Codes of Good Practice for Economic Empowerment & Human Resource Development

1. HRD Presentation BEE UNIT 14TH SEPTEMBER 2007

2. THE CODES OF GOOD PRACTICE FOR BROAD – BASED BLACK ECONOMIC EMPOWERMENT HUMAN RESOURCE DEVELOPMENT CODE 200 – MANAGEMENT CONTROLCODE 300 – EMPLOYMENT EQUITY CODE 400 – SKILLS DEVELOPMENT

3. CODE 200 & 300 – MANAGEMENT CONTROL & EMPLOYMENT EQUITY • Management Control • Management Control measures effective control by black people • Setting Targets for Board Representation and Executive Involvement of black people • Employment Equity • Employment Equity is the participation of black people that are employed in companies at Junior, Middle andSenior Management levels • Alignment with existing legislation – Employment Equity Act and Skills Development Act • Alignment with Economically Active Population targets • In order for a company to score points at a particular category on the Employment Equity Scorecard they must have a minimum of 40% of the target in that category

4. Top Management Distinction

5. CODE 200 : THE GENERIC MANAGEMENT CONTROL SCORECARD

6. CODE 300 : THE GENERIC EMPLOYMENT EQUITY SCORECARD

7. Examples • If company has the following Black Managers and that 50% in each category are Black women • 20 Senior Managers • 30 Middle Managers • 20 Junior Managers • In order for this company to start scoring points on the scorecard they would have to achieve 40% of the target in that category • Example Scorecard:

8. CODE 400 – SKILLS DEVELOPMENT • Alignment with Skills Development Act • Parity principle - Inclusion of black women which encourages companies to promote them within companies • Measurement of Skills Development in companies using the Learning Programme Matrix as released by Department of Labour • Alignment of skills development initiatives for both the Skills Development Act and the Broad-Based Black Economic Empowerment Act • The Scorecard ensures that all targeted beneficiaries are skilled • Measures both skills spend and output through clearly defined outcomes of skills development programmes

9. CODE 400 : THE GENERIC SKILLS DEVELOPMENT SCORECARD

10. Examples • The Codes require companies to spend 3% of total payroll to skill black employees, the Codes further require companies to have at least 5% of total black employees on training as per the Learning programme Matrix provided by the Department of Labour. • The following are example of the types of skills that qualify under the Codes

11. THANK YOU