Information on Sector Skills Planning
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1 Sector Skills Planning
2 Contents 1. MICT SETA s Vision and Mission Introduction SSP Purpose SSP Process MICT SETA Sector Skills Skills Development Facilitators (SDFs) Mandatory Grants Mandatory Grants Process Discretionary Grants Skills Development Levies Breakdown Sector Skills Planning Workplace Skills Plan (WSP) Annual Training Reports (ATR) Inter-Seta Transfers Scarce Skills Scarce Skills Absolute Scarcity Relative Scarcity Critical Skills What are Critical Skills? Organising Framework of Occupations (OFO) Contact the MICT SETA
3 1. MICT SETA s Vision and Mission To be recognised as the leader in the development of a highly skilled, knowledge based information society. The MICT SETA generates, facilitates and accelerates the processes of quality skills development at all levels in the MICT sector. 2. Introduction The SETA develops a Sector Skills Plan (SSP) annually in accordance with the Skills Development Act requirements. The SSP is developed to support: National Skills Development Strategy (NSDS III) National Development Plan New Growth Path Industrial Policy Action Plan Human Resource Development Strategy for South Africa. White Paper on Post Schooling Education and Training The National Integrated ICT Policy Review Report Strategic Integrated Projects (SIPs) 3. SSP Purpose Provision of: Sector Profile Partnerships Supporting Programme Delivery Skills Strategy Labour Market Trends Sectoral Key Skills Issues Skills Demand and Supply Change Drivers Additionally, the SSP serves as a basis for the SETA s Strategic Plan and a valuable source for the sector s Career Opportunities Guide. 02
4 4. The SSP Process Review of current SSP, guided by the DHET requirements Interviews Field Research Surveys Literature (trends) Review Desk Research WSPs/ATRs Analysis Focus Group: Analysis and Consolidation SME, SD Fora Confirmation and Finalisation Review and Sign-off 03
5 5. MICT SETA Sector Skills MICT SETA Sector Skills Demand and Supply Model DEMAND Macro-economic Reference Scenario: Prepare a macro-economic scenario which takes into account cyclical and structurally induced industry output. Including a trace in sub sectors closely associated with the MICT industry. Theme: cyclical and structural demand Expansion demand: Investment and employment projections are combined with a set of sectoral economic indicators to determine demand by trade/ occupation + WSPs Include demand of trades/ occupations by all other sectors that employ these trades Replacement demand: Estimate effect of retirements as signalled by mortality rates and withdrawals from the labour force Occupational demand: Combine expansion demand with retirement demand SUPPLY Education and training component: Number of graduates from MICT learning programmes + general education system (colleges and universities) + immigration data used to determine available labour force by trade/ occupation LMI Excess supply: Determine surplus or shortage by combining supply + unemployed less the recorded demand in WSPs Indicator: excess demand or supply Qualitative indicator: outlook positive or negative 6. Skills Development Facilitators (SDFs) SDFs are employees of organisations. Their responsibility is to collect and submit to the SETA, their organisational data relating to past and planned training. 04
6 7. Mandatory Grants A Mandatory Grant is a grant that is paid to levy-paying employers on the basis of the submission and approval of the Annual Training Reports (ATRs), Workplace Skills Plans (WSPs), including PIVOTAL Training Plans (PTPs) and PIVOTAL Training Reports (PTRs), where applicable. 7.1 Mandatory Grants Process Annual Training Reports (ATRs) and Workplace Skills Plans (WSPs) submissions ATRs and WSPs evaluation and approvals Payment of skills development levies by employers to SARS Receipt of Dept. of Higher Education and Training levy reports and upload on the MICT SETA Management System Mandatory Grants payment report from the SMS for verification and approval purposes Mandatory Grants payment on a quarterly basis 8. Discretionary Grants A Discretionary Grant is a grant paid to employers to implement various learning programmes that address scarce and critical skills in individual workplaces. At the same time, the implementation of these learning programmes assists the SETA to achieve its commitments as agreed with the Department of Higher Education and Training. 05
7 9. Skills Development Levies Breakdown From April 2013 National Skills Fund - NSF (20%) Mandatory Grant (20%) Discretionary Grant (49.5%) of which at least 80% towards PIVOTAL (Approximately 10% non-pivotal and 40% PIVOTAL) SETA Administration (10.5%) 06
8 10. Sector Skills Planning Sector Skills Planning ensures: Development of credible labour market information system Input into the Organising Framework of Occupations Ad-hoc research in support of skills planning An accurate list of scarce and critical skills Approval and registration of Skills Development Facilitators Review of the on-line grant system Annual update of the SDF Manual and SDF training workshops and roadshows Development of the WSP/ATR submission template Timeous submission of WSPs/ATRs Evaluation and approval of submitted WSPs/ATRs WSPs/ATRs monitoring and evaluation Payment of Mandatory Grants Inter-SETA transfers 10.1 Workplace Skills Plan (WSP) A WSP is a document that articulates how the employer is planning to address the training and development needs in the workplace. Organisations need to search for the best possible training solutions to invest in their staff s career paths when implementing their annual skills development plans. Keeping up to speed with industry trends and staying relevant is therefore pivotal when bridging gaps between organisations present realities, their skills development needs and employees career aspirations. Skills development is very important in South Africa, especially in the long term Inter-SETA Transfers Inter-SETA Transfers (IST) are processed due to: The organisation having registered with the incorrect SETA The organisation s core business having changed since the previous registration and now better suits the industrial code of another SETA The organisation falling within the jurisdiction of more than one SETA. The Inter-SETA application is submitted through the IST-01 form to the SETA that the organisation is currently registered with. Once received, the SETA will approve the application if the request is justified, and forward the signed application to the Department of Higher Education and Training 10.2 Annual Training Reports (ATR) An ATR is a record of training and development undertaken over the previous year in relation to what was planned for. Towards the end of each financial year, every organisation that submitted a WSP is required to submit an ATR that records training and development that was implemented. Records of all education, training and development activities should be available to confirm the information in the report. The Department will then verify the request and submit to the South African Revenue Services (SARS). SARS will process the change request. The entire process may take up to six months 07
