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November 2012. Fasset Strategy Implementation November 2012 Agenda Cape Town, Durban, PETiming Registration11h30 Lunch Buffet12h00 Fasset Presentation12h30.

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Presentation on theme: "November 2012. Fasset Strategy Implementation November 2012 Agenda Cape Town, Durban, PETiming Registration11h30 Lunch Buffet12h00 Fasset Presentation12h30."— Presentation transcript:

1 November 2012

2 Fasset Strategy Implementation November 2012 Agenda Cape Town, Durban, PETiming Registration11h30 Lunch Buffet12h00 Fasset Presentation12h30 Closure15h00 GautengTiming Registration08h00 Breakfast Buffet08h30 Fasset Presentation09h00 Closure11h30

3 Fasset Strategy Implementation November 2012 Overview Section 1: Overview of major strategic changes and allocation of funding Section 2: Levies, grants and Fasset-funded Interventions Section 3: Developing and implementing a Workplace Skills Plan (WSP) Section 4: Conclusion

4 Fasset Strategy Implementation November 2012 Section 1 Overview of major strategic changes and allocation of funding

5 Fasset Strategy Implementation November 2012 Main functions of Setas To identify and address skills needs in their sector Compile and implement Sector Skills Plan SDL grant claim process (Mandatory Grant) Establish and promote learnerships Facilitate discretionary grants and Seta programmes Quality assure education and training in their sector Accredit training providers (quality checks, monitoring and moderations) Education and Training Quality Assurance

6 Fasset Strategy Implementation November 2012 Fasset’s Strategy 2013 / 2014 Fasset focuses on transforming the profile of the sector through implementing Pivotal Programmes. These strategic goals align to DHET’s. Transformation (Learners funded on Pivotal Programmes) African learners Learners with a disability Pivotal Programmes Learnerships Internships Qualifications (at least 12 months) – student NSFAS loans Development Projects Employment

7 Fasset Strategy Implementation November 2012 Fasset’s Strategy 2013 / 2014 continued Fasset is focusing on new relationships in order to extend the skills development reach in implementing a career pipeline approach. Further Education Training (FET) Colleges Universities Addressing skills need in the public sector Provincial footprint, focus on rural areas

8 Funding Allocated 2013/2014 Fasset Update October / November 2012 Funded AreaAmount in R’s Strategic Cash Grant26,300,000 Learnership Cash Grant Entry Grant4,000,000 Learnership Cash Grant Exit Grant1,500,000 Lifelong Learning13,000,000 NSFAS Grant (Phase II)7,154,000 Assessor and Moderator Grant300,000 Research4,440,000 Access into Higher Education3,700,000 Academic/Professional Body Qualifications22,200,000 Access into Employment40,000,000 FET Funding Window15,000,000 Career Guidance and Provincial Strategy2,747,000 Stakeholder Engagement1,558,000

9 Fasset Strategy Implementation November 2012 Section 2 Levies, grants and Fasset-funded Interventions

10 Fasset Strategy Implementation November 2012 Flow of Funds

11 Fasset Strategy Implementation November 2012 Mandatory Grant This application includes a plan of training for the upcoming year and a report of training for the previous year. Either 40% or 50% of the SDL, paid quarterly Two formats: 50 MS Excel for employers >50 May include all training, including short courses No discretionary criteria All population groups, genders etc... may be included in the application Cost of training not linked to payout amount Training committee recommended for companies employing 50 or more Due 30 June 2013

12 Fasset Strategy Implementation November 2012 Pivotal Grant – Fasset Definition Fasset defines the Pivotal Grant as follows: MG dropped to 40% with 10% of the SDL designated as a PG, as per NSDS III Still being debated Not linked to Mandatory Grant, separate grant Release date of regulations? Due date? Professional, vocational, technical and academic (PIVOTAL) Programmes which provide a full occupationally ‐ directed qualification Education and Training applied for must be formal (Fasset definition): −Qualifications −Learnerships −Internships

13 Fasset Strategy Implementation November 2012 Pivotal Grant – Fasset Definition continued Others: professional placements, work ‐ integrated learning, apprenticeships, skills programmes, and work experience placements Grant is conceptually similar to the MG, which does not allow for the application of discretion PG is strategic in that it allows for Pivotal Programmes only, whereas Mandatory Grant may include any training e.g. short courses

