Being in business (and trust me I know), one tries to incur as little costs possible, whilst spending on resources that give you bang for your buck. If you owned a garden services company, you could see the value of a lawnmower you recently bought virtually immediately as it executes the task you’re being paid to do.
Putting your staff through training and upskilling your team may not show you a tangible ROI the next day. However there’s a reason why government has stepped in and made it extremely attractive to implement a Skills Development Strategy in your organisation. But let’s start with you – the business owner, CEO, Managing Director or HR head…
Value paradigms have shifted drastically from what job-seekers wanted in a career yesterday, and what they yearn for today. As a business, your USP, or unique selling point, is NOT
The very fact that any one of the above can be copied by someone else means that you are not quite niche in the market as you imagined; be honest with yourself. Whether they undercut your pricing right down to stealing your idea and creating the same (or better) tangible or intangible product or solution, competitors will be hot on your tail in terms of bettering your offering.
HOWEVER being an attractive employer that tantalises top talent and who builds a dynamic, agile team is something that cannot be duplicated. Having a competent team with shared values, goals and culture is really your USP and differentiator in the market.
According to the Top Employers Institute, we look at the metrics they use to ascertain the best companies to work for. The nine areas are:
And last but certainly not lease (insert drum roll here)
It’s no wonder the crème of the crop talent are seeking work opportunities at the top 10 companies in South Africa – or at least organisations which share the same sentiments as
1. Old Mutual
2. Ernst & Young
4. Tata Consultancy Services
5. Nestle SA
7. Orange Business Services SA
9. Vodacom Group
10. Dimension Data
People want to feel valued. Invested in. Looked after. Mentored. Developed.
If that’s not enough to sway your perception of Skills Development – then perhaps you need to consider how attractive – in monetary terms – it is to have a Skills Plan in place.
We all know that if your annual salaries are over R 500 000.00 you are permitted by law to contribute 1% of that as your SDL (or Skills Development Levy). SDL aside, we know how beneficial a compliant B-BBEE scorecard Level 1-2 is when it comes to procuring business. Unlike your SDL which is mandatory, the 6% contribution of your annual salaries for training is completely your choice. Knowing that Skills Development is one of five critical areas on your scorecard, it simply makes business sense to take upskilling your workforce seriously. And if THAT is not incentive to get you moving, know that there are incredible tax benefits at stake too.
Let’s unpack our lingo as outlined in the title to this article:
ATR = Annual Training Report
WSP = Workplace Skills Plan
WTF = we’ll leave that up to your imagination
If you think you can complete a Skills Plan with a checklist approach, spending money on whatever training you think an employee may benefit from, think again. Ideally, your SDF (Skills Development Facilitator) should be encompassing a strategic approach. That is, making use of scientifically validated techniques (for example, 360s, etc.) to recognise true gaps, and design customised career paths for development going forward.
Your ATR should be a reflection of all the training done in the previous year, and your WSP is the projected plan you have for the year ahead. BOTH need to be submitted to your relevant SETA before 30 April 2018. A day over means that you will have absolutely no claim to the points set aside for Skills Development on your B-BBEE scorecard, and no chance of getting some sort of savings on your tax. Zero, nil, nadda.
So get your ducks in a row. Come up with a strategy for learning opportunities that is inspired by the true needs and gaps in your team. Once you’ve got that in place, compile your report and plan, and Bob’s Your Uncle. You get a better B-BBEE score leading to more business and overall more moola.
Easy. As. Pie.
If we were to take on a macro-view of the value of Skills Development in South Africa, you begin to realise that a more skilled population = a more EAP (Economically Active Population) = more spending power = a healthier economy.
And who doesn’t want a thriving economy?
If you need support in this area, get in touch with us today for a non-obligation audit on your current Human Capital Strategy. Furthermore know that at Holistan, we can dedicate an Account Manager to you, who will act as your official SDF, and put together everything we’ve just spoken about. No hassles, no headache. We can literally manage your entire Training Strategy from beginning to end. We utilise our expertise in Psychometrics to scientifically identify gaps, and draw up PDPs (Personal Development Plans) for every single human being in your organisation. We offer training on a plethora of different topics and areas... and in the hopes of not sounding like an infomercial…so much more!
Give us a call. 011 201 2142. Come enjoy coffee at our beautiful offices, or we’ll come to you for a chat.
Written by Marzenna Almendro
Our contributors collectively boast a wealth of experience in assessments, HR, organisational development, change management and more!