The revised B-BBEE codes of good practice contain numerous changes in regards to its predecessor, and the following summary will highlight such changes and differences that are notable in the new Management Control Element.
Companies who do participate in verification of management control and employment equity elements, will understand both the importance and value of these elements, and how they contribute to a company’s scoring in terms of their total score achieved in their rating.
The old codes allow a company both a management control and employment equity element that offers a maximum of 11 and 18 points respectively (a maximum of 27 to 28 points respectively for a QSE Entity).
The new Management Control Element is a combination of both previous elements into a new but similar element, with a maximum of 19 points distributed over multiple indicators.
The indicators are Board Participation, Other Executive Management, Senior Management, Middle Management, Junior Management and Employees with Disabilities, and companies are advised to use the most current payroll data when providing claims to be rated on.
A notable change in the new scorecard is the removal of the Gender Adjustment Calculation, and the introduction of specific gender and race sub-categories. Points are now awarded specifically for females within each indicator unlike the previous codes that provided a higher recognition within the indicator for females.
The compliance targets for Senior, Middle and Junior management in the new codes are based on the overall demographic representation of “Black” people. It is then broken down into specific criteria according to the different race sub-groups in accordance with the definition of “black” as defined in the Regulations of Employment Equity Act and commission on Employment Equity Report, as amended from time to time.
The new calculation provided is as follows:
A – is the percentage of black employees for each occupational level as measured in the management control scorecard using the annual EAP Targets as published by the Regulations of Employment Equity Act and Commission on Employment Equity Report, as amended from time to time.
AM – is the percentage of employees that are African male. CM – is the percentage of employees that are Coloured male
IM – is the percentage of employees that are Indian Male. AF – is the percentage of employees that are African Female.
CF – is the percentage of employees that are Coloured Female. IF – is the percentage of employees that are Indian Female.
C – is the compliance target as per the Regulation of Employment Equity Act and Commission on Employment Equity Report for that measurement sub-category.
In conclusion, the New Management Scorecard offers a new spin on the measurement of employees and highlights both Gender and Specific Race Groups within the measured entity.
Depending on the number of staff and nature of the reporting structures of companies, it will impact a company who may not meet all the necessary indicators available. QSE companies need to be aware of the fact that the new codes apply to them in the same way it does to Large/Generic entities, and that proper preparation and restructuring of their companies staffing may need to be relooked at.