LABOUR: Lack Of Skills Development Costs R550b
Recent Western Cape Business News
Stellenbosch University recently uncovered staggering findings regarding the impact of illiteracy on the economy: revealing an estimated loss of R550bn per annum. As a result of the deteriorating quality of schools and education in general; the GDP is approximately 23 to 30 percent lower than it could be. This stands in stark contrast to the estimated BEE Ownership deals cumulatively tallying R550bn in total.
COO of EconoBEE, Gavin Levenstein believes that the two issues closely connected in that Broad-Based BEE scorecard can have a hand in improving illiteracy statistics: “Broad-Based BEE is a progressive solution. The Skills Development element encourages companies to invest in training of their staff. As an added bonus, increased training produces a better quality service and product, as well as more efficiency and ultimately happier staff.”
Training expenses deemed eligible for calculation in terms of the BEE scorecard includes; in-house training as well as any associated training expenses such as travel or accommodation, formal training, informal training, ABET, Learnerships.
ABET has specifically been taken into account in the B-BBEE Codes of Good Practice. Levenstein explains the significance to business owners; “Any spend on ABET training results in an enhanced claim of 125%; which means the actual value of spend is less than the value claimed on the BEE Scorecard. Although this looks like a loophole, the BEE Codes have deliberately included the enhanced spend based on known ‘problem areas’.”
The B-BBEE Codes of Good Practice take into account many of the social problems currently being faced and they encourage businesses to take the lead in addressing these. Through correct BEE implementation, compliant businesses could indirectly save the SA economy more than R550bn per annum.
Business News Sector Tags:
Fax 2 Email
Study IT Online
Work from Home