Analysis of Grant Applications Year 8 · 2011. 10. 31. · Analysis of Grant Applications 2009/2010 (Year 10) v Table 4-2 Planned beneficiaries of training* [Current employees (at

Analysis of Grant Applications

Year 10

2009/2010

Final: October 2011

Analysis of Grant Applications 2009/2010 (Year 10) i

CONTENTS

1 INTRODUCTION ........................................................................................................................ 1

1.1 BACKGROUND .............................................................................................................. 1

1.2 CLASSIFICATION OF SUBSECTORS .......................................................................... 3

1.3 STRUCTURE OF THE REPORT ................................................................................... 3

2 PARTICIPATION IN THE LEVY-GRANT SYSTEM .................................................................. 5

2.1 INTRODUCTION ............................................................................................................ 5

2.2 LEVY INCOME DISTRIBUTION ..................................................................................... 5

2.3 PARTICIPATION RATES ............................................................................................... 7

2.4 PARTICIPATION ACCORDING TO LEVY SIZE ............................................................ 8

2.5 MANDATORY GRANT APPLICATIONS ........................................................................ 8

2.6 STRATEGIC CASH GRANTS ...................................................................................... 10

2.7 CONCLUSION .............................................................................................................. 14

3 PROFILE OF THE SECTOR ................................................................................................... 16

3.1 INTRODUCTION .......................................................................................................... 16

3.2 TOTAL EMPLOYMENT ................................................................................................ 17

3.3 PROVINCIAL DISTRIBUTION ..................................................................................... 21

3.4 OCCUPATIONAL DISTRIBUTION ............................................................................... 22

3.5 POPULATION GROUP AND GENDER ....................................................................... 23

3.6 CONCLUSION .............................................................................................................. 32

4 TRAINING IN THE SECTOR ................................................................................................... 34

4.1 INTRODUCTION .......................................................................................................... 34

4.2 TRAINING PLANNED ACCORDING TO SKILLS PRIORITY ...................................... 35

4.3 TRAINING PLANNED ACCORDING TO BENEFICIARIES ......................................... 36

4.4 TRAINING PROVIDED ACCORDING TO SKILLS PRIORITY ..................................... 42

Analysis of Grant Applications 2009/2010 (Year 10) ii

4.5 EMPLOYEES THAT PARTICIPATED IN TRAINING ................................................... 43

4.6 ABET ............................................................................................................................ 50

4.7 CONCLUSION .............................................................................................................. 51

5 FINANCIAL AND OTHER ORGANISATION INFORMATION ................................................ 53

5.1 FINANCIAL YEAR ........................................................................................................ 53

5.2 PAYROLL ..................................................................................................................... 53

5.3 STAFF TURNOVER ..................................................................................................... 54

5.4 CONCLUSION .............................................................................................................. 55

6 SCARCE AND CRITICAL SKILLS .......................................................................................... 57

6.1 INTRODUCTION .......................................................................................................... 57

6.2 SCARCE SKILLS ......................................................................................................... 57

6.3 CRITICAL SKILLS ........................................................................................................ 61

6.4 CONCLUSION .............................................................................................................. 62

7 DEVELOPMENT AND CONSULTATIVE PROCESS ............................................................. 63

7.1 INTRODUCTION .......................................................................................................... 63

7.2 DEVELOPMENT OF WSPS ......................................................................................... 63

7.3 SKILLS DEVELOPMENT FACILITATORS .................................................................. 65

7.4 DIFFICULTIES IN PLANNING EMPLOYMENT EQUITY AND AFFIRMATIVE ACTION

68

7.5 CONCLUSION .............................................................................................................. 69

8 LEARNERSHIP CASH GRANTS ............................................................................................ 71

8.1 INTRODUCTION .......................................................................................................... 71

8.2 PARTICIPATING ORGANISATIONS ........................................................................... 71

8.3 LEARNERS .................................................................................................................. 73

8.4 CONCLUSIONS ........................................................................................................... 76

9 TRENDS IN THE SECTOR: YEAR 1 TO YEAR 10 ................................................................ 78

Analysis of Grant Applications 2009/2010 (Year 10) iii

9.1 INTRODUCTION .......................................................................................................... 78

9.2 PARTICIPATION IN THE LEVY-GRANT SYSTEM...................................................... 78

9.3 DISTRIBUTION OF LEVY INCOME ............................................................................. 80

9.4 CHANGES IN THE SECTOR’S PROFILE.................................................................... 83

9.5 INVOLVEMENT IN TRAINING ..................................................................................... 86

9.6 SCARCE SKILLS ......................................................................................................... 86

9.7 CONCLUSION .............................................................................................................. 87

Analysis of Grant Applications 2009/2010 (Year 10) iv

LIST OF TABLES

Table 1-1 Subsector demarcation ................................................................................................ 3

Table 2-1 Mandatory Grant applications according to status ....................................................... 7

Table 2-2 Organisations that participated in the levy-grant system according to levy size .......... 8

Table 2-3 Mandatory Grant applications according to organisation size ...................................... 9

Table 2-4 Mandatory Grant applications accepted from levy-paying organisations according to

subsector .................................................................................................................................... 10

Table 2-5 SCGs according to organisation size* ** ................................................................... 12

Table 2-6 SCGs according to subsector* ................................................................................... 13

Table 2-7 Strategic areas in which SCGs were claimed according to organisation size* .......... 13

Table 2-8 Strategic areas in which SCGs were claimed according to subsector* ..................... 14

Table 3-1 Non-levy-paying organisations registered on Fasset’s database according to

subsector .................................................................................................................................... 16

Table 3-2 Total employment: Levy- and non-levy payers ........................................................... 18

Table 3-3 Total employment: Levy payers .................................................................................. 19

Table 3-4 Total employment: Non-levy payers .......................................................................... 20

Table 3-5 Disabled employees* .................................................................................................. 21

Table 3-6 Population group according to occupational group .................................................... 26

Table 3-7 Population group according to organisation size ....................................................... 28

Table 3-8 Population group according to subsector .................................................................. 30

Table 3-9 Gender and occupational group distribution of employees ........................................ 32

Table 3-10 Population group and gender distribution of employees in levy-paying- and non-

levy-paying organisations ........................................................................................................... 32

Table 4-1 Number of employees who would be trained according to skills priority and NQF level

.................................................................................................................................................... 36

Analysis of Grant Applications 2009/2010 (Year 10) v

Table 4-2 Planned beneficiaries of training* [Current employees (at this level)] according to

occupational category and population group .............................................................................. 38

Table 4-3 Planned beneficiaries of training* [Current employees (earmarked for development at

this level)] according to occupational category and population group ........................................ 39

Table 4-4 Planned beneficiaries of training* [external new recruits (including 18(2) learners at

this level and above] according to occupational category and population group ........................ 41

Table 4-5 Number of employees trained according to skills priority and NQF level .................. 42

Table 4-6 Current employees trained in Year 10 at this level according to occupational category

and population group .................................................................................................................. 44

Table 4-7 Current employees earmarked for development at this level, trained in Year 10

according to occupational category and population group* ........................................................ 46

Table 4-8 External new recruits (including 18(2) learners) trained in Year 10 according to

occupational category and population group* ............................................................................. 48

Table 4-9 Comparison between planned and implemented training ........................................... 49

Table 4-10 Comparison between planned and implemented training opportunities for current

employees and those earmarked for development: Year 7 to Year 10 ....................................... 50

Table 4-11 Comparison between planned and implemented training opportunities by population

group: Year 7 to Year 10: ............................................................................................................ 50

Table 4-12 ABET training ........................................................................................................... 51

Table 5-1 Financial year-end of organisations that successfully submitted Mandatory Grant

applications ................................................................................................................................. 53

Table 5-2 Payroll for the last financial year according to subsector ........................................... 54

Table 5-3 Payroll for the last financial year according to organisation size ............................... 54

Table 5-4 Staff turnover according to subsector ......................................................................... 55

Table 5-5 Staff turnover according to organisation size .............................................................. 55

Table 6-1 Organisations that reported skill shortages ................................................................ 57

Table 6-2 Current scarce skills according to occupational category ........................................... 58

Analysis of Grant Applications 2009/2010 (Year 10) vi

Table 6-3 Scarce skills: Occupations in which organisations experienced a need for more

employees*# ............................................................................................................................... 59

Table 6-4 Scarce skills anticipated for Year 11 according to occupational category ................. 61

Table 6-5 Critical skills: Occupations in which organisations reported critical skills* .................. 62

Table 7-1 Process used to develop the WSP ............................................................................ 63

Table 7-2 Did the WSP assist the organisation in achieving its employment equity plan goals?

.................................................................................................................................................... 64

Table 7-3 Process used to review the WSP .............................................................................. 64

Table 7-4 Did the training conducted and described in the ATR assist in the implementation of

the WSP? .................................................................................................................................... 65

Table 7-5 Highest qualifications of levy-paying SDFs ................................................................ 67

Table 7-6 Highest qualifications of non-levy-paying SDFs ........................................................ 68

Table 7-7 Did you have difficulty in planning employment equity and affirmative action in your

organisation? .............................................................................................................................. 69

Table 8-1 LCGs according to subsector and organisation size .................................................. 72

Table 8-2 LCGs according to province of employer and number of learnerships ....................... 73

Table 8-3 Learners by province and population group ............................................................... 74

Table 8-4 Age category of learners ............................................................................................. 74

Table 8-5 LCGs received by 18.1 (currently employed) learners according to type of

learnership* ................................................................................................................................. 75

Table 8-6 LCGs received by Section 18(2) (not previously employed) learners according to type

of learnership* ............................................................................................................................. 76

Table 9-1 Participation in the levy-grant system: Year 1 to Year 10 ........................................... 80

Table 9-2 Distribution of levy income: Year 1 to Year 10 ............................................................ 82

Table 9-3 Indicators of change in the sector profile: Year 1 to Year 10 ...................................... 84

Table 9-4 Population group -change in the sector profile: Year 1 to Year 10 ............................. 85

Table 9-5 Indicators of employers’ involvement in training: Year 1 to Year 10 ........................... 86

Analysis of Grant Applications 2009/2010 (Year 10) vii

Table 9-6 Scarce skills reported by employers in the sector: Year 7 to Year 10* ....................... 87

Analysis of Grant Applications 2009/2010 (Year 10) viii

LIST OF FIGURES

Figure 2-1 Distribution of total levy income in Year 10 ................................................................ 6

Figure 2-2 Participation of organisations in the levy-grant system............................................... 7

Figure 3-1 Provincial distribution of employees in levy- and non-levy-paying organisations ...... 22

Figure 3-2 Occupational distribution ........................................................................................... 23

Figure 3-3 Population group: Total employment ......................................................................... 24

Figure 3-4 Population group: levy and non-levy-paying organisations ....................................... 25

Figure 3-5 Gender distribution of employees .............................................................................. 31

Figure 7-1 Population group and gender distribution of SDFs ................................................... 66

Analysis of Grant Applications 2009/2010 (Year 10) ix

ABBREVIATIONS AND ACRONYMS

Acronym Name ABET Adult Basic Education and Training ATR Annual Training Report BEE Black Economic Empowerment CA Chartered Accountant CFA Chartered Financial Analyst CTA Certificate in the Theory of Accounting DoL Department of Labour EEP Employment Equity Plan Fasset Sector Education and Training Authority for Finance, Accounting, Management

Consulting and Other Financial Services LCG Learnership Cash Grant NQF National Qualification Framework NSF National Skills Fund OFO Organising Framework for Occupations SARS South African Revenue Service SCG Strategic Cash Grant SDF Skills Development Facilitator SDLA Skills Development Levies Act (1999) SDL Skills Development Levy Setas Sector Education and Training Authorities SIC Standard Industrial Classification SSP Sector Skills Plan TDC Training/Skills Development Committee WSP Workplace Skills Plan

Analysis of Grant Applications 2009/2010 (Year 10) x

EXECUTIVE SUMMARY

This report is the tenth in a series of reports commissioned by the Sector Education and

Training Authority for Finance, Accounting, Management Consulting and other Financial

Services (Fasset) that analyses the grant application forms submitted by its constituent

organisations. The report covers successful grant submissions submitted for the financial year

2009/2010 (Year 10). The grant applications analysed in this report are for the grants payable

on the submission of a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) (i.e.

the Mandatory Grant), the Strategic Cash Grant (SCG), and the Learnership Cash Grant (LCG).

The report deals first with employers’ participation in the levy-grant system. Participation is

viewed from different perspectives: the total amounts available for and paid in respect of grants;

participation in the specific grants; participation of organisations from different size categories;

and participation of organisations in the different subsectors. In Year 10 Fasset received a total

of 1 892 Mandatory Grant applications and 1 811 (96%) resulted in grant pay outs. Eighty-two

per cent of the amount available for the Mandatory Grant was paid out and 58% of the amount

available for discretionary grants. Eighty-four per cent of the Mandatory Grant applications that

were accepted came from small organisations (those that employ fewer than 50 people). These

organisations employed 25 017 people and they received R23 681 601 in Mandatory Grants.

This constitutes 23% of the total grant paid out in Year 10. Eight per cent of the Mandatory

Grant applications came from medium-size companies (those that employ 50 to 149 people).

These organisations employed 11 847 people (12%) and received 18% of the grant amount

paid out. The 70 large organisations (those that employ 150 or more people) constituted 4% of

those that submitted Mandatory Grant applications, employed 62% of the workers, and received

38% of the grant paid in respect of Year 10.

In Year 10 a total of R13 million was received by 47 organisations through SCGs for education

and training interventions in strategic skills priority areas. Most of the SCG funding was claimed

by large organisations. In addition, R17,1 million rand was paid to 214 organisations that

claimed LCGs for 643 learners.

The profile in Year 10 is based on information of about 99 000 employees – approximately 83%

of the workforce employed in the sector. Of these, 95 946 were employed by levy-paying

organisations and 2 982 by non-levy-paying organisations. Most of the employees in levy-

paying organisations were based in Gauteng (52%), in the Western Cape (21%), and in

Analysis of Grant Applications 2009/2010 (Year 10) xi

KwaZulu-Natal (11%). Only small proportions of employees lived in other provinces. Employees

of non-levy-paying organisations were more evenly spread across the nine provinces: 28% were

based in Gauteng, 22% in the Western Cape, 12% in KwaZulu-Natal, and 10% in the North

West. More or less 1% of employees in the sector were disabled.

Levy-paying organisations in the sector employed 27% Professionals (including trainee

accounts and audit clerks), 27% Clerical and Administrative Workers, 21% Technicians and

Trades Workers, and 14% Managers. A typical profile of a non-levy-paying organisation reflects

an owner manager (15% of total employment), who is usually also a professional assisted by

clerical or administrative workers (32% of total employment). The Professional category

comprised 28% of total employment among non-levy payers. The majority of the workers (60%)

in non-levy-paying organisations were white but less than half (46%) of those in levy-paying

organisations were white. Thirty-three per cent were African in levy-paying organisations and

27% in non-levy-paying organisations. Although women constituted more than half (56%) of the

workforce in the sector, only 35% of the managerial positions were filled by women.

The report also provides feedback on training conducted in the sector. The main focus of the

WSPs is the training planned for a particular year, while in the ATRs employers report on the

training that actually took place during that year. Training activities are reported in terms of

training priorities, training interventions, and the beneficiaries of training. A distinction was made

between current employees in the sector earmarked for training and potential external new

recruits (including Section 18(2) learners). In Year 10, employers who successfully submitted

Mandatory Grant applications planned to train 37 234 current employees – 55% of their

employees. Of these employees 3 355 (5%) would participate in accelerated development and

33 879 in other development plans. Organisations planned to involve 1 665 external new

recruits in learning interventions in Year 10. Forty-six per cent of the beneficiaries of training

planned for Year 10 would receive training in specialised financial skills, 12% in information

technology, and 12% in management and leadership skills. It was clear that employers were

committed to skills development, as the ATRs of these organisations reported that 54 628

people – 81% of the employees – were trained. Of these, 52 751 were training interventions for

current employees and 1 877 were accelerated development training interventions. Also, 556

new recruits attended training interventions. Finally, 55 employees from 15 levy-paying

organisations were involved in Adult Basic Education and Training (ABET).

The WSP for Year 10 reports on financial information such as organisations’ financial year and

payroll. The financial year of most of the organisations (64%) that submitted a WSP runs from

Analysis of Grant Applications 2009/2010 (Year 10) xii

March to February. In Year 10 the organisations that successfully submitted WSPs reported a

total payroll of R32,2 billion. However, levies were paid on a salary bill of R25,7 billion. All the

reasons for the difference are not known, but one reason may be the fact that learner salaries

are exempt from the SDL.

The subsector Accounting, Bookkeeping, Auditing and Tax Services and organisations in the 50

to 149 employee category reported the highest salary bill.

Organisations also reported on staff turnover. In total, organisations in the sector experienced a

turnover of 21% – although only 63% of organisations responded to the question on turnover.