14 Fasset Strategy Implementation November 2012 Pivotal Grant continued Such courses will normally begin in a college or university and would include supervised practical learning in a workplace as part of their requirement In some cases start in the workplace and then move to college or university Some PIVOTAL courses can be offered by arrangement between a SETA, an educational institution, an employer and a learner Fundamental to the successful implementation of PIVOTAL programmes will be a model of cooperation between a SETA, a higher or further education and training institution and an employer This will help ensure responsive curricula and courses

15 Fasset Strategy Implementation November 2012 Draft Pivotal Grant Criteria Both registered and completed learnerships and internships Completed qualifications only Accredited and quality-assured training providers, not short courses All skills, not only scarce skills Not gender or population group-specific For employed or unemployed people? 120 credits or 1-year course (no official definition available) Not linked to spend, maximum payment according to calculation of tariffs Standard costs (Fasset tariff) as informed by regular research Absence of funding regulations or guidelines from DHET Linked to Learning Programmes Matrix (which is still used in B-BBEE)

16 Fasset Strategy Implementation November 2012 Strategic Cash Grant Maximum of 20% of SDL Transformation in the sector: African learners and people with disabilities Pivotal Programmes: 3 criteria Qualifications (degrees, diplomas), learnerships, internships Learners currently commencing, undergoing, or completing a pivotal programme in the 2013 calendar year Tariffs applicable Due date 15 February 2014

17 Fasset Strategy Implementation November 2012 Qualification Tariffs Definition Developed by Fasset to be implemented in Fasset sector Absence of guidelines from DHET to inform criteria Completed programmes only Linked to Learning Programmes Matrix (LPM) (still used in B-BBEE) Type: Institution-based theoretical instruction and assessment Site: Institutional, e.g. Universities, colleges, schools Mode: Face-to-face instruction, distance learning, eLearning Achievement: Recognised theoretical knowledge provided by an accredited or registered formal institution of learning e.g. degree, diploma, certificate

18 Fasset Strategy Implementation November 2012 Tariffs 2012 – Qualifications ‘New’ NQF ‘Old’ NQF Title of qualification Approx. Length of the Program me (in years) 1) Distance fees (tuition, books, stationery, travel only) – unless specified 2) Day student (tuition, books, stationery, travel only) – unless specified 3) Residential student (tuition, books, stationery, accommodation, meals, travel) – unless specified 10 8Doctorates / PhD2 R 26,000 on completion R 47,000 on completion 98Masters Degrees (research only)2 R 26,000 on completion R 47,000 on completion 98Masters Degrees (coursework and research)2 R 26,000 on completion R 47,000 on completion 88Masters in Business Administration (MBA)2 NAR 89,000 on completionR 110,000 on completion 87 Postgraduate Diplomas and Professional Qualifications 2 R 10,500 on completionR 21,000 on completionR 42,000 on completion 87Honours1 R 10,500 on completionR 21,000 on completionR 42,000 on completion 76Bachelor’s Degrees and Advanced Diplomas3 R 10,500 per year, full- time R 21,000 per year, full- time R 42,000 per year full- time 65National Diplomas and Advanced Certificates3 R 10,500 per year, full- time R 16,000 per year, full- time R 37,000 per year full- time 55 Higher Certificates and Advanced National (Vocational) Certificates 2 R 10,500 per year, full- time R 16,000 per year, full- time R 37,000 per year full- time 44Certificate FET (private and public)1R 10,500 on completion R 31,500 on completion

19 Fasset Strategy Implementation November 2012 Learnerships Tariffs Definition Developed by Fasset to be implemented in Fasset sector Linked to Learning Programmes Matrix (LPM) (still used in B-BBEE) Tariff for completion and registration Over and above the SARS tax rebates Type: Occupationally-directed instructional and work-based learning programme that requires a formal contract – assessed by accredited body Site: Institution (face-to-face, distance or eLearning) and workplace Mode: Institutional instruction plus structured, supervised experiential learning in the workplace – Learnership (LS), Apprenticeship (AP) Achievement: Trade certificate, Certificate, Other

