Advanced Skills Auditing Conference 2016
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The Skills Development Levy aims to encourage skills development in South Africa by requiring employers to contribute 1% of their total monthly payroll towards skills development initiatives. The levy funds are then distributed via Sector Education and Training Authorities (SETAs) to support various skills development programs.
Advanced Skills Auditing Conference 2016
- 1. Skills Development: a real world update Gizelle Mc Intyre Director: The Institute of People Development
- 2. Institute of People Development (IPD) The Institute of People Development (IPD) is committed to an ongoing process of achieving and maintaining its status as a "centre for learning excellence". • Primary Aim – To enhance the quality of workplace learning provision through the development of managers, supervisors and learning development practitioners. • The Institute strives to be a "change agent" by – Providing qualifications to managers, supervisors and learning & development practitioners – Offering recognition of prior learning (RPL) services to experienced learning & development practitioners – Conducting research projects designed to generate best practice products and processes through a continuous professional development (CPD) programme – Expanding the field of learning & development practices to the wider public through seminars, media releases, on-line resources and communities of practice workshops and consulting – Making available its learning facilities and resources in Midrand to its clients and stakeholders for the purposes of high quality learning provision
- 3. Quick Question • What brings you to the conference? • a) Knowledge building • b) Networking opportunities • c) My boss made me attend
- 4. ROI • OK let’s make today worth your while….. • Please turn to the person to your right and left and identify and consolidate 2 main ideas you would like me to focus on based on the following slide. • Please write them down on the paper provided.
- 5. Topics up for discussion • Current and proposed landscape: Skills Development • Legislation and Skills Development • PIVOTAL programmes, workplace learning and RPL • Broad-Based Black Economic Empowerment (BBBEE) Skills Development point requirements • What does the future hold?
- 6. Why do we do what we do? • Training for compliance begs the question – when will South Africa opt for a healthy skills development approach? • The key is to employ skills development is to : – foster better engaged workers, – build people’s proficiencies and – upskill the nation NOT to gain some BBBEE points or tick a tick box on your scorecard. • This process is garnering some cynicism and a feeling of exhaustion amongst the true believers of real skills development and transformation. Ironic, considering the points can still be gained with a focus on meeting real needs.
- 7. Acronyms are king! • ABET – Adult Basic Education and Training • AQP – Assessment Quality Partner • AIDS – Acquired Immunodeficiency Syndrome • BBBEE – Broad-based Black Economic Empowerment • CHE – Council on Higher Education • COGTA – Department of Cooperative Governance and Traditional Affairs • DHET – Department of Higher Education and Training • DPSA – Department of Public Service and Administration • DQP – Development Quality Partner • DTI – Department of Trade and Industry • FABCOS – Foundation of African Business and Consumer Services • FET – Further Education and Training • GDP – Gross Domestic Product • HEI – Higher Education Institution • HESA – Higher Education South Africa • HIV – Human Immunodeficiency Virus • HRDSSA – Human Resource Development Strategy for South Africa • ICT – Information and Communication Technology • IPAP – Industrial Policy Action Plan • JIPSA – Joint Initiative on Priority Skills Acquisition • M&E – Monitoring and Evaluation • NAMB – National Artisan Moderating Body • NCV – National Certificate (Vocational) • NSA – National Skills Authority • NSDS – National Skills Development Strategy • NGO – Non-governmental Organisation • NQF – National Qualifications Framework • NSF – National Skills Fund • PIVOTAL – Professional, Vocational, Technical and Academic Learning • QCTO – Quality Council for Trades and Occupations • SEDA – Small Enterprise Development Agency • SETA – Sector Education and Training Authority • SLA – Service Level Agreement • SMME – Small, Medium and Micro-sized Enterprises • SSP – Sector Skills Plan
