Gizelle Mc Intyre Director: The Institute of People Development

1. Skills Development- a real world update: An Update on Key Legislation affecting skills development in South Africa Gizelle Mc Intyre Director: The Institute of People Development

2. Institute of People Development (IPD) The Institute of People Development (IPD) is committed to an ongoing process of achieving and maintaining its status as a "centre for learning excellence". • Primary Aim • To enhance the quality of workplace learning provision through the development of managers, supervisors and learning development practitioners. • The Institute strives to be a "change agent" by • Providing qualifications to managers, supervisors and learning & development practitioners • Offering recognition of prior learning (RPL) services to experienced learning & development practitioners • Conducting research projects designed to generate best practice products and processes through a continuous professional development (CPD) programme • Expanding the field of learning & development practices to the wider public through seminars, media releases, on-line resources and communities of practice workshops and consulting • Making available its learning facilities and resources in Midrand to its clients and stakeholders for the purposes of high quality learning provision

3. Quick Question • What brings you to the conference? • a) Knowledge building • b) Networking opportunities • c) My boss made me attend

4. ROI • OK let’s make today worth your while….. • Please turn to the person to your right and left and identify and consolidate 2 main ideas you would like me to focus on based on the following slide. • Please write them down on the paper provided.

5. Topics up for discussion • Current and proposed landscape: Skills Development • Legislation and Skills Development • PIVOTAL programmes, workplace learning and RPL • Broad-Based Black Economic Empowerment (BBBEE) Skills Development point requirements • What does the future hold?

6. Why do we do what we do? • Training for compliance begs the question – when will South Africa opt for a healthy skills development approach? • The key is to employ skills development is to : • foster better engaged workers, • build people’s proficiencies and • upskill the nation NOT to gain some BBBEE points or tick a tick box on your scorecard. • This process is garnering some cynicism and a feeling of exhaustion amongst the true believers of real skills development and transformation. Ironic, considering the points can still be gained with a focus on meeting real needs.

7. Acronyms are king! • ABET – Adult Basic Education and Training • AQP – Assessment Quality Partner • AIDS – Acquired Immunodeficiency Syndrome • BBBEE – Broad-based Black Economic Empowerment • CHE – Council on Higher Education • COGTA – Department of Cooperative Governance and Traditional Affairs • DHET – Department of Higher Education and Training • DPSA – Department of Public Service and Administration • DQP – Development Quality Partner • DTI – Department of Trade and Industry • FABCOS – Foundation of African Business and Consumer Services • FET – Further Education and Training • GDP – Gross Domestic Product • HEI – Higher Education Institution • HESA – Higher Education South Africa • HIV – Human Immunodeficiency Virus • HRDSSA – Human Resource Development Strategy for South Africa • ICT – Information and Communication Technology • IPAP – Industrial Policy Action Plan • JIPSA – Joint Initiative on Priority Skills Acquisition • M&E – Monitoring and Evaluation • NAMB – National Artisan Moderating Body • NCV – National Certificate (Vocational) • NSA – National Skills Authority • NSDS – National Skills Development Strategy • NGO – Non-governmental Organisation • NQF – National Qualifications Framework • NSF – National Skills Fund • PIVOTAL – Professional, Vocational, Technical and Academic Learning • QCTO – Quality Council for Trades and Occupations • SEDA – Small Enterprise Development Agency • SETA – Sector Education and Training Authority • SLA – Service Level Agreement • SMME – Small, Medium and Micro-sized Enterprises • SSP – Sector Skills Plan

8. 08:45 – 10:00: An Update on Skills Development Act and National Skills Development Strategy III The session gives an update on the skills development Act, and the Skills development Policy frameworks for the benefit of SDFs such as follows; The skills development Act and amendments The Skills Levies Act Human Resource Development Strategy for South Africa National Skills Development Strategy III Outcomes

9. Legislative History Lesson • SAQA – 1995 • Employment Equity Act – 1998 • Skills Development Act - 1998 • Skills Development Levies Act – 1999 • Skills Development Amendment Bill 2003 • A Strategy for Broad-Based Black Economic Empowerment was released in 2003. • Broad-Based BEE Act No. 53 of 2003 Broad-Based BEE Act No. 53 of 2003 (‘BEE Act’) – 2004 • Codes of Good Practice 2007 • Skills Development Act (Amended) 2008 • Amended B-BBEE Codes 2012 • National Development Plan 2030 - 2013 • White Paper for Post-School E & T - 2013 • Guidelines on the Implementation of the SETA Grant Regulations - 2013 • New Landscape proposed – 2015

10. The Current Situation In Education & Training • Skills Development has become a BBBEE scorecard conversation • The reality of the skills crisis is hitting us e.g. Eskom • Huge numbers of unemployed graduates • 7.2 million people illiterate • New forms of illiteracy developing • Professional Bodies • Uncertainty about Setas • Graduate Programmes in companies • Short Course changes