9 11. Scarce Skills 11.1 Scarce Skills: Those occupations (positions in the organisation) in which there is a scarcity of qualified and experienced people, currently or anticipated in the future, either: Because such skilled people are not available or They are available but do not meet employment criteria Absolute scarcity: Suitably skilled people are not available, for example: A new or emerging occupation, i.e. there are few, if any, people in the country with the requisite skills (qualification and experience) and education and training providers have yet to develop learning programmes to meet the skills requirements. Firms, sectors and even the country are unable to implement planned growth strategies and are experiencing productivity, service delivery and quality problems directly attributable to a lack of skilled people. Replacement demand scarcity where there are no people enrolled or engaged in the process of acquiring the skills that need to be replaced Relative scarcity: Suitably skilled people are available but do not meet other employment criteria, for example: Geographical location, i.e. people unwilling to work outside of urban areas. Equity considerations, i.e. there are few if any candidates with the requisite skills (qualifications and experience) from specific groups available to meet the skills requirements of firms and enterprises. Replacement demand would reflect a relative scarcity if there are people in education and training (formal and work-place) who are in the process of acquiring the necessary skills (qualification and experience) but where the lead time will mean that they are not available in the short term to meet replacement demand. 08
10 12. Critical Skills 12.1 What are Critical Skills? Specific key or generic skills within an occupation. In the South African context there are two groups of critical skills: Key or generic skills, these would include cognitive skills, problem solving, language and literacy skills, mathematical skills, ICT skills and working in teams. Particular occupation specific skills required for performance within that occupation to fill a skills gap that might have arisen as a result of changing technology or new forms of work within an organisation. Identifying Scarce Skills against Current Occupations Scarce and critical skills are identified by gathering and analysing information in respect of: Hard-to-fill vacancies or long-term vacancies: In 2014, when compared to 41 other countries surveyed, South Africa came in 4th from the bottom, with only 8% of employers reporting difficulty filling jobs. However, in 2015, the country has come in at 30th place, with 31% of employers reporting difficulty filling jobs close on the global average of 38%. Reasons for this include the following: No appropriately qualified people available, e.g. new occupation, new qualification required. No appropriately experienced people available, e.g. qualification is available but experience and application in the work place is a key employer requirement. No appropriately qualified and/or experienced people are available from target groups e.g. female telecom network engineers. Sourcing skills from abroad: Where there is hard or anecdotal evidence that key employers in the sector are recruiting skilled workers outside of the country to fill specific occupations. Higher wages: Where there is hard or anecdotal evidence that the lack of skilled people has resulted in skilled workers demanding higher wages or employers paying a premium for skill. Lower productivity levels: Where enterprises or sub-sectors are reporting that scarce or critical skills shortages are being reflected in lower quality, productivity or service delivery measures. For example, there is greater wastage, more machine down-time, more mistakes, greater need for supervision, more work having to be redone to correct mistakes. Lower productivity growth: Where within enterprises, sub-sectors, sectors and even nationally there is less expenditure on innovation, R&D, less product or service value added 13. Organising Framework of Occupations (OFO) The OFO has been introduced to simplify and standardise the categorisation of occupations. The OFO is a skill-based coded classification system, which encompasses all occupations in the South African context. The OFO serves as a key tool for identifying, reporting and monitoring skills demand and supply in the South African labour market. The OFO sets the base for linking various occupations to specific skills and assists in identifying further training needs. The OFO is a skill-based classification system, which encompasses all occupations in the South African context. The classification of occupations is based on a combination of skill levels and skill specialisation which makes it easy to locate a specific occupation within the framework 09
11 14. Contact the MICT SETA Head Office Gauteng Block 2, Level 3 West Gallagher House Gallagher Convention Centre 19 Richards Drive Midrand PO Box 5585 Halfway House, 1685 Tel: Fax: Cape Town The Boulevard Office Park Block F, Ground Floor Searle Street Woodstock Cape Town Tel: Fax: Kwazulu Natal Durban Bay House 4th Floor 333 Anton Lembede Street PO Box 763 Durban, 4000 Tel: Fax: East London Blue Beacon Investments 206 Beacon Bay Phase 2A Waverley Office Park Chiselhurst, 5205 PO Box 877 East London, 5201 Tel: Fax:
12 Physical Address: 19 Richards Drive Gallagher Convention Centre Block 2, 3rd Level Halfway House Midrand Postal Address: PO Box 5585 Halfway House 1685 Gauteng Tel: /3 Fax:
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