- 8. Legislative History Lesson • SAQA – 1995 • Employment Equity Act – 1998 • Skills Development Act - 1998 • Skills Development Levies Act – 1999 • Skills Development Amendment Bill 2003 • A Strategy for Broad-Based Black Economic Empowerment was released in 2003. • Broad-Based BEE Act No. 53 of 2003 Broad-Based BEE Act No. 53 of 2003 (‘BEE Act’) – 2004 • Codes of Good Practice 2007 • Skills Development Act (Amended) 2008 • Amended B-BBEE Codes 2012 • National Development Plan 2030 - 2013 • White Paper for Post-School E & T - 2013 • Guidelines on the Implementation of the SETA Grant Regulations - 2013 • New Landscape proposed – 2015
- 9. Current and New Landscape
- 10. The Current Situation In Education & Training • Skills Development has become a BBBEE scorecard conversation • The reality of the skills crisis is hitting us e.g. Eskom • Huge numbers of unemployed graduates • 7.2 million people illiterate • New forms of illiteracy developing • Professional Bodies • Uncertainty about Setas • Graduate Programmes in companies • Short Course changes
- 11. SAQA Act NQF Act Skills Development Act WSP from your company Sector Skills Plans Creating employment opportunities for properly skilled people Skills Development Levies Act Career and alignment information www.saqa.org.za Feedback from SETA and Industry/ Associations CULMINATING INTO THE NATIONAL SKILLS PLAN
- 12. Proposed New Skills Development Landscape • With National Skills Development Strategy (NSDS) III finishing its five year life-span in 2016 (now extended to March 2018), it was expected that a fine-tuning of the key skills development institutions would take place to support the new NSDS. • The proposed new landscape is however a significant evolution in the institutional landscape and one which therefore requires significant consideration and discussion among stakeholders. • The Department of Higher Education & Training (DHET) published on 10 November 2015 a draft proposal for a new National Skills Development landscape which would take effect on 1 March 2018. • The proposal is a government gazette with a deadline of 20 January 2016 for public comments.
- 13. Proposed New Skills Development Landscape • The title of the DHET document is "Proposal for the New National Skills Development Strategy (NSDS) and Sector Education & Training Authorities (SETAs) Landscape (NSLP 2015)". What changes are proposed? • SETAs would be absorbed into the Department of Higher Education & Training but constituted as Specialised Delivery Units (Section 7B of the Public Service Act) • They would become permanent structures, rather than have 5 year renewable life- spans • They would remain 21 in number (no immediate mergers but clustered into five synergistic groupings) • SETA Boards would remain unchanged but have greater representation from government departments in line with a stronger public sector focus
- 14. Proposed New Skills Development Landscape Changes to Funding • 80% of the current SETA Discretionary Grant would be shifted to the National Skills Fund (equivalent to the entire current PIVOTAL Grant) • Employers would still be able to apply for the 20% Mandatory Grant (unchanged) and 10% of the remaining Discretionary Grant (renamed Sector Specific Grant) • SETA administration costs would remain at 10% of the Skills Development Levy, but likely reduced over time as a shared services unit realises bulk savings, and as other bodies take up previous SETA functions, such as Skills Planning • Public sector organisations would spend 1% of their personnel budget on quality assured education and training leading to NQF qualifications and fulfill the same reporting obligations as the private sector so as to qualify for funding from the National Skills Fund
- 15. Quality Councils SAQA CHE (NQF 5-10) Umalusi (GETC & FET NQF 2-4) QCTO (NQF 1- 10)
- 16. 16 NQF Level Sub-Framework and Qualifications Types (GG :36003 – 14 Dec 2012) Umalusi and CHET 10 Doctoral Degree Doctoral Degree (Professional) * 9 Master’s Degree Master’s Degree (Professional) * 8 Bachelor Honours Degree Post Graduate Diploma Bachelor’s Degree Occupational Certificate (Level 8) 7 Bachelor ‘s Degree Advanced Diploma Occupational Certificate (Level 7) 6 Diploma Advanced Certificate Occupational Certificate (Level 6) 5 Higher Certificate Occupational Certificate (Level 5) 4 National Certificate Occupational Certificate (Level 4) 3 Intermediate Certificate Occupational Certificate (Level 3) 2 Elementary Certificate Occupational Certificate (Level 2) 1 General Certificate Occupational Certificate (Level 1) CHE UMALUSI QCTO
- 17. HET Framework (2013) Postgraduate 10 Professional Doctorate (360) Doctoral Degree (360) 9 Professional Masters (180) Research Masters(180) 8 Post Graduate Diploma (120) Professional Bachelors Degree (480) Honours Degree (120) Undergraduate 7 Advanced Diploma (120) Professional Degree (360) BTech/Bachelors Degree (360) 6 Advanced Certificate (120) Professional Diploma (240) Diploma(360) 5 Higher Certificate (120) Professional Diploma (240)
