The Skills Development scorecard aims to address the skills shortage challenge by encouraging the measured entity to invest in the development of core and scarce skills amongst black employees.
The ARG principle is used to calculate the Skills Development scorecard.
There are three key areas of focus within the Skills Development scorecard:
- Expenditure on black employee(s) skills training,
- Expenditure on disabled black employee(s) skills training; and
- Number of black learnership participants and/or category B, C and D black trainees (training programmes that include a mixture of theoretical and practical training).
Measured entities can only receive points in the Skills Development scorecard if,
- they are in compliance with the requirements of the Skills Development Act and Skills Development Levies Act,
- they have developed a Workplace Skills Plan; and
- they have implemented programmes targeted at developing priority skills generally, and especially , for black employees.
Key measurement areas in the Skills Development scorecard:
- Any Skills Development Expenditure that is invested in ABET programmes is recognizable at a multiple of 1.25 to the actual value of such Skills Development Expenditure
- Skills Development Expenditure includes any legitimate expenses incurred for any Learning Programme offered by a company to its employees and must be evidenced by an invoice or appropriate internal accounting record
- Skills development expenditures arising from Uncertified Learning Programmes cannot represent more than 15% of the total value of Skills Development Expenditure.
Skills Development expenses include the following:
- costs of training materials
- cost of trainers
- costs of training facilities including costs of catering
- scholarships and bursaries
- course fees
- accommodation and travel
- administration costs such as organization of training including the cost to the company of employing a skills development facilitator or a training manager
- salaries or wages paid to an employee participating in any Learning Programme only constitutes Skills Development Expenditure if the Learning Programme is a Learnership or falls within Category B, C or D of the Learning Programme Matrix.