In the WSP component of the Mandatory Grant applications employers had to report on scarce

skills and critical skills needs. Thirty-four per cent of organisations reported a scarcity of

qualified and experienced people and indicated that 3 709 mainly qualified Professionals (11%

of total employment) were required to meet the need in Year 10. Twenty per cent of

organisations reported that 4 147 of their employees (4% of total employment) needed to “top-

up” their skills through learnerships, short courses and skills programmes. Most of these people

(54%) were employed as Professionals.

The report gives an overview of the consultation that took place in the development and review

of the WSP in Year 10, the Skills Development Facilitators (SDFs) registered with Fasset at the

time, the process used to develop and review the WSP, and the difficulties in implementing

employment equity and affirmative action in organisations. Most organisations in the sector

employed fewer than 50 people and consequently did not have Training/Skills Development

Committees (TDCs) to endorse their WSPs. Only 1% of the levy-paying employers that

submitted WSPs in Year 10 had TDCs that approved their WSPs. Nevertheless, the majority of

organisations that submitted WSPs used some process of consultation such as group/divisional

meetings with employees in the development of their WSPs. SDFs play an important role in

skills development in organisations and in the communication between employers and the

SETA. Almost all (N=1 808) levy-paying organisations that successfully submitted Mandatory

Grant applications had SDFs acting on their behalf. Most of the SDFs had higher than Grade 12

qualifications and 19% of the SDFs for levy-paying organisations and 16% of the SDFs for non-

levy paying organisations were chartered accountants. Most of the SDFs were white and 44% of

the SDFs for levy-paying organisations and 64% of those for non-levy-paying organisations

were men. Owing to size, only a small number of organisations in the sector had to develop an

Employment Equity Plan (EEP). Eleven per cent of levy-paying organisations that successfully

submitted WSPs in Year 10 had more than 50 employees and had to plan for employment

Analysis of Grant Applications 2009/2010 (Year 10) xiii

equity and affirmative action. Eight per cent of organisations indicated that they had difficulties

in planning and implementing employment equity and affirmative action. Of these organisations

only 42% employed more than 50 employees. More than half of the organisations (58%) that

indicated they had problems in implementing employment equity were small; i.e. employed

fewer than 50 employees.

Finally, in order to facilitate the monitoring of trends over time, Fasset has developed a set of

key indicators that fall into five main categories: the participation of organisations in the levy-

grant system; the distribution of levy income; changes in the sector profile; employers’

involvement in the training of their employees; and scarce skills in the sector. The number of

Mandatory Grant applications successfully submitted to Fasset increased every year over the

first six years, decreased in Year 7 as a consequence of legislative changes, but increased

again from Year 8. The SCG submissions fluctuated as a result of changes in the eligibility

criteria for this grant. Data on LCG submissions were only available from Year 6 and more

organisations and learners claimed LCGs in Year 10 than in Year 9. From Year 1 to Year 10

Fasset’s income increased steadily from R33,3 million to R206 million after a drop in Year 7 and

the total amounts paid in respect of grants (Mandatory Grant applications and discretionary

grants) increased from R9,8 million (44.7% of the total grant available in Year 1) to R135,1

million (75% of the total grant available in Year 10) at an annual growth rate of 33.8%.

Women’s share in total employment in the sector remained fairly constant at 55% but blacks’

share in employment increased from 43% in Year 2 to 56% in Year 10. Blacks’ share in

positions at Managerial level, Professional level, and Technicians and Associated Professionals

level also showed increases while women’s share in managerial positions in the sector showed

only a small increase.

Although the number of employees who received training in the sector showed increases, the

percentage of the workforce that was trained dropped between Year 2 and Year 9. In Year 10

the percentage of the workforce that was trained showed an increase. Scarce skills that existed

in the sector were reported only from Year 7 and the number of people needed to alleviate

scarcity showed a substantial increase until 2009. However, compared to Year 9 the number of

people needed in scarce-skills positions dropped in Year 10.

Analysis of Grant Applications 2009/2010 (Year 10) 1

1 INTRODUCTION

1.1 BACKGROUND

The Skills Development Strategy established in 1998 had a vision of creating a skilled workforce

that is continuously being trained and developed by both private and public organisations in

South Africa. As many employers were not contributing to the training of the workforce, the

government instituted a payroll tax (the Skills Development Levy (SDL)), which obliges

employers to contribute to skills development at a minimum level. With the introduction of the

Skills Development Levies Act (1999) (SDLA), organisations were required to contribute one per

cent of their payroll towards the SDL. A certain percentage could be claimed back if

organisations engaged in the training and development of their employees.

A grant system was introduced for this purpose and the Sector Education and Training

Authorities (Setas) are responsible for the implementation of this system in their respective

sectors. The Sector Education and Training Authority for Finance, Accounting, Management

Consulting and other Financial Services (Fasset) has two grants through which employers can

claim a total of 70% of their SDL. These grants available to employers are the grants payable

on the submission of a Mandatory Grant application (which includes a Workplace Skills Plan

(WSP) and an Annual Training Report (ATR)) and a Strategic Cash Grant (SCG). Seta

discretionary funding may furthermore be accessed through the Learnership Cash Grant (LCG).

WSPs are meant to reflect the human resources development needs of workplaces and the

strategies put in place by employers to meet these needs. Ideally, these plans should be

closely linked to the business strategies of employers. ATRs should reflect the actual training

that has taken place in each workplace. The reports should also explain any deviations from

the original WSPs, if such deviations occurred. In the years prior to 2006, employers submitted

separate WSPs and ATRs and received two grants in respect of the separate submissions, but

from 2006 onwards only one (combined) Mandatory Grant application was submitted.

SCGs are payable to organisations that participated in certain priority skills development

activities in the sector, such as offering bursaries and learnerships to unemployed black1 and/or

disabled people. LCGs are payable to employers employing fewer than 150 people for black

learners and/or learners with a disability who have commenced with a Fasset learnership.

1 Black refers to African, coloured and Indian people.


The Mandatory Grant application forms are important sources of information on the participation

of organisations in the levy-grant system, as well as on the human resources profiles and

development needs of the sector.

This report is the tenth in a series of annual reports commissioned by Fasset and is based on

an analysis of the grant application forms submitted to Fasset by its constituent organisations

for the financial year 2009/2010 (Year 10). This report reflects information provided by

employers in the WSP component of the Mandatory Grant applications submitted in June 2009

and that dealt with the training that was planned by organisations for the period 1 April 2009 to

31 March 2010 and the ATR component of the Mandatory Grant applications that were

submitted in June 2010 and that dealt with the training that actually took place from 1 April 2009

to 31 March 2010. The report also provides information on the SCG applications that were

submitted for training that took place over the period January to December 2009 and the LCG

applications that were submitted for the period 1 January 2009 to 31 December 2009. Both

grant applications were due on 31 March 2010.

Fasset also registers non-levy-paying organisations on its database. During registration, these

organisations complete a form containing employment information that is similar to the

employment information submitted by levy-paying organisations as part of their Mandatory

Grant applications. Six-hundred-and-four such registrations were recorded in Year 10. The

information submitted by the non-levy-paying organisations is included in the sector profile

presented in Chapter 3 of this report.

Fasset as a training authority is committed to skills development and the results of the analysis

will assist the Seta in making strategic decisions for the sector – such as decisions on the

allocation of funds and special-skills development projects that need to be initiated and

supported. The analysis will also assist with the monitoring of the rate of transformation in the

financial services sector and yearly trends in grant applications. Information obtained through

this analysis is used extensively in the annual updates of Fasset’s Sector Skills Plan (SSP).

Most of the statistical information used in this analysis was obtained from the Seta online

system where grant applications are captured. The data were extracted and were checked at all

levels to ensure correctness. Corrections were made where required.

Only forms from successful grant applications (accepted applications) were used for the

analysis.


1.2 CLASSIFICATION OF SUBSECTORS The sectors that the respective Setas serve are defined in terms of the Standard Industrial

Classification (SIC) system that describes organisations’ economic activity. Fasset’s sector

includes a set of 16 SIC codes but for the purpose of this analysis we have re-categorised them

into seven subsectors. These subsectors and descriptions of the SIC codes included in each of

them can be seen in Table 1-1.

Table 1-1 Subsector demarcation

SIC Code SIC Description Subsector 81904 88103

Investment Entities and Trusts Company Secretary Services

Investment Entities and Trusts and Company Secretary Services

83110 83120 83121 88102

Administration of Financial Markets Security Dealing Activities Stockbroking Asset Portfolio Management

Stockbroking and Financial Markets

83180 Development Corporations and Organisations Development Organisations

88101 88120 88121

88122 88123

Tax Services Accounting, Bookkeeping and Auditing ActivitiesTax Consultancy Activities of Accountants and Auditors registered in terms of the Public Accountants and Auditors Act Activities of Cost and Management AccountantsBookkeeping Activities, including Relevant Data Processing and Tabulating Activities

Accounting, Bookkeeping, Auditing and Tax Services

83190 Activities Auxiliary to Financial Intermediation Activities Auxiliary to Financial Intermediation

88140 Business and Management Consulting Services Business and Management Consulting Services

91108 9110E

South African Revenue Service (SARS) National Treasury Provincial Treasuries

SARS and Government Departments

1.3 STRUCTURE OF THE REPORT The report consists of the following chapters: Chapter 2 describes organisations in the sector’s

participation in the levy-grant system. Chapter 3 sketches the profile of the sector, while

chapters 4 and 5 deal respectively with training in the sector and financial information on the

sector. Chapter 6 deals with the scarce- and critical skills needs reported by employers.

Chapter 7 discusses the development and consultative processes used by organisations to

develop the WSPs, including the Skills Development Facilitators (SDFs) registered with Fasset.


Chapter 8 reports on the learnership cash grants and, finally, Chapter 9 compares information

gleaned from the grant analyses from Year 1 to Year 10 according to a few key indicators.


2 PARTICIPATION IN THE LEVY-GRANT SYSTEM

2.1 INTRODUCTION

Employers are obliged to pay the Skills Development Levy (SDL), but the claiming of grants is

voluntary. However, the success of the whole levy-grant system hinges on the participation of

employers in the system. Setas therefore encourage organisations in their sectors to become

actively involved in the training of their workforce and to claim back their levies through the

available grants. The monitoring of participation rates helps the Setas to evaluate their success

in stimulating participation.

In this chapter we analyse the participation of organisations in Fasset’s sector in the 2009/2010

financial year. Participation is viewed from different perspectives: the total amounts available

for and paid in respect of grants; participation in the specific grants; participation of

organisations from different size categories; and participation of organisations in the different

subsectors.

2.2 LEVY INCOME DISTRIBUTION

Figure 2-1 provides an overview of the total levy amount paid by organisations in the Financial

and Accounting Services Sector, the amounts available for grants, and the actual amounts paid

by Fasset. Levies paid by employers amounted to R257,52 million. Twenty per cent of this

amount was paid by the South African Revenue Service (SARS) to the National Skills Fund

(NSF) – R51,5 million. Fasset received the remaining 80%, which amounted to R206,0 million.

Ten per cent of the total levy income (R25,8 million) went into Fasset’s General Fund while 70%

(R180,3 million) was paid into the Grant Disbursement Fund. The amounts available for the

mandatory- and SC grants were respectively R128,8 million (50% of the total levy amount) and

R51,5 million (20% of the total levy amount). The actual amount paid out in respect of

Mandatory Grants was R105,0 million – 82% of the amount available for Mandatory Grants.

The corresponding figure for the SCG and LCG was R30,1 million (58,4% of the available

amount). Total grant disbursements were R135,1 million (75% of the available amount).

2 The amounts given in this chapter refer to the financial situation pertaining to the 2009/2010 grant scheme at the time of this analysis. The financial information changes continuously, as SARS adjusts levies paid by organisations and the Seta adjusts grant payments accordingly.


The funds that were not claimed by employers went to special skills development projects in the

sector.

Figure 2-1 Distribution of total levy income in Year 103

TOTAL LEVY INCOME* R257,5 m

NSF* 20 %

R51,5 m

Fasset** 80 %

R206 m

General Fund 10 %

R25,8 m

Grant Disbursement

Fund 70 %

R180,3 m

Amounts available for grants

Mandatory Grant 50 %

R128,8 m

Discretionary Grants 20 %

R51,5m

Amounts paid in respect of grants (percentage of grant available)

R105,0m (81,6 %)

SCG R30,1 m(58,4 %)

Total grant disbursements: R135,1m (75 % of total grants available)

3 The information presented in this figure was extracted from Fasset’s system at the time of this analysis and owing to time differences may differ from figures published by Fasset at other points in time. The figure also shows the theoretical distribution of levy income. It is possible for a Seta to use less than the 10% available for Seta administration. This may leave a larger amount available for grant disbursements.

Analys

2.3 PAIn Year 1

Of these

applicatio

Table 2-1

Grant app

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2.4 PARTICIPATION ACCORDING TO LEVY SIZE According to Table 2-2, Fasset received levies from 3 502 organisations in Year 10. Of these

organisations, 13% paid between R1 000 and R4 999, 20% between R5 000 and R9 999, and

50% between R10 000 and R99 999. Only 9% of the organisations paid R100 000 or more.

Most of the WSPs that were accepted came from organisations that paid more than R4 999 in

levies. Sixty per cent (N=1 078) came from organisations that paid between R10 000 and

R99 999, 17% (N=300) came from those that paid between R5 000 and R9 999, and 12%

(N=226) from organisations that paid more than R99 999. The SCGs were mostly paid to large

organisations – those that paid R100 000 or more in levies.

Table 2-2 Organisations that participated in the levy-grant system according to levy size

Levy size category Levies paid Mandatory Grants SCGs

N % N % N % <R100 48 1 2 0 R100 - R999 255 7 17 1 R1 000 - R4 999 449 13 83 5 R5 000 - R9 999 699 20 300 17 R10 000 - R99 999 1 745 50 1 078 60 9 19R100 000+ 306 9 226 12 38 81Unknown* 105 6 Total 3 502 100 1 811 100 47 100*At the time of the analysis Fasset’s system did not show levy incomes for these organisations.

2.5 MANDATORY GRANT APPLICATIONS Table 2-3 gives a summary of the Mandatory Grant applications that were accepted by Fasset

in Year 10 according to the employment sizes of the organisations that submitted them. The

majority of organisations in Fasset’s sector are small and employ fewer than 50 people. Of the

accepted Mandatory Grant applications, 84% came from these organisations. Together, they

employed 25 017 people and received R23 681 601 in Mandatory Grants. This constitutes 23%

of the total combined WSP/ATR grant paid in Year 10.

The workforce of 30% of organisations that submitted Mandatory Grant applications consisted

of 10 to 19 employees each. This category of organisations employed a total of 7 908 people

(8% of total employment in the organisations whose Mandatory Grant applications were

accepted) and received R7 170 805 in Mandatory Grants – 7% of the total Mandatory Grant

amount paid by Fasset.


The 70 large organisations (those that employ more than 150 people) constituted only 4% of

organisations that submitted Mandatory Grant applications. However, they employed 62% of

the workforce (59 082 people) and received R39 582 244 in Mandatory Grants in Year 10 –

38% of the total grant paid by Fasset. At the time of the analysis the employer size of 90

organisations that received Mandatory Grants in Year 10 was not clear.

Table 2-3 Mandatory Grant applications according to organisation size

Organisation size Organisations Employment Amounts paid by Fasset

(Mandatory Grants) N % N % Amount %

1 - 9 employees 574 30 3 509 4 R4 223 642 410 - 19 employees 572 30 7 908 8 R7 170 805 720 - 49 employees 450 24 13 600 14 R12 287 154 1250 - 149 employees 145 8 11 847 12 R18 508 781 18150+ employees 70 4 59 082 62 R39 582 244 38Unknown* 90 5 R23 266 601 22Total 1 901 100 95 946 100 R105 039 227 100*At the time of the analysis Fasset’s system did not show these organisations as organisations whose WSPs had

been accepted.

Most (55%) of the Mandatory Grant applications came from organisations operating in the

Accounting, Bookkeeping, Auditing and Tax Services subsector. This subsector employed 40%

of the workers and received 36% (R36 663 828) of the grant.

Fifteen per cent of the Mandatory Grant applications that were accepted by Fasset were

received from organisations in the Business and Management Consulting Services subsector

and 14% from organisations in the Stockbroking and Financial Markets subsector (Table 2-4).

Three of the Mandatory Grant applications that were accepted were received from SARS and

government departments. This subsector employed 17% (16 193 people) of the workforce.


