CONCEPT NOTE
NEW MECHANISM TO COLLECT AND ANALYSE EMPLOYER DATA FOR EFFECTIVE
SKILLS PLANNING
(08 December 2016)
by
Prof Hoosen Rasool & Cuen Sharrock
(contributions from Dr Hersheela Narsee, Weziwe Sikaka and
Lauren Derman)
1. What is the purpose of this Concept Note?
The purpose of this Concept Note is to propose a new mandatory
grant process and instrument to collect and analyse data from
employers. The new instrument is intended to replace the current
Annexure 2 of the SETA Grant Regulations.[footnoteRef:1] [1:
Department of Higher Education and Training. 2013. SETA grant
regulations regarding monies received by SETAs and related matters,
No. 990, 03 December 2012. Annexure 2 is the workplace skills plan,
annual training report and pivotal plan templates that employers
complete and submit to their designated SETAs to apply for
mandatory grants. This Concept Note proposes replacing Annexure 2
with an employer survey.]
2. What is the purpose of the Employer Survey for Skills
Planning (ESSP)?
The survey is the actual instrument/tool/template that is used
to collect data from employers. It is essentially a questionnaire.
Currently, the workplace skills plan (WSP) and annual training
report (ATR) are instruments used to collect data from employers.
These will be replaced by the ESSP because the WSP/ATR does not
provide sufficient relevant data to make informed decisions on
skills planning. The items in the ESSP are designed to elicit data
that can be used specifically for skills planning.
3. What is skills planning?
The Labour Market Intelligence Project (LMIP) defines skills
planning as:
“…how labour market intelligence is utilised to inform decision
making processes about where resources are allocated for skills
development and how different actors influence this
process”.[footnoteRef:2] [2: Reddy (2014). Outcome 5.1.1 ‘to
develop a credible institutional mechanism for skills planning’
Presentation given at the ETD Colloquium. 25th November 2014]
The ESSP will focus on gathering information at national,
provincial and sectoral levels for skills planning.
4. What changes are proposed?
Currently, employers submit to their designated SETAs a
workplace skills plan (WSP), annual training report (ATR) and a
pivotal plan to apply for a mandatory grant. The Concept Note
proposes that this requirement should be removed and replaced by a
survey that is focused on skills planning.
Another change is that the collection of employer data will be
centralised. The SETAs will administer the employer survey and
export the data in a specified file format to the central database
of the Department of Higher Education and Training (DHET). The
reasons for this proposed change are elaborated in Section 5 of
this note.
More specifically, the following changes are proposed:
· A new end-to-end process is devised to collect and analyse
data from employers. This process entails new roles and
responsibilities for employers, SETAs, and the DHET.
· The data collection instrument that will be used in this new
process is an employer survey. We refer to it as an Employer Survey
for Skills Planning (ESSP).
5. What is the mandate of this Concept Note?
This Concept Note derives its primary mandate from the The White
Paper on Post-School Education and Training[footnoteRef:3], which
calls for the review of the WSP and ATR., both of which were
replaced by Annexure 2 of the SETA Grant Regulations in April 2013.
[3: Department of Higher Education and Training. 2013. White paper
on post-school education and training. DHET: Pretoria.]
The White Paper states that the revised instrument should be “an
agreed upon national template”, and should include “information
about all training that is taking place in the workplace; current
levels of skills, experience and qualifications of employees; and
skills priorities and gaps for the short and medium-term”.
According to the White Paper, the intention is to produce a
“user-friendly and accessible template” that serves its intended
purpose.
The White Paper explains that the submission of the above
information will entitle the employer to receive the mandatory
grant from their designated SETA. It states further that “this
grant will only require companies to submit useful and accurate
data; there will be no need for employers to report how the
mandatory grant was spent”.[footnoteRef:4] [4: Ibid.]
Similarly,, the Ministerial Task Team Report on SETA
Performance[footnoteRef:5] recommends that “the development of the
new mandatory grant instrument should be to balance what data
employers can reasonably provide, and by when, with the national
imperative to collect useful and accurate information on the labour
market”. [5: DHET. 2013. Report of Ministerial Task Team on SETA
Performance. DHET: Pretoria.]
