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.
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
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
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)
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
30.
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.
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?
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%
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.
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