Skills Development: a real world

updateGizelle Mc Intyre

Director: The Institute of People Development

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

Quick Question

• What brings you to the conference?

• a) Knowledge building

• b) Networking opportunities

• c) My boss made me attend

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.

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?

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.

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

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

Current and New Landscape

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

SAQA ActNQF Act

Skills Development Act

WSPfrom your company

Sector Skills Plans

Creating employment opportunities for

properly skilled people

Skills Development Levies Act

Career and alignment

information www.saqa.org.za

Feedback from SETA

and Industry/ Associations

CULMINATING INTO THE NATIONAL SKILLS

PLAN

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.

• The proposal is a government gazette with a deadline of 20 January 2016 for public comments.

Proposed New Skills Development Landscape

• The title of the DHET document is "Proposal for the New National Skills Development Strategy (NSDS) and Sector Education & Training Authorities (SETAs) Landscape (NSLP 2015)".

What changes are proposed?

• SETAs would be absorbed into the Department of Higher Education & Training but constituted as Specialised Delivery Units (Section 7B of the Public Service Act)

• They would become permanent structures, rather than have 5 year renewable life-spans

• They would remain 21 in number (no immediate mergers but clustered into five synergistic groupings)

• SETA Boards would remain unchanged but have greater representation from government departments in line with a stronger public sector focus

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

Quality Councils

SAQA

CHE (NQF 5-10)

Umalusi (GETC & FET NQF

2-4)

QCTO (NQF 1-

10)

16

NQF Level

Sub-Framework and Qualifications Types (GG :36003 – 14 Dec 2012)

Umalusi and CHET

10 Doctoral DegreeDoctoral Degree (Professional)

*

9 Master’s DegreeMaster’s Degree (Professional)

*

8 Bachelor Honours DegreePost Graduate Diploma

Bachelor’s Degree

Occupational Certificate (Level 8)

7 Bachelor ‘s DegreeAdvanced Diploma

Occupational Certificate (Level 7)

6 DiplomaAdvanced Certificate

Occupational Certificate (Level 6)

5 Higher Certificate Occupational Certificate (Level 5)

4 National Certificate Occupational Certificate (Level 4)

3 Intermediate Certificate Occupational Certificate (Level 3)

2 Elementary Certificate Occupational Certificate (Level 2)

1 General Certificate Occupational Certificate (Level 1)

CHE

UMALUSI

QCTO

HET Framework (2013)

Postgraduate

10Professional Doctorate (360)

Doctoral Degree (360)

9Professional Masters (180)

Research Masters(180)

8Post Graduate Diploma (120)

Professional Bachelors Degree (480)

Honours Degree (120)

Undergraduate

7Advanced Diploma (120)

Professional Degree (360)

BTech/Bachelors Degree (360)

6Advanced Certificate (120)

Professional Diploma (240)

Diploma(360)

5Higher Certificate (120)

Professional Diploma (240)

