitution, roles,
functions and consultation
of the training committee in
the GEP.
• Identify gaps and
recommend improvement
strategies to address these
process gaps.

30. OBJECTIVE #3:
CORE TRAINING PROCESSES – SKILLS AUDIT AND
TNA

32. PhD RESEARCH –
x85 STRATEGIC
LEARNING &
DEVELOPMENT
SUB-FACTORS
(COTTER, 2017)
• N = 462 (global)
• Selected deficient factors:
 #1: Line managers are competent in conducting
accurate training needs analyses (65%)
 #7: The L&D function has adopted scientifically
valid measurement processes to evaluate
talent development performance (68%)
 #10: The organizational performance
management system fits seamlessly into the
L&D process (68%)
 #39: The L&D function effectively implements
skills auditing processes (72%)
 #42: Training Return-on-Investment (ROI)
calculations yield positive organizational
dividends (72%)

34. THE 6E’s OF TNA
• Exploration
• Envisioning
• Examination
• Extraction
• Evaluation
• Extrapolation

35. 6-STEP TNA PROCESS
• Step One: Situational and problem analysis (EXPLORATION)
• Step Two: ENVISIONING the desired end state
• Step Three: Identifying the TNA methods (EXAMINATION)
• Step Four: Data collection (EXTRACTION)
• Step Five: Reaching, sharing and presenting TNA findings
(EVALUATION)
• Step Six: Compile an Implementation Plan of Action
(EXTRAPOLATION)

36. DEFINITION, PURPOSE AND OUTCOME OF
SKILLS AUDITING
• A skills audit is a snapshot that allows an organization to determine the
level of skills and knowledge of the workforce.
• It is compared against the competencies that are required in order to
determine the gaps and to focus training and development accordingly.
• Skills audits are conducted to determine training needs within an
organization in order for that organization to improve its skills and
knowledge.
• A skills audit establishes an individual’s current competence against the
skills matrix for a particular position.
• A skills audit gathers more information than current qualifications levels.
• The outcome of the skills audit process is a skills gap analysis.

38. LEARNING ACTIVITY
3
• Individual activity:
• Review and evaluate the GEP’s
current skills audit practices
against the ten (10) best practice
criteria.
• https://www.surveymonkey.com
/r/3YZDG8F
• Syndicate group discussion:
• Identify gaps and recommend
improvement strategies to
address these process gaps.

39. BEST PRACTICE CRITERIA: SKILLS
AUDITING
• #1: A job analysis must be used as a basis for the skills audit
• #2: Definitive performance standards must be developed,
written, and provided to all stakeholders, regardless of the
type of rating
• #3: Raters are trained to use the rating instrument properly
• #4: Formal appeal mechanisms must be in place and
assessment results need to be reviewed to ensure fairness
and reliability
• #5: Multiple techniques/approaches are utilized and ratings
are supported with documented examples of behaviour

40. BEST PRACTICE CRITERIA: SKILLS
AUDITING
• #6: Employees are given a chance to improve their skills through targeted development opportunities
• #7: The 7 E’s - the Skills Auditing process is efficient, effective, economical, educational, ethical,
empirical and evidentiary
• #8: Compliance with the following principles of Skills Audits:
 Fairness
 Validity
 Reliability
 Transparency/ Openness
 Constructive feedback
 Objectivity
• #9: The outcome of the skills audit generates predictive analytics and business intelligence, providing
the organization with a strategic competitive advantage
• #10: Skills Auditing must be a holistic, systematic, integrated and aligned approach

41. 5 C’s – THE KEY BENEFITS
OF A SKILLS AUDIT
• Compliance
+
• Competitive
+
• Cash
+
• Credibility
+
• Competence
= Clean Skills Audit

42. SKILLS AUDITING PROCESS – ILLUSTRATED

43. SKILLS AUDITING
PROCESS
• Step 1: Determine Skills
Requirements
• Step 2: Audit actual skills
• Step 3: Determine
development needs and
plan for
training/restructuring

44. STEP 1: DETERMINE SKILLS
REQUIREMENTS
• In order to determine skills requirements, an organization should identify current
and future skills requirements per job.
• The end result is a skills matrix with related competency definitions. Definitions
can be allocated against various proficiency levels per job, such as basic,
intermediate and complex.
• Objective: Determine the critical or required skills (elicited from job profiles, your
strategy, or competency matrix).
• Skills matrix process:
 Step 1: Workshop with a project team (include Subject Matter Experts)
 Step 2: Use outcomes analysis to derive skills/knowledge factors and unit standard titles
 Step 3: Use results of outcomes analysis and value chain process to develop a skills
matrix and titles matrix
 Step 4: Verify matrices with SMEs and finalise