11. Career and alignment information www.saqa.org.za SAQA Act NQF Act Skills Development Act Quality Councils Feedback from SETA and Industry/ Associations WSP from your company CULMINATING INTO THE NATIONAL SKILLS PLAN Sector Skills Plans Skills Development Levies Act Creating employment opportunities for properly skilled people

12. Proposed New Skills Development Landscape • With National Skills Development Strategy (NSDS) III finishing its five year life-span in 2016 (now extended to March 2018), it was expected that a fine-tuning of the key skills development institutions would take place to support the new NSDS. • The proposed new landscape is however a significant evolution in the institutional landscape and one which therefore requires significant consideration and discussion among stakeholders. • The Department of Higher Education & Training (DHET) published on 10 November 2015 a draft proposal for a new National Skills Development landscape which would take effect on 1 March 2018.

13. Proposed New Skills Development Landscape Changes to Funding • 80% of the current SETA Discretionary Grant would be shifted to the National Skills Fund (equivalent to the entire current PIVOTAL Grant) • Employers would still be able to apply for the 20% Mandatory Grant (unchanged) and 10% of the remaining Discretionary Grant (renamed Sector Specific Grant) • SETA administration costs would remain at 10% of the Skills Development Levy, but likely reduced over time as a shared services unit realises bulk savings, and as other bodies take up previous SETA functions, such as Skills Planning • Public sector organisations would spend 1% of their personnel budget on quality assured education and training leading to NQF qualifications and fulfill the same reporting obligations as the private sector so as to qualify for funding from the National Skills Fund

14. Legislation and Skills Development

15. Employment Equity • The purpose of this Act is to achieve equity in the workplace by- (a) promoting equal opportunity and fair treatment in employment through the. elimination of unfair discrimination; and. (h) implementing affirmative action measures to redress the disadvantages in 25.Oct 19, 1998

16. Employment Equity and Skills Development • Compliancy is the name of the game…. • Do you have an Employment Equity Plan and is it up to date? • Have you done a Skills Audit in order to analyse you workforce profile? • Do you have quarterly committee meetings? • Have you submitted your EE reports? • Have you submitted your WSP/ATR?

17. Implications of equity policies and BBBEE driving skills development • Are we training only for EE reports and BBBEE points? • What about critical, customised/industry specific skills? • What about the providers who don’t comply but provide what we need?

18. Our Current Picture • The Employment Equity Commission for South Africa has released its 2015/16 report

20. Employment equity, gender equity and disability equity The Broad-Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice was gazetted on 12 October 2013 and came into effect on 1 May 2015. • Employment Equity no longer stands alone as an individual element. Employment Equity has been incorporated with Management and Control and carries 15 points for both Generic and Qualifying Small Enterprise (QSE) businesses. • Points are only allocated for employees in management positions. • The calculations for management and control are complex and require attention to the Economic Active Population (EAP). These targets are set in accordance with each province according to racial demographics of the said province.

21. Employment equity, gender equity and disability equity • Gender • Black female employees in management are awarded points as a separate indicator on the scorecard. • Disabled employees • Only black employees with disabilities are given recognition, and are measured as an indicator on the scorecard. • The definition of black people with disabilities according to the Employment Equity Act is: “People who have long-term or recurring physical or mental impairment which substantially limits their prospects of entry into, or advancement in, employment.” A doctor must medically certify the nature of the disability and the duration thereof before a black employee can be termed disabled.

22. Disability

23. Skills Development Levy (SDL) SDLis a levy imposed to encourage learning and development in South Africa and is determined by an employer's salary bill. Who must pay SDL? • If the company has staff registered for PAYE and the annual payroll exceeds R500 000 per annum, the company must register with SARS and pay a skills levy of 1% of the monthly payroll. If the company does not fall within these criteria, it does not have to pay levies or register with SARS. • Where an employer expects that the total salaries will be more than R500 000 over the next 12 months, that employer becomes liable to pay SDL.

24. Skills Development Levy (SDL) How much do you need to pay? • 1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments). How to determine which SETA your company belongs too? • Each SETA has a mandate to serve the Sector Industry Classification Codes (Sic Codes) under its control as determined by the Department of Higher Education from time to time. (See Government Gazette 33756 dated 11 November 2010) What happens to the SDL Levy? • The levies are distributed via SETA.

25. Skills Development Levy (SDL) Why are you using this as a forecast of training you will be able to do for the year? • Joe earns 100 000.00 per annum • – this means his contribution is 1000 for the year • – can this really be your training budget for Joe?

