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

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 Controls the functional integration of the business. • Management 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 Knowledge of entire business area/BU/company or group. • Management 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 outputs. • Manages the development of innovation and change

Understanding Legislation EMPLOYMENT EQUITY ACT, 55 OF 1998, AS AMENDED • Professionally Professional knowledge of sub-discipline or discipline. • Qualified & Provide input in the formulation of Organisational/Functional Unit experienced business plans. • specialists/mid- Formulate and implement departmental/team plans that will management 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 & Applies broad knowledge of products, techniques and processes. • Academically Evaluates procedures and applies previous experience. • Qualified A good solution can usually be found. • Junior Mngt Determines own priorities. What has to be done is stipulated ; but Supervisors may require initiative in terms of how it should be done Foremen Superintendents

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 Weighting Compliance Management Control Points 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 1 25% directors 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 Weighting Compliance Management Control Points 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 Boa 2.1 Board 2.2. .2. Ot Other r Ex Exec EE : EE : Top op Mgmt Mgmt SENIOR IOR TOP P MANAGEMENT ENT includes “Senior & Other Top OTHER TOP MANA OT NAGE GEMENT NT Blac lack k Boar ard d Membe bers Bla lack Exe xecu cutive tives Manag ageme ment nt Includes positions such All executive other “Top Management” is a as CEO, COO, CFO and executive management collective term for other executive that do not serve on Executives at : managers that serve the Board - Senior Top & on the Board of i.e. HR Executives, Directors. - Other Top Finance, Management Also known as Senior Transformation Top Management CONFUSION NFUSION

Ali lignment or Dis isconnect The B-BBEE Codes Employment Equity 6 Criteria used for measuring 7 Levels (5 are management and 2 non- Management Control 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 Operationally involved in day-to-day management management Responsible for OVERALL and/or financial Responsible for THEIR PARTICULAR AREA management of enterprise within the business Actively involved in development and Development and implementation of implementation of enterprise including enterprise strategy as it relates to THEIR overall strategy PARTICULAR AREA Examples : CEO; COO; CFO; Executive Board May vary from company to company, but members 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 occupational levels within that organisation.

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