BEE Points for Training
Finding someone who has never heard about BEE is difficult these days, but only a few of us fully grasp the relationship between training and BEE compliance.
Before diving into the topic, it is worth unpacking the essence of BEE. Black Economic Empowerment is a national programme launched to deal with the discrimination of Apartheid. Simply put, BEE aims to compensate for the economic privileges that white citizens had during the Apartheid era by offering opportunities to African, coloured and indian South African citizens.
To realise this vision, the set of BEE measures touch on the sub-categories of employment preference, ownership, management control, socioeconomic development, Enterprise and Supplier Development as well as skills development, which is a fancier way of referring to training.
The topic of BEE can become complicated, so we will steer clear from exploring all of its ins and outs. Instead, we will focus on the sub-category of Skills Development. Why? Well, most companies aim to attain a high BEE compliance level as it enables them to access a broader market. To achieve this, these businesses must invest in training initiatives for their staff.
In simple terms, companies must spend 6% of their annual payroll training employees of colour to obtain 8 points on their BEE scorecard. One might wonder whether there are limitations regarding the type of training accepted for BEE purposes. The answer is yes and no.
On the one hand, in BEE terms, 85% of the 6% must be spent on “accredited training”. For training to be recognised as “accredited”, two boxes must be ticked. Firstly, the training provider must furnish a valid accreditation report issued by the relevant SETA. Secondly, the report must indicate that the skills development provider is accredited to offer the training programme in question.
On the other hand, skills development is not only about SETA accredited content. The government acknowledges the importance of supplier or internal training, workshops, conferences and the like. Therefore, the remaining 15% of the 6% can be allocated for non-accredited training.
In the context of accredited training, it is worth noting that FUEL offers life skills and workplace skills training programmes that are SETA-aligned. This enables companies to reap the benefits of online training with the peace of mind that the expense will count towards the 6% target.