Aligning Employment Equity Occupational Levels

and

B-BBEE Management levels

2 August 2017

Agenda

Understanding Legislation

Understanding Occupational

Levels

Understanding B-BBEE

Management Levels

Alignment or Disconnect

Understanding Legislation

Employment Equity

• Purpose of the Act: Section 2

• The purpose of this act is to achieve equity in the workplace by-

(a) Promoting equal opportunity and fair treatment ….

(b) Implementing affirmative action measures …. to ensure their EQUITABLE REPRESENTATION IN ALL OCCUPATIONAL LEVELS in the workforce.

• A designated employer must refer to the EEA9 in the regulations for guidance on HOW TO DIFFERENTIATE BETWEEN THE VARIOUS OCCUPATIONAL LEVELS.

EEA9

Understanding Legislation

EMPLOYMENT EQUITY ACT, 55 OF 1998, AS AMENDED

Top Management

• Controls the functional integration of the business. • Determines the overall strategy and objectives of the business. • Directs the company into the future. • The nature of the work and focus is long-term.

Senior Management

• Knowledge of entire business area/BU/company or group. • Provide inputs for/formulation of the overall Organisational strategy.

Translates the overall strategy into business plans for BU/Functional Unit,

• Implements and manages business plan, goals and objectives and ensures the achievement of overall key Organisational / BU/ Functional outputs.

• Manages the development of innovation and change

Understanding Legislation

EMPLOYMENT EQUITY ACT, 55 OF 1998, AS AMENDED

Professionally Qualified & experienced specialists/mid-management

• Professional knowledge of sub-discipline or discipline. • Provide input in the formulation of Organisational/Functional Unit

business plans. • Formulate and implement departmental/team plans that will

support the BU business plans. • Optimisation of resources (finances, people, material, information

and technology) to achieve given objectives in most productive and cost effective way.

Skilled Technical & Academically Qualified Junior Mngt Supervisors Foremen Superintendents

• Applies broad knowledge of products, techniques and processes. • Evaluates procedures and applies previous experience. • A good solution can usually be found. • Determines own priorities. What has to be done is stipulated; but

may require initiative in terms of how it should be done

B-BBEE Management Levels

Statement 200:

Purpose is to address and measure/score certain key issues surrounding black management and control of enterprises. These issues include:

• Representation of black people at executive level

• Representation by black women

• Involvement of black people in daily operations throughout business and strategic decision-making at the most senior level

• Black disabled employees

Code 200 Scorecard

Management Control Weighting

Points Compliance

Targets

2.1 Board Participation

2.1.1 Exercisable voting rights of black board members 2 50%

2.1.2 Exercisable voting rights of black female board members 1 25%

2.1.3 Black Executive directors as a % of all executive directors 2 50%

2.1.4 Black female Executive directors as a % of all executive directors

1 25%

2.2 Other Executive Management

2.2.1 Black Executive Management 2 60%

2.2.2 Black Female Executive Management 1 30%

2.3 Senior Management

2.3.1 Black employees in Senior Management 2 60%

2.3.2 Black female employees in Senior Management 1 30%

Code 200 Scorecard

Management Control Weighting

Points Compliance

Targets

2.4 Middle Management

2.4.1 Black employees in Middle Management 2 75%

2.4.2 Black female employees in Middle Management 1 38%

2.5 Junior Management

2.4.1 Black employees in Junior Management 1 88%

2.4.2 Black female employees in Junior Management 1 44%

2.6 Employees with disabilities

2.6.1 Black disabled employees as a percentage of all employees 2 2%

Total 19

Code 200 & EE

2.1 Board

SENIOR TOP MANAGEMENT

Black Board Members

2.2. Other Exec

OTHER TOP MANAGEMENT

Black Executives

All executive other

executive management

that do not serve on

the Board

i.e. HR Executives,

Finance,

Transformation

Includes positions such

as CEO, COO, CFO and

other executive

managers that serve

on the Board of

Directors.

Also known as Senior

Top Management

EE : Top Mgmt

includes “Senior & Other Top

Management

CONFUSION

“Top Management” is a

collective term for

Executives at :

- Senior Top &

- Other Top

Management

Alignment or Disconnect

The B-BBEE Codes Employment Equity 6 Criteria used for measuring

Management Control 7 Levels (5 are management and 2 non-

management)

Board participation Top Management

Other Executive Management

Senior Management Senior Management

Middle Management Middle/Professional

Junior Management Junior/Skilled

Semi-Skilled (non-mgmt)

Unskilled (non-mgmt)

Employees with disabilities.

Difference

• Difference between Senior Top and Other Top Senior Top Management Other Top Management

Operationally involved in day-to-day management

Operationally involved in day-to-day management

Responsible for OVERALL and/or financial management of enterprise

Responsible for THEIR PARTICULAR AREA within the business

Actively involved in development and implementation of enterprise including overall strategy

Development and implementation of enterprise strategy as it relates to THEIR PARTICULAR AREA

Examples : CEO; COO; CFO; Executive Board members

May vary from company to company, but include directors specific to HR; Marketing; Finance…

Fundamental Point

Schedule 1 of BEE Act :

Interpretations and Definitions

Senior/Middle/Junior Management

Means an employee of the measured entity who is a member of the occupational category of [level] as

determined using the Employment Equity Regulations

Consideration!

Some Examples /1

• Accountant Senior Management

• Bookkeeper Senior Management

• Despatch Clerk Senior Management

• Factory Manager Senior Management

• HR Senior Management

• Telesales Senior Management

• QC Manager Senior Management

• Debtors Clerk Mid-Management

• Despatch Clerk Mid-Management

• Head Cleaner Mid-Management

Some Examples /2

• Senior Management R52,506.06

• Senior Management R40,462.99

• Senior Management R 9,485.85

• Senior Management R21,360.69

• Senior Management R27,312.41

• Senior Management R51,259.70

• Senior Management R11,133.80

• Senior Management R50,747.69

Some thoughts on HOW?

• The occupational levels within organisations are determined through the use of different job evaluation or grading systems.

• The table (EEA9) provides equivalent levels from each of these job evaluation systems.

• Organisations that do not make use of the job evaluation systems in the EEA9 table, nor a customised system linked to one of these, should use the Semantic Scale for guidance in determining occupational levels within that organisation.

Chris Hieber CEO Signa Advisors

c 082 920 4982 / t 0861 124 668 / e chris@signa.co.za / www.signa.co.za

Questions?