20 Fasset Strategy Implementation November 2012 Tariffs 2012 – Learnerships Length of programme Tariff Entry (Registration) Proof for Entry Tariff Exit (Successful Completion) Proof of Exit 12 monthR 5,000 Trainee confirmation letter R 5,000Trainee discharge letter 24 monthR 7,000 Trainee confirmation letter R 13,000Trainee discharge letter 36 monthR 10,000 Trainee confirmation letter R 20,000Trainee discharge letter

21 Fasset Strategy Implementation November 2012 Learnership Tax Deductions Learnership Tax Allowance Section 12H DurationAllowanceAllowance (With Disability) MonthsCommenceCompletionCommenceCompletion 12 (1yr)R 30,000 R 50, (2yr)R 30,000 R 50, (3yr)R 30,000 R 50,000 R 90,000 R 150,000 R 180,000R 300,000

22 Fasset Strategy Implementation November 2012 Internships Tariffs Definition Developed by Fasset to be implemented in Fasset sector Linked to Learning Programmes Matrix (LPM) (still used in B-BBEE) Tariff for completion and registration No SARS tax rebate, tariff lower than learnership No formal definition (qualifications with SAQA, learnerships with Indlela) Recognised or registered workplace structured experiential learning – formally assessed by a statutory occupational or professional body Structured learning in the workplace with mentoring or coaching e.g. Internship (I), Articles (A), Placements (P) Occupational or professional knowledge and experience e.g. registration, licensing

23 Fasset Strategy Implementation November 2012 Tariffs 2012 – Internships Length of programme Tariff Entry (Registration) Proof for Entry Tariff Exit (Successful Completion) Proof of Exit 12 monthR 3,750 Trainee confirmation letter R 3,750Trainee discharge letter 24 monthR 5,250 Trainee confirmation letter R 9,750Trainee discharge letter 36 monthR 7,500 Trainee confirmation letter R 15,000Trainee discharge letter

24 Fasset Strategy Implementation November 2012 Learnership Cash Grant Entry Rewards applicants who are training Africans on learnerships. SDL payers and non-levy payers Fasset learnership or specific other Seta learnership 10 grants per employer for entry and exit grant in total African learners and learners with a disability −12 month (1 year) R 5,000 −24 month (2 year) R 7,000 −36 month (3 year) R 20,000 Higher amount for learners with a disability Employers with staff complement under 150 Due date 15 February 2014

25 Fasset Strategy Implementation November 2012 Learnership Cash Grant Exit When the learner completes the programme, a greater grant can be claimed. SDL payers and non-levy payers Fasset learnership or specific other Seta learnership 10 grants per employer for entry and exit grant in total African learners and learners with a disability −12 month (1 year) R 5,000 −24 month (2 year) R 13,000 −36 month (3 year) R 20,000 Higher amount for learners with a disability Employers with staff complement under 150 Due date 15 February 2014

26 Fasset Strategy Implementation November 2012 Lifelong Learning A wide range of topics, free to Fasset members are offered. MonthTopicsTarget Occupations October 2012 Compliance with Changes in Legislation 2012 Legislative (All) November 2012 Fasset 2013 Strategy Implementation HR (SDFs, HR Professionals) November 2012Management and Leadership Leadership and Management (Junior and Middle Managers) March 2013Budget & Tax Update 2013Legislative (All) May 2013 How to Manage your Business and Grow your Client Base Leadership and Management (Middle and Senior Managers) September 2013 Compliance with Changes in Legislation relevant to the Finance Sector Legislative (All)

27 Fasset Strategy Implementation November 2012 Lifelong Learning Continued Only firms with a valid SDL number with Fasset will be able to register for the events This calendar is subject to change MonthTopicsTarget Occupations October 2013SDF UpdateHR (SDFs, HR Professionals) November 2013 Managing Teams / Conflict Management Leadership and Management (Junior and Middle Managers) February 2014 Survive and Thrive in an Office Environment Leadership and Management (Junior and Middle Managers) March 2014Budget & Tax Update 2014Legislative (All)

