How much impact should companies be making to rebuild the economy and what do BEE solutions of great impact look like in this context? Look to our business performance and skills specialists for compelling answers.
There is significant new value on the Black Economic Empowerment (BEE) table that can be realised in South Africa if all transformation programmes were to be tied back to the bottom line.
Companies can eradicate wastage and maximise economic and social impact, which as a rule, tends to result naturally in the unlocking of cost savings. Any expense that is made purely to gain BEE points with no real business benefit is a wastage.
This begs the question, “If a company can invest less in transformation and skills development to reach and impact more people, with more relevance, how much value is being left on the table if businesses operating in South Africa were to invest at their current levels – but were to do it correctly?”
Cases in point for partnering with us for BEE impact
Consider the case of a mid-sized technology company with an investment of R3.74mn into its BEE Programme. In restructuring the programme with consultant Gestalt, the entity secured 82% of its total Skills Development points from just 15% of this spend.
This, in turn, enabled the company to make an even bigger difference as it could reach more people, with more relevant skills development, through the balance of its budget.
By way of a second example, an entity in the Industrial sector moved from being a Level 8 to a Level 2 BEE Contributor by unlocking 70% of its points through just 28% of its skills budget and a few cost-effective strategic interventions.
Such cases indicate the commonality of a fundamental error in how companies are applying the BEE Codes and as a result, inherent wastage. There is therefore an opportunity to make a far greater contribution, through transformation programmes, to rebalance and reboot the economy.
With over 22 years of experience in helping companies navigate transformation in South Africa, Gestalt will ably ensure that you don’t make any mistakes and rather, that you maximise your contribution to both industries and macro-economy.
As you plan for your people and business growth within the next fiscus, ask us about how you can amplify the contribution of your B-BBEE and Skills Development investment.