Say YES to youth training

B-BBEE: IMPROVING A COMPANY’S EMPOWERMENT STATUS IS NOT THE ONLY BENEFIT

It will also be an investment in the business and has tax implications.

Organisations that incorporate youth employment goals into their sustainability and transformation strategies will increasingly start to see the business benefits of taking this progressive approach.

This is according to Mohamed Khan, senior manager of B-BBEE at Mazars, who points to the launch of the Youth Employment Service (YES) initiative by President Cyril Ramaphosa, which aims to create 1 million new employment opportunities for unemployed youth.

“This development brings with it a set of proposed changes to the Broad-Based Black Economic Empowerment (B-BBEE) codes,” he says. “The proposed amendment [stipulates] 2.5% of a company’s payroll will go specifically towards training initiatives for people between 18 and 35, and 3.5% can be spent on any other type of training.”

Khan believes this focus on youth employment reflects that government is increasingly viewing youth employment as a factor that can meaningfully reduce unemployment.

“Participating in more youth training and employment programmes will start to make a positive difference for companies’ BBBEE scorecards, as well as yield other benefits.

“To start, there are a number of tax benefits available to companies who align their programmes with the YES initiative. It can also give businesses an opportunity to grow skills by investing in candidates who are just entering the workforce.”

Bongiwe Mbunge, partner at Mazars’ advisory division says companies partner with existing training programmes to increase their involvement in youth-focused initiatives.

“Youth unemployment threatens the sustainability of our country at a macro level. This challenge cannot be left to the government alone to solve. Mazars has created its Youth Unemployment Initiative as a response to this need.”

The programme puts unemployed youth with matric qualifications through a five-week course to impart important skills required for employment.

However, she adds that training on its own is not enough to make a meaningful difference.

“This is why candidates are also given employment opportunities at the end of the programme. We have already applied this approach in the Western Cape, Gauteng and KwaZulu-Natal and are currently reviewing its potential for the Eastern Cape.”