26. HRD Strategy

27. 10:00 -11:00 an update on the South African Qualifications Authority (SAQA) legislation and standards National Qualifications Framework Act No. 67 of 2008 Simplifying the NQF apparatus in order to speed up the achievement of NQF objectives An update on SAQA processes Evaluation of foreign qualifications Outcomes

28. Quality Councils

29. CHE UMALUSI QCTO

30. HET Framework (2013)

31. NQF & OFO Map - Source QCTO 2012

32. OQF Level descriptors: To determine level of tasks

33. NQF Level Career Ladder Example 8-10 Continued Professional Development Management Research And Development Specialist Occupations after first Degree General Management Graduate Development Programmes New Product Development Business Development Purchasing Logistics 6-8 Production Finance SHEQManager Manager First Line Manager Occupational Core plus Technician Core Skills plus Manager 5 Technician Supervisor Team Leader/ Artisan/ Supervisor Core Skill Professional Skill 4 Technical Specialist 3 Operator Skilled technical worker Foundational Learning Certificate Mathematical Literacy and Communication 2 Preparing unemployed for access Raising the Bar Induction New Entrant 1

34. NQF Architecture Higher Education Qualifications Sub-Framework Occupational Qualifications Sub-Framework General and Further Education and Training Qualifications Sub-Framework * Qualification types beyond Level 8 on the OQSF have not been determined.

35. Some key achievements for the 2015/16 financial year Celebrating 20 years of implementing the NQF

36. A snapshot of the NLRD as at 31 March 2016 Celebrating 20 years of implementing the NQF

37. Chart showing top 10 countries from where qualifications that were compared and recognised originated More than two-thirds (69%) of qualifications that were compared and recognised, originated from 10 of 154 countries.

38. 111 misrepresented foreign qualifications = 0.5% of total verified 41% on NQF level 4 23% on NQF level 7 Chart showing countries/regions whose qualifications are being misrepresented Celebrating 20 years of implementing the NQF

39. Verify your Qualifications 72 543 qualifications verified in 2015/16 Celebrating 20 years of implementing the NQF

40. International Initiatives Celebrating 20 years of implementing the NQF

41. 11:00 - 11:20: Mid – Morning Tea/ Coffee

42. OUTCOMES 11:20 – 13:00: Quality Council for Trades and Occupations (QCTO) legislation and Recognition of Prior Learning Introduction to the Quality Council for Trades and Occupations An update on RPL and best practice on the same for SDFs Role of the QCTO Relationship with other frameworks

43. Knowledge / theory Practical Work experience External, summative assessment (to be conducted by AQP) Occupational Qualification Registered SAQA QCTO Curriculum Model DQP/ INDUSTRY Occupational Purpose Curriculum components Assessment Specifications. Qualification document

44. Flow chart NQF 7 NQF 4 NQF 5 OFO: 242402 OFO: 242401 OFO: 242401

45. Skills Development Process

46. Role of the SDF

47. What is the role of an SDF? • Facilitate the development of employees in the organisation and the strategies of the organisation equally and fairly. • Acquire the resources to accredit and evaluate learnerships and skills programs in the organisation. • Evaluate the skills development needs of the employees and organisation and continually evaluate the implementation of identified needs. • Advise the employees and the employer on external and internal skills strategies as well as the progress of the skills development of the organisation. • Be a training committee leader and lead the process of organisational skills development and employee development. • Act as SDF administration and check all SETA documentation before submitting. • Set up a training committee. • Advise the organisation on the implementation of the WSP. • Advise the organisation on the quality assurance requirements of the relevant SETA. • Serve as contact person between the organisation and the external SDF and SETA. • Chair the skills development planning committee or training committee.

48. What is the role of an SDF? • Bring the company policies in line with the regulations as laid down by the Skills Development Act. • Assist in the creation of a performance management system for the organisation where no performance management system exists. • Generate the key performance areas relevant to training and development for the performance management system. • Complete an individual development pathway for all employees, as well as the skills requirement and learning pathway. • Create a portfolio of evidence for all employees that will receive training in the company. • Complete the workplace skills plan, interim training reports and annual training reports and submit it to the correct SETA, before the deadline. • Formalise the qualifications of employees through recognition of prior learning. • Train employed staff in order to claim the skills development levies from the SETA • Register Learnership Programs by training and unemployed people. • Claim their skills development levies from their SETA and claim the Tax rebates as stipulated for Learnerships.

49. Who may be a SDF? • Someone employed within an organisation • Someone appointed from outside the organisation • Someone who works with a number of organisations

50. How to select an SDF? • Authority (Middle to Senior Management) • Experience (Aged between 35 and 65 years) • Credibility • Assertiveness • Flexibility • Organised • Problem solver • Supportive • Sensitive and empathic • Able communicator • Have an organisational background • Have some training background • Have some Human resource development background. • Have some financial background • Have Leadership qualities • Have developmental interest