NQF & OFO Map - Source QCTO 2012

• 2 Professionals

9 - 10

• 1 Managers

7- 8

• 3 Technicians and Associate Professionals

6

• 6 Skilled Agricultural, Forestry, Fishery, Craft & Related Trades Workers

• 7 Plant and Machine Operators and Assemblers

• 3 Service and Sales Workers

• 4 Clerical Support Workers

3 - 5

• 8 Elementary Occupations

1 - 2

Level Typical activities Role Workplace Focus Time

10 Envisioning future scenarios Visionary leadership Future shape of organisation, industry, profession

10-15 years

9 Set and implement strategies Leading and directing The 'business landscape' or profession

5-10 years

8 Manage or design systems Resource management Policy, resource allocation 3-5 years

7 Manage or design processes Changed practices New technology, systems 1-3 years

6 Develop and implement changes Optimisation Improvements 6 mth -1yr

5 Maintain efficiencies Stability and consistency Systems 3-6mth

4 Setup processes and solve process problems

Process management Process data 1-3mth

3 Adjust, maintain and oversee Procedures Productivity 1wk

2 Monitor, support Operations Machinery 1 day

1 Perform elementary tasks Task Machines, tools 1 day

OQF Level descriptors: To determine level of tasks

1

2

3

4

5

6-8

8-10

NQF Level

Core Skill

New Entrant

Operator

Team Leader/Artisan/ Supervisor

First Line Manager

Graduate Development Programmes

Continued Professional Development

Professional Skill

Induction Raising the Bar

Foundational Learning CertificateMathematical Literacy and Communication

Preparing unemployed for access

Skilled technical worker

Core Skills plus Manager Occupational Core plus Technician

Supervisor

Technical Specialist

Manager

Technician

Management

Production

Logistics Purchasing New Product DevelopmentBusiness Development

Research And Development

SHEQ ManagerFinance

Specialist Occupations after first Degree

General Management

Career Ladder Example

Knowledge / theory

Practical Work experience

External, summative assessment(to be conducted by AQP)

Occupational Qualification

Registered SAQA

DQP/ INDUSTRY Occupational Purpose

Curriculumcomponents

Assessment Specifications.

Qualificationdocument

QCTO Curriculum Model

Flow chart

Occupational Trainer

• Adapt and facilitate learning

• Establish and meet learner needs

• Perform internal assessments

Training and Development Practitioner

• Plan workplace learning delivery

• Design and facilitate learning

• Establish organisation training needs

• Conduct external assessments

Training and Development Professional

• Design OD interventions

• Measure learning success/impact on the organisation

• Talent management

• Assessment design

• Moderation of external assessment

NQF 4

NQF 5

NQF 6

OFO:

242402

OFO:

242401

OFO:

242401

NQF

Advanced National Certificate (Vocational)

Eg, National Skills

CertificatesEg,National

Occupational Awards

Doctoral Degree

Masters Degree

Master Postgraduate DiplomaProfessional Qualifications s Degree

Bachelor DegreeAdvanced Diploma

DiplomaAdvanced Certificate

Higher Certificate

Incl. su

bject / u

nit certificates

National Senior Certificate (Grade 12)

General Education & Training Certificate(Grade 9)

Advanced National Certificate (Vocational) 5

Adult National Senior Certificate

Adult National Senior Certificate

Units of learning to be accumulated

National Certificate (Vocational) 4

National Certificate (Vocational) 3

National Certificate (Vocational) 2

OQ

FLevel 1

Level 3

Level 2

Level 4

Level 6

Level 5

Level 7

Level 9

Level 8

Level 10

HEQ

FG

FETQF

Qualifications Framework

Skills Development Process

Company Strategy/Vision

Skills Needed to fulfil strategy

Do needs analysis/Skills Audits

of current staff

Design Solutions

Implement Solutions (Training/Coaching/Mentoring)

Workplace Application

Assessment (Performance Management)

Legislation and Skills Development

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

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?

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?

Our Current Picture

• The Employment Equity Commission for South Africa has released its 2015/16 report

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.

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.

Disability

Skills Development Levy (SDL)

SDL is 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 R500000 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.

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.

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?

PIVOTAL Grants and Workplace Learning

PIVOTAL Programmes

• Government Gazette No. 35940 of 3 December 2012 on Sector Education and Training Authorities(SETAs) Grant Regulations regarding monies received by a SETA and related matters, published by the Minister of the Department of Higher Education and Training (DHET).

• National Skills Development Strategy III (NSDS III) 2011 – 2016.

The PIVOTAL grant is aimed at:

• Improving the quality and quantity of labour market information received by the various SETAs in the form of workplace skills plans, annual training reports and PIVOTAL training reports to inform planning.

• Promoting National Qualifications Framework (NQF) registered and quality assured PIVOTAL programmes that address priority scarce and critical skills identified in the various SETA Sector Skills Plan (SSP).

PIVOTAL Programmes

PIVOTAL programmes definition

• Professional, vocational, technical and academic learning programmes that result in qualifications or part qualifications registered on the National Qualifications Framework (NQF) that address critical and scarce skills needs.

PIVOTAL Programmes

• Professional learning programmes shall mean programmes that lead to designations that are registered by professional bodies.

• Vocational learning programmes shall mean programmes that lead to a trade and/or the National Certificate Vocational (NCV).

