Tag: Training Force

In South Africa, businesses are required to contribute to the social and economic development (SED) by the Broad-Based Black Economic Empowerment (B-BBEE) Act of 2003. This legislation stipulates the assessment of SED performance through a scorecard covering enterprise development, skills training, job creation, socio-economic projects, and preferential procurement.

Skills development in the form of learnerships is an essential element of the Broad-Based Black Economic Empowerment (B-BBEE) scorecard, accounting for a significant portion of the score for large enterprises in particular. However, not all businesses have the capacity, availability, or ability to take on sufficient learners to meet their obligations.

Workforce training, while essential for upskilling, can cause operational downtime which affects the company’s bottom line. However, this is easily countered with the introduction of on-demand online training. This gives workers the flexibility to attend their training sessions without impacting their work schedules.

The Statistics SA Quarterly Labour Force Survey for Q2 2021 paints a grim picture of the employment landscape in South Africa – the official unemployment rate is 34.4%. Most significant of all, the unemployment rate for youth aged 15 to 24 years stood at 64.4% and the unemployment rate for those aged 25-34 years was 42.9%.

The 4th 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.

Skills development is one of the cornerstones of Broad-Based Black Economic Empowerment (B-BBEE) and makes up a significant percentage of the scorecard. South African businesses need to shift their mindset to see it as more than just a compliance exercise. The goal of B-BBEE is not to stifle businesses but to provide a fair environment for all and uplift previously disadvantaged people to enable them to earn an income and contribute to the country's Gross Domestic Product (GDP).

Broad-based Black Economic Empowerment (B-BBEE) is a prerequisite for doing business in South Africa, and training forms a significant portion of the B-BBEE scorecard. However, training is also critical to help address the skills shortage in the country that is only growing as we move into the 4th Industrial Revolution (4IR).