Table 2-4 Mandatory Grant applications accepted from levy-paying organisations according to subsector

Subsector Organisations Employment

Amounts paid by Fasset

(Mandatory Grants) N % N % Amount %

Investment Entities and Trusts and Company Secretarial Services 152 8 5 479 6 R10 445 345 10

Stockbroking and Financial Markets 258 14 10 320 11 R17 918 107 17Development Organisations 25 1 1 662 2 R3 468 307 3Accounting, Bookkeeping, Auditing and Tax Services 988 52 38 538 40 R26 875 810 26

Activities Auxiliary to Financial Intermediation 118 6 8 018 8 R5 897 505 6

Business and Management Consulting Services 267 14 15 736 16 R17 167 552 16

SARS and Government Departments 3 0 16 193 17Unknown* 90 5 R23 266 601 22Total 1 901 100 95 946 100 R105 039 227 100*At the time of the analysis Fasset’s system did not show these organisations as organisations whose WSPs had

been accepted.

2.6 STRATEGIC CASH GRANTS In Year 10 organisations could claim back 20% of their levies through the Strategic Cash Grant

(SCG) if they had incurred costs in respect of education and training interventions in the

strategic skills priority areas mentioned below during the period 1 January 2009 to 31 December

2009.

Fasset could not pay the discretionary grant to an employer unless the employer:

• Had registered with the Commissioner in terms of the SDLA;

• Had paid the levies directly to SARS in the manner and within the period determined in

the SDLA

• Was up to date with levy payments to SARS at the time of approval and in respect of the

application period;

• Had submitted a WSP within the timeframes prescribed; and

• Was registered with Fasset.

The SCG application had to be completed correctly, signed off by the appropriate signatories,

and submitted in full in Fasset's required format on or before the deadline date for grant


applications. Claims could be made only in respect of learners who were in possession of a

valid South African identity document – i.e. South African citizens. ‘Double-dipping’ on the

same learner in respect of the same period for the same expense was prohibited; i.e. employers

were not allowed to apply for the SCG and the LCG in respect of one and the same learner.

Each year specific areas that are of strategic importance to Fasset’s sector are determined and

the SCG is allocated to initiatives that fall within these strategic areas. The criteria for the SCG

change from year to year, depending on the priorities of the sector at that time. In the year

covered by this analysis, the SCG was payable to employers participating in one or more of the

following six areas:

• Employers who employed both Section 18(1) (previously employed) and Section 18(2)

(previously unemployed) black4 learners and/or learners with disabilities on learnerships

identified as scarce and/or critical;

• Employers who provided external bursaries to unemployed black learners and/or

learners with disabilities to study at recognised institutions or professional bodies in

areas of study identified as scarce and/or critical;

• Employers who provide workplace experience in scarce and/or critical skills to black

learners and/or learners with disabilities from institutions;

• Employers who assist black learners and/or learners with disabilities, via skills transfer of

scarce and/or critical skills, in creating new ventures within the sector;

• Employers who provide financial support to employed black learners and/or learners with

disabilities to study at recognised institutions or professional bodies; and

• Employers who provide Adult Basic Education and Training (ABET) to their employees.

SCGs were granted to organisations that demonstrated an incremental improvement in their

strategic skills priority area involvement (the six areas above).

A total grant pay out of R13 million was made to 47 organisations in Year 10 (Table 2-5). Of

this amount, 92% (R12 million) was paid to large organisations that employed 150 or more

people. Fifty-three per cent of organisations that were paid SCGs employed 150 or more

people and their workers represented 95% of the workforce of the organisations that received

4 African, Coloured and Indian learners.


SCGs. Only 4% of the organisations that claimed grants employed 10 to 19 employees and

26% of them 50 to 149 employees.

Table 2-5 SCGs according to organisation size* **

Organisation size Organisations Employment Amounts paid

N % N % Rand % 1 - 9 employees 10 - 19 employees 2 4 32 0 R12 951 020 - 49 employees 8 17 248 1 R117 241 150 - 149 employees 12 26 1 121 4 R857 391 7150+ employees 25 53 25 826 95 R2 012 417 92Total 47 100 27 227 100 R13 000 000 100*Percentages will not necessarily add up to 100 owning to rounding. **Employment figures include employment in linked entities. The subsectoral distribution of organisations that received SCGs can be seen in Table 2-6. The

organisations belonged to six of the seven demarcated subsectors. The SCG grant is not

available to the subsector SARS and Government Departments, as organisations in this

subsector do not pay the SDL.

More than half (57%) of the grant money was paid to organisations in the Accounting,

Bookkeeping, Auditing and Tax Services subsector. This subsector also represented 57% of

the workforce of organisations that claimed SCGs. Seventeen per cent of the money

(R2 193 023) was paid to the subsector Business and Management Consulting Services and

12% (R1 550 675) to the subsector Investment Entities and Trusts and Company Secretarial

Services. The remainder of the money was paid to the other three subsectors – i.e.

Stockbroking and Financial Markets, Development Organisations, and Activities Auxiliary to

Financial Intermediation.


Table 2-6 SCGs according to subsector*

Subsector Organisations Employment Amounts paid

N % N % Rand % Investment Entities and Trusts and Company Secretarial Services 5 11 1 404 5 R1 550 675 12

Stockbroking and Financial Markets 8 17 1 810 7 R949 093 7Development Organisations 1 2 637 2 R773 829 6Accounting, Bookkeeping, Auditing and Tax Services 22 47 15 594 57 R7 408 535 57

Activities Auxiliary to Financial Intermediation 4 9 2 611 10 R124 846 1

Business and Management Consulting Services 7 15 5 171 19 R2 193 023 17

Total 47 100 27 227 100 R13 000 000 100*Percentages will not necessarily add up to 100 owning to rounding.

The highest number of organisations (N=29) claimed SCGs for financial support to employ black

and/or disabled learners to study at recognised tertiary institutions or with professional bodies

(Table 2-7). Sixteen organisations claimed SCGs for providing bursaries to unemployed black

learners and/or learners with disabilities to study at recognised institutions or with professional

bodies in areas of study identified as scarce and/or critical and seven organisations claimed

SCGs for ABET. In Year 10 no SCGs were claimed for new venture creation.

Table 2-7 Strategic areas in which SCGs were claimed according to organisation size*

Strategic area

Org size 18(2) Learners Bursaries Workplace

ExperienceNew

ventures Financial Support ABET

Org N % Org

N % Org N % Org

N % Org N % Org

N %

1 - 9 employees

10 - 19 employees 2 8 1 5

20 - 49 employees 1 6 3 13 2 11 3 10

50 - 149 employees 3 19 3 13 6 32 6 21 3 43

150+ employees 12 75 16 67 10 53 20 69 4 57

Total 16 100 24 100 19 100 29 100 7 100* Organisations could claim in more than one strategic area.

Table 2-8 shows that the highest number of organisations that claimed SCGs in Year 10

operated in the Accounting, Bookkeeping, Auditing and Tax Services subsector. Most of these

organisations (N=13) claimed SCGs for bursaries on behalf of unemployed black learners


and/or learners with disabilities to study at recognised institutions or with professional bodies in

areas of study identified as scarce and/or critical.

Table 2-8 Strategic areas in which SCGs were claimed according to subsector*

Strategic area

Subsector 18(2) Learners Bursaries Workplace

ExperienceNew

ventures Financial Support

ABET

Org N %

Org N %

Org N %

Org N %

Org N %

Org N %

Investment Entities and Trusts and Company Secretarial Services

4 17 2 11 3 10 2 29

Stockbroking and Financial Markets

2 8 3 16 7 24 3 43

Development Organisations 1 6 1 4 1 3


12 75 13 54 11 58 9 31 1 14

Activities Auxiliary to Financial Intermediation

2 8 1 5 3 10

Business and Management Consulting Services

3 19 2 8 2 11 6 21 1 14

Total 16 100 24 100 19 100 29 100 7 100*Organisations could claim in more than one strategic area. Forty-seven per cent of organisations that claimed SCGs received the full 20% of their SDL for

costs incurred in education and training interventions in the strategic skills priority areas during

the period 1 January 2009 to 31 December 2009.

2.7 CONCLUSION This chapter provides an overview of the participation of employers in Year 10 in the levy-grant

system administered by Fasset. The analysis focuses on two grants – the Mandatory Grant and

the SCG. As in previous years Fasset invested substantial resources in support strategies to

help employers to submit their grant applications. A total participation rate of 52% (of levy-


paying organisations) was attained in respect of the Mandatory Grant. This enabled Fasset to

disburse 82% of the money available for this grant.

In Year 10 SCGs were mostly claimed by organisations with larger numbers of employees and

most of the grant money claimed went to organisations with 150 and more employees. Twenty-

five per cent of the amount available for discretionary grants was claimed by 47 organisations in

the sector. Most organisations that claimed SCGs were operating in the Accounting,

Bookkeeping, Auditing and Tax Services subsector and claimed for costs incurred for financial

support and to employ both Section 18(1) (previously employed) and Section 18(2) (previously

unemployed) black5 learners and/or learners with disabilities on learnerships identified as

scarce and/or critical.

5 African, Coloured and Indian learners.


3 PROFILE OF THE SECTOR

3.1 INTRODUCTION

In the WSP component of the Mandatory Grant applications, employers are required to provide

information on certain aspects of their organisations and on the people that they employ. The

WSPs submitted in respect of Year 10 reflected employment as on 1 April 2009.

Similar to the organisations that apply for Mandatory Grants, non-levy-paying organisations that

want to register with Fasset are required to provide information on their employees – i.e. they

submit the same employment profile forms as those contained in the WSPs. The non-levy-

paying organisations that were registered on the database in Year 10 are reflected in Table 3-1.

Together these organisations employed 2 982 people.

Table 3-1 Non-levy-paying organisations registered on Fasset’s database according to subsector

Subsector Organisations Employment N % N %

Investment Entities and Trusts and Company Secretarial Services 19 3 69 2

Stockbroking and Financial Markets 10 2 48 2Development Organisations 1 0 6 0Accounting, Bookkeeping, Auditing and Tax Services 518 86 2 594 87

Activities Auxiliary to Financial Intermediation 12 2 73 2Business and Management Consulting Services 44 7 192 6

SARS and Government Departments* 0 0 0 0Total 604 100 2 982 100*Strictly speaking, most government organisations are non-levy-paying organisations as they do not pay the SDL. However, in this sector they are regarded as part of levy-paying organisations if they submit WSPs and ATRs.

The information from both the Mandatory Grant applications and the registration of non-levy-

paying organisations is used in this report to construct a profile of the sector. In Year 10 the

profile is based on information of about 99 0006 employees – approximately 83% of the

6 SARS’s employment information is incorporated in this report.


workforce employed in the sector (N=119 3007). This is a large portion of the total workforce in

the sector.

3.2 TOTAL EMPLOYMENT The organisations whose WSPs were accepted by Fasset in Year 10 employed a total of 98 928

people (Table 3-2). Of these, 95 946 were employed by levy-paying organisations (Table 3-3)

and 2 982 by non-levy-paying organisations (Table 3-4).

From the 2009/2010 financial year Fasset classifies employees according to eight occupational

categories, as opposed to the nine categories used before 2009/2010. The eight categories

are: Managers, Professionals, Technicians and Trades Workers, Community and Personal

Service Workers, Clerical and Administrative Workers, Sales Workers, Machinery Operators

and Drivers, and Elementary Workers. Trainee accounting and auditing clerks now fall into the

“Professionals” category and no longer fall into the “Technicians and Associated Professionals”

category. Of the employees employed by the organisations whose WSPs were accepted, the

highest number (N=26 996, 27% of the total workforce) was Clerical and Administrative

Workers, 27 043 (27%) were Professionals (including trainee account/audit clerks), and 13 896

(14%) worked as Managers.

Fifty-six per cent of the total workforce (N=55 346) were women and 43 582 (44%) were men

(Table 3-2). The majority of Managers (65%) were men – 9% were African men, 3% were

coloured men, 6% were Indian, and 47% were white men. Black women constituted 11% of the

managerial group and white women 24%.

Tables 3-3 and 3-4 show the profile of levy-paying- and non-levy-paying organisations

respectively. Of the people employed in the non-levy-paying organisations, 61% (N=1 831)

were women and only 39% (N=1 151) men (Table 3-4).

7 Estimated employment as on 31 March 2009 – Fasset Sector Skills Plan: 2011 – 2015.


Table 3-2 Total employment: levy- and non-levy payers according to occupation, population group and gender

Occupational group

African Coloured Indian White Total men Total

women Total Men Women Men Women Men Women Men Women

N % N % N % N % N % N % N % N % N % N % N % Managers 1 275 9 753 5 393 3 359 3 834 6 475 3 6 526 47 3 281 24 9 028 65 4 868 35 13 896 100Professionals 3 325 12 3 284 12 882 3 1 016 4 1 622 6 1 461 5 8 050 30 7 403 27 13 879 51 13 164 49 27 043 100Technicians and Trades Workers 3 240 16 4 308 22 869 4 1 498 7 998 5 1 120 6 3 522 18 4 440 22 8 629 43 11 366 57 19 995 100

Community and Personal Service Workers

870 44 453 23 54 3 144 7 20 1 68 3 63 3 325 16 1 007 50 990 50 1 997 100

Clerical and Administrative Workers

3 178 12 6 518 24 868 3 3 377 13 600 2 1 634 6 1 557 6 9 264 34 6 203 23 20 793 77 26 996 100

Sales Workers 469 21 569 25 89 4 137 6 55 2 71 3 452 20 400 18 1 065 48 1 177 52 2 242 100Machinery Operators and Drivers

967 77 35 3 69 6 29 2 32 3 0 0 102 8 20 2 1 170 93 84 7 1 254 100

Elementary Workers 1 973 36 1 718 31 500 9 1 117 20 19 0 6 0 109 2 63 1 2 601 47 2 904 53 5 505 100Total 15 297 15 17 638 18 3 724 4 7 677 8 4 180 4 4 835 5 20 381 21 25 196 25 43 582 44 55 346 56 98 928 100


Table 3-3 Total employment: levy payers according to occupation, population group and gender

Occupational group

African Coloured Indian White Total TOTAL

Men Women Men Women Men Women Men Women Men Women N % N % N % N % N % N % N % N % N % N % N %

Managers 1 217 9 718 5 386 3 351 3 808 6 468 3 6 327 47 3 168 24 8 738 65 4 705 35 13 443 100Professionals 3 216 12 3 210 12 865 3 998 4 1 597 6 1 428 5 7 760 30 7 137 27 13 438 51 12 773 49 26 211 100Technicians and Trades Workers 3 202 16 4 252 22 860 4 1 486 8 987 5 1 112 6 3 458 18 4 325 22 8 507 43 11 175 57 19 682 100


857 45 435 23 53 3 139 7 18 1 66 3 55 3 263 14 983 52 903 48 1 886 100


3 131 12 6 355 24 852 3 3 320 13 578 2 1 586 6 1 467 6 8 714 34 6 028 23 19 975 77 26 003 100

Sales Workers 463 21 562 26 88 4 134 6 54 2 65 3 444 20 387 18 1 049 48 1 148 52 2 197 100Machinery Operators and Drivers

957 77 33 3 69 6 27 2 32 3 0 0 102 8 20 2 1 160 94 80 6 1 240 100

Elementary Workers 1 909 36 1 603 30 494 9 1 093 21 19 0 6 0 106 2 54 1 2 528 48 2 756 52 5 284 100Total 14 952 16 17 168 18 3 667 4 7 548 8 4 093 4 4 731 5 19 719 21 24 068 25 42 431 44 53 515 56 95 946


Table 3-4 Total employment: non-levy payers according to occupation, population group and gender

Occupational group

African Coloured Indian White Total TOTAL

Men Women Men Women Men Women Men Women Men Women N % N % N % N % N % N % N % N % N % N % N %

Managers 58 13 35 8 7 2 8 2 26 6 7 2 199 44 113 25 290 64 163 36 453 100Professionals 109 13 74 9 17 2 18 2 25 3 33 4 290 35 266 32 441 53 391 47 832 100Technicians and Trades Workers

38 12 56 18 9 3 12 4 11 4 8 3 64 20 115 37 122 39 191 61 313 100


13 12 18 16 1 1 5 5 2 2 2 2 8 7 62 56 24 22 87 78 111 100


47 5 163 16 16 2 57 6 22 2 48 5 90 9 550 55 175 18 818 82 993 100

Sales Workers 6 13 7 16 1 2 3 7 1 2 6 13 8 18 13 29 16 36 29 64 45 100

Machinery Operators and Drivers

10 71 2 14 0 0 2 14 0 0 0 0 0 0 0 0 10 71 4 29 14 100

Elementary Workers 64 29 115 52 6 3 24 11 0 0 0 0 3 1 9 4 73 33 148 67 221 100

Total 345 12 470 16 57 2 129 4 87 3 104 3 662 22 1 128 38 1 151 39 1 831 61 2 982 100


Only a small percentage of disabled people were employed in the sector. Of the 537 disabled

employees, 36% (N=195) were employed as Technicians and Trades Workers, 29% (N=158) as

Clerical and Administrative Workers, and 17% (N=89) as Professionals (Table 3-5). Eight

disabled people were employed by non-levy-paying organisations.