- 18. NQF & OFO Map - Source QCTO 2012 •2 Professionals 9 - 10 •1 Managers 7- 8 •3 Technicians and Associate Professionals 6 •6 Skilled Agricultural, Forestry, Fishery, Craft & Related Trades Workers •7 Plant and Machine Operators and Assemblers •3 Service and Sales Workers •4 Clerical Support Workers 3 - 5 •8 Elementary Occupations 1 - 2
- 19. Level Typical activities Role Workplace Focus Time 10 Envisioning future scenarios Visionary leadership Future shape of organisation, industry, profession 10-15 years 9 Set and implement strategies Leading and directing The 'business landscape' or profession 5-10 years 8 Manage or design systems Resource management Policy, resource allocation 3-5 years 7 Manage or design processes Changed practices New technology, systems 1-3 years 6 Develop and implement changes Optimisation Improvements 6 mth -1yr 5 Maintain efficiencies Stability and consistency Systems 3-6mth 4 Setup processes and solve process problems Process management Process data 1-3mth 3 Adjust, maintain and oversee Procedures Productivity 1wk 2 Monitor, support Operations Machinery 1 day 1 Perform elementary tasks Task Machines, tools 1 day OQF Level descriptors: To determine level of tasks
- 20. 1 2 3 4 5 6- 8 8- 10 NQF Level Core Skill New Entrant Operator Team Leader/ Artisan/ Supervisor First Line Manager Graduate Development Programmes Continued Professional Development Professional Skill Induction Raising the Bar Foundational Learning Certificate Mathematical Literacy and Communication Preparing unemployed for access Skilled technical worker Core Skills plus Manager Occupational Core plus Technician Supervisor Technical Specialist Manager Technician Management Production Logistics Purchasing New Product Development Business Development Research And Development SHEQ Manager Finance Specialist Occupations after first Degree General Management Career Ladder Example
- 21. Knowledge / theory Practical Work experience External, summative assessment (to be conducted by AQP) Occupational Qualification Registered SAQA DQP/ INDUSTRY Occupational Purpose Curriculum components Assessment Specifications. Qualification document QCTO Curriculum Model
- 22. Flow chart Occupational Trainer •Adapt and facilitate learning •Establish and meet learner needs •Perform internal assessments Training and Development Practitioner • Plan workplace learning delivery • Design and facilitate learning • Establish organisation training needs • Conduct external assessments Training and Development Professional • Design OD interventions • Measure learning success/impact on the organisation • Talent management • Assessment design • Moderation of external assessment NQF 4 NQF 5 NQF 6 OFO: 242402 OFO: 242401 OFO: 242401
- 23. NQF Advanced National Certificate (Vocational) Eg, National Skills CertificatesEg, National Occupational Awards Doctoral Degree Masters Degree Master Postgraduate Diploma Professional Qualifications s Degree Bachelor Degree Advanced Diploma Diploma Advanced Certificate Higher Certificate Incl.subject/unitcertificates National Senior Certificate (Grade 12) General Education & Training Certificate (Grade 9) Advanced National Certificate (Vocational) 5 Adult National Senior Certificate Adult National Senior Certificate Units of learning to be accumulated National Certificate (Vocational) 4 National Certificate (Vocational) 3 National Certificate (Vocational) 2 OQFLevel 1 Level 3 Level 2 Level 4 Level 6 Level 5 Level 7 Level 9 Level 8 Level 10 HEQFGFETQF Qualifications Framework
- 24. Skills Development Process Company Strategy/Vision Skills Needed to fulfil strategy Do needs analysis/Skills Audits of current staff Design Solutions Implement Solutions (Training/Coaching/Mentoring) Workplace Application Assessment (Performance Management)
- 25. Legislation and Skills Development
- 26. Employment Equity • The purpose of this Act is to achieve equity in the workplace by- (a) promoting equal opportunity and fair treatment in employment through the. elimination of unfair discrimination; and. (h) implementing affirmative action measures to redress the disadvantages in 25.Oct 19, 1998
- 27. Employment Equity and Skills Development • Compliancy is the name of the game…. – Do you have an Employment Equity Plan and is it up to date? – Have you done a Skills Audit in order to analyse you workforce profile? – Do you have quarterly committee meetings? – Have you submitted your EE reports? – Have you submitted your WSP/ATR?