45. SAMPLE OF SKILLS MATRIX

46. SAMPLE OF SKILLS MATRIX

47. STEP 2: AUDIT ACTUAL SKILLS
• Step 2 involves an individual self-audit and skills audit
• Results are collated into reporting documents that may
include statistical graphs, qualitative reports and
recommendations
• A skills audit includes auditing qualifications,
experience and training (knowledge)
• Conducting a Skills Gap Analysis

48. HIERARCHY OF SKILLS

49. SKILLS AUDIT RATING SCALE
Rating Description Definition
0 No evidence of competence An individual does not currently display any form or level of competence in the
skill listed. He or she may require formal training and exposure to the skill in the
workplace.
0.25 Some evidence of competence The individual may demonstrate part competence, but definitely needs formal
training and exposure to the skill in the workplace.
0.5 Evidence of competence, needs further
training
An individual is competent, but needs to improve. Training is the most effective
solution. The individual may be at a lower level than the position requires, i.e. at
linear, instead of complex level.
0.75 Evidence of competence, needs more
exposure to the skill
The individual is competent and has undergone training. Further exposure in the
workplace would ensure improvement and full competence. The individual may
be at a lower level than the position requires, i.e. at linear, instead of
intermediate level.
1 Full evidence of competence The individual is competent in the skills at the level allocated to his/ her position.

50. STEP 3: DETERMINE DEVELOPMENT NEEDS AND PLAN FOR
TRAINING/RESTRUCTURING
• Once skills audit information has been collected, an analysis of the
results may be used for planning purposes relating to training and
development and other Human Resource interventions.
• Recommendations are then discussed and agreed actions are
implemented.
• This skill shortfall forms the basis of a Training Needs Analysis
(TNA) so that the company can reach the desired skill base
amongst its employees.
• A gap analysis is the outcome of the skills audit process.
• Information that is provided through the skills audit can be used
for the multiple HRM and business purposes.

51. REPORTING SKILLS AUDIT RESULTS
• The reporting framework is generated according to the purpose you want to use
the skills data for.
• These reports are vital as they may be used to inform organizational training and
development strategy, Workplace Skills Plans, individual development plans and
performance management interventions etc.
• These reports must be stored in a manner that respects the confidentiality of
individual employees.
• It is therefore important to agree on and communicate who has access to skills
audit results, and how these people may use the results upfront.
• Skills audit reports may take on a number of forms:
 Individual competency profiles
 Divisional radar report
 Organizational pie chart

52. LEARNING ACTIVITY
4
• Syndicate group Discussion:
• Evaluate the GEP’s current
skills audit process against
the 3-step process.
• Identify gaps and
recommend improvement
strategies to address these
process gaps.

53. OBJECTIVE #4:
WSP, SSP AND ATR

54. OBJECTIVES OF A WSP
• Contribute to the achievement of organizational goals
contained in the business plans – the WSP refers to the
interventions needed to ensure the development of
the business plan
• Formally report on the training interventions that the
organization is planning
• Provide a mechanism against which Grants can be
accessed from the SETA
• Serve as a format for the collection of information by
SETA from individual organisations

55. THE VALUE AND IMPORTANCE OF A WSP
• The WSP tells the SETA what training the organization will provide to the employees in the next 12
months, based on the operational requirements of the organiZation, its industry and the critical skills
identified by the SETA.
• This document is thus a check and balance system to the SETA, allowing them to gather valuable
statistical information with regards to skills shortages, critical skills in organizations and development
requirements within the industry.
• It also allows Government to project skills needs and to make this information available to training
institutions. Without this information the Government would not be able to plan learnership training
courses and provide for skills shortages.
• The WSP is the key strategic planning document relating to workplace training, career pathing and
employment equity for the organization.
• The WSP must relate to the key business objectives, and to the priority training areas identified in the
sector skills plan.
• To qualify for the mandatory grant, an employer must, in addition to submitting the WSP submit the ATR
to the SETA by 30th June each year. The ATR details the actual training conducted, against the training
planned in the WSP.

