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How the skills development scorecard is measured
Three of the four skills development indicators are measured against your payroll and one against your headcount. What each carries, and what that means for your targets.
Under the B-BBEE scorecard, investing in skills for Black people can earn you up to 25 points, bonus points included, and it keeps your own staff trained for their roles. The thing to understand first is what the targets are measured against. Three of the four indicators are a percentage of your leviable amount, which is broadly the payroll you pay the skills development levy on. The fourth is a headcount. So your skills targets are set by the size of your wage bill and your workforce, not by whatever you decided to budget for training this year.
This explainer takes the indicators one at a time. For the practical steps, see our how-to article on scoring well on skills development.
Training for Black people: 6 points
This is the core of the element: spending on learning programmes for Black employees and for Black people who are not employed. Qualifying programmes include accredited training, learnerships, internships and apprenticeships, and workshops or courses aligned to the National Qualifications Framework (NQF) and your organisation's skills needs.
The target is 3.5% of your leviable amount, and it includes spending on training unemployed Black people. A company whose payroll grows will find this target grows with it. Keep attendance records and proof of expenditure for every programme, because spend you cannot prove is spend the agency will not count.
Bursaries for Black students: 4 points
Bursaries for Black students at higher education institutions, such as universities, earn 4 points. They can cover tuition, books, accommodation and other study costs. The target spend is 2.5% of your leviable amount.
Working with the institutions to find suitable candidates, and following each student's progress, makes the programme more effective and builds a pipeline of qualified people for your sector.
Training for Black employees with disabilities: 4 points
Skills development for Black employees with disabilities earns 4 points against a target of 0.3% of your leviable amount. It can include specialised training, learnerships or internships, mentorship and workplace integration programmes. The percentage is small, but it is a separate indicator, so spend elsewhere cannot make up for it.
Programmes must be accessible and respond to participants' particular needs. Partnering with organisations experienced in disability inclusion helps.
Learnerships, apprenticeships and internships: 6 points
These programmes combine theory with practical work and carry 6 points. They must be SETA-registered, aimed at Black employees or unemployed Black people, and aligned to NQF qualifications.
This is the indicator measured by headcount rather than rand. The target is for the number of Black people on these programmes to equal 5% of your total employees, with the programmes leading to recognised qualifications or employment. A generous training budget does not meet it on its own: you need the people enrolled, the programmes following SETA requirements, and diligent tracking of who is on which programme.
How the points add up
The four indicators above total 20 points. The balance of the 25 is up to 5 bonus points for absorption, which rewards Black learners who move into employment once their learnership, apprenticeship or internship ends. Full bonus points need 100% absorption; a lower rate earns a proportional share. We explain that in our article on what absorption means for your skills development score.
Questions about how these targets apply to your payroll and workforce? Write to us at sales@bsvision.co.za.
Talk to BS Vision. We are B-BBEE and transformation consultants in Johannesburg, serving clients across South Africa.
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