- 28. Implications of equity policies and BBBEE driving skills development • Are we training only for EE reports and BBBEE points? • What about critical, customised/industry specific skills? • What about the providers who don’t comply but provide what we need?
- 29. Our Current Picture • The Employment Equity Commission for South Africa has released its 2015/16 report
- 31. Employment equity, gender equity and disability equity The Broad-Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice was gazetted on 12 October 2013 and came into effect on 1 May 2015. • Employment Equity no longer stands alone as an individual element. Employment Equity has been incorporated with Management and Control and carries 15 points for both Generic and Qualifying Small Enterprise (QSE) businesses. • Points are only allocated for employees in management positions. • The calculations for management and control are complex and require attention to the Economic Active Population (EAP). These targets are set in accordance with each province according to racial demographics of the said province.
- 32. Employment equity, gender equity and disability equity • Gender – Black female employees in management are awarded points as a separate indicator on the scorecard. • Disabled employees – Only black employees with disabilities are given recognition, and are measured as an indicator on the scorecard. – The definition of black people with disabilities according to the Employment Equity Act is: “People who have long-term or recurring physical or mental impairment which substantially limits their prospects of entry into, or advancement in, employment.” A doctor must medically certify the nature of the disability and the duration thereof before a black employee can be termed disabled.
- 33. Disability
- 34. Skills Development Levy (SDL) SDL is a levy imposed to encourage learning and development in South Africa and is determined by an employer's salary bill. Who must pay SDL? • If the company has staff registered for PAYE and the annual payroll exceeds R500 000 per annum, the company must register with SARS and pay a skills levy of 1% of the monthly payroll. If the company does not fall within these criteria, it does not have to pay levies or register with SARS. • Where an employer expects that the total salaries will be more than R500 000 over the next 12 months, that employer becomes liable to pay SDL.
- 35. Skills Development Levy (SDL) How much do you need to pay? • 1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments). How to determine which SETA your company belongs too? • Each SETA has a mandate to serve the Sector Industry Classification Codes (Sic Codes) under its control as determined by the Department of Higher Education from time to time. (See Government Gazette 33756 dated 11 November 2010) What happens to the SDL Levy? • The levies are distributed via SETA.
- 36. Skills Development Levy (SDL) Why are you using this as a forecast of training you will be able to do for the year? • Joe earns 100 000.00 per annum • – this means his contribution is 1000 for the year • – can this really be your training budget for Joe?
- 37. PIVOTAL Grants and Workplace Learning
- 38. PIVOTAL Programmes • Government Gazette No. 35940 of 3 December 2012 on Sector Education and Training Authorities(SETAs) Grant Regulations regarding monies received by a SETA and related matters, published by the Minister of the Department of Higher Education and Training (DHET). • National Skills Development Strategy III (NSDS III) 2011 – 2016. The PIVOTAL grant is aimed at: • Improving the quality and quantity of labour market information received by the various SETAs in the form of workplace skills plans, annual training reports and PIVOTAL training reports to inform planning. • Promoting National Qualifications Framework (NQF) registered and quality assured PIVOTAL programmes that address priority scarce and critical skills identified in the various SETA Sector Skills Plan (SSP).
- 39. PIVOTAL Programmes PIVOTAL programmes definition • Professional, vocational, technical and academic learning programmes that result in qualifications or part qualifications registered on the National Qualifications Framework (NQF) that address critical and scarce skills needs.