6. Why is it necessary to replace the current employer data
collection instruments?
The Ministerial Task Team on SETA Performance, as well as the
White Paper, expressed concern about the quality of data received
by SETAs from employers and the limited analysis of such data for
skills planning.
They draw attention to the following with respect to the current
process of collecting and analysing data from employers:
Length of Instrument: Although there have been improvements to
the WSP/ATR templates from 2013, the templates are lengthy and
unfriendly. It requires employer to submit workforce and training
information in more than twenty tables and takes far too long for
employers to complete[footnoteRef:6]. [6: Some SETAs have
simplified this format by requesting employers to submit data in a
non-consolidated format, which typically involves the submission of
unidentifiable, individual (unit) records, which appears to be
easier for many employers. ]
The Davis Tax Committee Report [footnoteRef:7] on small and
medium enterprises recommends that consideration should be given to
allowing tax compliant small businesses separate access to a small
business SETA mandatory and discretionary spend, without the
implementation of comprehensive work skills plans, annual training
reports and pivotal training plans. [7: Davis Tax Committee. 2016.
Small and medium enterprises: taxation considerations, Second and
Final Report, April.]
Lack of relevance: Much of the data requested from employers in
lieu of the mandatory grant is not useful for skills planning. For
instance, WSPs and ATRs are relevant to the workplace activities of
employees. WSPs and ATRs are not monitored for implementation by
SETAs. Furthermore, key indicators that are used for skills
planning such as hard-to-fill vacancies are absent in Annexure
2.
Low rate of WSP/ATR submission: Historically, the response rate
to WSP/ATRs by employers is low. The reduction of mandatory grant
apportionments over the years has contributed to this problem.
There is very little incentive for employers to apply for
grants.
Differential treatment of public and private employers: Annexure
2 comprises different templates for public and private employers.
This is unnecessary.
Some are of the view that if WSPs/ATRs are no longer a
requirement of mandatory grants, employers will not develop
workplace skills plans. Our position is that workplace skills
planning is a normal management function of any organisation, and
that every employer should continue to conduct workplace skills
planning to improve workforce skills.
The employer survey will benefit workplace skills planning
because it is concerned with identifying hard-to-fill vacancies
(occupational shortages) and skills gaps (top-up skills). This
information is needed by employers for assessing skills supply and
demand in the workplace.
7. What are the salient features of the proposed employer survey
that will replace the WSP/ATR templates (Annexure 2)?
The new instrument that is proposed to collect data from
employers through the mandatory grant process is referred to as the
Employer Survey for Skills Planning (ESSP). The title ESSP reflects
the purpose of the instrument. The actual employer survey
instrument is provided in Annexure A of this Concept Note.
The table below describes the salient features of the ESSP:
Objective
The objective of the ESSP is to collect and analyse employer
data for skills planning at national, provincial and sectoral
levels.
Outcome
The Employer Survey will contribute to the goal of establishing
“a credible, institutional mechanism for skills planning”, Goal 1
of the National Skills Development Strategy (NSDS III).
Frequency
The survey will be conducted annually. Employers are expected to
provide data to their relevant SETAs by 30 April each year.
Target Groups
All employers who are registered as taxpayers are expected to
complete this survey. This includes the following: all
levy-paying employers; all government employers; all non-levy
paying employers who are registered to pay tax.
NOTE: Employers who are not registered to pay tax, are EXCLUDED
from completing this survey.
Platform
The Employer Survey will be accessible on a web-based platform.
The rationale for this is two-fold. Firstly, it allows for
validation rules to be coded into the template, which will identify
obvious input errors and increase the reliability of the data.
User-Friendly
Completion of the ESSP is made simpler by utilising an
interactive online platform. For example, wherever possible, drop
down boxes and search functions will be used. Certain functions
will be automated. For example, when a Skills Development Levy
Number (SDL) number is inserted, other information about the
employer will automatically be loaded to the survey.
