Welcome to 2020!
It’s tempting to say that 2019 is gone and there’s no point in starting anything new for the current financial year. The Problem is that we are only getting out of the starting blocks for 2020. If you have a financial year end in February you could set yourself up for panic driven last minute decisions on BEE compliance or miss the boat completely. Here are 3 reasons we should be panicking about our BEE scorecard if your financial year-end is in February 2020.
1. Skills Development Expenditure and Points Can Be Maximised Now
If you’re hoping to increase your BEE scorecard value through skills development expenditure, it would have been great to get students enrolled and studying in December, but leaving this to the last minute means we lose out on the salary recognition we would have been able to include in this year’s scorecard. Selecting the right leveraged Category B and C learning programmes enable businesses to claim staff salaries for learners. Doing it now or in early January adds two months of salaries to the skills spending without increasing the overall costs. This is claimable as part of skills development and can be considered as a leveraged investment to increase your scorecard value. Virtual and blended learning courses can start immediately (there is usually no set date to begin or end the course), working students can use the ‘quiet’ time to kick-off their studies while you are able to claim the maximum points for the lowest possible skills development investment. Leaving this to late February will increase the required spending and reduce the number of programs to choose from. Why spend R3-million on training when you can spend R1-million for even more points with a bit of foresight?
2. Supplier Compliance – Don’t Wait For February To Get Them On Side
If you rely on preferential procurement practices to boost your scorecard, why not give your suppliers the opportunity to improve their compliance for 2020, NOW? If you want to audit suppliers to ensure that they’re compliant with the latest codes, do it ASAP so that they have some time and less excuses to work on the gaps in their scorecards while you are focusing on meeting your targets for the year. Suppliers need to understand the pressure your company has to comply and putting them under pressure now means they can still do something about it. Waiting until your next verification means it would be too late for non-compliant supplier to get he wake up call.
3. YES Programme – A Simple Way To Go Up A Level Or Two
You can increase up-to 2 levels on your B-BBEE Scorecard by partnering with government’s YES (Youth Employment Service) Programme. All you need to do is employ a small number of previously disadvantaged youth (who is part of the programme) for a 12-month period and you can go up 2 levels. However, you would need to employ them within this financial year to gain the benefits in the next. Start early so you have more time to find the right candidates!
We recognise that many clients trust us to help them succeed under massive time pressure and we enjoy the challenge, but let’s not wait until it’s too late to make a meaningful contribution to society while maximising your BEE investment. With a bit of planning and foresight, we can help to create a win-win situation for all.”