- 40. PIVOTAL Programmes • Professional learning programmes shall mean programmes that lead to designations that are registered by professional bodies. • Vocational learning programmes shall mean programmes that lead to a trade and/or the National Certificate Vocational (NCV). • Technical learning programmes shall mean programmes that are occupationally-directed and registered by the SETA; such programmes include apprenticeships, Learnerships and skills programmes. • Academic learning programmes shall mean programmes that lead to academic qualifications such as certificates, Higher Certificates, Diplomas and Degrees.
- 42. Workplace Learning: 70-20-10 model • Learn and Develop Through Experience • On-the-Job • Work Integrated Learning • Just-in-Time coaching • POEs that are workplace orientated 70% • Learn and Develop through others • Occupationally directed Learning • Mentoring and Coaching • Informal Feedback • Action Learning • Professional Networks 20% • Learn and Develop through Structured Courses and Programmes • Workshops • Professional Development • Academic studies • E-Learning 10%
- 43. BBBEE and Skills Development
- 44. Revised BBBEE Points The amendments to the Codes (came into effect October 2014) significantly change the manner in which a firm’s BBBEE status (or level) will be calculated, as the number of BBBEE points required to achieve a particular BBBEE level has been increased. BBBEE Level CODES 1 ≥100 points 2 ≥95 but <100 points 3 ≥90 but <95 points 4 ≥80 but <90 points 5 ≥75 but <80 points 6 ≥70 but <75 points 7 ≥55 but <70 points 8 ≥40 but <55 points NON- COMPLIANT <40 points
- 45. Revised BBBEE Elements • 1. OWNERSHIP • 2. MANAGEMENT CONTROL • 3. EMPLOYMENT EQUITY • 4. SKILLS DEVELOPMENT • 5. PREFERENTIAL PROCUREMENT • 6. ENTERPRISE DEVELOPMENT • 7. SOCIO-ECONOMIC DEVELOPMENT. The amendments to the Codes reduce the number of elements to five by fusing the enterprise development/preferential procurement and management control/employment equity elements.
- 46. WEIGHTING • The weighting for each of the five new elements are set out in the following table:
- 47. BBBEE Scorecard and Skills Development
- 51. Learning Programme Matrix Cat Narrative description Delivery mode Learning site Learning achievement A Instruction-based theoretical instruction alone – formally assessed by the institution Institutional instruction Institutions such as universities and colleges, schools, ABET providers Recognised theoretical knowledge resulting in the achievement of a degree, diploma or certificate issued by an accredited or registered formal institution of learning B Instruction-based theoretical instruction as well as some practical learning with an employer or in a simulated work environment – formally assessed through the institution Mixed mode delivery with institutional instruction as well as supervised learning in an appropriate workplace or simulated work environment Institutions such as universities and colleges, schools, ABET providers and workplace Theoretical knowledge and workplace experience resulting in the achievement of a degree, diploma or certificate issued by an accredited or registered formal institution of learning C Recognised or registered structured experiential learning in the workplace that is required after the achievement of a qualification – formally assessed by a statutory occupational or professional body Structured learning in the workplace with mentoring or coaching Workplace Occupational or professional knowledge and experience formally recognised through registration or licensing D Occupationally directed instructional and work-based Learning Programme that requires a formal contract – formally assessed by an accredited body Institutional instruction together with structured, supervised experiential learning in the workplace Institutions and workplace Theoretical knowledge and workplace learning, resulting in the achievement of a South African Qualifications Authority registered qualification, a certificate or other similar occupational or professional qualification issued by an accredited or registered formal institution of learning E Occupationally directed instructional and work-based Learning Programme that does not require a formal contract – formally assessed by an accredited body Structured, supervised experiential learning in the workplace which may include some institutional instruction Workplace and some institutional as well as ABET providers Credits awarded for registered unit standards F Occupationally directed informal instructional programmes Structured information sharing or direct instruction involving workshops, seminars and conferences and short courses Institutions, conferences and meetings Continuing professional development, attendance certificates and credits against registered unit standards (in some instances) G Work-based informal programmes Informal training Workplace Increased understanding of job or work context or improved performance or skills