Definitions will pop up when highlighting key terms such as
hard-to-fill vacancies, skills gaps, and so on.
In addition, the platform will be excel-friendly. Employers have
the option to complete the survey offline and upload to the system.
The same validation rules will be applied to excel uploads to
ensure a consistent level of data integrity.
Focus Areas
The employer survey will collect the following information:
· Employer profile
· Workforce profile (including educational levels and skills
gaps)
· Hard to fill vacancies
· Skills gaps
The employer survey is much shorter and simpler to complete than
the current WSP and ATR templates.
Individual employee data
A major change from the current WSP/ATR templates is that the
survey requires that employers collect and provide their designated
SETA with individual employee data[footnoteRef:8]. The current
WSP/ATR templates require employers to provide their respective
SETA with aggregated data of their employees. By migrating to a
system of collecting and providing individual employee data, the
accuracy, reliability and consistency of data received from
employers is enhanced. It also compels employers to give individual
attention to the skills needs of every employee in the workplace.
[8: Individual employee data means that the employer must collect
and submit data for each individual employee. The type of data to
be collected is provided in the employer survey (Annexure A).]
Continuation from the WSP
The employer survey retains some of the items in the templates
in Annexure 2 of the SETA Grant Regulations. However, it removes
several items that are not valid for skills planning, and includes
new items, to give a sharper focus and to make the instrument
user-friendly.
9. Can SETAs include additional items to the employer
survey?
There are two views to this question. Each view has merits and
limitations. Some are of the view that the employer survey should
not be altered in any manner. Others suggest that provision should
be made in the employer survey for additional items that individual
SETA may want to insert.
Since this concept note is in the discussion stages, all options
are on the table. The feedback process will enable us to make an
informed decision. Hence, comments from SETAs and their
constituencies is necessary.
10. What is the structure of the employer survey for skills
planning ?
The ESSP comprises the following sections:
SECTION A: Administrative Details - This section requires
standard information about the employer. The information requested
is like that in the existing Annexure 2 of the SETA Grant
Regulations.
SECTION B: Workforce Profile - This section requires the
following:
(i) Biographical data about each employee, which includes
information about age, race, gender, citizenship and
disability.
(ii) Occupation-related data, which includes data about job
title, OFO code, employment status, new entrant, and highest level
of education attainment.
To speed up the completion of this section, data from a MS Excel
spreadsheet or payroll system can be uploaded to the web-enabled
platform of this section.
SECTION C: Hard-To-Fill Vacancies (HTFVs) - This section
requires information on HTFVs by OFO 6-digit code; reasons for
HTFVs; and number of HTFVs.
SECTION D: Skills Gaps - This section requires information on
the top THREE most common skills gaps (top-up skills) identified by
employers, by major occupation levels.
SECTION E: Declaration - This section requires employer and
employee representatives in the organisation to declare that the
data provided is correct.
11. The data collection and analysis process for this
survey?
The process of data collection and analysis for this survey is
as follows:
DHET
· Quality assure SETA upload
· Integrate data from SETAs
· Weight the data
· Process and analyse data
· Produce reports and sector briefs
· Complete database is made available on electronic platform
EMPLOYER
· Complete employer survey
· Submit survey to SETA
· Address occupational shortages and skills gaps
SETA
· Quality assure employer data
· Process Mandatory
Grant payment to employer
· Data is automatically sent to central database
SETA
Analyse data and use sector briefs for:
· Stakeholder consultations
· SSP development
· Strategic Planning
· Other
DHET
Use information for:
· Enrolment planning
· Identification of occupational shortages and skills gaps
· Career Guidance
1
2
5
4
3
1. The employer completes the survey and submits data to the
relevant SETA.
2. The SETA verifies data received from employers; uploads to
DHET central database; and makes mandatory grant payment to
employers, if all requirements are met.
3. The DHET integrates employer survey data of all SETAs;
produces reports and Sector Briefs, and disseminate these to
SETAs.
4. The SETA uses reports and sector Briefs for stakeholder
consultations, research for sector skills planning and strategic
planning.