28 Fasset Strategy Implementation November 2012 NSFAS Grant Ensuring retention of learners on learnerships. 3 year learnership attracts R60,000 grant Transformation in the sector: African learners and people with disabilities Learners currently commencing, undergoing, or completing a learnership in the 2013 calendar year with a Fasset employer Pivotal Programmes: Qualifications / Learnerships Employed learner or an employer representative may apply African learners will be relieved of the NSFAS financial burden Salary threshold applies May be applied for in tranches Due date 15 February 2014

29 Fasset Strategy Implementation November 2012 NSFAS Grant Amounts LengthTariffAmount 12 (1 year)On registrationR 5,000 In month 12 of the learnershipR 25, (2 year)On registrationR 5,000 In month 6 of the 24-month learnershipR 15,000 In month 18 of the 24-month learnershipR 25, (3 year)On registrationR 5,000 In month 6 of the 36-month learnershipR 15,000 In month 18 of the 36-month learnershipR 20,000 In month 32 of the 36-month learnershipR 20,000

30 Fasset Strategy Implementation November 2012 Assessor and Moderator Grant To ensure the supply of assessors of academic and workplace training. Reimbursement of the cost of training Maximum of R4,500 Assessor/moderator to be registered with Fasset in 2013 Training can take place before 2013 Due date 15 February 2014

31 Fasset Strategy Implementation November 2012 Research To assist the Board and sector in aligning training to strategic objectives. 2012/13 (Year 13) Grant Analysis Report Sector Skills Plan Update for the period commencing 1 April 2014 Annual Benchmarking of Training in the Sector Learnership Readiness Pack Internship Readiness Pack Lifelong Learning Learnership Programme (LLLP) Employer Support Guide Tracer Study on Development Projects (Academic) Database Update (Employers) Database Update (Learners)

32 Fasset Strategy Implementation November 2012 Access into Higher Education The funding windows opens doors for learners to enter higher education. African and all disabled learners Learners lacking requisite entry requirements into a sector-specific higher education qualification Incorrect subject choices or followed an unrelated discipline 2 nd chance learners Complete programmes and meet entry requirements which allow them to enter sector-relevant higher education qualifications, for progression in the sector Tuition fees, examination support courses and soft skills interventions

33 Fasset Strategy Implementation November 2012 Academic/Professional Body Qualifications The funding windows opens doors for learners to enter higher education. Public providers and professional bodies to assist learners to obtain formal qualifications Learners will be placed in learnerships, internships or full-time employment Number of learners with scarce skills qualifications will increase Employers will have access to increased numbers of employable learners Broader economy will benefit with learners who have a cross-cutting skill that is needed to grow the whole economy

34 Fasset Strategy Implementation November 2012 Access into Employment Designed to assist unemployed learners (NQF levels 6 – 8) and bridge the gap between theoretical learning and workplace experience. Accounting and non-accounting graduates Unemployed, part of NEET population of learners Ministerial imperative Will undergo work readiness programmes e.g. bridging technical, assertiveness, it, English language, attitude Available for employment on learnerships, internships or full-time employment Employers will have access to increased numbers of employable learners Broader economy will benefit with learners who have a cross-cutting skill that is needed to grow the whole economy

35 Fasset Strategy Implementation November 2012 Projects Awards Fasset has approved 13 new projects for this year Contact recruitment centres at service providers Details on each project can be found on the website: Currently conducting a Tracer study to evaluate the impact of the projects that have already completed

36 Fasset Strategy Implementation November 2012 FET Funding Window To develop FET colleges, which is also a national and ministerial imperative. Capacitating FET colleges with funding set aside Improvement of relevant courses offered by FET colleges Development of lecturers so as to ensure a quality supply of FET learners Partnership agreements to be put in place with Waterberg and Sekhukhune FET colleges in Limpopo as part of a broader joint Seta initiative to establish a regional presence in rural areas and townships through FET colleges Fasset will support the co-ordinated Seta collaborative effort to establish a regional presence in rural areas and townships through public FET colleges Appointment of a Fasset Provincial Liaison / Brand Ambassador

37 Fasset Strategy Implementation November 2012 Career Guidance and Provincial Strategy Fasset has an intensive National Career Guidance campaign: In line with DHET’s National Career Guidance initiatives Setas have a role to play in drawing the youth into the mainstream economy Targeting learners from Grade 9 level onwards, awareness on careers in finance Extend and deepen Fasset’s footprint and reach in rural and impoverished areas −Fasset Brand Ambassadors: currently in 9 institutions (FETs and Universities): University of Fort Hare, Nelson Mandela Metropolitan University, University of Limpopo, University of Johannesburg (Soweto Campus), Tshwane North FET College, False Bay FET College, Northern Cape Urban FET College −Print and online advertising −Exhibitions −Print and digital motivational career guidance material −Social media −Partnerships

