5 Tips to Build a BEE Plan For your Company’s Transformation
Broad–based black economic empowerment(BEE) is an economic transformation advancement policy to ensure the meaningful participation of black people in the economy of South Africa. This strategy was initially put forward by Black Economic Empowerment Commission and published in 2003.
The objective of the BEE plan is to control enterprises and assets through direct empowerment, address the issues of unemployed South Africans, and provide employment equity. For qualifying for the BEE, a person has to be an African, Indian, or South African citizen. B-BBE act is crucial in doing business in South Africa as CE mark certification services in Pakistan for product manufacturing companies. In this article, you will find 5 tips to build a bee plan for your company’s transformation.
Balance Score Board and BEE Charters:
To achieve the objectives of BEE and to measure the progress government will use the scorecard to apply the charters. The charters are meant to build the level of understanding between stakeholders, laborers, and the private sector. The main objectives of BEE, the scorecard will measure are:
• Control of enterprises and assets
• Employment equity
• Direct empowerment through ownership
• Enterprise Development.
• Skills Development
To avail of business opportunities, a high BEE score is very essential. All companies and entrepreneurs should use effective strategies to improve their B-BBEE score and for the meaningful transformation of their company. Here are 5 tips to build a BEE plan for your company’s transformation.
1. SKILLS DEVELOPMENT AND IMPROVING SCOREBOARD:
Identify skilful candidates for promotional opportunities and improve overall management score. Even 15% net contribution with a well-planned strategy can result in 90% of the points. Implement a proper strategy that includes the training and skills development of unskilled Africans. If companies manage to spend a full 6% on black staff’s skill development, the remaining budget will be enough to instruct all staff.
2. REVIEW THE SCOREBOARD BEFORE THE END OF NEXT FINANCIAL YEAR:
Make sure to review the scoreboard after filing it especially before the end of the next year. After receiving the certificate from the verification agency, the first thing you have to do is complete the overall review. Find alternative plans in case you miss any point. Choose skilful staff that meets your demands. Be proactive and spare time to optimize the strategy. Align B-BBE goals and objectives with the interests of your company to improve the scoreboard. Understands how B-BBE works and make a framework of three to five years profit and payroll. This will be helpful to give you the right approach for your company’s transformation.
3. PROPER PLANNING AND MANAGEMENT:
Implementing a successful plan with budget approval is key to the company’s transformation. This is critical because it frameworks many operational tasks of appointing and acquiring services. Line managers play a key role in implementing the B-BBE strategy. So, the support of line managers makes successful implementation. Also, budget approval requires a strong management team for collecting B-BBE certificates and keep everything on record. A little carelessness can cause verification failure. As a result, the points may be lost.
Create plans to achieve the goals regarding the 5 pillars of the BEE Scorecard:
• Direct Empowerment
• Indirect Empowerment
• Socio-Economic Development
• Skill Development
• Preferential Procurement.
4. AVAIL YOUTH EMPLOYMENT SERVICE INITIATIVE:
Youth employment initiative provides the golden chance to companies to increase the ratings of their scorecard by one to two levels. It can be an alternative if the YES program best serves the interests of your company. Compare it with the costs and benefits of a level 1 plan, if it is more costly than a level 1 plan then it shouldn’t be the best choice.
Shepstone says ”To move up one B-BBEE level, the YES company must meet the target and achieve 2.5% absorption rate. To move up two B-BBEE levels, the YES company must meet double the target and achieve a 5% absorption rate.”
5. BLACK OWNERSHIP FOR SME’S:
Developing black ownership is very beneficial for SMEs. SMEs(small and medium enterprises) help to attain sustainable growth, drive industrialization, provide services and jobs, and improves the overall economic growth of the country. Securing 51% black ownership will immediately qualify you as a level 2 contributor. Level 2 with a black-owned agency is more attractive for clients than having level 2 without a black-owned agency. This will increase the B-BBE ratings without conforming to any other factors on the scoreboard. Currently, the South African government has implemented a B-BBE policy that prefers black people to own enterprises in the country.
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