Nearly five years after the inception of the BEE Codes of Good Practice and companies are still not receiving the BEE scores which they should.
The reason for this is not that companies are not complying! The most common reasons for this are that companies are not fully aware of HOW they can score and what documentation is required to prove such compliance. Verification agencies are not allowed to “assist” or “advise” their clients in this regard – to do so would be to jeopardise their own accreditation – and so companies submit files for verification and are disappointed by the scores that they achieve. Changing requirements are also a challenge because, as the industry matures and companies become more knowing in regard to BEE, certain loopholes have been exposed and so verification agencies have been forced to tighten up their requirements and, as this is not always communicated to the entities being measured, this can be problematic.
Employment Equity and Skills Development are two significant pillars of BEE and yet they are also not fully understood. The correct categorisation of staff (EE) is vital if companies are to earn their BEE points. Many companies feel that the targets for Skills Development are excessive and hence choose not to focus on this element of BEE.
This is not always correct – there are ways in which it is possible to achieve a positive score for Skills Development – however, this does involve sound recording and collation of documentation.
BEE and the achievement of a positive rating are not nearly as onerous as it seems. What is important is to de-mystify the process and ensure that recording of relevant information is in place. With the gazetting of the amended Preferential Procurement Policy Framework Act, it is imperative that companies have a valid BEE certificate to offer to their clients if they wish to remain competitive.
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