As the world evolves, it has become essential that organisations and employees embrace the idea of ongoing skills development. Not only is it important for personal growth, but it can have a crucial impact on the growth and competitiveness of the South African economy. One of the key pillars of this development is the submission of the Workplace Skills Plan (WSP) and Annual Training Report (ATR). This allows organisations to effectively plan training interventions to improve efficiency, quality and leadership capability. A bonus is the unlocking of Mandatory and Discretionary funding which can greatly assist organizations in upskilling their employees.
The power of Mandatory and Discretionary Grants
A significant incentive of submitting the Workplace Skills Plan (WSP) and Annual Training Report (ATR) enables organisations access to funding which can significantly contribute to the development of their employees.
- Mandatory Grants: Employers can claim back 20% of their Skills Development Levy by submitting their Workplace Skills Plan (WSP) and Annual Training Report (ATR). The additional funding can assist companies by overcoming the financial burden they may face when looking to develop their employees.
- Discretionary Grants: Although these grants are issued at the discretion of the SETAs, organisation can maximise funding opportunities by focusing on the scarce and critical skills within their sector. Employers are able to claim back 49.5% of their Skills Development Levy by prioritising training initiatives that lead up to a qualification or part qualification and that are aligned to the Sector Skills Plan.
Benefits to the Employer and Employee
- Cost Recovery: Financial assistance which makes skills development more affordable.
- Improved Workforce Competency: Upskilling employees results in greater productivity, efficiency and innovation.
- Competitive Edge: A highly skilled workforce can provide organisations a competitive edge in an ever-evolving market.
- Career Advancement: Effective planning allows for succession planning and with proper implementation can assist with overcoming Employment Equity Barriers.
- Retention of Staff: Employees are motivated by development and continue to grow with the organisation.
A Call to Action
Skills Development should not be seen as a luxury, rather it should be seen as a necessity. Organisations need to embrace the power of skills development as it can improve employee engagement, enhance productivity and ultimately contribute to the economic growth of South Africa. Start by planning your workplace skills strategies, submit your Workplace Skills Plans and Annual Training Reports, and unlock the power of grants to invest in your greatest asset – your people. Together, we can build a more skilled, empowered workforce and pave the way for a brighter future for South Africa.
For more information on the above topic, please contact Labournet Eastern Cape at Regional Support: 087 292 5808. Contact: Phikolomzi Malamlela (060 6428 659) at pmalamlela@labournet.com or Robert Niemand (082 824 7359) at robertn@labournet.com