Pons Consulting

Leadership Edition Four

"Substantive compliance" - the Department's new focus

Nine years after the promulgation of the Employment Equity Act the Department of labour (DoL) has graded the efforts of employers against a matrix to assess progress in achieving an "equitable" workplace. It has graded the efforts as "unacceptable", "reasonable" and "equitable". The grading assesses the organisation's representation by job level against the National Demographics.

Our experience thus far... many organisations are graded "unacceptable".

This grading opens the door for DoL to conduct substantive reviews. It moves beyond the procedural compliance with the Act. It will bring employers EE Plans and skills availability into the spotlight. It is highly likely that BBBEE verification agencies will call for the DoL grading when assessing Employment Equity compliance in the BBBEE scorecard.

So what should organisations be doing?

Key Action for Organisations:
1. Review current Employment Equity numeerical targets
Be aware of the Department of Labour's grid for assessing progress. Understand the measures and penalties applied at each occupational level. Consider numerical targets having regard to skills pools.
2. Move beyond submission of Department Annual Reporting
Ensure there is a clear Employment Equity Plan driven by the CEO. This should include an analysis of current situation, affirmative action measures taken to date, numerical and qualitative targets for the future and an approach to monitor and evaluate progress. Identify obsatcles to under representation and approaches to address these.
3. Assess skills pools accurately - have data to justify under representation
Undertake an assessment of the skills available at levels where the organisation is currently under-represented. The EE Commission Report, SETA information and the sector bodies provide such information.
4. Focus action on under represented groups by level
Educate managers on the measures used by DoL & BBBEE scorecards. Focus manager's action on under represented groups. Require reasons where managers are considering employing non-designated groups required. Be stricter on achieving targets. Keep records where positions are filled by non-designated groups.
5. Develop your internal talent pool
Implement longer term strategies to train / develop skills in high turnover / unrepresented levels / jobs. Experience shows that this has been a cost effective employment practice.
6. Record obstacles and action taken accurately
Recording obstacles and action to be taken to overcome these will be usedto determine whether the organisation is merely paying lip serviceto Act or driving it effectively. Where the same obstacles are recorded without clear future "affirmative action measures", substantive compliance will be questioned.
7. Obtain an external view on the progress you are making
Benchmark your progress against others in the Sector. Ask practioners in the field for a view. The SETA's, employer associations and DoL may provide this information. The DoL has been open in educating employers.
Who We Are

Pons Process Consulting was established in 1995. A respected business consulting practice, whose focus is on people management and development. We provide comprehensive and customised organisation change and development services to our clients.

Contact Us
Subscribe
Subscribe ยป