Relevant skills-based
Relevant skills-based training is the best solution to unemployment.TAKING ACTION THROUGH LEARNERSHIPSAddressing youth unemployment and boosting business B-BBEE rankings.By Daniel Orelowitz, Managing Director at Training Force.South Africa’s youth unemployment rate is staggeringly high, with 66.5% ofall unemployed people currently between the ages of 15 and 24. This figureincreases annually as more than 500 000 matriculants enter the workforceand tertiary institutions only to be met with a lack of real opportunities.This ultimately leads to discouraged job seekers who become disengaged.In comparison to other developing nations, South Africa’s economy is vibrantand advanced. There is the potential to create opportunities for all who live inSouth Africa and with this in mind, the government has begun offering incentivesto businesses that facilitate learnership programmes. This is a significantopportunity for companies to upskill the unemployed and the employed, as wellas their staff, and by simply funding training, companies can gain the means toimprove their Broad-Based Black Economic Empowerment (B-BBEE) ranking.By joining forces with the right training partner, organisations can ensure thatthe full benefits are realised by both the company and the learners that participatein the programmes.Overcoming obstacles through hands-on trainingWhat is the biggest obstacle for school leavers as they become job seekers?The fact that it’s almost impossible to get a job without experience, and it’simpossible to gain experience without a job. Learnerships are a unique solutionto this age-old impasse because they bring together invaluable workplaceexperience and industry-relevant training in a manner that produces a versatileindividual with the required knowledge and a level of practical experience tofind and fill a position within that specific sector. A learnership is a structuredwork-based programme that runs over 12-24 months during which the learneris exposed to theoretical and practical on-the-job training that relates to aPHOTO: ThisisEngineering on Unsplash34
SKILLSspecific occupation, whether it’s engineering, financial services or businessprocess outsourcing.Leveraging learnershipsAs such, learnerships are the pathway to a registered qualification on the NationalQualifications Framework (NQF) that is managed by the relevant Sector Educationand Training Authorities (SETAs). The benefit for the sponsor (or fundingcompany) is that learnerships contribute towards the company’s employmentequityobjectives, in addition to enhancing skills development internally. Thegovernment also offers tax incentives and cash grants in addition to B-BBEE ratingincentives to companies for participating in learnerships.What does this mean for companies looking to run learnership programmes, orlooking to optimise or expand existing learnership programmes? Does it mean theyhave to build the capacity to run and manage these learnerships in-house, at greateffort and even greater expense? No. Although companies cannot run learnershipsunless they have the right training accreditations, they do not have to reinvent thewheel to benefit when it comes to learnerships.Company benefitsGiven that learnerships are developed to be industry-specific, participants gain skillsets that are closely aligned with the requirements of businesses operating withinthose sectors. This develops candidates that have a good grasp of all the requiredwork processes. Participants in learnership programmes gain knowledge and skillsthat are immediately applied in the workplace and lead to higher output standardsand improved productivity, which is an immediate tangible benefit.Financial senseNot only does the company benefit from enhanced quality of work, butthere are significant tax allowances along with the enhanced achievement ofemployment-equity objectives. These incentives are even higher for companiesthat provide ongoing employment (absorption) once the learnerships arecompleted. Learnerships are awarded points on the B-BBEE Scorecard under bothEmployment Equity and Skills Development and there is a SARS tax allowanceif the learnership is a registered learnership with the Department of Labourand relevant SETA. Such an allowance is calculated on a case-by-case basis. Forexample, a disabled learnership could translate into a R120 000 tax allowance andan abled-person learnership could translate into an R80 000 tax allowance over 12months. Furthermore, skills levy contributions made this way can truly work forthe benefit of the company, its people and the communities they touch.Education and Training (TVET) colleges might be inaccessible due to tuition costsand the like. Most learnerships provide an allowance/stipend for the duration of theprogramme, which assists significantly with costs such as transport and meals. Thefixed-term employment contract for the duration of the learnership often results inpermanent employment upon completion if the learner has performed well, whichis the ultimate solution to addressing youth unemployment.Smart facilitationThe right training partner will have all the necessary accreditations to runlearnerships from end to end, providing the means and mechanism for managingprogramme processes: everything from vetting the candidates to facilitating thestipend and ensuring maximum tax benefit to the company, while lessening theoverall administrative burden of learnerships. Partnering with a training providerthat specialises in youth development is a clear-cut way to ensure that the fullbenefits of learnerships are achieved, both for the company and the individualsintended to benefit from such programmes.ABOUT TRAINING FORCETraining Force is a registered training provider focused on delivering industryand job-specific skills assessments and training interventions to businesses andtheir employees across a variety of industries. Since our establishment in 2003, wehave provided over 3 000 companies with training interventions and upskilled over55 000 workers through our branches across South Africa. By delivering practicaltraining solutions, we help businesses secure a more productive workforce.All our learnerships are aligned with SAQA (South African QualificationsAuthority), the National Qualifications Framework (NQF) and accredited withSETA Quality Assurance departments.Individual benefitsFor participants in learnership programmes, their job prospects are greatlyenhanced by having practical experience along with theoretical knowledge.Occupation-specific training that is backed by a nationally recognised qualificationprovides job seekers with a boost of confidence, as well as a way to achieve a formalqualification where tertiary education at university or Technical and VocationalDaniel Orelowitz, Training Force Managing Director.35