56. INFORMATION
INCLUDED IN A WSP
• The number of employees trained in the
organization by job category and race
• The training and education needed to
ensure the development of the business
and employees
• The organization’s strategic priorities for
skills development
• Information regarding employment
equity in the organization
• Details of the education and training
needed to achieve the organisations
priorities e.g. proposed training
interventions and specific costs

57. COMPILING A WSP
• Step 1: Develop an occupation classification matrix
• Step 2: Populate the occupation classification matrix
• Step 3: Establish the company’s skills development priorities
• Step 4: Define the education and training required for achieving
the strategic skills development priorities
• Step 5: Define the number and characteristics of training
beneficiaries that will be trained in the Levy-Grant Year
• Step 6: Define the quality assurance measures for each of the
planned education and training activities

58. STEP 1: DEVELOP AN OCCUPATION
CLASSIFICATION MATRIX
• A. The first activity of this step is to develop a classification of
occupations within your organization. Start by studying the
organization chart(s) of the company. Then answer the following
questions:
What are the business functions of the business?
What occupations, are employed by the company in each of these
business functions/departments?
• The answers to these two are then displayed in a matrix of jobs by
department/function.
• B. The next activity of this step is to classify the occupations
employed by the "occupational group" classification structure/job
grading. Use the same grading system as that used in the
Employment Equity Plan.

59. SECTOR SKILLS PLAN (SSP)
• In terms of the SDA, a SETA is obliged to among other
activities:
Research and develop a SSP
Receive and evaluate WSPs and ATRs from employers
Identify and develop strategic projects arising from skills
needs within the sector, funded by discretionary grants
To register, train and support SDFs within the sector
• The SSP is an analysis of the labour market within a
specific industry, which gets compiled once every five
years, and submitted to the Dept of Labour, and is
updated annually.

60. SECTOR SKILLS PLAN (SSP)
• The SSP forms the key strategic analysis guiding the implementation of
training and skills development within the sector.
• The SSP provides the:
 Profile of the labour force within the sector by province, race, age, gender,
qualification and occupational category
 It monitors the supply of and demand for labour within the sector;
 It tracks the absorption of new labour market entrants into the sector;
 It identifies areas of skills growth and skills need; and
 It identifies opportunities and constraints on employment growth in the sector
• The purpose of the SSP unit within the SETA is to ensure that the SETA has
relevant, up-to-date information and analysis to allow it to perform its
strategic skills planning function for the sector and to maximise
participation by employers in the NSDS through the efficient use of
resources available for training within the sector.

61. ALIGNMENT WITH THE BUSINESS AND
HRM STRATEGY
• Skills development must be relevant in terms of
both the business plan and the HRM strategy.
• Skills development must contribute to the
organization’s business objectives.
• Before the SDF can start the skills planning process,
he/she must have a clear understanding of the
direction in which the business is going, and how it
intends getting there.

62. CRITICAL SUCCESS FACTOR: INTEGRATION
AND ALIGNMENT

63. ANNUAL TRAINING
REPORT (ATR)
• Towards the end of each financial year, every organisation that
submitted a WSP is required to submit an ATR.
• This report reflects the education, training and development
activities of the organization that were implemented and which
employees received training. The ATR reports on the skills
development interventions in the previous year against the
previous year’s WSP.
• If there are significant deviations highlighted in the ATR from what
was specified in the WSP, an explanation for this may be required.
• Records of all education, training and development activities
should be available to confirm the information in the report.
• It also contains information to the type, cost and delivery method
of the training it goes further to assess whether the training that
the employees received is in line with the planned training for
the organization, industry and critical skills identified by the
SETA.

64. LEARNING ACTIVITY
5
• Syndicate group Discussion:
• Evaluate the efficiency and
effectiveness of the GEP’s
current WSP and ATR
submissions and processes.
• Identify gaps and
recommend improvement
strategies to address these
process gaps.

65. OBJECTIVE #5:
BBBEE SCORECARD AND LEARNERSHIPS

66. SKILLS DEVELOPMENT WITHIN THE B-BBEE
SCORECARD
• The Amended Codes of Good Practice (for organizations whose turnover exceeds
R50m/annum) came into effect in 1 May 2015, increasing the effort of compliance by
introducing priority elements; Ownership, Skills Development and Enterprise
Development.
• New Codes:
 Code 100: Ownership
 Code 200: Management Control (integrating Employment Equity)
 Code 300: Skills Development
 Code 400: Enterprise and Supplier Development (integrating Preferential Procurement)
 Code 500: Socio-Economic Development
• Companies now find the need to focus more stringently on training interventions. Skills
Development is regarded as a compulsory activity for organizations that wish to achieve a
favourable B-BBEE rating.
• The Skills Development element (allocated 25 points) is crucial to maintaining or increasing
an organization’s B-BBEE Level. If an organisation fails to obtain 40% of the points allocated
in any of these elements, its rating will be discounted by one level.

