Fundamentals of BEE
Being a business owner in South Africa is quite the daunting task. Apart from the daily uphill struggles you will face in your specific industry, you also need to have a helping hand in developing and stimulating the local economy. The government initiative of black economic empowerment, or BEE for short, is aimed at training people from previously disadvantaged groups to bring down the total unemployment percentage and give people the opportunity at successful careers. As a result, the South African government aims to strengthen the country’s economy by providing better opportunities to unemployed people.
Should you be a business owner and unsure about your BEE score, or any other BEE-related factor, LFP Training is the place for you. Although we are not a recognised business consultant company, we offer BEE consulting that puts the focus on skills development initiatives, resulting in a direct impact on our clients’ BEE scorecards, while keeping the process as cost effective as possible. Since the implementation on your company will reflect a score that will have a substantial influence on potential future partners and investors, it is highly recommended to consider professional BEE consulting to keep your score at its best.
BEE Priority Elements
To ensure that your business achieves its maximum potential BEE score, a minimum target of 40% must be reached in the areas of ownership, preferential procurement, and skills development. In essence, companies in South Africa should ensure that their management meets these requirements, along with employing and training people from previously disadvantaged racial groups, in order to get their BEE score as high as possible.
Not all the companies in South Africa can immediately abide to scoring the highest possible BEE ratings, as it cannot be achieved overnight, or have a negative influence on the company itself. Therefore, our BEE consulting focuses on skills development, since it is one of the more accessible ways to gain points for your overall score. The South African government implores companies to have skills development initiatives, resulting in job creation for the previously disadvantaged, and boosting the local economy by reducing unemployment and giving more people financial benefits that were previously unavailable to them.
A business’s BEE score starts with the investment percentage of 6% of your overall payroll towards skills training for the previously disadvantaged. This percentage was previously 3%, and your company will earn up to 8 points for investing 6%. Should you take another 0,3% off your payroll and invest it in skills training for disabled previously advantaged people, you can gain up to 4 points. For claiming another 4 points, 2,5% of your staff must be enrolled in internship and apprenticeship programmes, with another 4 points added if 2,5% of your company’s headcount is previously disadvantaged unemployed students. Should 100% of these students be offered full employment at the end of their training, your company gains an additional 5 points.
Should you be looking for professional BEE consulting for your company, LFP Training can help you maximise your score regarding skills development. Feel free to peruse our website for detailed information, or contact us directly with further enquiries. Let LFP Training help you get your company to a competitive and respectable BEE score that will make a positive difference in the way you do business.