38 Fasset Strategy Implementation November 2012 Stakeholder Engagement Engaging with Fasset stakeholders by informing and educating through regular, effective communication, meeting the following strategic imperatives: The promotion of critical and scarce skills areas within our sector Promotion of skills development within sector through targeted marketing Promoting skills, access to jobs, sustainable livelihoods via development projects Developing a culture of high-quality, lifelong learning and fostering skills development for high-quality jobs Focus on the critical SMME component, specifically levy-exempt employers Fostering skills development in the formal economy for productivity and employment growth

39 Fasset Strategy Implementation November 2012 Internship Site Accreditation New focus area at Fasset. Internships that fall into the graduate work-based category Companies apply for programme and site accreditation May then apply for Fasset grants Claim points of BEE scorecard

40 Fasset Strategy Implementation November 2012 Whole Firm Accreditation To accredit non-credit bearing training. Firms that offer training that they would like recognised and accredited Non-credit bearing training i.e. no assessment Functions as Approved Provider accreditation i.e. not linked to unit standards

41 Fasset Strategy Implementation November 2012 Return on Investment – R20,000, 10 staff DescriptionAmount Mandatory Grant (SDL = R20,000)R 10,000 Strategic Cash GrantR 4,000 Development Project Beneficiaries (2)R 120,000 Learnership Cash Grant – 1 entry, 1 exitR 30,000 NSFAS Grant – 2 learnersR 30,000 Lifelong Learning – 5 events, 3 per eventR 37,500 Tax Deduction – 4 learnersR 240,000 * 30% = R 80,000 Assessor and Moderator Grant – 1 learnerR 4,500 TotalR 316,000

42 Fasset Strategy Implementation November 2012 Section 3 Developing and Implementing a Workplace Skills Plan

43 Fasset Strategy Implementation November 2012 Developing and Implementing a WSP Why is planning your organisation’s training and development important? Buy-in and co-operation Certainty – resource allocation Assists with change and transformation issues Implementation and measurement Reflects business strategy

44 Fasset Strategy Implementation November 2012 Issues to consider when developing the WSP Understanding all the influences or 'inputs' into your training plan. These could include: National issues – legislation, industry expectations, macro economic issues, market changes etc... Company issues – Vision and mission, business strategy and objectives, transformation (EE and BEE), productivity, succession and career planning, health and safety, budget, skills gaps etc... Individual issues – individual requests and ambitions, employee performance/competency issues, personal development plans, soft skills and ABET etc...

45 Fasset Strategy Implementation November 2012 Scarce and Critical Skills The DHET has mandated the Seta’s in recent years to gather urgent data on Scarce and Critical Skills. Scarce skills: people to fill job vacancies which are scarce Critical skills: specific skill that is 'critical' to the full functioning of a person within their job These skills are linked to a coding system to enable cross sector and national research

46 Fasset Strategy Implementation November 2012 Online WSP Fasset is working towards a new online WSP system: Under development by Fasset Can use existing system Website has been revamped In future, online submission Upload functionality to be available for firms 50+

47 Fasset Strategy Implementation November 2012 Section 4 Conclusion

48 Fasset Strategy Implementation November 2012 Issues National Qualifications Framework (NQF) Quality Council for Trades and Occupation (QCTO) Funding regulations Online submissions Form types Difference between Mandatory, Discretionary and Pivotal Grants Importance of Pivotal Programmes Further Education and Training (FET) college involvement Seta involvement in rural areas Green paper on skills development

49 Fasset Strategy Implementation November 2012 Tools Fasset website: On the website you can gain access to the following: −Download all the application forms you are required to complete for the grants −Latest Fasset information −List of all the relevant Fasset contacts −List of Fasset learnerships −Apply for Mandatory Grant online

50 Thank You For more information please contact the Fasset Call Centre on or visit Fasset Strategy Implementation November 2012


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