67. B-BBEE SCORECARD
ELEMENT WEIGHTING/POINTS
Ownership 25
Skills Development 25 (+5 Bonus Points)
Supplier and Enterprise Development 40
Management Control 15
Socio-Economic Development 5
Sub-Total 105
Bonus Points 13
TOTAL 118

68. SKILLS DEVELOPMENT INDICATOR
Skills Development Indicator Points Target
1.
Skills Development expenditure on any program specified in the Learning Programmes Matrix as a percentage of
the leviable amount (LPM)
1.1
Skills Development expenditure on learning programmes specified in the
LPM for black people as a percentage of the leviable amount
8 6%(up from 3%)
1.2
Skills Development expenditure on learning programmes specified in the
LPM for black employees with disabilities as a percentage of the leviable
amount
4 0,3%
2. Learnerships, Apprenticeships and Internships:
2.1
Number of black employees participating in learnerships,
apprenticeships and internships as percentage of total employees
4 2.5%
2.2
Number of unemployed black employees participating in learnerships,
apprenticeships and internships as a percentage of total employees
4 2.5%
3. Bonus Point
3.1
Number of black people absorbed by the industry at the end of the
learnership programme
5 100%

69. CHANGES TO THE B-BBEE SCORECARD
• The threshold of training expenditure has been changed from 3% of the leviable payroll to 6%;
• Training that is not SAQA recognised and therefore does not award NQF credits is regarded as informal
training and cannot exceed a total of 15% of training expenditure;
• Internationally recognised qualifications that are not SAQA recognised cannot be claimed;
• Travel, accommodation and catering expenses are limited to 15% of training expenditure;
• Qualifications & accredited training that is provided to black employees & black unemployed persons
will carry more points in the Skills Development category (black people are defined as people from
African, Indian, Coloured and Chinese descent);
• Expenses on scholarships and bursaries do not constitute training expenditure if the organization can
recover any portion of the expenses from the Employee or if the grant of the scholarship or bursary is
conditional, with exceptions;

70. CHANGES TO THE B-BBEE SCORECARD
• According to the Learning Programme Matrix of the amended BBBEE Codes of Good Practice,
remuneration of registered Learners (Employed and Unemployed) and Interns can be claimed as part of
training expenditure in categories B, C and D (Internships, Learnerships and Apprenticeships) whilst
substantially contributing to the minimum 6% threshold spend;
• Companies can now also claim for training costs of people that are not employed by your company;
• Accredited courses (hard skills) carry more weight than non-credit bearing courses (soft skills) and
organizations’ will be able to maximize their points by embarking on learning interventions that are
aligned to SAQA Unit Standards and Qualifications with Learnerships being the best way to bridge the
skills gap as well as score highly in the Skills Development category;
• The cost for your Skills Development Facilitator can be claimed as a training expense;
• Learnerships for the disabled allow you to score in all the three areas at the same time and
• Learnerships, apprenticeships and internships are a great way to boost your training spend, as you can
count the salaries of the learners as a training expenditure.

71. TAX BENEFITS OF LEARNERSHIPS
• There are several financial and other advantages to having learnerships in the organization.
 SARS offers a tax break of R60 000 per participants on a learnership, which equals a saving of R16 800 per
learner per year.
 Cash discretionary grants of up to R20 000 and
 Grants to supply tools and equipment
• Tax Incentives are deductions on your taxable income that you can claim for each
learnership candidate that you have in your employment, once at the start of the
learnership, and once again at its completion.
• These incentives are legislated in section 12H of the Income Tax Act, 58 of 1962 and the
amendments made in January 2010. There are only 2 levels:
 R30 000 commencement and completion allowances for learnerships and apprenticeships
 R50 000 commencement and completion allowances for learners with disabilities
• All of the above amounts a rough saving of approximately R50 000 per participant on a
learnership.

