SinghDude
Chief Sports Analyst
Can govt not see that BEE is an EPIC FAIL :twisted::twisted::twisted:
http://www.iol.co.za/business/opinion/bee-milestones-approach-1.1002909
Next year will mark a key milestone in the black economic empowerment (BEE) journey in South Africa. The broad-based BEE codes provide five- and 10-year targets.Next year is the last to go before the codes transition to the new targets. These targets will affect the employment equity and procurement elements.
Currently employment equity targets are split between the indicators for disabled staff (2 percent), senior management (43 percent), middle management (63 percent) and junior management (68 percent).
This is the base that is used to measure the number of points that companies get on employment equity. The current performance of companies on employment equity is not great, as many struggle to score the requisite number of points for good overall broad-based BEE levels.
The representation of black people at the board and executive management level within companies has been progressing at a good pace. But at lower management levels the performance is lacklustre. What makes matters worse is the requirement of a minimum of 40 percent of the target in order to score any points on employment equity.
The targets from February 10, 2012 are going to be as follows: disabled people (3 percent), senior management (60 percent), middle management (75 percent) and junior management (80 percent). This puts more pressure on companies to come up with strategies on how to improve their black representation at the different levels.
The major challenge facing the economy is that real jobs are not being created and companies are shedding jobs faster than they create them. The major casualties of these job losses are black people who do not have robust academic qualifications, which affects the pipeline of available talent that could be promoted to junior management. The acquisition of skills for the remaining black employees who are not academically qualified will take years before delivering tangible results.
Figures released by the Commission for Employment Equity show that the private sector will struggle if the current performance is anything to go by.
On the procurement side, the five-year targets are for overall procurement spend on companies that contribute to broad-based BEE (50 percent), procurement from small, medium and micro enterprises (SMMEs) that have turnover of less than R35m (10 percent) and procurement from black-owned and 30 percent black women-owned companies (15 percent). Against these targets, the current performance is not pleasing, especially with respect to the number of opportunities going to small companies and black-owned companies.
Most companies follow the 80:20 rule whereby 80 percent of their procurement opportunities are placed with 20 percent of their suppliers. This 20 percent consists mainly of big companies.
To be honest it does take quite a lot to deal with smaller start-up companies because they are still struggling to get their business models right and they tend to be underfunded. Therefore to effectively manage smaller companies the bigger companies need to invest in resources within their procurement department. This can be quite a challenge for medium-sized operations that have to devote their limited time to develop other businesses.
On the other hand, if no attention is paid to small businesses and black businesses, then job creation suffers. The strengthening of small businesses along with black-owned companies assists in bridging the inequality gap between the haves and the have-nots that is increasing in South Africa.
When you look forward to the targets after February 10, 2012, the pressure intensifies for companies. The targets are going to be as follows: for overall procurement on companies that contribute to broad-based BEE (70 percent); procurement from SMMEs (15 percent); and procurement from black-owned and 30 percent black women-owned companies (20 percent).
The key strategies for companies to manage this pressure is to start putting in place the processes that will help them identify the target companies. They also need to have the right people who will understand how to deal with smaller companies and black-owned companies.
The clock is ticking so, as the saying goes, companies’ failure to plan ahead will be their plan to fail. - Sunday Independent
http://www.iol.co.za/business/opinion/bee-milestones-approach-1.1002909
Next year will mark a key milestone in the black economic empowerment (BEE) journey in South Africa. The broad-based BEE codes provide five- and 10-year targets.Next year is the last to go before the codes transition to the new targets. These targets will affect the employment equity and procurement elements.
Currently employment equity targets are split between the indicators for disabled staff (2 percent), senior management (43 percent), middle management (63 percent) and junior management (68 percent).
This is the base that is used to measure the number of points that companies get on employment equity. The current performance of companies on employment equity is not great, as many struggle to score the requisite number of points for good overall broad-based BEE levels.
The representation of black people at the board and executive management level within companies has been progressing at a good pace. But at lower management levels the performance is lacklustre. What makes matters worse is the requirement of a minimum of 40 percent of the target in order to score any points on employment equity.
The targets from February 10, 2012 are going to be as follows: disabled people (3 percent), senior management (60 percent), middle management (75 percent) and junior management (80 percent). This puts more pressure on companies to come up with strategies on how to improve their black representation at the different levels.
The major challenge facing the economy is that real jobs are not being created and companies are shedding jobs faster than they create them. The major casualties of these job losses are black people who do not have robust academic qualifications, which affects the pipeline of available talent that could be promoted to junior management. The acquisition of skills for the remaining black employees who are not academically qualified will take years before delivering tangible results.
Figures released by the Commission for Employment Equity show that the private sector will struggle if the current performance is anything to go by.
On the procurement side, the five-year targets are for overall procurement spend on companies that contribute to broad-based BEE (50 percent), procurement from small, medium and micro enterprises (SMMEs) that have turnover of less than R35m (10 percent) and procurement from black-owned and 30 percent black women-owned companies (15 percent). Against these targets, the current performance is not pleasing, especially with respect to the number of opportunities going to small companies and black-owned companies.
Most companies follow the 80:20 rule whereby 80 percent of their procurement opportunities are placed with 20 percent of their suppliers. This 20 percent consists mainly of big companies.
To be honest it does take quite a lot to deal with smaller start-up companies because they are still struggling to get their business models right and they tend to be underfunded. Therefore to effectively manage smaller companies the bigger companies need to invest in resources within their procurement department. This can be quite a challenge for medium-sized operations that have to devote their limited time to develop other businesses.
On the other hand, if no attention is paid to small businesses and black businesses, then job creation suffers. The strengthening of small businesses along with black-owned companies assists in bridging the inequality gap between the haves and the have-nots that is increasing in South Africa.
When you look forward to the targets after February 10, 2012, the pressure intensifies for companies. The targets are going to be as follows: for overall procurement on companies that contribute to broad-based BEE (70 percent); procurement from SMMEs (15 percent); and procurement from black-owned and 30 percent black women-owned companies (20 percent).
The key strategies for companies to manage this pressure is to start putting in place the processes that will help them identify the target companies. They also need to have the right people who will understand how to deal with smaller companies and black-owned companies.
The clock is ticking so, as the saying goes, companies’ failure to plan ahead will be their plan to fail. - Sunday Independent