Abstract
M.B.A.
A detailed, history of Skills Development has been presented by the Researcher in the
literature review (Chapter 2) in order to provide readers, unfamiliar with South Africa's
history, more perspective should they require it.
The technical detail of the Skills Development Act as well as the myriad of acronyms
used in the field is elaborated in detail in order to provide the reader with a more detailed
understanding of the mechanics of the Act. This provides a framework for understanding
why resistance is encountered by senior management and company owners with regard to
committing their companies to the national skills drive.
The objective of this study is to firstly to place the current status of Skills development in
context by providing the historical perspective of Skills development in South Africa.
Secondly, with the aid of questionnaires, the Researcher attempts to focus on the impact
of the SDA on Courier companies, particularly in relation to past training habits and the
current status quo. In this process, the extent of Senior Management knowledge and
commitment is also uncovered.
Finally, recommendations are submitted and then triangulated, by means of a focus
group. This select group of current managers in the industry will assist by corroborating
the findings and recommendations of this study. This was done, as there is a lack of
published literature and research material on this subject in South Africa at present.
The broader goals of the Act are firstly to create a prosperous and equitable society
through economic growth and social development. The creation of employment requires
a larger skills base and development of skills especially among previously disadvantaged
individuals. Secondly, an increase in productivity is a priority for the South African
Government, as it is widely known that South Africa does not rank highly on the global
countries productivity scale.
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Research will show that the impact of the Skills Development legislation has been most
noticeable in the larger Courier companies. These large companies, previously invested
substantial amounts of money in HR and training infrastructure, and now reap the
financial rewards of that investment.
As the large companies have the HR infrastructure to adhere to the detailed requirements
of the Act, they capitalise on the rebates and discretionary grants available. Small to
medium (SMME) courier companies are not adapting to the new processes and in many
cases, are not complying with Skills legislation at all. SMME's lack the infrastructure
required to introduce, implement and monitor the legislation in their organisations, they
either don't comply, or hire consultants to window-dress the process in order to recoup a
portion of the levies paid.
The following solutions are proposed:
A simple, uncomplicated administrative process allowing SMME's to
register for the Skills Development Levy rebates.
A sustained marketing drive (or awareness campaign) from Government (SETA's),
focusing specifically on SMME's, is required in order to educate owners of SMME's
with regard to the benefits of legislative compliance.
Inclusion of Non-Governmental (NGO's) role-players, such as the Courier Associations,
Bargaining Councils and training organisations, in a campaign to focus on the SMME's.
Fewer administrative delays with regard to rebate payments from South African Revenue Services to the Levy payers which will further enhance the attractiveness of the process to SMME's