Leveraging skills development for business success

Leveraging skills development for business success

Business, Human Resources, Skills Development

Author: Kalleigh Gore

Under the Skills Development Act and Skills Development Levy Act, companies with an annual payroll of greater than R500k p/a are mandated to contribute 1% of their payroll as skills levies to a relevant Sector Education and Training Authority (SETA). This levy, based on core business activities, is intended to fund skills development initiatives across various industries.

While submitting Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) to the relevant SETAs is not legally mandated, there are benefits in doing so. As the deadline for submission approaches on the 30th April, businesses are urged to prioritise preparation.

The benefits of timely submission are substantial:

  1. Accessing mandatory grants: Submission of WSPs and ATRs enables businesses to reclaim 20% of their Skills Development Levy (SDL). This financial incentive eases the burden of training costs, freeing up resources for further development initiatives.
  2. Enhancing B-BBEE scores: Skills development efforts directly contribute to Broad-Based Black Economic Empowerment (B-BBEE) scores. By investing in the development of black employees and black-owned suppliers, businesses can bolster their B-BBEE standing.
  3. Addressing skills gaps: Identifying and bridging skills gaps within your organisation is essential for operational efficiency. Training interventions aimed at closing these gaps enhance productivity and foster a more capable and adaptable workforce.
  4. Boosting productivity and retention: Enhanced skills can translate into increased productivity and job satisfaction, ultimately reducing turnover rates.
  5. Accessing discretionary grants: Businesses can utilise WSPs and ATRs to apply for discretionary grant funding. These grants target critical skill shortages in specific industries, providing financial support for skill development initiatives.

For more information or assistance with skills development submissions, please contact our HR team.