Aligning Employment Equity Occupational Levels and B-BBEE - - PowerPoint PPT Presentation

Aligning Employment Equity Occupational Levels and B-BBEE Management levels

2 August 2017

Agenda

Understanding Legislation Understanding Occupational Levels Understanding B-BBEE Management Levels Alignment or Disconnect

Understanding Legislation

Employment Equity

• Purpose of the Act: Section 2
• The purpose of this act is to achieve equity in the workplace

by- (a) Promoting equal opportunity and fair treatment …. (b) Implementing affirmative action measures …. to ensure their EQUITABLE REPRESENTATION IN ALL OCCUPATIONAL LEVELS in the workforce.

• A designated employer must refer to the EEA9 in the

regulations for guidance on HOW TO DIFFERENTIATE BETWEEN THE VARIOUS OCCUPATIONAL LEVELS.

EEA9

Understanding Legislation

EMPLOYMENT EQUITY ACT, 55 OF 1998, AS AMENDED

Top Management

• Controls the functional integration of the business.
• Determines the overall strategy and objectives of the business.
• Directs the company into the future.
• The nature of the work and focus is long-term.

Senior Management

• Knowledge of entire business area/BU/company or group.
• Provide inputs for/formulation of the overall Organisational strategy.

Translates the overall strategy into business plans for BU/Functional Unit,

• Implements and manages business plan, goals and objectives and

ensures the achievement of overall key Organisational / BU/ Functional

• utputs.
• Manages the development of innovation and change

Understanding Legislation

EMPLOYMENT EQUITY ACT, 55 OF 1998, AS AMENDED

Professionally Qualified & experienced specialists/mid- management

• Professional knowledge of sub-discipline or discipline.
• Provide input in the formulation of Organisational/Functional Unit

business plans.

• Formulate and implement departmental/team plans that will

support the BU business plans.

• Optimisation of resources (finances, people, material, information

and technology) to achieve given objectives in most productive and cost effective way. Skilled Technical & Academically Qualified Junior Mngt Supervisors Foremen Superintendents

• Applies broad knowledge of products, techniques and processes.
• Evaluates procedures and applies previous experience.
• A good solution can usually be found.
• Determines own priorities. What has to be done is stipulated; but

may require initiative in terms of how it should be done

B-BBEE Management Levels

Statement 200: Purpose is to address and measure/score certain key issues surrounding black management and control of

• enterprises. These issues include:
• Representation of black people at executive level
• Representation by black women
• Involvement of black people in daily operations

throughout business and strategic decision- making at the most senior level

• Black disabled employees

Code 200 Scorecard

Management Control Weighting Points Compliance Targets 2.1 Board Participation 2.1.1 Exercisable voting rights of black board members 2 50% 2.1.2 Exercisable voting rights of black female board members 1 25% 2.1.3 Black Executive directors as a % of all executive directors 2 50% 2.1.4 Black female Executive directors as a % of all executive directors 1 25% 2.2 Other Executive Management 2.2.1 Black Executive Management 2 60% 2.2.2 Black Female Executive Management 1 30% 2.3 Senior Management 2.3.1 Black employees in Senior Management 2 60% 2.3.2 Black female employees in Senior Management 1 30%

Code 200 Scorecard

Management Control Weighting Points Compliance Targets 2.4 Middle Management 2.4.1 Black employees in Middle Management 2 75% 2.4.2 Black female employees in Middle Management 1 38% 2.5 Junior Management 2.4.1 Black employees in Junior Management 1 88% 2.4.2 Black female employees in Junior Management 1 44% 2.6 Employees with disabilities 2.6.1 Black disabled employees as a percentage of all employees 2 2% Total 19

Code 200 & EE

2.1 2.1 Boa Board

SENIOR IOR TOP P MANAGEMENT ENT Blac lack k Boar ard d Membe bers

2.2. .2. Ot Other r Ex Exec

OT OTHER TOP MANA NAGE GEMENT NT Bla lack Exe xecu cutive tives

All executive other executive management that do not serve on the Board i.e. HR Executives, Finance, Transformation Includes positions such as CEO, COO, CFO and

• ther executive

managers that serve

• n the Board of

Directors. Also known as Senior Top Management

EE EE : : Top

• p Mgmt

Mgmt

includes “Senior & Other Top Manag ageme ment nt

CONFUSION NFUSION

“Top Management” is a collective term for Executives at :

• Senior Top &
• Other Top

Management

Ali lignment or Dis isconnect

The B-BBEE Codes Employment Equity

6 Criteria used for measuring Management Control 7 Levels (5 are management and 2 non- management) Board participation Top Management Other Executive Management Senior Management Senior Management Middle Management Middle/Professional Junior Management Junior/Skilled Semi-Skilled (non-mgmt) Unskilled (non-mgmt) Employees with disabilities.

Dif ifference

• Difference between Senior Top and Other Top

Senior Top Management Other Top Management Operationally involved in day-to-day management Operationally involved in day-to-day management Responsible for OVERALL and/or financial management of enterprise Responsible for THEIR PARTICULAR AREA within the business Actively involved in development and implementation of enterprise including

• verall strategy

Development and implementation of enterprise strategy as it relates to THEIR PARTICULAR AREA Examples : CEO; COO; CFO; Executive Board members May vary from company to company, but include directors specific to HR; Marketing; Finance…

Fundamental Point

Schedule 1 of BEE Act : Interpretations and Definitions Senior/Middle/Junior Management Means an employee of the measured entity who is a member of the occupational category of [level] as determined using the Employment Equity Regulations

Consideration!

Some Examples /1

• Accountant

Senior Management

• Bookkeeper

Senior Management

• Despatch Clerk

Senior Management

• Factory Manager

Senior Management

• HR

Senior Management

• Telesales

Senior Management

• QC Manager

Senior Management

• Debtors Clerk

Mid-Management

• Despatch Clerk

Mid-Management

• Head Cleaner

Mid-Management

Some Examples /2

• Senior Management

R52,506.06

• Senior Management

R40,462.99

• Senior Management

R 9,485.85

• Senior Management

R21,360.69

• Senior Management

R27,312.41

• Senior Management

R51,259.70

• Senior Management

R11,133.80

• Senior Management

R50,747.69

Some thoughts on HOW?

• The occupational levels within organisations are

determined through the use of different job evaluation or grading systems.

• The table (EEA9) provides equivalent levels from

each of these job evaluation systems.

• Organisations that do not make use of the job

evaluation systems in the EEA9 table, nor a customised system linked to one of these, should use the Semantic Scale for guidance in determining

• ccupational levels within that organisation.

Chris Hieber CEO Signa Advisors c 082 920 4982 / t 0861 124 668 / e chris@signa.co.za / www.signa.co.za

Questions?