Plumbing Africa March 2018 | Page 49

BUSINESS AND TRAINING 47 Companies are throwing away billions every year Approximately 96% of skills development levy (SDL) companies fail to claim their Workplace Skills Plan (WSP) and Annual Training Report (ATR) mandatory grants from their relevant SETAs, resulting in billions of rands in unnecessary losses to the private sector annually. By Darren Parker at Sanders Consult The main reason for these appalling figures — which were announced during the TETA WSP/ATR Feedback Roadshow in April 2017 — is that many companies simply do not know that they can claim back, nor how to go about doing so. any skills points on their BEE scorecards. Furthermore, when companies are fully compliant and choose to invest in training, they not only positively affect their own enterprise, but their industry as a whole, and even the economy at large. Companies appear to be largely ignorant to the fact that they can claim back up to 20% of their annual expenditure on SDLs, which are calculated at 1% of the company’s payroll each month. For companies to qualify for claiming the mandatory grant, three simple things need to be in place. A lack of training negatively influences productivity, marketability, competitiveness, community development, workforce capability, industry skills availability and so on, which in turn pushes up costs, which naturally affects profits and ultimately affects the entire economy. First, the company must have a registered skills development facilitator (SDF), which may be internal or external to the company. Second, the company must then submit its WSP (detailing the identified training gaps and the training plans for the year ahead) and its ATR (detailing the training conducted in the previous year). Lastly, the company must have its SDL up to date. However, qualifying for the mandatory grant is not the only benefit of being fully compliant. Companies who do not submit their WSPs and ATRs cannot receive The more skilled people are, the more employable they are. The more people are employed, the more buying power they have. The more buying power people have, the greater the income for businesses. And so, the economy grows. Everyone wins. PA Companies simply do not know that they can claim back, nor how to go about doing so. Three Engineers There are three engineers in a car going for a drive. The first is a mechanical engineer, the second an electronics engineer and the third is a software engineer. Fortunately, the mechanical engineer is driving because the brakes fail as they are going downhill. The mechanical engineer eventually brings the car safely to a halt and gets out to examine the hydraulic systems. The electronics engineer gets out and checks the body computer, ABS system and the power train CAN bus. The software engineer stays in the car and when queried about it says that they should all just get back in the car and see if it happens again! www.plumbingafrica.co.za March 2018 Volume 24 I Number 1