Table 3-5 Disabled employees*

Occupational group African Coloured Indian White Total

% of Occupational group

Managers 2 2 3 41 48 0Professionals 19 5 9 56 89 0Technicians and Trades Workers 71 16 7 101 195 1Community and Personal Service Workers 1 0 1 0 2 0Clerical and Administrative Workers 37 16 7 98 158 1Sales Workers 8 0 0 3 11 0Machinery Operators and Drivers 2 0 0 1 3 0Elementary Workers 7 5 0 19 31 1Total 147 44 27 319 537 1*Eight disabled employees were from non-levy-paying organisations.

3.3 PROVINCIAL DISTRIBUTION More than half of the employees in levy-paying organisations whose WSPs were accepted were

based in Gauteng (52%), 21% were based in the Western Cape, and 11% in KwaZulu-Natal.

Only small proportions were employed in the other provinces (Figure 3.1).

Non-levy-paying organisations’ employees were more evenly spread across the nine provinces:

28% were based in Gauteng; 22% in the Western Cape; 12% in KwaZulu-Natal; and 10% in the

North West. The Northern Cape, Limpopo, Mpumalanga, the North West and the Free State

had higher percentages of employees working in non-levy-paying organisations than in levy-

paying organisations.

Analys

Figure 3-

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The occu

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Analys

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eople constit

tions as in

non-levy-pa

Clerical and

an in levy-pa

ment profile

d for the first

Levy payingNon-levy pa

cations 2009/201

on group: lev

-paying org

were white

s’ share of m

r 10. Of Pro

Year 10. F

s Sales Wo

ers were wh

tuted more o

levy-paying

aying organ

d Administra

aying organ

of levy-pay

t time in Yea

0

10

20

30

40

50

60

70

g (%)aying (%)

10 (Year 10)

vy-paying- an

anisations,

– 71% of th

management

ofessionals,

Fewer white

orkers and

ite.

or less the s

g organisatio

isations (67%

ative Worker

isations (39%

ying organis

ar 10.

African3327

nd non-levy-p

most of th

e Managers

t had decrea

whites’ shar

e people tha

Elementary

same portion

ons. Howev

%) than in le

rs was also

%). This cou

sations. SA

Coloure126

paying organ

e employee

s and 57% o

ased from 78

re decreased

an African p

Workers.

n of Manage

ver, whites’

evy-paying o

bigger in no

uld be due to

ARS’ Manda

ed Ind96

nisations

es in two o

of the Profes

8% in Year 7

d from 68%

eople were

Only 39%

ers (69%) in

share of Pr

organisation

on-levy-payi

o the impact

atory Grant

ian W96

2

of the four

ssionals (Tab

7 to 75% in

in Year 7 to

employed i

of Clerical

n non-levy-pa

rofessionals

ns (57%). W

ing organisa

t of SARS o

application

White4660

25

main

ble 3-

Year

61%

n the

and

aying

was

hites’

ations

on the

was


Table 3-6 Population group according to occupational group

Occupational group

Levy payers Non-levy payers Levy- and non-levy payers Percentage

*A *C *I *W Total

A C I W Total

A C I W Total

Managers 14 5 9 71 100 21 3 7 69 100 15 5 9 71 100Professionals 25 7 12 57 100 22 4 7 67 100 24 7 11 57 100Technicians and Trades Workers 38 12 11 40 100 30 7 6 57 100 38 12 11 40 100Community and Personal Service Workers 69 10 4 17 100 28 5 4 63 100 66 10 4 19 100Clerical and Administrative Workers 36 16 8 39 100 21 7 7 64 100 36 16 8 40 100Sales Workers 47 10 5 38 100 29 9 16 47 100 46 10 6 38 100Machinery Operators and Drivers 80 8 3 10 100 86 14 0 0 100 80 8 3 10 100Elementary Workers 66 30 0 3 100 81 14 0 5 100 67 29 0 3 100Total 33 12 9 46 100 27 6 6 60 100 33 12 9 46 100*A = African; C = coloured, I = Indian and W = white.


Table 3-7 shows the population group distribution of organisations according to organisation

size. From the table it is clear that larger organisations in the sector employ relatively more

black workers and, specifically, more African workers than smaller organisations do. For

example, while only 19% of positions in micro organisations (those that employed fewer than 10

people) were occupied by Africans, Africans constituted 40% of employment in large

organisations (those that employed more than 150 people). In small levy-paying organisations,

70% of positions were occupied by white people and in non-levy-paying organisations 65%.


Table 3-7 Population group according to organisation size

Organisation size Levy payers Non-levy payers Levy- and non-levy payers

Percentage *A *C *I *W Total A C I W Total A C I W Total

1 - 9 employees 15 9 5 70 100 24 7 5 65 100 19 8 5 68 10010 - 19 employees 21 9 7 63 100 27 6 12 55 100 21 9 7 63 10020 - 49 employees 23 8 9 60 100 76 0 0 24 100 23 8 9 59 10050 - 149 employees 29 12 11 48 100 61 4 13 22 100 30 11 11 48 100150+ employees 40 13 9 38 100 40 13 9 38 100Total 33 12 9 46 100 27 6 6 60 100 33 12 9 46 100*A = African; C = coloured, I = Indian and W = white.


Among levy-paying organisations, most of the workers employed in the subsectors

Development Organisations (55%), Activities Auxiliary to Financial Intermediation (53%) and

SARS and Government Departments (52%) were African. The subsectors in which the pace of

transformation seems the slowest is Accounting, Bookkeeping, Auditing and Tax Services and

Business and Management Consulting Services. In the Accounting, Bookkeeping, Auditing and

Tax Services subsector only 25% of the employees were African and in the Business and

Management Consulting Services only 23% (Table 3-8).

Among non-levy-paying organisations, the subsector Development Organisations only

employed African workers, while most of the positions in Stockbroking and Financial Markets

(58%) and in Activities Auxiliary to Financial Intermediation (55%) were occupied by Africans.


Table 3-8 Population group according to subsector

Subsector

Levy payers Non-levy payers Levy- and non- levy payers Percentage

*A *C *I *W Total

A C I W Total

A C I W Total

Investment Entities and Trusts and Company Secretarial Services 36 13 8 43 100 30 10 13 46 100 36 13 8 43 100

Stockbroking and Financial Markets 32 17 6 46 100 58 0 4 38 100 32 17 6 45 100Development Organisations 55 11 10 24 100 100 0 0 0 100 55 11 10 24 100Accounting, Bookkeeping, Auditing and Tax Services 25 9 12 54 100 25 6 6 63 100 25 9 12 54 100

Activities Auxiliary to Financial Intermediation 53 15 7 25 100 55 4 0 41 100 53 15 7 25 100

Business and Management Consulting Services 23 14 9 54 100 40 9 14 37 100 23 14 9 54 100

SARS and Government Departments 52 10 6 31 100 52 10 6 31 100Total 33 12 9 46 100 27 6 6 60 100 33 12 9 46 100*A = African; C = coloured, I = Indian and W = white.

Analys

3.5.2 G

Since Y

organisa

occupied

organisa

Figure 3-

The gen

occupatio

organisa

Professio

organisa

majority

paying o

paying- (

LeNo

is of Grant Applic

Gender

ear 4, wom

tions that su

d by women

tions was ev

-5 Gender d

nder distribu

onal catego

tions (65%

onals were

tions decrea

of the Cler

organisations

(57%) and no

evy payingon-levy pa

cations 2009/201

men have

ubmitted WS

n and 44%

ven higher –

distribution o

ution of lev

ories is sho

) and non-

also men,

ased from 5

rical and Ad

s were wom

on-levy-payi

0

10

20

30

40

50

60

70

g (%)ying (%)

10 (Year 10)

constituted

SPs and AT

% by men (

– 61% versus

of employee

y-paying- a

own in Tab

-levy-paying

although th

55% in Year

dministrative

men. Most

ing organisa

Me4439

just over

TRs. In Ye

(Figure 3-5)

s the 39% fo

es

and non-levy

ble 3-9. M

organisatio

he proportio

r 8 to 53% i

e Workers e

of the Tec

ations (61%)

en49

half of the

ar 10, again

). Women’

or men.

y-paying or

Most of the

ons (64%)

on of Profe

in Year 9 an

employed in

chnicians an

) were wome

W

employees

n, 56% of a

s share in

rganisations

e Managers

were men

essional me

nd to 51% i

levy-paying

nd Trades W

en.

omen5661

3

s of levy-pa

all positions

non-levy-pa

in the diff

s in levy-pa

. Most of

n in levy-pa

in Year 10.

g- and non-

Workers in

31

aying

were

aying

ferent

aying

f the

aying

The

-levy-

levy-


Table 3-9 Gender and occupational group distribution of employees

Occupational group

Levy payers Non-levy payers Levy- and non-

levy payers

Men

Wom

en

Tota

l

Men

Wom

en

Tota

l

Men

Wom

en

Tota

l

Percentage Managers 65 35 100 64 36 100 65 35 100Professionals 51 49 100 53 47 100 51 49 100Technicians and Trades Workers 43 57 100 39 61 100 43 57 100Community and Personal Service Workers 52 48 100 22 78 100 50 50 100Clerical and Administrative Workers 23 77 100 18 82 100 23 77 100Sales Workers 48 52 100 36 64 100 48 52 100Machinery Operators and Drivers 94 6 100 71 29 100 93 7 100Elementary Workers 48 52 100 33 67 100 47 53 100Total 44 56 100 39 61 100 44 56 100

Table 3-10 reflects the population group and gender distribution of employees in the levy-

paying- and non-levy-paying organisations in Year 10. White women were the largest group in

the sector and constituted 25% of all employees. This was followed by white men (21%).

African women formed 18% (16% in Year 9) of the total workforce and African men 15% (14%

in Year 9). Coloured women formed 8% of the workforce and coloured men only 4%.

Table 3-10 Population group and gender distribution of employees in levy-paying- and non-levy-paying organisations

Population group Men Women Total N %* N %* N %*

African 15 297 15 17 638 18 32 935 33Coloured 3 724 4 7 677 8 11 401 12Indian 4 180 4 4 835 5 9 015 9White 20 381 21 25 196 25 45 577 46Total 43 582 44 55 346 56 98 928 100* Percentage of total workforce.

3.6 CONCLUSION This chapter sketches the geographical, occupational, population group and gender profile of

employees in the sector. The employees were mostly located in the urban areas of Gauteng,

and the Western Cape.


The sector employed mainly skilled workers in the four occupational categories of Managers,

Professionals, Technicians and Trades Workers, and Clerical and Administrative Workers. The

sector is lagging behind in terms of racial representivity in certain occupational groups. In Year

10 most of workers in two of the four main occupational categories – Managers and

Professionals – were white. However, in all the other occupational groups 40% or less of the

staff were white.

Only one per cent of employees were disabled.


4 TRAINING IN THE SECTOR

4.1 INTRODUCTION

The main focus of the WSPs is the training planned for a particular year, while in the ATRs

employers report on the training that actually took place during that year. In this chapter we

report on the information received from the WSPs and ATRs for Year 10.

Employers had to report on the training in two different ways. First they were required to report

on the number of people who would undergo training and who actually received training

according to the skills development priority within which the training would fall and the National

Qualification Framework (NQF) levels at which the training interventions would be pitched. The

concept skills priority refers to a specific skills area or field of study in which employees need

training; for example, information technology or management and leadership. The term training

intervention refers to the training programme used to deliver the required training; for example,

a short course or a workshop. In the reporting tables dealing with skills development priorities

people were counted every time that they would attend or actually attended a training

intervention. That means that employees were often counted more than once and the totals

exceed total employment in the sector.

Second, employers were required to report on the number of people who would be trained

according to occupational category, population group and gender. In these sets of tables

employees who received training were counted only once, irrespective of the number of training

interventions that they would attend or that they actually attended. In the WSPs employers

were also required to make a distinction between current employees who would receive training,

current employees earmarked for accelerated development, and new recruits who would

receive training. Actual training attended in Year 10 was reported in the same manner.

Employers were lastly required to indicate the number of people who received ABET. These

figures are also presented in this chapter.

Of the 1 811 levy paying organisations whose WSPs were accepted by Fasset in respect of

Year 10, only 1 189 (66%) had submitted ATRs in the subsequent round of Mandatory Grant

applications and had reported on the training that actually took place during that year. For

example, in Year 10, six large organisations, in total employing nearly 17 000 employees, did

not submit information on the training that they planned as well as the training that actually took

place in that year. In this part of the analysis the number of training opportunities planned and


those that took place are compared. For this reason this chapter only reports on the levy-paying

organisations that reported on both.

4.2 TRAINING PLANNED ACCORDING TO SKILLS PRIORITY Only levy-paying organisations employing 50 or more employees reported on planned and

implemented skills priorities in their Mandatory Grant applications. Table 4-1 gives an overview

of the training planned for Year 10 according to skills priorities, the number of people who would

participate in the training interventions, and the NQF levels of the planned interventions.

Most of the planned training interventions would focus on specialist financial and information

technology skills – nearly 36 700 course attendances would be in the priority area of specialist

financial skills. This was followed by skills relating to information technology, management and

leadership, and skills relating to the improvement of client services. Most of the courses would

be at NQF levels 4, 5 and 6.


Table 4-1 Number of employees who would be trained according to skills priority and NQF level

NQF Level

Skills Priority 1 2 3 4 5 6 7 8 Total % Specialist Financial 178 700 732 8 271 13 369 8 315 4 904 184 36 653 46

Information Technology 471 94 324 5 170 2 503 1 158 112 4 9 836 12

Management & Leadership 56 498 343 2 097 3 820 2 001 465 146 9 426 12

Client service/ Customer care 23 252 813 3 913 3 301 299 13 0 8 614 11

Support & Administration 105 115 260 2 588 1 975 427 41 1 5 512 7

Health & safety/ Security 0 312 453 1 111 116 80 9 0 2 081 3

Human Resource Management

10 35 425 536 188 10 9 0 1 213 2

Technical & Trades 0 142 908 41 53 12 1 2 1 159 1

Product related 2 25 0 480 325 202 0 0 1 034 1Life/Soft 55 0 0 455 385 43 0 0 938 1In-house non-specific 0 62 86 485 0 218 0 0 851 1

Marketing & Sales 2 0 40 432 79 2 0 0 555 1

Other 91 43 84 33 332 290 65 0 938 1Unknown 7 7 10 7 8 2 17 0 58 0Total 1 000 2 285 4 478 25 619 26 454 13 059 5 636 337 78 868 100% of total no 1 3 6 32 34 17 7 0 100

4.3 TRAINING PLANNED ACCORDING TO BENEFICIARIES In Year 10 employers were required to report on the potential beneficiaries of training for the

people they planned to train according to three categories: 1) current employees; 2) employees

specifically earmarked for development; and 3) external new recruits, including Section 18(2)

learners. Table 4-2 reflects the numbers of current employees that employers planned to train,

while Table 4-3 reflects the numbers of employees specifically earmarked for development.

Each potential recipient of training was counted only once. According to these tables,

organisations planned to train 37 234 people – 55% of the employees in the levy-paying

organisations that successfully submitted WSPs and ATRs. The employees that they planned to

train (with those specifically earmarked for development excluded) numbered 33 879 – 50% of


the employees in the total group of organisations (Table 4-2). Of all Managers, 63% would

receive training. Similarly, 66% of the Professionals (including trainee account/audit clerks)

would receive training, as well as 42% Sales Workers and 41% of the Clerical and

Administrative Workers.

Of all the employees that employers said they would train in Year 10, 3 355 (5%) would

participate in accelerated development programmes and most (57%) of these employees would

be blacks – i.e. 38% African, 7% coloured, and 12% Indian (Table 4-3).


Table 4-2 Planned beneficiaries of training* [current employees (at this level)] according to occupational category and population group

Occupational category African Coloured Indian White Total % of total

employment in

category*N % N % N % N % N %Managers 596 11 301 6 439 8 3 933 75 5 269 100 63Professionals 2 285 20 1 005 9 1 354 12 6 885 60 11 529 100 66Technicians and Trades Workers 1 673 37 720 16 602 13 1 497 33 4 492 100 30Community and Personal Service Workers 331 43 145 19 61 8 226 30 763 100 97Clerical and Administrative Workers 2 744 32 1 692 19 741 9 3 524 41 8 701 100 46Sales Workers 391 43 92 10 46 5 388 42 917 100 63Machinery Operators and Drivers 284 80 32 9 6 2 34 10 356 100 35Elementary Workers 790 43 1 007 54 5 0 50 3 1 852 100 41Total 9 094 27 4 994 15 3 254 10 16 537 49 33 879 100 50*In levy-paying organisations that successfully submitted WSPs and ATRs.


