HR Trends 2021

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Tackling your B-BBEE in 2021 - 4 tips to doing more with less

Many companies were hoping for a B-BBEE break in 2020 as businesses and bottom lines struggled with the burden of Covid-19. Unfortunately, this was not to be the case - and nor will it be in 2021. Many B-BBEE champions within businesses will be expected to maintain (or even improve) their current level with ever-increasing budget cuts and cash flow pressure. This can feel like an impossible task.
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But there is a way to maintain your level and spend less – the key is planning, preparation and making sure each contribution maximises your points, often across multiple elements. Below are a few tips that we have seen time and time again to drastically reduce the cash per point.

  1. Train your staff – at all levels of the organisation

  2. Employed ‘learners’ offer huge savings on your skills spend. Thanks to Covid-19, there are many great online/part-time qualifications available. Select a course that meets your B-BBEE requirements as per the Skills Matrix and also benefit your employees, hopefully boosting their productivity and your bottom line while minimising time away from their work.

  3. Interrogate your supplier listing

  4. Procurement is the only element on the B-BBEE scorecard where you can earn points without spending a cent more. All that is required is to move a certain percentage of spend to B-BBEE compliant suppliers. Changing suppliers is not a quick process or something to be taken lightly, so start working on this as soon as possible. Many suppliers would be happy to get their B-BBEE house in order but don’t know where to start. Connect them to a B-BBEE consultant for assistance.

  5. Plan your ESD activities carefully

  6. Enterprise and Supplier Development (ESD) contributions can be much more than just giving grants or loans. Professional services and goods rendered for free or at discount count towards these targets. One senior executive providing mentoring to an ESD beneficiary can make up a big chunk of this spend target.

  7. Ensure you are using a public benefit organisation (PBO) for your Socio-economic Development (SED) beneficiaries

  8. Many organisations providing skills training that qualifies as Socio-Economic Development are also registered with Sars as public benefit organisations – this means that your donation will reduce your tax burden at the end of your financial year. Like your ESD contributions, you can also donate goods and services under this element of your B-BBEE Scorecard.

    Achieving a good B-BBEE score can mean putting in a lot of time and effort, but if you start planning now for 2021, you can take most of the pain out of an end-of-year rush come next November.

About the author

Angie Lanham-Love, MD at Lanham-Love Consulting.
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