In the context of South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) policy, the Skills Development Expenditure is one of the priority elements in the B-BBEE scorecard.
The Skills Development Expenditure element emphasizes the importance of enhancing the skills and capabilities of black individuals (previously disadvantaged groups in South Africa, including Black Africans, Coloureds, Indians, and others) through training and development initiatives The Skills Development Expenditure element typically involves bursaries, learnerships, in-house training, as well as short courses and workshops.
Skills Development as Priority Element
However, if a company does not meet the minimum level of Skills Development spend as a priority element on the South African B-BBEE scorecard, it can have several negative consequences:
- Penalties and Consequences – not meeting the 40% sub-minimum, will lead to the company being discounted one level, meaning that the company will drop one level on its scorecard.
- Lower B-BBEE Score
- Reduced Access to Markets and Opportunities
- Reputational Damage
Skills College can Assist in Attaining a Full Score of 25/20 for Skills development Spend!
Feel free to connect via any of the channels provided below if you are interested to explore options to optimise your Skills Development Spend and to avoid these negative outcomes. This not only ensures compliance with regulations but also and improve their B-BBEE scores.