5. The DHET uses reports for identification of occupational
shortages and skills gaps; enrolment planning; financial
decision-making and career guidance.
ANNEXURE A: EMPLOYER SURVEY FOR SKILLS PLANNING
· The employer survey is the actual instrument/tool/template
that is used to collect data from employers. The data collected
from the survey will be used for skills planning.
· All employers who are registered as taxpayers are expected to
complete this survey. This includes the following: all
levy-paying employers; all government employers; all non-levy
paying employers who are registered to pay tax.
· Employers who are not registered to pay tax, are EXCLUDED from
completing this survey.
· The employer survey is presented in a MS Word format to give
the reader a clear picture of the items.
· Please keep in mind that the actual survey will be in a
web-enabled format with spreadsheet upload functionality.
Page | 2
SECTION A is a straight forward form that requires employer
information and bank details for the payment of the mandatory
grant. The important information required is the number of
employees, which is linked to other sections of the instrument.
SECTION A: ADMINISTRATION DETAILS
(A1) EMPLOYER DETAILS
Name of employer
Skills Development Levy (SDL) Number
Physical Address
Street
City
Post Code
Searchable
Province
Postal Address
PO Box/ Street
City
Post Code
Searchable
Province
Total Number of Employees[footnoteRef:9] [9: The period for
calculating the Total Number of Employees is different for private
employers and public entities. The financial year for private
employers is from 01 March to 28 February as per the Companies Act,
2008. The financial year for public entities is from 01 April to 31
March as per the Public Finance Management Act, 1999. Private
employers must provide the Total Number of Employees as at the 28
February, whilst public entities must provide the Total Number of
Employees as at the 31 March.
]
Standard Industrial Classification (SIC)
SIC Code
Searchable list
SIC Description
Automatically completed based on SIC Code
SETA
Automatically completed based on SIC Code
Annual Payroll for Previous Financial Year
(A2) DETAILS OF PERSON WHO COMPLETED THE SURVEY
To be available in the event of later confirmation and quality
assurance.
Title
Surname
First Name
Position (Job Title)
ID / Passport Number
Telephone Number (Work)
Cell Number
Email
(A3) EMPLOYER BANK DETAILS
Name of Bank
Account Number
Name of Account Holder
Branch Name
Branch Code
SECTION B requires individual data to be captured for each
employee. Respondents should enter a key word associated with the
job. The tool will do a word search of occupation, title and
alternative title and presents a list of matches. Once an
occupation is selected, either a list of tasks or the descriptors
will be shown for the respondent to verify that the occupation
selected matches the job in question.
SECTION B: WORKFORCE PROFILE[footnoteRef:10] [10: The period for
calculating the Workforce Profile is different for private
employers and public entities. The financial year for private
employers is from 01 March to 28 February as per the Companies Act,
2008. The financial year for public entities is from 01 April to 31
March as per the Public Finance Management Act, 1999.]
Unique identifier
OFO Occupation
Title
Employer’s
Job Title
Race
Gender[footnoteRef:11] [11: As per ID book]
Disability
Nationality
Country of origin
Year of Birth
Highest level of Education Attainment
Field of study for post-school qualification
Employment Status
Nature of employment
Province in which employed
Is this employee a new entrant[footnoteRef:12] to the workforce
[12: A box will pop up with a definition for “a new entrant to the
workforce”.]
This will include a unique number e.g. employee number
A 6-digit occupation title from the latest OFO version
This is the job title that the employer gives to the employee in
the organisation. It is a job title that is unique to the employer
organisation.
Refer to drop down to be provided.
Refer to drop down to be provided.
Refer to drop down to be provided.
Refer to drop down to be provided.
Refer to drop down to be provided.
Type in numeric text
Refer to drop down to be provided.
Refer to drop down to be provided.
Refer to drop down to be provided.
Refer to drop down to be provided.
Refer to drop down to be provided.
Refer to drop down to be provided.
