Driving your business into the future

With the new Employee Equity Amendment Bill looming over our heads, it is important to and the right BEE solutions in order to future-proof your business.

Under the Current Transport Sector Black Economic Empowerment (BEE) Codes, it is fairly simple to comply and as it stands, a QSE can be a Level 1 contributor with no black ownership and a large company with as little as 10 per cent Black Ownership.

Yet, with the imminent promulgation of the Employment Equity Amendment Bill there are deep complexities that call for a seasoned BEE expert to help you navigate the windy roads towards becoming a Level 1 contributor.

A Shift in BEE

The National Council of Provinces recently passed the Employment Equity Bill which is in its final stage of promulgation and has been sent to President Cyril Ramaphosa for signing.

This amendment to the bill, which aims to protect South Africans against unfair treatment and any form of discrimination within the workplace, addresses two changes. The first intends to reduce the regulatory burden on small businesses with a modification as to who must comply with the act. If you are a small transport business, it might just mean you may be dealing with less red tape: however, if you fall into the scope of what is known as a ‘designated employer’, you will still need to comply with Chapter 3 of the Act.

The second amendment, which gives the Employment and Labour Minister Thembelani Thulas Nxesi, the power to set employment equity targets for different business sectors, may have a variety of implications for your business. According to the amendment, the Employment and Labour Minister may identify any economic sector and set numerical targets for that sector. These targets aim to ensure that the employment equity gaps in specific sectors are reduced by providing targets that ensure equitable representation throughout all occupation levels of the workplace.

For example, the Minister could look at the transport sector and decide that X number of black women need to be represented at “different levels within a company”. What this means for the transport sector and the implications this might have for your business is uncertain: however, Gestalt believes that in order to navigate these shifts in the Employment Equity Act, it starts with gearing up for the road ahead.

Unlock Business Growth and Shareholder Value Through BEE

Compliance with the BEE codes can be used as a competitive strategy for companies of all sizes, particularly if it is aligned with and integrated within the core strategy of a business. Therefore, you should not see BEE as another tax but rather as an effective strategy to future-proof your business and this begins by asking yourself: “how can I use BEE as a tool to build my business?“

It is key that you begin by defining what success looks like for your business. At this stage Level 1 should be a serious objective for Transport companies. Based on setting such goals, there are then strategically aligned investments required to enable you to achieve these objectives to grow your business.

Certain BEE levels can play a signifi cant role in transporting your business into the future. Often people believe that, for instance, with a Level 8 you are complaint, but what if there was a way for you to acquire more business?

What if a Level 1 was that one thing that will help you get more contracts than you have at the moment?

By using BEE as a strategic asset for your business, there may just be profi table growth at the end of the tunnel.

This requires you to build a transformation legacy. In order to do this, it entails developing a strategy that ensures that all the money spent on transformation aims to benefit your company and its future. This investment should enable you to strengthen and build a business that is capable of dealing with any challenges that might come your way.

A good BEE strategy ultimately optimises business benefits together with scorecard benefits, and as such, elevates the associated investment made by the company.

By investing in BEE and turning it into a strategic asset for your business, not only will this equip your company for any challenges that might arise, but accelerate your business into a future of growth.

Don’t let this pothole in the road derail your business, to find a BEE strategy that works for your business, visit: https://www.gestaltconsult.com/