The proposed DTI scorecard finally aligns the BEE code 300 indicators to the Employment Equity report (EEA2).
But some are saying this may be a little too late. Some organisations see this as shifting the goal post.
However, one may argue that this is not shifting the goal post, as the essence of affirmative action measures have always been to promote equitable representation of people from the designated groups.
This section read in line with section 42 of the EEA, explains equitable representation in relation to the economically active population demographics.
The current BEE codes of good practice did not expressly align the BEE indicators and targets to the Economically Active Population (EAP).
This became a loop hole as the notion of any “black” i.e. African, Indian and Coloured would be acceptable.
However, a recent report has highlighted some of the under-representation of designated groups (particularly Blacks) in top/senior/middle/junior management. These happen to be the occupational levels measured on the BEE scorecard code 300.
The only requirement (for the generic scorecard) is that the company must meet the sub-minimum of 40% for black people using the adjusted recognition for gender.
The proposed BEE scorecard puts emphasis on equitable representation of the black group according to their EAP demographic representation. So in other words if your organisation does not have a diverse black group there is possibility that you will forfeit your points.
The questions remain:
Is your organisation ready to face this? Is your EE plan aligned to your EAP? Do you have a plan? Does your line management understand the implication? Who does your recruitment/ promotion/ training?
Are they are aware that not only will you need to be looking at a suitable qualified person but you will need to go a step further by asking how does this appointment link to your BEE strategy and EE Plan?
Until next time.