What is Skills Development (SD)?
Skills Development (SD) programmes help to improve individuals’ abilities and knowledge to align with labour market demands. These programmes include various types of training, education, and certification to enhance specific skills. They are designed according to industry standards and are updated in line with technological advancements and changing market requirements.
In South Africa, SD has been influenced by Broad-Based Black Economic Empowerment (B-BBEE) policies as companies are motivated to invest in training and development initiatives to improve their B-BBEE scorecards. This alignment with B-BBEE ensures that SD programmes improve the individual’s competencies and support broader socio-economic objectives.
What is the YES Initiative?
The Youth Employment Service (YES) Initiative is a collaborative partnership between the government, businesses, and labour organisations to create job opportunities for young people. A key benefit to the individual is the work experience that teaches practical skills and improves job prospects. And companies participating in the initiative can improve their B-BBEE scorecard by up to two levels, which encourages business participation.
Benefits and Importance of Skills Development and the YES Initiative
Skills Development and the YES Initiative offer numerous benefits to companies, individuals, and the economy.
For Companies:
Skills Development: Enhances skills of the workforce leading to higher productivity and innovation. It also improves employee retention and loyalty by increasing satisfaction and reducing turnover rates.
Learnerships also offer an efficient mechanism for SD as organisations can gain additional tax advantages through a tax rebate of R80,000 per able-bodied learner annually and R120,000 per learner with disabilities each year.
YES Initiative: Improves B-BBEE scorecards, enhances reputation and fulfils corporate social responsibility objectives. Companies can choose from various options like sponsoring the placement of YES Youth in third-party enterprises or providing a 12-month work experience within their company.
For Individuals:
Skills Development: Improves employment opportunities.
YES Initiative: Provides invaluable work experience and on-the-job SD.
For the Economy:
Skills Development: Drives growth, reduces unemployment, and encourages a more dynamic labour market.
YES Initiative: Reduces youth unemployment, stimulates economic activity and helps create a more skilled and versatile workforce.
Participation in both initiatives is crucial for sustainable economic growth, social equity and global competitiveness.