Table 4-3 Planned beneficiaries of training* [current employees (earmarked for development at this level)] according to occupational category and population group

Occupational category African Coloured Indian White Total % of total

employment in

category* N % N % N % N % N % Managers 96 33 18 6 18 6 163 55 295 100 4Professionals 638 39 56 3 273 17 673 41 1 640 100 9Technicians and Trades Workers 247 39 76 12 60 9 253 40 636 100 4Community and Personal Service Workers 8 57 2 14 0 0 4 29 14 100 2Clerical and Administrative Workers 205 35 81 14 40 7 257 44 583 100 3Sales Workers 19 18 4 4 0 0 85 79 108 100 7Machinery Operators and Drivers 0 0 0 0 0 0 3 100 3 100 0Elementary Workers 66 87 6 8 0 0 4 5 76 100 2Total 1 279 38 243 7 391 12 1 442 43 3 355 100 5*In levy-paying organisations that successfully submitted WSPs and ATRs.


Table 4-4 shows that organisations planned to involve 1 665 of external new recruits in training

interventions in Year 10. Seventy per cent of these would be blacks; i.e. 43% African, 14%

coloured, and 13% Indian. Of the external new recruits, 38% (N=636) would be trained as

Clerical and Administrative Workers and 48% (N=795) as Professionals.

.


Table 4-4 Planned beneficiaries of training* [external new recruits (including 18(2) learners at this level and above] according to occupational category and population group

Occupational category African Coloured Indian White Total

N N N N N Managers 6 26 3 13 4 17 10 43 23 100Professionals 206 26 56 7 126 16 407 51 795 100Technicians and Trades Workers 31 46 2 3 11 16 24 35 68 100Community and Personal Service Workers Clerical and Administrative Workers 352 55 162 25 59 9 63 10 636 100Sales Workers 116 87 5 4 11 8 1 1 133 100Machinery Operators and Drivers 2 40 1 20 0 0 2 40 5 100Elementary Workers 5 100 0 0 0 0 0 0 5 100Total 718 43 229 14 211 13 507 30 1 665 100*In levy-paying organisations that successfully submitted WSPs and ATRs.


4.4 TRAINING PROVIDED ACCORDING TO SKILLS PRIORITY This chapter gives information about the beneficiaries of training in skills priority areas of levy-

paying organisations that employed 50 or more people. Table 4-5 gives an overview of the

training implemented in Year 10 according to skills priorities, the number of people who

participated in the training interventions,8 and the NQF levels of the interventions.

The priority area in which most training took place was specialist financial skills. A total of

52 549 course attendances took place in this area. This was followed by management and

leadership skills (N=12 861), information technology skills (N=11 586), and support and

administrative skills (N=11 365). More than a quarter of the course attendances were in training

interventions on NQF Level 4; 42% of course attendances were on NQF Level 5; and 17% were

on NQF Level 6.

In comparison to the number of employees planned to be trained according to the WSPs,

30 040 more course attendances took place than were planned for. Fewer training interventions

on NQF Level 4 took place than were planned for. (Compare Table 4-1 and Table 4-5.)

However, more training took place on NQF levels 5 and 6 than was planned for. On NQF level

5, the number of course attendances planned was 26 454 and 46 216 took place. On NQF

Level 6, course attendances planned numbered 13 059 but 18 924 actually took place.

Table 4-5 Number of employees trained according to skills priority and NQF level

Skills priority NQF Level

Total % of total 1 2 3 4 5 6 7 8

Specialist Financial 328 929 995 8 327 25 899 11 603 4 224 244 52 549 48

Management & Leadership 205 717 233 2 291 5 178 3 463 654 120 12 861 12

Information Technology 222 38 322 4 617 3 705 2 246 431 5 11 586 11

Support & Administration 230 792 332 7 310 2 005 615 81 0 11 365 10

Client service/ Customer care 74 320 759 1 593 3 976 560 36 5 7 323 7

Human Resource Management 8 191 939 456 2 100 12 0 0 3 706 3

Health & safety/ Security 86 211 135 1 311 233 21 1 0 1 998 2

8 Because a single employee may attend more than one training intervention, double-counting may occur.


Skills priority NQF Level

Total % of total 1 2 3 4 5 6 7 8

Product related 0 10 0 325 1 425 9 0 0 1 769 2Life/Soft 242 13 52 249 719 15 0 6 1 296 1Technical & Trades 0 39 927 88 37 13 39 4 1 147 1

In-house nonspecific 25 1 177 761 96 1 0 0 1 061 1

Legislation related 2 3 5 478 205 35 10 1 739 1

Professional business development

47 0 1 7 296 182 5 0 538 0

Other 63 2 110 48 109 36 50 13 431 0Unknown 9 15 61 59 233 113 37 12 539 0Total 1 541 3 281 5 048 27 920 46 216 18 924 5 568 410 108 908 100% of total no 1 3 5 26 42 17 5 0 100

4.5 EMPLOYEES THAT PARTICIPATED IN TRAINING Tables 4-6 and 4-7 reflect the number of current employees that were trained in Year 10. Each

trainee was counted only once. According to combined information presented in these two

tables, organisations trained 54 628 people – 81% of the employees in the organisations that

successfully submitted WSPs and ATRs. Of these employees 1 877 (3%) participated in

accelerated development. Ninety per cent of all Professionals, 75% of Managers and 97% of

Clerical and Administrative Workers were trained.


Table 4-6 Current employees trained in Year 10 at this level according to occupational category and population group

Occupational category

African Coloured Indian White Total % of total employm

ent in category*N % N % N % N % N %

Managers 926 15 371 6 582 9 4 407 70 6 286 100 75Professionals 3 593 23 1 269 8 2 025 13 8 798 56 15 685 100 90Technicians and Trades Workers 3 378 42 1 086 13 650 8 3 023 37 8 137 100 54Community and Personal Service Workers 80 28 139 49 27 9 39 14 285 100 36Clerical and Administrative Workers 7 843 42 3 637 20 1 154 6 5 989 32 18 623 100 97Sales Workers 474 45 236 22 35 3 315 30 1 060 100 72Machinery Operators and Drivers 320 59 65 12 10 2 150 28 545 100 53Elementary Workers 945 44 1 057 50 45 2 83 4 2 130 100 47Total 17 559 33 7 860 15 4 528 9 22 804 43 52 751 100 78* In levy-paying organisations that successfully submitted WSPs and ATRs.


Per occupational category, most training for accelerated development was conducted in the

three categories of Professionals, Managers, and Technicians and Trades Workers. The

highest numbers of employees who benefited from training were African Professionals (N=495)

and white Professionals (N=457) (Table 4-7).


Table 4-7 Current employees earmarked for development at this level and trained in Year 10, according to occupational category and population group*

Occupational category African Coloured Indian White Total % of total employme

nt in category* N

%

N

%

N

%

N

%

N

%

Managers 49 26 4 2 19 10 120 63 192 100 2Professionals 495 39 68 5 248 20 457 36 1 268 100 7Technicians and Trades Workers 79 34 6 3 20 9 128 55 233 100 2Community and Personal Service Workers 2 100 0 0 0 0 0 0 2 100 0Clerical and Administrative Workers 32 22 25 17 11 8 76 53 144 100 1Sales Workers 0 0 1 3 2 7 26 90 29 100 2Machinery Operators and Drivers 1 100 0 0 0 0 0 0 1 100 0Elementary Workers 8 100 0 0 0 0 0 0 8 100 0Total 666 35 104 6 300 16 807 43 1 877 100 3* In levy-paying organisations that successfully submitted WSPs and ATRs.


Table 4-8 gives information on the number of external new recruits that organisations trained in

Year 10. Most of these (N=333, 60%) were trained as Professionals, while 16% (N=89)

received training as Clerical and Administrative Workers. These figures are quite low if

compared to the actual number of learners that organisations in the sector train each year.

However, many of the learners who are trained in the sector are trained in smaller organisations

that are not required to fill in these tables when applying for the Mandatory Grant.


Table 4-8 External new recruits (including 18(2) learners) trained in Year 10 according to occupational category and population group*

Occupational category African Coloured Indian White Total N % N % N % N % N % Managers 2 11 3 17 3 17 10 56 18 100Professionals 101 30 40 12 49 15 143 43 333 100Technicians and Trades Workers 0 0 3 50 2 33 1 17 6 100Community and Personal Service Workers 16 29 33 60 4 7 2 4 55 100Clerical and Administrative Workers 22 25 12 13 4 4 51 57 89 100Sales Workers 42 100 0 0 0 0 0 0 42 100Machinery Operators and Drivers Elementary Workers 1 8 4 31 0 0 8 62 13 100Total 184 33 95 17 62 11 215 39 556 100* In levy-paying organisations that successfully submitted WSPs and ATRs.


Table 4-9 shows that in total 56% more current employees were trained than the numbers

employers had planned to train. For example, employers planned to train 8 701 Clerical and

Administrative Workers but 18 623 (114% more) were actually trained.

However, fewer current employees earmarked for development and external new recruits were

trained than was originally planned. For example, employers planned to train 3 355 current

employees earmarked for development but only 1 877 (44% less) were actually trained.

While employers planned to train 135 current employees with disabilities, 432 employees with

disabilities were actually trained.

Table 4-9 Comparison between planned and implemented training

Occupational category

Training

Current employees Current employees earmarked for development External new recruits

Plan

ned

Impl

emen

ted

Diff

eren

ce

Plan

ned

Impl

emen

ted

Diff

eren

ce

Plan

ned

Impl

emen

ted

Diff

eren

ce

N N % N N % N N %

Managers 5 269 6 286 19 295 192 -35 23 18 -22Professionals 11 529 15 685 36 1 640 1 268 -23 795 333 -58Technicians and Trades Workers 4 492 8 137 81 636 233 -63 68 6 -91


763 285 -63 14 2 -86 0 55


8 701 18 623 114 583 144 -75 636 89 -86

Sales Workers 917 1 060 16 108 29 -73 133 42 -68Machinery Operators and Drivers

356 545 53 3 1 -67 5 -100

Elementary Workers 1 852 2 130 15 76 8 -89 5 13 160

Total 33 879 52 751 56 3 355 1 877 -44 1 665 556 -67

No substantial differences were identified between the annual number of training opportunities

planned from Year 7 to Year 9 and the number of employees who were trained (Table 4-10).

However, in Year 10 the number of planned and implemented training opportunities decreased


because of a decrease in the number of organisations that reported on planned and

implemented training. Also, a much higher percentage (81%) of the workforce was trained in

comparison to the percentage that was initially earmarked for training (55%).

Table 4-10 Comparison between planned and implemented training opportunities for current employees and those earmarked for development: Year 7 to Year 10

Year Training planned % of total Training

implemented % of total Year 7 37 996 67 38 030 67Year 8 48 092 69 47 157 68Year 9 55 173 67 54 911 67Year 10 37 234 55 54 628 81

Table 4-11 shows the number of training opportunities planned for by population group and the

number of employees who received training from Year 7 to Year 10. Over the four-year period

19% more Africans, 15% more coloureds, 4% more Indians and 3% more whites were trained in

comparison to the number of opportunities planned for them.

Table 4-11 Comparison between planned and implemented training opportunities by population group: Year 7 to Year 10

Year

Training planned Training implemented African Coloured Indian White African Coloured Indian White

N N N N N N N N Year 7 8 710 3 890 4 081 21 315 11 105 3 805 4 006 19 114Year 8 12 684 5 741 5 296 24 371 12 586 5 565 5 110 23 896Year 9 16 465 6 104 6 132 26 472 15 532 6 831 6 012 26 536Year 10 10 373 5 237 3 645 17 979 18 225 7 964 4 828 23 611Total 48 232 20 972 19 154 90 137 57 448 24 165 19 956 93 157

4.6 ABET In Year 10, a total of 55 employees from 15 organisations were involved in ABET (Table 4-12).

Of these, 49% were from Gauteng, 31% from the Western Cape, 9% from North West, 7% from

Limpopo, and 2% each from the Eastern Cape and KwaZulu-Natal. Of the learners most were

African women (31%) and men (27%). A total of 30% of learners participated in learnerships on

NQF Level 1 (equivalent to Grade 9).


Table 4-12 ABET training

Level African Coloured Indian White Total

M W M W M W M W N % of total

ABET Level Basic (Pre-Abet)

ABET Level 1 (equivalent to Standard 1 or Grade 3) 2 3 5 9

ABET Level 2 (equivalent to Standard 3 or Grade 5) 3 4 7 13

ABET Level 3 (equivalent to Standard 5 or Grade 7) 6 4 3 13 24

ABET Level 4/NQF Level 1 (equivalent to Standard 7 or Grade 9)

4 6 6 11 1 2 30 55

Total 15 17 6 14 1 2 55 100% of total 27 31 11 25 2 4 100

4.7 CONCLUSION

Of the levy-paying organisations whose WSPs were accepted by Fasset in Year 10, fewer than

usual had reported on both planned and implemented training and six large organisations, in

total employing nearly 17 000 people, did not submit a full set of information that could be used

in this chapter.9 This situation could explain the slight decrease in the actual number of

employees trained and the rise in the percentage of the total workforce trained.

Nevertheless, the Mandatory Grant applications submitted in respect of Year 10 show that

employers in the sector are committed to the development of the skills of their employees. In

the WSPs employers indicated that they would train 55% of their employees, while the ATRs

indicated that they had actually trained 81%.

From the WSPs and ATRs submitted it is clear that the most important skills development

priority in the sector was specialist financial skills. It was planned that 46% of the beneficiaries

of training for Year 10 would receive training in this category and 48% of the total number of

beneficiaries actually received training in specialist financial skills.

The organisations that submitted WSPs also proved their commitment to skills development by

indicating that they planned to involve 37 234 current employees in training interventions

9 For an accurate comparison of planned and implemented training, only the information of organisations that submitted a record of both could be included in the chapter.


(including current employees who would participate in accelerated development) and that 1 665

new recruits not currently employed by them would be trained. The ATRs of these organisations

reported that as many as 52 751 current employees received training. Fewer new recruits not

currently employed were trained than the number initially planned for.

It is clear that the sector has a strong focus on skills development in the three categories

Managers, Professionals (including trainee account/audit clerks), and Clerical and

Administrative Workers. This was illustrated by the number of employees in each of these

categories who received training.


5 FINANCIAL AND OTHER ORGANISATION INFORMATION

The Mandatory Grant applications of Year 10 also reported on financial and other information

related to organisations in the financial and accounting services sector. This includes

information on organisations’ financial year, total salary bill or payroll, and the number of

employees who left organisations during the period 1 April 2009 to 31 March 2010.

In this chapter we report on the financial year-end of organisations that successfully submitted

WSPs. We also analyse payroll information and staff turnover according to subsector and

organisation size.

5.1 FINANCIAL YEAR Table 5-1 gives a summary of the financial year-ends of organisations that successfully

submitted WSPs. Most of these organisations (64%) have a financial year that runs from March

to February.

Table 5-1 Financial year-end of organisations that successfully submitted Mandatory Grant applications

Month N % January 7 0February 1 156 64March 112 6April 34 2May 10 1June 116 6July 12 1August 48 3September 32 2October 4 0November 6 0December 138 8Unspecified 136 8Total 1 811 100

5.2 PAYROLL The payroll figures per subsector are summarised in Table 5-2. Eight per cent of organisations

(N=143) did not report on payroll. According to Table 5-2, a total of R32,2 billion was paid to all

permanent staff employed in the sector.


The Accounting, Bookkeeping, Auditing and Tax Services subsector reported the highest salary

bill (R13,3 billion), followed by the Business and Management Consulting Services subsector

(R6,7 billion).

Table 5-2 Payroll for the last financial year according to subsector

Subsector Amount (Rand) Investment Entities and Trusts and Company Secretarial Services R4 037 863 700 Stockbroking and Financial Markets R5 596 109 120 Development Organisations R505 737 825 Accounting, Bookkeeping, Auditing and Tax Services R13 326 557 004 Activities Auxiliary to Financial Intermediation R1 615 652 039 Business and Management Consulting Services R6 709 064 534 SARS and Government Departments R371 916 764

Total R32 162 900 986 % of organisations that responded to the question 92

The payroll of organisations according to organisation size is shown in Table 5-3. Organisations

in the 150+ employee category reported the highest payroll for Year 10 (R11,4 billion).

Table 5-3 Payroll for the last financial year according to organisation size

Organisation size Amount (Rand) 1 - 9 employees R2 953 360 616 10 - 19 employees R2 389 479 467 20 - 49 employees R5 102 810 812 50 - 149 employees R10 311 532 782 150+ employees R11 405 717 309 Total R32 162 900 986

5.3 STAFF TURNOVER Sixty-three per cent of organisations (N=1 138) responded to the question regarding staff

turnover. In the remaining 37% of organisations no employee left between 1 April 2009 and 31

March 2010. However, in total, organisations experienced a turnover of 21% (Table 5-4). In

Year 10, organisations in the subsector Activities Auxiliary to Financial Intermediation

experienced the highest turnover rate (41%).10 The subsector SARS and government

departments experienced the lowest turnover rate (7%).

