One of the biggest collective challenges South Africa is facing is the unemployment crisis. StatsSA’s latest figures show that a third (32.7%) of working-age people in South Africa are unemployed.
Broad-based Black Economic Empowerment (B-BBEE) is an explicit commitment by the South African government to promote economic transformation and enhance the economic participation of black people (African, coloured and Indian people who are South African citizens) in the South African economy.
South Africa's new Employment Equity Amendment Bill of 2020 has been approved for submission to Parliament. SA's Cabinet says that “The Bill promotes equal opportunity and fair treatment in employment through the elimination of unfair discrimination”.
This bill re-emphasizes how important it is for companies to actively transform their workplace but this begs the question - which companies are at risk of non-compliance?
Being a Broad-Based Black Economic Empowerment (B-BBEE) compliant business is a certification that all businesses in South Africa should have. We’re going to take a look at how and why you need to become a B-BBEE compliant business.
Companies do not achieve levels 2 or 3 by mistake or by ticking boxes. BEE
needs to be implemented with carefully planned methodologies, which is then
properly implemented and monitored in a way that makes complete business
Skills development, specifically learnerships will soon become a buzzword in the
workplace if the proposed B-BBEE codes are implemented. Companies who have
ignored the practice of learnerships will have to face this issue squarely if they hope
to maintain their BEE rating in future.
The draft Employment Equity Amendment Bill will have far reaching consequences for businesses who do not adequately plan their BEE processes. This is according to Sam Deuchar, CEO of Rebmormax; executive talent consulting agency.
The issue of BEE for businesses can be a complex situation to manage effectively. Especially if those companies are looking to work closely with the government in wanting to secure business them. In the quest for a good BEE certificate business owners often fall victim to the many pitfalls of BEE.
In October the Department of Trade and Industry released the amended BBBEE Codes for public comment. One of the changes proposed will require companies to employ people from each race group in order to claim full scores in the Management Control element on the BEE Scorecard.
To ensure economic growth the principles of BEE must be implemented. The country's economy is currently in the hands of a few elite and these principles ensure the spread of wealth. However, companies are feeling forced to comply rather than proactively working towards becoming compliant.
Do you understand the implications the newly gazetted BBBEE ICT sector code will have on your business? Transcend Corporate Advisors offers HR professionals, senior executives and BEE champions the opportunity to get to grips with these changes.
SANAS and the DTI have issued a joint statement announcing that BEE Verification agencies would now be accredited to issue EME certificates from 1 March 2012. Econobee explains the reason for the sudden change and the implications for business.