One of the legacies of Apartheid in South Africa is the unequal distribution of wealth between its white and black populations. Connected to this is gender and racial disparities in education and skills levels.

On 5 May 2015, the Department of Trade and Industry (“DTI”) released Notice 396 of 2015 (“Clarification Notice”) to clarify the position of the DTI with respect to the recent amendments to the Broad Based Black Economic Empowerment (BBBEE) Act. The clarification notice states that the Amended Codes became effective on 1 May 2015.

The amendments to the Codes fundamentally change the current BBBEE framework and significantly change the manner in which a firm’s BBBEE status (or level) will be calculated, as the number of BBBEE points required to achieve a particular BBBEE level has been increased.

The Federation of African Professional Staffing Organisations (APSO) is committed to the upliftment and professionalisation of the labour recruitment industry in South Africa.  KC Makhubele, Vice President of APSO says, “Planning for BBBEE should never be underestimated and should be seen as a tool that can increase employment opportunities and boost business growth.”

Makhubele explains that the purpose of the legislation remains to assist with the entrance of previously-disadvantaged people into the economy, in order to contribute to our national economic growth.

He says, “Human resources development, which encompasses employment equity and skills development, forms part of the core strategies for bringing about BBBEE in South Africa. These elements are, in fact, given significant weighting in determining the extent to which an enterprise contributes towards BBBEE. In terms of the Generic Scorecard, employment equity and skills development each account for 15 % of the BEE weighting of an enterprise.”

“Staffing and recruitment companies provide a great service in assisting businesses in reaching their BBBEE targets.”

Makhubele notes that not only do more candidates approach staffing and recruitment companies over corporate companies themselves – giving recruiters access to a bigger pool of talent to select from – but the interview and on-boarding process is also quicker when partnering with a reputable staffing company.

He says, “Recruiters also spend more time interviewing and developing candidates. Through temporary and contract employment BBBEE candidates gain much needed experience in order to enter the permanent market.”

“Businesses who share their staffing strategy and overall business objectives with their staffing partner will also ensure that these targets are prioritised, and met,” Makhubele adds.

For this reason, Makhubele stresses that staffing and recruitment companies should be seen as a strategic partner. “Get to know your recruitment suppliers and ensure they know you, your corporate culture, your vision and values.”

“If organisations really want the very best talent while getting its identified BBBEE talent up to speed, a recruitment agency can provide highly skilled contract staff or recently retired staff who have a huge amount of experience to pass on to up-and-coming BBBEE candidates,” he concludes.