10 An organisation in the sector with over 2 000 employees indicated a 61% turnover rate.


Table 5-4 Staff turnover according to subsector

Subsector Number of

organisations Total

employment

Number of employees

who left % of

employment Investment Entities and Trusts and Company Secretarial Services 67 2 315 441 19

Stockbroking and Financial Markets 163 8 340 1 907 23

Development Organisations 13 654 149 23Accounting, Bookkeeping, Auditing and Tax Services 665 19 513 4 819 25

Activities Auxiliary to Financial Intermediation 75 5 935 2 408 41

Business and Management Consulting Services 153 9 474 2 339 25

SARS and Government Departments 2 15 701 1 083 7

Total 1 138 61 932 13 146 21% of organisations that responded to the question 63

In Year 10 the turnover rate in small organisations – i.e. those that employed fewer than ten

people – was more than double (40%) the turnover rate in large organisations, i.e. those that

employed more than 150 people (18%).

Table 5-5 Staff turnover according to organisation size

Organisation size Number of

organisations Total employment

Number of employees

who left % of

employment 1 - 9 employees 270 1 765 713 4010 - 19 employees 377 5 239 1 168 2220 - 49 employees 342 10 356 2 167 2150 - 49 employees 103 8 661 2 494 29150+ employees 46 35 911 6 604 18Total 1 138 61 932 13 146 21

5.4 CONCLUSION The financial year of most of the levy-paying organisations that successfully submitted WSPs

ran from March to February. Eight per cent of organisations did not report on payroll. Those

that did reported a total payroll of R32,2 billion. This leaves a relatively large discrepancy with


the payroll of the sector if it is calculated from the 1% levies paid by the sector. The levy-

amount reported on in Section 2.2 is paid on a salary bill of R25,7 billion. All the reasons for the

difference are not known. One reason may, however be the fact that learner salaries are

exempt from the SDL.

The subsector Accounting, Bookkeeping, Auditing and Tax Services and organisations in the

category of 150 and more employees reported the highest salary bills.

Organisations in the sector experienced a staff turnover rate of 21% and organisations in the

subsector Activities Auxiliary to Financial Intermediation experienced the highest turnover, while

SARS and government departments experienced the lowest turnover. Small organisations with

fewer than 10 employees had a much higher turnover rate than organisations with 150 and

more employees.


6 SCARCE AND CRITICAL SKILLS

6.1 INTRODUCTION In February 2005 the second National Skills Development Strategy (NSDS), 2005 – 2010, was

launched. It is aligned to the Skills Development Act of 1998 and one of its objectives is to

prioritise and communicate critical skills for sustainable growth, development and equity. To

address this objective organisations had to identify and report on scarce and critical skills.

In this report the term scarce skill refers to quantitative deficiencies (shortages) in the labour

market and is expressed in terms of an occupation for which employers cannot find suitably

qualified and/or experienced candidates. The term critical skill refers to the qualitative

shortcomings (gaps) in the skills of employees. These shortcomings are normally specifically

related to a particular job and occur because of, among other things, insufficient training,

changes in the work environment, including changes in technology, legislative changes and

upward and lateral career movements of employees.

In Year 10 information on current (2009) and anticipated future (2010) scarce and critical skills

was reported in four separate tables on the form.

6.2 SCARCE SKILLS In Year 10, 618 (34%) of the 1 811 levy-paying organisations that successfully submitted

Mandatory Grant applications reported skill shortages (Table 6-1). Of these organisations 49%

employed more than 150 people and in total they reported 44% of the skills needs that existed

at the time. A total of 3 709 people (4%) of total employment in the levy-paying organisations

was required to meet the skill shortages for the identified period.

Table 6-1 Organisations that reported skill shortages

Organisation size Organisations Employment Scarce skills (2009)

N % N % N % 1 - 9 employees 106 17 695 1 278 710 - 19 employees 196 32 2 762 4 491 1320 - 49 employees 195 32 6 054 10 848 2350 - 149 employees 72 12 5 981 9 463 12150+ employees 49 8 47 503 75 1 629 44Total 618 100 62 995 100 3 709 100


The majority of these people (N=2 979; 80%) were needed in Professional positions (Table 6-2).

Table 6-2 Current scarce skills according to occupational category

Occupational category Number of people needed

% of total need

% of total employment in category*

Managers 90 2 1Professionals 2 979 80 11Technicians and Trades Workers 54 1 0Community and Personal Service Workers Clerical and Administrative Workers 430 12 2Sales Workers 94 3 4Machinery Operators and Drivers 34 1 3Elementary Workers 26 1 0Total 3 709 100 4* Trainee accounting and auditing clerks now fall into the “Professionals” category and no longer fall into the “Technicians and Associated Professionals” category

Table 6-3 shows a detailed profile of the scarce skills in the sector according to occupation. For

example, a shortage of 10 corporate services managers was reported in the occupational

category “Managers”. Of the shortages reported in the Professional category, 22% (N=660)

were for additional trainee accountants/auditors/article clerks. Shortages for trainees were

related to the following:

• A shrinking pool of potential trainee accountants;

• A Shortage of available candidates who qualify for the learnership;

• The low standard of South African school education;

• A lack of black trainees;

• A lack of trainees with degrees (honours);

• The high dropout rate during training;

• A lack of white graduates;

• A lack of candidates in certain geographical areas and

• No candidates for smaller organisations.

In terms of qualified accounting skills, an even bigger shortage (45%, N=1 350) was reported in

Year 10. First, organisations indicated a shortage of qualified chartered accountants –

especially of blacks, females, Afrikaans-speaking people and candidates with disabilities.


Second, their comments showed a need for properly qualified people with Certificates in the

Theory of Accounting (CTAs) from SAICA-accredited universities. Organisations were also

looking for properly skilled, competent and reliable accountants with some experience. A lack of

candidates at entry level (Grade 12) with adequate mathematics and accounting results was

reported. Finally, a shortage of professionals with the ability to perform accounting and auditing

functions electronically seemed to exist.

Table 6-3 Scarce skills: occupations in which organisations experienced a need for more employees*#

Occupational category OFO code Occupation

Number of employees

needed

Managers

132201 Finance Manager 17132101 Corporate Services Manager 10136102 Programme or Project

Manager 10 1 Other/unspecified 53Total 90

Professionals

221101 Accountant (General) 1 350** Trainee accountant/auditor 660261302 Developer Programmer 168221204 Internal Auditor 117222301 Financial Investment Advisor 114221203 External Auditor 85263102 Network Administrator 60212401 Copywriter 56221103 Taxation Accountant 54221201 Company Secretary 35225303 Public Relations Client Service

Manager 31

222302 Financial Investment Manager 26222201 Financial Market Dealer 18222203 Stock Broking Dealer 16262101 Database Administrator 14222102 Finance Broker 13222204 Investment Dealer 13249101 Education or Training Advisor 11224301 Economist 10232101 Architect 10271302 Associate Legal Professional 10 Other/ unspecified 108


Occupational category OFO code Occupation

Number of employees

needed Total 2 979

Technicians and Trades Workers

313102 ICT Customer Support Officer 13323202 Fitter and Turner 10399101 Boat Builder and Repairer 10

Other/ unspecified 21Total 54


551201 Bookkeeper 166551101 Accounts Clerk 91531101 General Clerk 68552201 Credit or Loans Officer 19599301 Debt Collector 16599401 Human Resources Clerk 11 Other/ unspecified 59

Total 430

Sales Workers 621101 Sales Assistant (General) 65631102 Office Cashier 20

Other/ unspecified 9Total 94Machinery Operators and Drivers 732101 Delivery Driver (Vehicle) 34Total 34Elementary Workers 899101 Caretaker 26Total 26* Only occupations where shortages of 10 or more people were experienced were specified. ** The OFO coding system does not distinguish between qualified accountants and trainee accountants/auditors. To enable Fasset to determine detailed scarce skill needs, qualified people were separated from trainees. # SARS did not report on scarce skills.

Table 6-4 shows the anticipated shortages (N= 2 567) that employers expected for the period 1

April 2010 to 31 March 2011. In that year, the majority of people (86%) required to meet the

sector’s skills needs would be Professionals. In the “Professionals” category 470 of the

positions were expected to be for trainee accountants/auditors, 1 175 for accountants, and 107

for internal auditors. In the clerical and administrative worker category, 114 more bookkeepers

would be required to meet the anticipated shortage.


Table 6-4 Scarce skills anticipated for Year 11 according to occupational category

Occupational category Number of people needed % of total need Managers 33 1Professionals 2 203 86Technicians and Trades Workers 9 0Community and Personal Service Workers Clerical and Administrative Workers 242 9Sales Workers 60 2Machinery Operators and Drivers 20 1Elementary Workers Total 2 567 100

6.3 CRITICAL SKILLS In Year 10, 355 (20%) of levy-paying organisations that successfully submitted Mandatory Grant

applications reported critical skills needs. Of the total workforce, 4 147 (4%) employees needed

additional skills to improve their performance in their current positions. Most (54%) of these

were employees in Professional occupations (Table 6-5) that needed to “top up” their skills

through learnerships, short courses and skills programmes. In the “Professionals” category,

1 302 (31%) were general accountants, 484 (12%) trainee accountants/auditors and 181 (4%)

financial investment advisors. More than a third (36%) of the critical skills that were reported

related to Clerical and Administrative Workers: 587 (14%) debt collectors, 446 (11%) general

clerks and 182 (4%) accounts clerks needed additional skills. Accountants needed additional

training to, among other things, improve their skills in technical financial areas, language and

writing, judgement, problem solving and management. Debt collectors needed additional

training largely to improve their work ethic, while clerks needed to become better skilled in basic

skills such as language, communication, client service, problem solving, as well as in the use of

computers.

For the period 1 April 2010 to 31 March 2011, employers expected that 569 accountants, 321

trainee accountants/auditors and 259 general clerks would have to receive additional training.


Table 6-5 Critical skills: occupations in which organisations reported critical skills*

Occupational category Number of people needed

% of total need

% of total employment in category*

Managers 261 6 2Professionals 2 229 54 9Technicians and Trades Workers 7 0 0Community and Personal Service Workers 60 1 3Clerical and Administrative Workers 1 501 36 6Sales Workers 75 2 3Machinery Operators and Drivers 3 0 0Elementary Workers 11 0 0Total 4 147 100 4* SARS did not report on critical skills.

6.4 CONCLUSION Thirty-three per cent of levy-paying organisations reported a scarcity of qualified and

experienced people and indicated that 3 709 qualified people (mainly professionals) were

required to meet the need in Year 10. The expected shortage for Year 11 was expected to be

2 567, and the majority of positions where a shortage was expected would be for

“Professionals”.

Twenty per cent of organisations reported that 4 147 employees needed “top-up” skills. Many of

the occupations that employers related to critical skills needs were professional occupations

such as general accountants and trainee accountants/auditors and Clerical and Administrative

Workers such as debt collectors, general- and accounts clerks. Accountants needed additional

training to improve their technical, managerial and basic skills. Clerks needed to become better

skilled in basic skills such as language, communication, client service, problem solving, and the

use of computers.


7 DEVELOPMENT AND CONSULTATIVE PROCESS

7.1 INTRODUCTION

This chapter gives an overview of the consultation that took place in the development and

review of the WSPs in Year 10, the SDFs registered with Fasset at the time, the process used

to develop and review the WSPs, and the difficulties experienced by organisations in

implementing employment equity and affirmative action. Of the 1 811 levy-paying organisations

that successfully submitted WSPs, 170 (9%) organisations did not report on the development

and consultative process.

7.2 DEVELOPMENT OF WSPs The consultative processes used to develop WSPs by organisations in the sector are

summarised in Table 7-1. Of the 1 641 organisations that reported on the development and

consultative process, 58% did not indicate the process they had used to develop their WSPs.

Sixteen per cent used some process of consultation with employees to develop the WSP while

4% of organisations did not use consultation. Eleven per cent had indicated that they followed a

process based on business and/or clients’ needs to develop their WSPs. Only a few

organisations reported that the WSP was developed by a formal training committee or a skills

development committee.

Table 7-1 Process used to develop the WSP

Consultative Process N % Unknown/not applicable/no comment 952 58Process of consultation with employees occurred 263 16Other 171 10Needs based approach 179 11No process of consultation with employees occurred 61 4Training/Skills Development Committee 15 1Total 1 641 100

Only 1% of levy-paying organisations indicated that their WSPs had assisted them in achieving

their employment equity goals (Table 7-2). However, 82% of organisations indicated that they

were not required by law to submit employment equity reports, while 13% did not respond to this

question.


Table 7-2 Did the WSP assist the organisation in achieving its employment equity plan goals?

N % The organisation is not required to submit employment equity reports 1 342 82No response 218 13No 62 4Yes 16 1The organisation has chosen not to submit employment equity reports 3 0Total 1 641 100

In the WSP, organisations had to report on reviewing the WSP by the Training and

Development Committee (TDC). Sixty-nine per cent of organisations indicated that the question

was not applicable to them or did not answer the question (Table 7-3). Furthermore, 8% of

organisations’ WSPs were reviewed by a Training or Skills Development Committee and 19%

indicated consultation with employees with respect to the WSP. The comments of only 4% of

organisations indicated that their WSPs were not reviewed.

Table 7-3 Process used to review the WSP

N % Not applicable/unknown 1 130 69Consult with employees during regular staff meetings or through performance appraisal systems 316 19Reviewed by Training/Skills Development Committee 127 8No reviewing 68 4 1 641 100

Two thirds (69%) of the organisations indicated that their ATRs, which reported on the training

provided in Year 10, had indeed assisted them in the implementation of the WSP, which

comprised the training originally planned for Year 10 (Table 7-4). The combination of WSP/ATR

enabled them to measure training done against planned training. In particular, the ATR had

assisted these organisations to:

• Keep their training goals and training strategy on track;

• Do succession planning;

• Highlight the training needs for the next year; and

• Plan their WSP for the next year.


The WSP on the other hand provided organisations with a guideline for the implementation of

training. It helped them to identify training gaps and monitor the training process in their

organisations. The WSP kept them focused on and committed to the training goals that they

had set. By consulting the plan with employees their (employees’) commitment to

implementation was gained.

The organisations that were of the opinion that the ATR did not assist them (N=274) mainly felt

that training happened on an ongoing basis as required in their organisations regardless of

WSPs and ATRs.

Table 7-4 Did the training conducted and described in the ATR assist in the implementation of the WSP?

N % Yes 1 139 69No 274 17No response 118 7Not applicable* 92 6Other 18 1Total 1 641 100* Organisations that participated for the first time.

7.3 SKILLS DEVELOPMENT FACILITATORS Almost every levy-paying organisation whose Mandatory Grant application was accepted had

an active Skills Development Facilitator (SDF) who acted on their behalf (N=1 808). However,

of the 604 non-levy-paying organisations that were registered on Fasset’s database, only 580

had SDFs.

Figure 7-1 shows most of the SDFs in levy-paying- (81%) and non-levy-paying organisations

(80%) were white. Fifty-six per cent of SDFs in levy-paying organisations were female and only

36% were female in non-levy-paying organisations.


Population group Gender

Levy-paying organisations

Non-levy-paying organisations

Figure 7-1 Population group and gender distribution of SDFs

African5%

Coloured5% Indian

6%White81%

Unknown3% Female

56%Male44%

Female36%

Male64%

African7%

Coloured2%

Indian5%White

80%

Unknown6%


The qualifications of Fasset’s SDFs for levy-paying- and non-levy-paying organisations are

captured on the data system when SDFs are registered. Table 7-5 shows the highest

qualifications that SDFs of levy-paying organisations had at the time of registration. Most of the

SDFs had post-school qualifications and 19% of them were professional chartered accountants

Table 7-5 Highest qualifications of levy-paying SDFs

Qualification N % Doctoral degree 5 0Master's degree 53 3Honours degree (First degree 4 years) 241 13Bachelor's degree (First degree 3 years) 268 15Higher diploma 16 1National diploma 205 11Chartered Accountant (CA(SA)) 350 19Chartered Financial Analyst (CFA) 29 2Matric & certificate/NTC IV, V, VI 92 5Senior Certificate/Grade 12/Standard 10 312 17Below Senior Certificate 10 1Unknown/not specified 227 13Total 1 808 100

Table 7-6 shows the highest qualifications of SDFs for non-levy-paying organisations. Most of

the SDFs had post-school qualifications and 16% of them were CAs(SA). Sixteen per cent of

the SDFs who were registered did not specify their qualifications.