72. SCOPE OF LEARNERSHIPS
• A learnership is a work-based approach to learning and gaining qualifications and
includes both structured work experience (practical) and structured institutional
learning (theory).
• Therefore, a learnership consist of two parts – the first part being the theoretical
part delivered by a learnership accredited training institution, and the second part
being a practical on the job practical training, where the student receives on-the-
job training.
• The key principle of a learnership is basically the same as an apprenticeship with
the biggest difference being the intensity of training and the tight control over the
training delivered on a learnership.
• Criteria, as set out in the SDA, indicate that a learnership must:
 Include a structured learning component
 Include practical work experience
 Lead to a qualification
 Relate to an occupation

73. SETTING UP A LEARNERSHIPS AS AN
EMPLOYER
• Step 1: Choose a learnership
• Step 2: Apply for a grant
• Step 3: Find a guide
• Step 4: Choose a training provider
• Step 5: Choose learners
• Step 6: Sign the learnership agreement
• Step 7: Sign employment contracts with unemployed learners
• Step 8: Register the learnership agreement with the SETA
• Step 9: Start the learnership

74. THE LEARNERSHIP
AGREEMENT
• The Learnership Agreement is a legally binding
document that must be signed by the employer, the
provider and the learner.
• The agreement outlines the rights & duties of the
various parties: it also specifies the termination date
of the Learnership.
• Any Learnership must be formally registered by the
SETA. A copy of the Learnership Agreement may be
obtained from the relevant SETA.
• The unemployed/pre-employed learner will be paid an
allowance (instead of a salary) while the learner gains
work place experience and while the learner learns at
the training provider.
• The employed learner will receive a negotiated salary
during the course of the Learnership & may also need
to be reimbursed for learning material, travel costs and
for fees.

75. EVALUATING THE IMPACT OF THE
LEARNERSHIP
• The overall success of the Learnership project needs to
be evaluated. The Learnership will be deemed
successful if:
The learner achieves competence within stipulated time
frames
The Learnership has led to an increase in productivity levels
Current employees have been able to progress in their career
The learners have found placement following the Learnership
– i.e. are more employable
The employer should identify the criteria for success at the
outset: these need to be clearly understood by the learner

76. LEARNING ACTIVITY
6
• Syndicate group Discussion:
• Evaluate the efficiency,
effectiveness and impact of
the GEP’s current
Learnership programmes and
BBBEE scorecard ratings.
• Identify gaps and
recommend improvement
strategies to address these
process gaps.

77. OBJECTIVE #6:
FUTURE FIT L&D (SLP)

78. FUTURE-FIT L&D:
10 CRITICAL
SUCCESS FACTORS
FOR THE
TRANSFORMATION
OF TRAINING TO A
STRATEGIC
LEARNING
PARTNER/SOLUTION
• #1: L&D can count on top management support
and ownership of L&D strategies and –processes
• #2: A vibrant and effective Performance
Management System (PMS) is the
bedrock/foundation of L&D processes
• #3: There is direct and active engagement,
consultation and participation of line management
in all learning processes
• #4: L&D Managers and -professionals adopt and
apply a strategic mind-set (conceptual thinking)
• #5: L&D have established a learning organizational
culture and developed a Knowledge Management
System

79. FUTURE-FIT L&D:
10 CRITICAL
SUCCESS FACTORS
FOR THE
TRANSFORMATION
OF TRAINING TO A
STRATEGIC
LEARNING
PARTNER/SOLUTION
• #6: L&D hold individuals accountable for
application of learning by means of e.g. learner
contracts/agreements
• #7: When utilizing outsourced training providers,
L&D ensures performance-directed, Service Level
Agreements are in place
• #8: Learning and Development strategy is
embedded in the business strategy
• #9: Learning and Development proactively
anticipates and prepares employees to be future-
fit and the organization to be future-proof.
• #10: There is top management commitment to L&D
as an investment and not as a cost item

80. LEARNING ACTIVITY 7
• Group Discussion:
• Evaluate the GEP’s current
degree of compliance to the
following 10 Future-fit L&D
transformation best practice
criteria. Refer to the Survey
Monkey link:
• https://www.surveymonkey.co
m/r/VSLVTHX
• Identify gaps and recommend
improvement strategies.

81. CONCLUSION
• Key points
• Summary
• Questions
• Certification

82. CONTACT DETAILS
• Dr. Charles Cotter
• (+27) 84 562 9446
• charlescot@polka.co.za
• LinkedIn
• Twitter: @Charles_Cotter
• https://www.facebook.com/CharlesACotter/
• http://www.slideshare.net/CharlesCotter