If you’ve ever felt overwhelmed by the numbers behind Broad-Based Black Economic Empowerment (B-BBEE), you’re not alone. Skills development, one of the most dynamic elements of the B-BBEE scorecard, can feel like a maze of percentages and targets. But here’s the thing—it doesn’t have to be dull or daunting! With the right approach, calculating skills development targets can be exciting, empowering, and dare we say, fun.
Let’s break it down step by step so you can approach skills development with clarity and confidence.
Why Skills Development Is the Star of B-BBEE
Skills development is all about upskilling people, unlocking potential, and driving economic transformation. It contributes 20 points (plus 5 bonus points) to your scorecard, making it one of the most impactful areas for businesses looking to boost their B-BBEE compliance while making a real difference.
Step 1: Understand the Leviable Amount
The starting point for all calculations is your leviable amount, which is your annual payroll as defined by the Skills Development Levies Act. This figure determines how much you need to invest in training initiatives.
Think of your leviable amount as the cake, and skills development is the delicious icing that makes it even better. Without knowing your base (the cake), you can’t calculate how much icing (training spend) you need!
Step 2: Know Your Targets
Here’s the magic formula for skills development:
- Skills Development Expenditure
- Spend 6% of your leviable amount on training black individuals. Bear in mind that sector targets may vary, and all targets must be split as per the Skills Development scorecard’s indicators for each respective sector.
- Learnerships, Internships, and Apprenticeships
-
- Ensure that the equivalent of 5% of your workforce is participating in structured learning programmes.
- Absorption Bonus
-
- Permanently retain or employ 100% of unemployed learners upon completion of their programmes, and you’ll score an extra 5 bonus points! Unemployed learners absorbed by the industry will also qualify for bonus points. Remember to obtain proof of permanent employment.
Step 3: Plan Your Training Spend
To score maximum points, you need to allocate your training spend strategically. Here’s how:
- Prioritize Black People with Disabilities
- Spend at least 0.3% of your leviable amount on training black employees with disabilities.
- Focus on Black Women
-
- Ensure 54% of your total spend benefits black women.
- Include Black Unemployed Individuals
-
- Training unemployed black individuals counts toward your targets—great for community impact!
- Diverse Training Categories
-
- Use a mix of on-the-job training, accredited programs, and SETA-recognized courses.
- Understand the Learning Programme Matrix
-
- The Learning Programme Matrix provides a detailed outline of the different types of skills interventions that qualify as a B-BBEE claim.
Step 4: Do the Math
Here’s a quick example to put it all together: Special Note – the below is not a detailed calculation, but a rough estimate for budgeting purposes. Some of the indicators on the skills development scorecard are EAP aligned, just like Employment Equity. In other words, the targets must be split amongst the various demographics in accordance with the Measured Entity’s individual EAP targets. Overspending on one demographic alone will not yield full points, therefore, finding the right fit is crucial to maximize on the scorecard.
- Leviable Amount: R10,000,000
- Skills Development Spend Target: 6% of R10,000,000 = R600,000
- Allocation:
- R324,000 (54%) spent on black women
- R30,000 (0.3%) spent on black people with disabilities
- R246,000 (41%) spent on other black individuals, including unemployed persons
As long as these allocations align with the requirements, you’re on track to score full points!
Step 5: Keep Your Records Tight
Documentation is your best friend. Keep detailed records of:
- Training costs (invoices, contracts, payment proofs)
- Learner agreements
- Attendance registers and completion certificates
- Payroll data to verify your calculations
- Employment Contracts
- EEA1 declarations
- Proof of disability (if applicable)
- Identification documents
- Proof of enrolment / registration
- Proof of service provider’s accreditation
Good record-keeping ensures smooth verification and makes the entire process feel less like a chore and more like a well-oiled machine.
Step 6: Get Creative with Partnerships
Think beyond the numbers—partner with accredited training providers or Sector Education and Training Authorities (SETAs). This not only stretches your training budget but also ensures your programs are top-notch and impactful.
Why It’s Worth It
Skills development isn’t just about meeting compliance requirements—it’s about empowering people, building stronger communities, and future-proofing your business. Plus, when you nail your calculations and see the transformation in action, it’s genuinely rewarding.
Final Thoughts
The numbers may seem intimidating at first, but with the right mindset (and maybe a good playlist while you crunch those numbers), skills development becomes a vibrant part of your B-BBEE journey. It’s where transformation meets strategy, and everyone wins.
So, roll up your sleeves, grab that calculator, and let’s make skills development a story of impact and opportunity—not just compliance.
Need help fine-tuning your calculations or strategy? We’re here to make the process seamless and successful. Let’s transform together!
Written by: Zandri Cirinna
Resionex Consulting