Table 7-6 Highest qualifications of non-levy-paying SDFs

Qualification N % Doctoral degree 1 0Master's degree 29 5Honours degree (First degree 4 years) 107 18Bachelor's degree (First degree 3 years) 123 21Higher diploma 6 1National diploma 51 9Chartered Accountant (CA(SA)) 94 16Chartered Financial Analyst (CFA) 27 5Matric & certificate/NTC IV, V, VI 8 1Senior Certificate/Grade 12/Standard 10 39 7Below Senior Certificate 1 0Unknown/not specified 94 16Total 580 100

7.4 DIFFICULTIES IN PLANNING EMPLOYMENT EQUITY AND AFFIRMATIVE ACTION

The development of the Employment Equity Plan (EEP) is the responsibility of a designated

employer as provided for in Section 5, Section 13 and Section 20 of the Employment Equity Act,

Act 55 of 1998. Employers are supposed to develop EEPs in consultation with employees. The

EEP applies only to designated employers, which includes employers who employ 50 or more

people and employers who employ fewer than 50 people but have a total annual turnover that is

equal to or above the applicable annual turnover of a small business in terms of Schedule 4 of

the Employment Equity Act.

In Fasset’s sector the majority of organisations have workforces of fewer than 50 employees.

Only a small number of organisations have to develop EEPs. However, 11% of levy-paying

organisations that successfully submitted WSPs in Year 10 had more than 50 employees and

should have planned for employment equity and affirmative action. Table 7-7 shows that 8% of

organisations (N=153) indicated that they had difficulties in planning (and implementing)

employment equity and affirmative action. Of these organisations only 42% were large – i.e.

employed more than 50 people. More than half of the organisations (58%) that indicated they

had problems in implementing employment equity were small – i.e. employing fewer than 50

employees. Furthermore, although 575 organisations said that they did not have difficulties in

planning employment equity and affirmative action, the majority (N=463, 81%) were small


organisations that did not have to develop and implement formal employment equity plans.

Difficulties in planning and implementing employment equity were experienced by large and

small organisations in the sector.

The following challenges were typically mentioned by organisations that had difficulties in

implementing employment equity and affirmative action plans:

• A shortage of black CAs;

• A shortage of blacks with qualifications and experience to fill senior positions;

• A shortage of black accounting and auditing trainees;

• The poor quality of stock coming from schools;

• The difficulty of retaining blacks in certain positions;

• Excessive remuneration demands made by black candidates (especially difficult for

small organisations to meet);

• Transport and accommodation problems experienced by black employees; and

• Cultural differences.

Table 7-7 Did you have difficulty in planning employment equity and affirmative action in your organisation?

N % Yes 153 8No 575 32Not applicable (e.g. exempted)* 913 50Not completed 170 9Total 1 811 100* New organisations and organisations employing fewer than 50 people.

Of the organisations that indicated that they had no problems regarding employment equity,

many related it to low turnover, a stable workforce, and already having an equitable employee

profile.

7.5 CONCLUSION Of the employers who provided information, most consulted their employees when they

developed and reviewed their WSPs. Regular communication took place between employers or

their representatives and employees through personal sessions in small organisations or group-

or divisional meetings in large organisations. Overall, the planning of training in organisations in

the sector could be regarded as a democratic process with input from employers and


employees. Most organisations were of the opinion that the ATRs that they had completed in

the past helped them to implement their WSPs.

Most of the SDFs registered with Fasset in levy-paying organisations were white and more than

half were women. In non-levy-paying organisations most SDFs were men. Generally speaking

they were well-educated and most of them had tertiary-level educational qualifications. The

profile of non-levy-paying organisations mirrors the profile of managers and owner managers in

the sector because in many of the small firms in the sector the owner or one of the partners acts

as the SDF.

Difficulties in planning and implementing employment equity were experienced by large and

small organisations in the sector. These difficulties related to the recruitment and retention of

suitably qualified and experienced black employees amidst general skill shortages, high

turnover, and excessive salary demands. However, most organisations in the sector were not

classified as designated employers – e.g. employers who employ 50 or more people – and

were, for this reason, exempted from having to develop EEPs.


8 LEARNERSHIP CASH GRANTS

8.1 INTRODUCTION

In Year 10 employers employing fewer than 150 people could apply for Learnership Cash

Grants (LCGs) for black learners and/or learners with disabilities to commence with a Fasset

learnership in the period 1 January 2009 to 31 December 2009. No limit was set on the number

of learners that organisations could apply for.

Additional requirements for an LCG application were as follows:

• The organisation had to be registered with Fasset and SDL contributions had to be up to

date with SARS;

• The applying organisation’s Mandatory Grant application for the period 1 April 2009 to

31 March 2010 should have been submitted and approved by Fasset (non-levy-paying

firms had to be registered as such on Fasset’s database);

• Only learners who were South African citizens with a valid South African identity

document could be put forward for the grant;

• ‘Double-dipping’ on the same learner was prohibited – i.e. employers could not apply for

the grant for one and the same learner more than once;

• Learners could have been currently employed (i.e. Section 18(1)) learners, or not

previously employed (i.e. Section 18(2) learners); and

• Fasset reserved the right to conduct monitoring visits to employers who had received the

LCG.

8.2 PARTICIPATING ORGANISATIONS In Year 10 a total grant pay out of approximately R17.0 million was made to 214 organisations

in respect of 643 learners on learnerships (Table 8-1). Of this amount, 95% (R16,2 million) was

claimed for LCG applications in the Accounting, Bookkeeping, Auditing and Tax Services

subsector. Seventy-one per cent of the learners were employed by organisations that employed

between 20 and 149 people. Some employers claimed for only one learner while others claimed

for as many as 24 learners.

In the subsectors Stockbroking and Financial Markets; Accounting, Bookkeeping, Auditing and

Tax Services; Activities Auxiliary to Financial Intermediation and Business and Management

Consulting Services, six, 198, four and six organisations respectively successfully applied for


LCGs. In the Stockbroking and Financial Markets subsector 11 learners were sponsored

through LCGs; in the Activities Auxiliary to Financial Intermediation subsector six learners; and

in the Business and Management Consulting Services subsector 18 learners. The Accounting,

Bookkeeping, Auditing and Tax Services subsector employed the largest number of the learners

(N=608; 95%) who received LCGs.

Table 8-1 Organisations and learners who benefited from LCGs according to subsector and organisation size

Subsector Organisation size Organisations Learners Amounts paid

N % N % Rand % Stockbroking and Financial Markets 1 - 9 employees 2 1 2 0 R54 000 0

Stockbroking and Financial Markets 20 - 49 employees 3 1 5 1 R117 000 1

Stockbroking and Financial Markets 50 - 149 employees 1 0 4 1 R108 000 1


1 - 9 employees 38 18 64 10 R1 752 750 10


10 - 19 employees 42 20 84 13 R2 227 000 13


20 - 49 employees 79 37 207 32 R5 472 250 32


50 - 149 employees 39 18 253 39 R6 726 000 39

Activities Auxiliary to Financial Intermediation

1 - 9 employees 4 2 6 1 R146 000 1


1 - 9 employees 4 2 9 1 R243 000 1


10 - 19 employees 1 0 1 0 R27 000 0


50 - 149 employees 1 0 8 1 R216 000 1

Total 214 100 643 100 R17 089 000 100


Table 8-2 shows the provincial distribution of employers that successfully applied for LCGs. Of

these employers 26% were in KwaZulu-Natal and they had applied for 35% (n=222) of the total

number of learnerships that received financial support from the LCG.

Table 8-2 Organisations and learners who benefited from LCGs according to province

Province Organisations Learnerships N % N %

Eastern Cape 15 7 56 9Free State 5 2 12 2Gauteng 85 40 214 33KwaZulu-Natal 56 26 222 35Limpopo 5 2 5 1Mpumalanga 1 0 3 0North West 3 1 3 0Western Cape 43 20 127 20Unknown 1 0 1 0Total 214 100 643 100

8.3 LEARNERS Of the participating learners in Year 10, 43% were African, 36% Indian and 20% coloured (Table

8-3). Seventy-three per cent of learners who were involved in learnerships at organisations in

KwaZulu-Natal were Indian, while in the Western Cape 66% were coloured. In all the other

provinces the majority of learners were African. Five learners on learnerships had physical

disabilities.


Table 8-3 Learners by province and population group

Province African Coloured Indian Total N % N % N % N %

Eastern Cape 33 59 15 27 8 14 56 100Free State 10 83 2 17 0 12 100Gauteng 148 69 22 10 44 21 214 100KwaZulu-Natal 53 24 7 3 162 73 222 100Limpopo 4 80 0 1 20 5 100Mpumalanga 3 100 0 0 3 100North West 2 67 1 33 0 3 100Western Cape 24 19 84 66 19 15 127 100Unknown 1 100 0 0 1 100Total 278 43 131 20 234 36 643 100

According to Table 8-4, the majority of learners on learnerships were younger than 31.

However, coloured and Indian learners tended to be younger than African learners: 51%

coloureds and 54% Indians on learnerships were younger than 26 compared to 35% Africans.

Table 8-4 Age category of learners

Age African Coloured Indian Total N % N % N % N %

Younger than 21 years 2 1 4 3 8 3 14 2

21 - 25 years 95 34 62 48 120 51 277 4326 - 30 years 151 54 52 40 90 38 293 4631 - 35 years 19 7 9 7 12 5 40 636 - 40 years 10 4 2 2 3 1 15 241 - 45 years 2 1 1 1 1 0 4 1Total 279 100 130 100 234 100 643 100

In Year 10 a total of 66 employed learners (Section 18(1) learners) from 26 organisations

received a total LCG grant of R1 773 000. These learners studied on three learnerships:

Chartered Accountant (Auditing), the national diploma “Technical and Financial Accounting”,

and the postgraduate diploma “Professional Accountant in Practice” (Table 8-5). Twenty-two of

these learners were African, 14 coloured, and 30 Indian. Ten per cent of the total grant pay out

was spent on currently employed learners.


Table 8-5 LCGs received by 18.1 (currently employed) learners according to learnership

Learnership

African Coloured Indian Total Amount paid

Rand

% of total grant

pay out Chartered Accountant Auditing

N 10 8 28 46 R1 242 000 % 22 17 61 100 7

National diploma: Technical Financial Accounting

N 1 1 R18 000

% 100 100 0

Postgraduate diploma: Professional Accountant in Practice

N 12 6 1 19 R513 000

% 63 32 5 100 3Total 22 14 30 66 R1 773 000 % 33 21 45 100 100 10

A total LCG of R15 316 000 was paid to 198 organisations for the employment of 397 black

learners who were not previously employed (Section 18(2) learners) (Table 8-6). Of these

learners, 257 (45%) were African, 204 (35%) were Indian, and 116 (20%) coloured. Most of the

grant amount (R10 550 250; 62%) was paid to learners participating in the Chartered

Accounting (Auditing) learnership, while R4 394 250 (26%) was paid to learners who were

studying for the postgraduate diploma “Professional Accountant in Practice”. Of the learners

participating in the Chartered Accounting learnership, 44% were Indian, 38% African, and 18%

coloured.

Fasset also awarded LCGs to learners participating in the following learnerships:

• National Certificate: Business Accounting;

• National Certificate: Junior Bookkeeper;

• National Certificate: Senior Bookkeeper;

• National Diploma: Management Accounting;

• National diploma: Technical Financial Accounting; and

• Post Graduate Professional Qualification: Professional Accountant in Business.


Table 8-6 LCGs received by Section 18(2) (not previously employed) learners according to learnership

Learnership

African Coloured Indian Total Amount paid

Rand

% of total

grant pay out

Chartered Accountant: Auditing

N 148 71 171 390 R10 550 250% 38 18 44 100 62

National Certificate: Business Accounting

N 4 3 7 R77 000% 57 43 100 0

National Certificate: Junior Bookkeeper

N 1 8 9 R99 000% 11 89 100 1

National Certificate: Senior Bookkeeper

N 1 1 R11 000% 100 100 0

National Diploma: Management Accounting

N 1 1 R18 000% 100 100 0

National diploma: Technical Financial Accounting

N 2 2 4 R85 500

% 50 50 100 1

Post Graduate Diploma: Professional Accountant in Practice

N 100 30 32 162 R4 394 250

% 62 19 20 100 26

Post Graduate Professional Qualification: Professional Accountant in Business

1 1 1 3 R81 000

33 33 33 100 0

Total (N) 257 116 204 577 R15 316 000% 45 20 35 100 90

8.4 CONCLUSIONS This chapter provides an overview for Year 10 of the participation of employers and Section

18(1) and Section 18(2) learners in the LCG system administered by Fasset.

In Year 10 a total grant pay out of approximately R17 million was made to 214 organisations in

respect of 643 learners on learnerships. Almost R16,2 million was paid for LCG applications in

the Accounting, Bookkeeping, Auditing and Tax Services subsector and the majority of these

applications were for learners who were employed by organisations that employed between 20

and 149 employees.

Of participating learners, most were employed by organisations in KwaZulu-Natal or Gauteng:

43% were African, 36% Indian and 20% coloured. The majority of learners who were involved


in learnerships at organisations in KwaZulu-Natal were Indian and in the Western Cape,

coloured. In all the other provinces the majority of learners were African. Most learners on

learnerships were younger than 31.

Sixty-two per cent of the total grant amount was paid to learners participating in the Chartered

Accounting learnership in auditing. Most of these learners were Indian (44%) or African (38%).


9 TRENDS IN THE SECTOR: YEAR 1 TO YEAR 10

9.1 INTRODUCTION

Monitoring labour market and skills development trends in the sector is an important

prerequisite for skills planning at the sectoral level. In order to facilitate the monitoring of trends

over time, Fasset has developed a set of indicators on which we report every year. This year,

the indicators were expanded to five categories: the participation of organisations in the levy-

grant system; the distribution of levy income; changes in the sector profile; employers’

involvement in the training of their employees; and scarce skills in the sector. This chapter

reports on these categories from Year 1 to Year 10.

It must be noted that in the third category of indicators that deal with the sector profile, the

information received in the Mandatory Grant applications of every year was extrapolated to

sector totals by using a weighting system. Weights were calculated by using the total levy

amounts paid by organisations in each subsector and the total levy amounts paid by

organisations that submitted WSPs in each subsector. The weights applied to the information

for each subsector were: levy amount paid by all organisations/levy amount paid by those that

submitted WSPs. The exact weight calculations can be seen in Annexure A. The application of

weights was based on the assumption that employment in the organisations that submitted

WSPs is similar to that of organisations in the same subsector that did not submit WSPs. The

weighted totals were used in order to track changes in the sector profile more accurately and to

exclude the effect of changes in grant submission rates on the sector profile.

9.2 PARTICIPATION IN THE LEVY-GRANT SYSTEM The indicators of change in respect of participation in the levy-grant system in the sector from

Year 1 to Year 10 are shown in Table 9-1. From Year 2 to Year 6 the number of levy payers

remained fairly constant. However, in Year 7 the number of levy payers dropped as a result of

the lifting of the payroll threshold for exemption from the SDL from R250 000 per year to

R500 000. This means that organisations with an annual payroll of less than R500 000 were

exempted from paying the SDL. From Year 8 to Year 10 the number of levy payers increased

steadily.

The number of WSPs accepted by Fasset increased steadily each year from 325 in Year 1 to

2 628 in Year 6. In Year 7 it decreased to 1 227, mainly because of the change in the levy


threshold mentioned above. From Year 8 to Year 10 the number of WSPs increased steadily

again to 1 811 in Year 10. The number of ATRs approved increased sharply in the first three

years but levelled off in years 4 and 5. In Year 6 no ATRs were submitted. In Year 7 combined

WSPs/ATRs (Mandatory Grant applications) were submitted for the first time and a substantial

increase in the number of ATRs was reported.

The majority of organisations that claimed SCGs were large organisations that employ more

than 50 people, while LCGs were mostly claimed by organisations employing more than 20

people. The number of organisations that claimed SCGs changed from year to year, while more

organisations and learners claimed LCGs in Year 10 than in Year 9.


Table 9-1 Participation in the levy-grant system: Year 1 to Year 10

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Levy payers in sector

N 7 985 7 962 7 947 8 147 7 855 3 086 3 075 3 258 3 502

Mandatory Grant applications

Received

WSPs (N) 853 1 846 2 006 2 433 2 672 1 736 1 748 1 897 1 892

% of levy payers 11 23 25 30 34 56 57 58 54

ATRs (N) 689 1 497 953 952 0*

% of levy payers 9 19 12 12

Accepted

WSPs (N) 325 806 1 797 1 982 2 404 2 628 1 227 1 681 1 758 1 811

% of received 94 97 99 99 98 71 96 93 96

ATRs (N) 165 621 1 381 931 920

Not accepted

WSPs (N) 47 49 24 29 44 511 67 139 81

% of received 6 3 1 1 2 29 4 7 4

ATRs (N) 68 116 22 32

Discretionary grants

SCGs Organisations (N) 165 77 55 119 25 44 30 45 37 47

LCGs** Organisations (N) 40 225 238 145 214

Learners (N) 54 393 571 409 643

* No ATRs were submitted in Year 6. From Year 7 onwards combined WSPs/ATRs were submitted. ** It was impossible to distinguish between LCG records captured for Year 6 and for Year 7. The number of organisations and learners who claimed LCGs in Year 6 and Year 7 was determined by the date of payment.

