Case Study - Integrated Learning Solution
- Manufacturing company
- Operating across South Africa
- 1050 employees
- NPAT of 10M
- Payroll of R15,7M
To create economic transformation, whilst achieving up to 47 points on its B-BBEE scorecard, Company A needs to spend:
R550,000 (3.5% of payroll) on SD for abled beneficiaries = 12 points
R50,000 (0.3% of payroll) on SD for disabled beneficiaries = 4 points
R400,000 (2.5% of payroll) on SD for bursaries = 4 points
Skills Development total = 20 points
R200,000 (2% NPAT) on Supplier Development = 10 points
R100,000 (1% NPAT) on Enterprise Development = 5 points
R100,000 (1% NPAT) on Socio-Economic Development (SED) = 5 points
ED, SD & SED SUBTOTAL = 20 points
Enterprise Supplier Development & SED total = 20 points
TOTAL = 40 points
Company A partners with iLearn, a Level 2 QSE Black Designated Group Supplier. iLearn proposes 2x Learnership programmes to help Company A achieve its goal of claiming the maximum number of points across several elements in its B-BBEE scorecard.
Learnership 1: Marketing NQF 4
- The cost of R600,000 for Learnership 1 meets the minimum spend for 16 points under the Skills Development element.
- Due to the Learnership Tax Incentive, Company A is able to claim R720,000 before Tax, which reduces its tax percentage to 26,48%. As a result, Company A gets R600,000 worth of Skills Development B-BBEE points for the cost of only R230,400.
- Nine unemployed Black learners are upskilled, three of which are disabled.
- The upskilled Black learners become a strong talent pool from which to recruit. Some go on to start their own businesses that can then grow into preferred suppliers of Company A.
Learnership 2: New Venture Creation NQF 2
- The cost of R400,000 for Learnership 2 meets the minimum spend for 20 points under Enterprise Development, Supplier Development and Socio-Economic Development.
- Due to the Learnership Tax Incentive, Company A is able to claim R800,000 before Tax on Learnership 2, which reduces its tax percentage to 26,34%. As a result, Company A gets R400,000 worth of B-BBEE points for the cost of R64,000.
- 10 employed Black learners are upskilled.
- The upskilled Black learners become a strong talent pool from which to recruit for enterprise development positions.
To obtain the additional 4 points under Skills Development, Company A must also partner with a Higher Education Institution and spend R400,000 on bursaries. A year later, Company A is able to claim the 7 bonus points for learner absorption, migration of enterprise to preferred supplier and job creation.