Correct Job Grading Ensures BBBEE Compliance

What is BBBEE?

Broad-based Black Economic Empowerment (BBBEE)  is a South African government policy that aims to advance economic transformation and enhance economic participation of black people in the economy to rectify a history of economic inequality. Businesses are awarded points which they can claim on a BBBEE certificate that entitles them to a greater chance of obtaining government contracts. In terms of this employment equity legislation, employers need to report on their plans and progress made regarding BBBEE.  Only micro-enterprises are exempt from complying to BBBEE legislation.

How to become BBBEEE certified

To ensure that your organisation is BBBEE compliant, job design, grading and salary benchmarking must align with leading HR practices. Linking strategy, structure, job grade and reward in South Africa: from a process point of view, strategy, along with company size, determines the job grade of executive roles, which in turn has an effect on reward (remuneration payable). In addition to company size parameters, the grade of executives and senior managers at large corporates, are determined by other grading factors too, such as complexity of structures and decision making. It is therefore imperative that all levels of employment (executive, management, professional technical and administrative) be graded correctly to ensure staff pay complies with legislation and leading practice.

Expert grading system ensures compliance

The most effective way to align strategy, structure, job grade and reward is to implement a sound job grading system. To achieve the goal of grading correctly, the Paterson Job Grading System serves as a platform for employment equity reporting, as well as pay and benefits management. This grading system is a user-friendly, convenient and objective approach to job evaluation: producing defensible grading outcomes for private and public entities, based on business requirements across sectors and industries. Albert Dall has the expertise to correlate between Paterson and other major grading systems (in South Africa, the SADC region and other).

 

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