- 52. Skills Planning and the Learning Programme Matrix Create a Skills plan that comprises the following: Measurement of Skills Development indicators A = (B ÷ C) x D Where: A = score for any given indicator as referred to in the scorecard B = adjusted recognition for gender C = Target for the applicable indicators as referred to in the scorecard D = Weighting for the applicable indicators as referred to in the scorecard Delivery Methodology Assessment Examples of Suppliers Institutional based theoretical instruction It must be formally assessed by the institution.) Public and Private Institutions that offer academic qualifications Institutional based theoretical instruction as well as some practical learning with an employer or in a simulated work environment. It must be formally assessed through the institution. Academic with compulsory WIL. Occupationally based training Recognised or registered structured experiential learning in the workplace that is required after the achievement of a qualification. – It must be formally assessed by a statutory occupational or professional body. Professional Bodies for designations RPL Occupationally directed instructional and work-based Learning Programmes that require a formal contract. It must be formally assessed by an accredited body. RPL Formal Internships, Learnerships and Occupationally directed qualifications and Skills Programmes that lead to qualifications Occupationally-directed instructional and work-based Learning Programmes that do not require formal contracts. It must be formally assessed by an accredited body. Occupationally directed qualifications RPL Skills programmes that lead to qualifications Occupationally-directed internal instructional programmes. Performance Management “How to” programmes Work-based internal programmes. Performance Management Induction
- 53. BBBEE and Skills Development • With a weighting of 25 points in total, this is an element to focus on. • The 6% of payroll spend requirement can be used for optimal ROI by projecting talent needs per race and gender category and using the money in bespoke projects such as bursaries, internships, learnerships, apprenticeships and other programmes. • The ability to thereafter integrate the said individuals into employment is crucial and adds the additional 5 bonus points. This makes proper pre-assessment practices essential to give you the best chance of converting the said persons into full employment. • There is a limit of 15% (of the total soend amount claimed) in claiming expenses associated with the skills development (eg travel, accommodation and catering) and furthermore, mandatory training (e.g. FICA, FAIS, OHS) is not recognized. Uncertified learning is also capped at 15% of the total spend claim.
- 55. Amended Broad -Based Black Economic Empowerment Codes Of Good Practice October 2012 The thresholds for Exempted Micro Enterprises and Qualifying Small Enterprises have been adjusted as follows: • EME increased from R5 million to R10 million • QSE: R5 million -R35 million to R10 million - R50 million • Large entities: R50 million and above
- 56. Qualifying Small Enterprises (QSE’s) Qualifying Small Enterprises (QSE’s) are defined by the Codes as companies with an annual total turnover of between R 5 million and R35 million. • Government has singled out small enterprises as vital in the fight for job creation and economic growth. According to the Small Enterprise Development Agency (SEDA), small enterprises already contribute approximately 35% of the country's gross domestic product (GDP) and employ over half the number of people who work in the private sector. • Aiming to ease the regulatory burden on small enterprises, the Codes require QSE’s to comply with ONLY four out of seven elements on the QSE scorecard. • And while every company qualifying for measurement under the Codes must maintain a scorecard, the codes have further eased the BEE compliance burden by setting lower targets for these companies. • Unlike the Generic Scorecard, the QSE Scorecard allocates an equal 25% weighting to each of • the seven elements, or pillars, of B-BBEE. As QSE’s only have to elect four of the elements, • selected elements of compliance total 100%.
- 57. Exempted Small & Micro-enterprises Exempted Small & Micro Enterprises (EME’s) are defined by the Codes, as companies with an annual total turnover of R 10 million or less. • EME’s have a BEE recognition of a Level 4 contributor and those, which are either 50%, owned by black people or 50% owned by black women are promoted to a Level 3 contributor. • They also automatically qualify for procurement
- 61. To Summarise • "Gross National Happiness is more important than Gross National Product" by Jigme Singye Wangchuck, King of Bhutan.
- 62. Thank you! “Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning.” ― Mahatma Gandhi
- 63. Contact Details Institute of People Development 011 315 2913 www.peopledev.co.za [email protected]