SECTION C requires the respondent to provide information on
Hard-To-Fill-Vacancies (by 6-digit OFO occupation codes) in the
last financial year[footnoteRef:13]. [13: Financial Year refers to:
a) The period from 01 March to 28 February for private companies as
per the Companies Act, 2008 b) The period from 01 April to 31 March
for public entities as per the Public Finance Management Act, 1999.
]
SECTION C: HARD-TO-FILL VACANCIES
A HARD-TO-FILL VACANCY (HTFV) refers to an occupation in your
organisation that takes longer than 06 months to find a suitably
experienced and qualified candidate.
List occupations in your organisation that were HARD-TO-FILL
VACANCIES in the last financial year (indicate the occupations as
per OFO 6-digit title).
Identify the main reasons why the listed occupations were
HARD-TO-FILL VACANCIES. (select no more than three)
State the number of HARD-TO-FILL VACANCIES
Select the PROVINCE in which the HTFV is being experienced
Drop down box will appear for each line
to identify reasons for HTFVs by province
Drop down box will appear for each line
to identify HTFVs by province
Drop down box will appear for each line
to identify reasons for HTFVs by province
EXAMPLE:
Project Manager
Lack of relevant qualifications Unsuitable job location
Poor remuneration
5
Gauteng
Unsuitable job location
Unsuitable working hours
8
North West Province
Drop Down List
Drop Down List
Drop Down List
Occupational titles from OFO latest version will appear here
Lack of relevant qualifications
Gauteng
Lack of relevant experience
North West
Poor remuneration
Mpumalanga
Unsuitable job location
Limpopo
Unsuitable working hours
KwaZulu-Natal
Equity considerations
Eastern Cape
Do not know
Northern Cape
Other, please specify reason:
Western Cape
Free State
A SKILLS GAP refers to skills that are needed by an employee to
carry out job tasks competently. It is also referred to as “top-up”
skills.
SECTION D requires the respondent to provide information on
SKILLS GAPS of employees.
SECTION D: SKILLS GAPS
Please list the Top 3 most common SKILLS GAPS by major
occupation level.[footnoteRef:14] [14: The period for calculating
the Skills Gaps is different for private employers and public
entities. The financial year for private employers is from 01 March
to 28 February as per the Companies Act, 2008. The financial year
for public entities is from 01 April to 31 March as per the Public
Finance Management Act, 1999.]
Major Occupations
No
List the Top 3 Most
Common Skills Gaps
Identify up to a maximum of 3 reasons per skills gaps
Managers
1
2
3
Professionals
1
2
3
Technicians and Associate Professionals
1
2
3
Clerical Support Workers
1
2
3
Service and Sales Workers
1
2
3
Skilled Agricultural, Forestry, Fishery, Craft and Related
Trades Workers
1
2
3
Plant and Machine Operators and Assemblers
1
2
3
Elementary Occupations
1
2
3
Allocative efficiency
Drop Down List
Lack of relevant qualifications
Lack of relevant experience
Poor remuneration
Unsuitable job location
Unsuitable working hours
Equity considerations
Do not know
Other, please specify reason:
SECTION E: is the final section which represents the DECLARATION
on behalf of the employer
SECTION E: DECLARATION
(E1) SUBMIT THE COMPLETED SURVEY WITH THIS SECTION TO RELEVANT
SETA BY NO LATER THAN 30 APRIL
DECLARATION
We the undersigned, submit this document in fulfilment of the
SETA Grant Regulations Regarding Monies Received by SETAs and
Related Matters, N. R. 990, 03 December 2012 (DHET, 2012). We
declare that, to the best of our abilities, the information
contained in this document is accurate and up-to-date. We recognise
that any inaccurate statement in this document may constitute fraud
and be subject to the full penalty of the law. We hereby grant
permission to our designated SETA to conduct an on-site audit to
verify the data submitted to it. We agree to co-operate fully with
our designated SETA, by providing the SETA representatives all
supporting evidence in relation to the data submitted.
SIGNATORIES
Designated Signatory
First Name and Surname
Telephone and email
Signature
Date
Person who completed the form
CEO/Head of Organisation
Labour Representative