Creative Thinking = Reduced Spend on Compliance = Cheaper B-BBEE Points

02 March 2020 12:08 By Angie Lanham-Love
Revisit and adapt your overall B-BBEE Strategy 
Your B-BBEE certificate is your license to trade.  At this point in time, It is prudent to do a thorough analysis of each individual element of your B-BBEE scorecard, identify the gaps, explore opportunities and define your ‘best fit’ B-BBEE strategy for the year.  In light of the new world we find ourselves in, is there a way to reduce spend and maximise points or to reallocate spend in a way that we can provide the support to our employees to help them navigate the unknown?


Benefit from the implementation of a smart procurement policy

Your company’s B-BBEE compliance level is what makes it more attractive as a service provider to other companies.  Similarly, your company should have a procurement policy where you procure services from companies that have a favourable B-BBEE status.  It is the only element on the B-BBEE scorecard where you do not have to spend additional money.  You merely need to procure from the ‘right’ service providers to maximise the impact on the Enterprise and Supplier Development (ESD) element of your scorecard.


For example, if you procure services from a Level 2, 51% Black Owned, QSE, you will receive 125% recognition for your spend.  What does this mean?  Here is an example.

Spend cleverly on the Skills Development Element of your Scorecard

Avoid spending your skills development funds on external people.  Identify a skills development initiative that assists with both B-BBEE compliance and helps your employees cope with the challenges placed on them in the context of the VUCA world and COVID-19. 


Choose and an initiative where:
  • There is a smaller cash outlay on the initiative and you can count the monthly salary bill of all employees that are on the programme, for a whole year!  Including salaries of part of your skills spend will get you to your spend target very quickly and  a whole lot more effectively than if you didn’t.
  • Your employees will be equipped with the skills they need to thrive at work, at home and in the VUCA world in general.  This will have a direct impact on their sense of well being and productivity.
  • Placing more senior employees on the initiative means you can count higher salaries towards meeting your skills spend targets.  This means relative to a smaller cash outlay, there is an even larger salary portion that counts towards meeting your skills spend target. This means, cheaper B-BBEE points. 


The idea is to maximize your level of compliance and simultaneously limit the outflow of funds.


Contact Eileen on 083 336 9910 or email me at Eileen@lanham-love.co

Contact Angie on 083 300 4167 or email me on angie@lanham-love.co 



Visit our websites at: 

www.lanham-love.co

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