• Technical learning programmes shall mean programmes that are occupationally-directed and registered by the SETA; such programmes include apprenticeships, Learnerships and skills programmes.

• Academic learning programmes shall mean programmes that lead to academic qualifications such as certificates, Higher Certificates, Diplomas and Degrees.

Workplace Integrated Learning

Workplace Learning: 70-20-10 model

• Learn and Develop Through Experience

• On-the-Job

• Work Integrated Learning

• Just-in-Time coaching

• POEs that are workplace orientated

70%

• Learn and Develop through others

• Occupationally directed Learning

• Mentoring and Coaching

• Informal Feedback

• Action Learning

• Professional Networks

20%• Learn and Develop

through Structured Courses and Programmes

• Workshops

• Professional Development

• Academic studies

• E-Learning

10%

BBBEE and Skills Development

Revised BBBEE PointsThe amendments to the Codes (came into effect October 2014) significantlychange the manner in which a firm’s BBBEE status (or level) will be calculated, as the number of BBBEE points required to achieve a particular BBBEE level has been increased.

BBBEE Level CODES

1 ≥100 points

2 ≥95 but <100 points

3 ≥90 but <95 points

4 ≥80 but <90 points

5 ≥75 but <80 points

6 ≥70 but <75 points

7 ≥55 but <70 points

8 ≥40 but <55 points

NON-COMPLIANT

<40 points

Revised BBBEE Elements

• 1. OWNERSHIP• 2. MANAGEMENT CONTROL• 3. EMPLOYMENT EQUITY• 4. SKILLS DEVELOPMENT• 5. PREFERENTIAL PROCUREMENT• 6. ENTERPRISE DEVELOPMENT• 7. SOCIO-ECONOMIC DEVELOPMENT.

The amendments to the Codes reduce the number of elements to five by fusing the enterprise development/preferential procurement and management control/employment equity elements.

WEIGHTING

• The weighting for each of the five new elements are set out in the following table:

BBBEE Scorecard and Skills Development

Learning Programme MatrixCat

Narrative description Delivery mode Learning site Learning achievement

A

Instruction-based theoretical instruction alone

– formally assessed by the institution

Institutional instruction Institutions such as

universities and

colleges, schools,

ABET providers

Recognised theoretical knowledge resulting in the

achievement of a degree, diploma or certificate issued by

an accredited or registered formal institution of learning

B

Instruction-based theoretical instruction as

well as some practical learning with an

employer or in a simulated work environment

– formally assessed through the institution

Mixed mode delivery with

institutional instruction as

well as supervised

learning in an appropriate

workplace or simulated

work environment

Institutions such as

universities and

colleges, schools,

ABET providers and

workplace

Theoretical knowledge and workplace experience resulting

in the achievement of a degree, diploma or certificate

issued by an accredited or registered formal institution of

learning

C

Recognised or registered structured

experiential learning in the workplace that is

required after the achievement of a

qualification – formally assessed by a

statutory occupational or professional body

Structured learning in the

workplace with mentoring

or coaching

Workplace Occupational or professional knowledge and experience

formally recognised through registration or licensing

D

Occupationally directed instructional and

work-based Learning Programme that

requires a formal contract – formally

assessed by an accredited body

Institutional instruction

together with structured,

supervised experiential

learning in the workplace

Institutions and

workplace

Theoretical knowledge and workplace learning, resulting in

the achievement of a South African Qualifications Authority

registered qualification, a certificate or other similar

occupational or professional qualification issued by an

accredited or registered formal institution of learning

E

Occupationally directed instructional and

work-based Learning Programme that does

not require a formal contract – formally

assessed by an accredited body

Structured, supervised

experiential learning in the

workplace which may

include some institutional

instruction

Workplace and

some institutional

as well as ABET

providers

Credits awarded for registered unit standards

F

Occupationally directed informal instructional

programmes

Structured information

sharing or direct

instruction involving

workshops, seminars and

conferences and short

courses

Institutions,

conferences and

meetings

Continuing professional development, attendance

certificates and credits against registered unit standards (in

some instances)

G

Work-based informal programmes Informal training Workplace Increased understanding of job or work context or improved

performance or skills

Skills Planning and the Learning Programme Matrix

Create a Skills plan that comprises the following:

Measurement of Skills Development indicators

A = (B ÷ C) x D

Where:

A = score for any given indicator as referred to in the scorecard

B = adjusted recognition for gender

C = Target for the applicable indicators as referred to in the scorecard

D = Weighting for the applicable indicators as referred to in the scorecard

Delivery Methodology Assessment Examples of Suppliers

Institutional based theoretical instruction

It must be formally assessed by the institution.)