9.3 DISTRIBUTION OF LEVY INCOME Table 9-2 provides an overview over the ten-year period under review of the total levy amounts

paid by organisations in the Financial and Accounting Services Sector, the amounts that were

available for grants, and the actual amounts paid by Fasset. Total levies paid by employers

increased from R42,1 million in Year 1 to R257,5 million in Year 10 at an average annual growth

rate of 22.3%. Fasset’s income increased from R33,3 million to R206,0 million over the same

period. The amounts that were available for the Mandatory Grants (WSPs and ATRs) increased

from R13,2 million in Year 1 to R128,8 million in Year 10, and for discretionary grants increased

from R8,8 million to R51,5 million. The total amounts paid in respect of grants increased from


R9,8 million (44.7% of the total grant available in Year 1) to R137,3 million (76.1% of the total

grant available in Year 10) at an annual growth rate of 34.1% over the period under review.


Table 9-2 Distribution of levy income: Year 1 to Year 10

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Average annual growth

R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000

Total levy Income (100%) 42 100 73 800 101 300 113 600 128 600 190 700 176 200 224 500 245 300 257 500 22.3

NSF (20%) 8 700 15 700 20 200 22 700 25 700 38 100 35 200 44 900 49 100 51 500

Fasset (80%) 33 300 58 200 81 100 90 900 102 900 152 600 141 000 179 600 196 300 206 000

General Fund (10%) 11 500 6 800 10 100 11 300 12 900 19 100 17 600 22 300 24 500 25 800

Grant Disbursement Fund (70%) 2 190 51 600 71 000 79 600 90 000 133 500 123 400 156 100 171 700 180 300

Mandatory Grant (50%) 47 900 60 800 68 200 77 200 95 400 88 100 111 500 122 700 128 800

Grant B (WSP) 4 400

Grant C (ATR) 8 800

Discretionary grant (20%) 3 700 10 100 11 400 12 900 38 100 35 300 44 600 49 100 51 500

Grant A (SDL) 6 600

Grant D (SCG) 2 200

Amount paid in respect of Mandatory Grant 5 600 29 900 35 900 43 400 49 300 55 700 67 200 89 300 100 600 107 200 38.8

Amount paid out in respect of SCGs 4 200 1 000 4 400 4 100 12 900 20 500 9 500 8 400 14 900 13 000 13.4

Amount paid out in respect of LCGs 1 400 9 800 13 900 11 000 17 100 86.9

Total grant disbursement 9 800 30 900 40 300 47 300 52 600 77 600 86 500 111 600 126 500 135 100 33.8

% of available funds 44.7 59.9 56.8 59.4 58.4 58.1 70.1 71.5 73.7 75


9.4 CHANGES IN THE SECTOR’S PROFILE In order to measure the rate of transformation in the sector we used the following four

indicators: the percentage of managerial positions filled by black employees; the percentage of

Professional positions filled by black employees; the percentage of Technician and Associated

Professional positions filled by black employees; and the percentage of managerial positions

filled by women. Table 9-3 shows increases in the number of black and female employees from

Year 2 to Year 10. For example, the number of female employees in the sector increased from

36 818 in Year 2 to 64 747 in Year 9 – an average growth rate of 7%. However, women’s share

in total employment in the sector remained fairly constant at approximately 55% over the period

under review. In contrast, blacks’ share in employment increased from 43% in Year 2 to 56% in

Year 10. Blacks’ share in positions at managerial and professional level also showed increases

from Year 2 to Year 10. However, it should be noted that the Year 10 professionals also include

trainee accounting and auditing clerks who in previous years formed part of the technicians and

associated professional category. Women’s share in managerial positions in the sector showed

a small increase from 28% in Year 2 to 34% in Year 10.

Table 9-4 shows a population group breakdown from Year 2 to Year 10. Africans’ share in the

sector increased from 25% in Year 2 to 34% in Year 10 and coloureds’ share from 9% to 12%

over the same period. Indians’ share remained constant at about 9%. In contrast, white

people’s share dropped from 57% in Year 2 to 44% in Year 10.


Table 9-3 Indicators of change in the sector profile: Year 1 to Year 10

Year 1* Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Average annual growth

(%)

Total employment 67 107 87 868 94 838 93 261 97 602 102 087 111 803 119 327 114 671 7

Total women N 36 818 49 189 52 384 51 928 55 287 56 179 61 420 66 059 64 747 7

% of total 55 56 55 56 57 55 55 55 56

Total blacks N 28 752 37 457 38 923 39 297 43 318 51 948 58 149 64 509 63 757 10

% of total 43 43 41 42 44 51 52 54 56

Blacks: Managerial positions filled

N 1 699 2 314 2 643 2 745 3 071 3 261 3 056 3 747 4 566 13

% of total 20 20 20 21 21 24 23 26 28

Blacks: Professional positions filled

N 4 435 4 590 4 122 4 600 5 728 6 068 7 332 7 477 **12 893 14

% of total 31 29 27 29 32 34 36 38 **44 Blacks: Technicians & Associated Professional/ Technicians and Trades Workers positions filled

N 6 705 8 959 9 701 10 024 10 779 12 833 13 777 14 767 **13 697 9

% of total 40 40 37 39 42 47 46 48 **61

Women: Managerial positions filled

N 2 419 2 962 3 614 3 594 4 334 3 815 3 689 4 568 5 529 11

% of total 28 25 27 27 30 29 28 31 34

Women: Professional positions filled

N 5 680 6 267 6 056 6 342 7 378 7 548 8 899 9 029 **14 779 13

% of total 40 40 40 41 42 43 44 46 **50

* No data could be obtained for Year 1. **These figures were influenced by the new occupational classification system used in Year 10. From Year 10 Fasset classified employees according to eight occupational categories, as opposed to nine categories. Trainee accounting and auditing clerks form part of the "Professionals" category. Technicians are grouped with trades workers in the" Technicians and Trades Workers" category.


Table 9-4 Population group change in the sector profile: Year 1 to Year 10

Year 1* Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

African N 16 726 20 911 21 533 21 941 24 579 30 821 35 937 39 997 39 183

% of total 25 24 23 24 25 30 32 34 34

Coloured N 5 764 8 749 8 865 8 857 9 789 11 331 12 304 14 097 14 168

% of total 9 10 9 9 10 11 11 12 12

Indian N 6 261 7 796 8 525 8 498 8 950 9 796 9 908 10 415 10 406

% of total 9 9 9 9 9 10 9 9 9

White N 38 355 50 411 55 914 53 964 54 284 50 139 53 654 54 819 50 914

% of total 57 57 59 58 56 49 48 46 44

Total 67 107 87 868 94 838 93 261

97 602 102 087 111 803 119 327 114 671

* No data could be obtained for Year 1.


9.5 INVOLVEMENT IN TRAINING The number of employees who received training in the sector increased from 19 563 in Year 2

to 54 628 in Year 10. The percentage of the workforce that was trained dropped from 73% in

Year 2 to 67% in Year 9 but increased in Year 10 to 81%. The number of employees who

received ABET training in Year 10 was much smaller than in the previous years.

Table 9-5 Indicators of employers’ involvement in training: Year 1 to Year 10

Year 1 Year 2 Year 3 Year 4 Year 5 Year

6* Year 7 Year 8 Year 9 Year 10**

Workforce trained

N 19 563 26 619 30 283 29 378 38 030 47 157 54 911 54 628

% of total workforce 73 69 77 72 67 68 67 81

ABET N 115 134 55

* No ATRs were submitted in Year 6. ** Of the levy-paying organisations whose WSPs were accepted by Fasset in Year 10, fewer than usual reported on both planned and implemented training.

9.6 SCARCE SKILLS Table 9-6 shows the scarce skills needs reported by employers in the sector from Year 7 to

Year 10. The percentage of employers who reported scarce skills in their organisations and the

number of scarce skills that were reported showed a substantial increase from Year 7 to Year 9

and a slight drop in Year 10. In Year 7, a total of 835 people were required to meet the skill

shortages. This number increased to 3 307 in Year 8 and to 3 709 in Year 10.11 The number of

Professionals required increased from 687 in Year 7 to 2 979 in Year 10. Accountants and

trainee accountants/auditors were usually the two occupations in which the highest number of

people – mostly qualified blacks with experience – was needed.

11 As explained in Section 6 of this report, the format of the scarce and critical skills table on the mandatory grant application form on which employers have to report on the scarcity of qualified and experienced people changed in Year 9. Year 9 was the first year scarce and critical skills were reported in separate tables.


Table 9-6 Scarce skills reported by employers in the sector: Year 7 to Year 10*

Total Year 7 Year 8 Year 9 Year 10Number of organisations that submitted WSPs N 1227 1 681 1 758 1811

Organisations reporting scarce skills N 76 484 650 618% of total organisations 6 29 37 34

Number of skills (people) needed N 835 3 309 4 942 3 709% of total employment 1 5 6 4

Per occupational group

Managers N 58 214 292 90% of total skills needed 7 6 6 2

Professionals** N 687 1 753 3 855 2 979% of total skills needed 82 53 78 80

Technicians and Trades Workers N 2 745 93 54% of total skills needed 0 23 2 1

Clerical and Administrative Workers N 77 550 628 430% of total skills needed 9 17 13 12


N 1 2 % of total skills needed 0 0

Sales Workers N 4 50 94% of total skills needed 0 1 3

Machinery Operators and Drivers N 10 10 34% of total skills needed 0 0 1

Elementary Workers N 10 31 14 26% of total skills needed 1 1 0 1

*Scarce skills in the sector were reported only from Year 7 onwards. **New occupational group classification:. From Year 10 Fasset classified employees according to eight occupational categories, as opposed to nine categories. Trainee accounting and auditing clerks form part of the "Professionals" category. Technicians are grouped with trades workers in the" Technicians and Trades Workers" category.

9.7 CONCLUSION

This last chapter of the report compares information gleaned from the analysis of grant

applications from Year 1 to Year 10. First, trends in participation in the levy-grant system are

monitored. From Year 2 to Year 6 the number of levy payers remained fairly constant, but

dropped substantially in Year 7 as a result of the lifting of the threshold for exemption from the


SDL. Then, from Year 8 to Year 10 the number of levy payers increased again. The number of

WSPs accepted by Fasset also increased steadily each year from 325 in Year 1 to 2 628 in

Year 6. In Year 7 this figure also dropped as a result of the change in the levy threshold, but it

also increased again from Year 8 to Year 10. These increases resulted in WSPs becoming very

good sources of information on employment in the sector. In Year 10 the WSPs represented

almost 83% of the employees in the sector.

The SCG submissions fluctuated as a result of changes in the eligibility criteria for this grant.

Data on LCG submissions were only available from Year 6 onwards and more organisations

and learners claimed LCGs in Year 10 than in Year 9.

From Year 1 to Year 10 Fasset’s income increased steadily from R33,3 million to R206,0 million

after a drop in Year 7 and the total amounts paid in respect of grants (Mandatory Grant

applications, and discretionary grants) increased from R9,8 million (44.7% of the total grant

available in Year 1) to R135,1 million (75% of the total grant available in Year 10) at an annual

growth rate of 33.8%.

Women’s share in total employment in the sector remained fairly constant at 55% but blacks’

share in employment increased from 43% in Year 2 to 56% in Year 10. Africans’ share in

employment increased from 25% in Year 2 to 33% in Year 10.

Although the number of employees who received training in the sector showed increases, the

percentage of the workforce that was trained dropped from Year 2 to Year 9. In Year 10 the

percentage of the workforce that was trained showed an increase but fewer than usual

organisations in the sector had reported on both training planned and training implemented.

Scarce skills that existed in the sector were only reported from Year 7 and the number of scarce

skills that were reported by employers showed a substantial increase until Year 9. Compared to

Year 9, a decrease in the number of scarce skills was noted in Year 10. Accountants and

trainee accountants/auditors are usually the two occupations in which the highest number of

people – mostly qualified black people with experience – are required.

Overall, the trends analysis over a period of ten years shows consistency in the data reported

by employers. It is therefore possible to use the information submitted through the grant

applications to monitor certain trends in the sector.


ANNEXURE A EXTRAPOLATION OF MANDATORY GRANT INFORMATION TO SECTOR TOTALS

The information that employers submit annually to Fasset in their Mandatory Grant applications

is the only information specifically on this sector. In order to compensate for variations in

submission rates the data received in every grant scheme year was weighted to a sectoral total.

This was done by using the levy amount paid as a proxy for employment. Weighting was done

separately for each of the subsectors, because of wage differentials that occur between

subsectors. (Wage differentials are reflected in the SDL-employment ratios of the different

subsectors.)

In each of the subsectors the weights applied were calculated as follows:

Weight = Levy amount paid (all organisations)/levy amount paid (organisations whose WSPs

were approved).

A small adaptation of 0.18 was then made for non-levy paying organisations. The exact

calculations for each year are shown in the table below.

Tota

l Lev

y am

ount

(R

)

Levy

am

ount

: W

SPs

acce

pted

(R

)

Initi

al W

eigh

t

Prov

isio

n fo

r no

n-le

vy p

ayer

s

Fina

l Wei

ght

WSP

Em

ploy

men

t

Estim

ated

Em

ploy

men

t

2001/2002 Investment Entities and Trusts and Company Secretarial Services 13 304 499 7 115 704 1.87 0.18 2.05 1 401 2 872

Stockbroking and Financial Markets 17 631 054 10 649 277 1.66 0.18 1.84 3 041 5 582

Development Organisations 2 557 955 1 521 801 1.68 0.18 1.86 577 1 074Accounting, Bookkeeping, Auditing and Tax Services 30 518 586 19 209 344 1.59 0.18 1.77 16 076 28 434

Activities Auxiliary to Financial Intermediation 5 965 867 2 358 651 2.53 0.18 2.71 1 685 4 565

Business and Management Consulting Services 16 748 871 11 195 327 1.50 0.18 1.68 5 637 9 448

SARS and Government Departments 1.00 15 132 15 132

Total 86 726 830 52 050 105 43 549 67 107



Development Organisations 3 072 905 2 521 400 1.22 0.18 1.40 785 1 098Accounting, Bookkeeping, Auditing and Tax Services 35 538 084 27 582 716 1.29 0.18 1.47 24 269 35 637



Tota

l Lev

y am

ount

(R

)

Levy

am

ount

: W

SPs

acce

pted

(R

)

Initi

al W

eigh

t

Prov

isio

n fo

r no

n-le

vy p

ayer

s

Fina

l Wei

ght

WSP

Em

ploy

men

t

Estim

ated

Em

ploy

men

t



Total 103 908 344 71 692 006 60 105 87 868



Development Organisations 1 310 073 732 646 1.79 0.18 1.97 388 764Accounting, Bookkeeping, Auditing and Tax Services 51 679 102 34 572 369 1.49 0.18 1.67 31 524 52 797




Total 113 610 828 81 807 023 64 174 94 838



Development Organisations 3 857 317 2 881 692 1.34 0.18 1.52 514 781Accounting, Bookkeeping, Auditing and Tax Services 48 169 057 39 078 606 1.23 0.18 1.41 31 474 44 461




Total 127 477 172 95 353 246 67 646 93 261



Development Organisations 4 307 035 3 705 652 1.16 0.18 1.34 1 006 1 350Accounting, Bookkeeping, Auditing and Tax Services 62 106 627 53 132 315 1.17 0.18 1.35 32 462 43 788




Total 152 594 873 114 136 572 71 525 97 602




Tota

l Lev

y am

ount

(R

)

Levy

am

ount

: W

SPs

acce

pted

(R

)

Initi

al W

eigh

t

Prov

isio

n fo

r no

n-le

vy p

ayer

s

Fina

l Wei

ght

WSP

Em

ploy

men

t

Estim

ated

Em

ploy

men

t





Total 180 692 150 141 251 884 76 659 102 086






SARS and Government Departments 1 1.00 17 986 17 986

Total 222 465 706 182 165 671 85 081 111 803


Stockbroking and Financial Markets 52 188 726 39 449 566 1.32 0.18 1.50 9 638 14 485Development Organisations 7 244 465 6 231 734 1.16 0.18 1.34 1 475 1 980Accounting, Bookkeeping, Auditing and Tax Services 72 442 265 65 103 049 1.11 0.18 1.29 33 010 42 673



SARS and Government Departments 1.00 17 996 17 996Total 243 915 988 202 441 120 90 844 119 328







Total 208 343 599 174 416 014 88 200 114 671


Analysis of Grant Applications Year 8 · 2011. 10. 31. · Analysis of Grant Applications 2009/2010 (Year 10) v Table 4-2 Planned beneficiaries of training* [Current employees (at

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