24 Jul Skills Development Funding,WSP submitted, Now What?
The new BBBEE codes have encouraged companies to complete a workplace skills plan with their Seta. The good news regarding this additional administration process, is that submitting a WSP, or an application for your Mandatory Grant not only qualifies you for receiving your Mandatory grant in the form of 20% of your annual Skills Development Levy paid to SARS, but also opens a whole new avenue of Discretionary Funding to all these new entrants.
In the past, many companies did not engage their Setas, resulting in their portion of the Seta funding being allocated to those who did apply successfully. Many stakeholders were fortunate in receiving more than what they bargained for, and way more than what they paid in Levies, giving them opportunity to make up their Skills Development budget without breaking much of a sweat. However, HR Ignite is of the view that this practise will seize. The reasoning is that the new codes, and mostly also the various Charter Codes are encouraging the Seta process. The Codes are also encouraging Seta registered Interns, Learnerships and Apprenticeships, which will certainly improve
our country’s skills outlook, but will also equalise the playing field in terms of Seta fund allocations. Companies, especially QSEs (those earning between R10mil and R50mil per annum, and not 51% black owned) will have to find innovative ways of funding the skills budget if they want to improve their BBBEE score.
Apart from this, leaders also need to be mindful in building a sustainable pipeline of skills for their business as well as upskilling their community. The business imperative of skills development need not be rehashed, as we all know what the impact of skills shortages have had on our economy, and quite possibly on our own businesses.
In closing, invest in a creative Skills Development Consultant, a good BBBEE consultant…. And finally invest in your people, and you will reap the rewards of BBBEE. When you surround yourself with professionals, often the mountain becomes a mole heap. Let us partner with you!
By Amanda Earle, Managing Partner at HR Ignite, a Black Owned HR Outsourcing Company
Connect with us on ………….social media