Public and Private Institutions that offer academic qualifications

Institutional based theoretical instruction as well as some practical learning with an employer or in a simulated work environment.

It must be formally assessed through the institution.

Academic with compulsory WIL.

Occupationally based training

Recognised or registered structured experiential learning in the workplace that is required after the achievement of a qualification. –

It must be formally assessed by a statutory occupational or professional body.

Professional Bodies for designations

RPL

Occupationally directed instructional and work-based Learning Programmes that require a formal contract.

It must be formally assessed by an accredited body.

RPL

Formal Internships, Learnerships and Occupationally directed qualifications and Skills Programmes that lead to qualifications

Occupationally-directed instructional and work-based Learning Programmes that do not require formal contracts.

It must be formally assessed by an accredited body.

Occupationally directed qualifications

RPL

Skills programmes that lead to qualifications

Occupationally-directed internal instructional programmes.

Performance Management

“How to” programmes

Work-based internal programmes. Performance Management

Induction

BBBEE and Skills Development

• With a weighting of 25 points in total, this is an element to focus on.

• The 6% of payroll spend requirement can be used for optimal ROI by projecting talent needs per race and gender category and using the money in bespoke projects such as bursaries, internships, learnerships, apprenticeships and other programmes.

• The ability to thereafter integrate the said individuals into employment is crucial and adds the additional 5 bonus points. This makes proper pre-assessment practices essential to give you the best chance of converting the said persons into full employment.

• There is a limit of 15% (of the total soend amount claimed) in claiming expenses associated with the skills development (eg travel, accommodation and catering) and furthermore, mandatory training (e.g. FICA, FAIS, OHS) is not recognized. Uncertified learning is also capped at 15% of the total spend claim.

The BBBEE Players

Amended Broad -Based Black Economic Empowerment Codes Of Good Practice October 2012

The thresholds for Exempted Micro Enterprises and Qualifying Small Enterprises have been adjusted as follows:

• EME increased from R5 million to R10 million

• QSE: R5 million -R35 million to R10 million -R50 million

• Large entities: R50 million and above

Qualifying Small Enterprises (QSE’s)

Qualifying Small Enterprises (QSE’s) are defined by the Codes as companies with an annual total turnover of between R 5 million and R35 million.

• Government has singled out small enterprises as vital in the fight for job creation and economic growth. According to the Small Enterprise Development Agency (SEDA), small enterprises already contribute approximately 35% of the country's gross domestic product (GDP) and employ over half the number of people who work in the private sector.

• Aiming to ease the regulatory burden on small enterprises, the Codes require QSE’s to comply with ONLY four out of seven elements on the QSE scorecard.

• And while every company qualifying for measurement under the Codes must maintain a scorecard, the codes have further eased the BEE compliance burden by setting lower targets for these companies.

• Unlike the Generic Scorecard, the QSE Scorecard allocates an equal 25% weighting to each of

• the seven elements, or pillars, of B-BBEE. As QSE’s only have to elect four of the elements,

• selected elements of compliance total 100%.

Exempted Small & Micro-enterprises

Exempted Small & Micro Enterprises (EME’s) are defined by the Codes, as companies with an annual total turnover of R 10 million or less.

• EME’s have a BEE recognition of a Level 4 contributor and those, which are either 50%, owned by black people or 50% owned by black women are promoted to a Level 3 contributor.

• They also automatically qualify for procurement

Our Future

Foundational

Practical

Reflexive

To Summarise

• "Gross National Happiness is more important than Gross National Product" by Jigme SingyeWangchuck, King of Bhutan.

Thank you!

“Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning.”― Mahatma Gandhi

Contact Details

Institute of People Development

011 315 2913

www.peopledev.co.za

gizellem@peopledev.co.za