B-BBEE Consultants: What Is the role of B-BBEE Consultants?
The complexities of the Broad-Based Black Economic Empowerment (B-BBEE) Codes, a low-growth economic environment and various other businesses’ challenges mean that B-BBEE is not merely a “tick the box” exercise. The tremendous shortage of reliable and accurate B-BBEE advice leaves many business owners confused when developing, integrating, and monitoring their B-BBEE strategies. So why is it important to have a B-BBEE consultant and what is their role in your B-BBEE strategy?
What is a B-BBEE consultant?
A B-BBEE consultant is vital for any company in South Africa that wishes to comply with B-BBEE legislation. A B-BBEE consultant assists businesses in untying the complexities of B-BBEE and turning B-BBEE compliance into a quantifiable development. The-importance-of-the-relationship-between-a-bee-consultant-and-bee-verification-analyst
What is the difference between a B-BBEE consultant and a B-BBEE verification analyst?
Clients often confuse a B-BBEE consultant with a B-BBEE verification analyst. The following explanation distinguishes between the two roles.A B-BBEE consultant is positioned right at the centre of the B-BBEE arena and acts as a professional advisor to different business categories ranging from small, medium and large businesses in various sectors. They are actively involved in assisting companies with B-BBEE queries and preparing them for a successful B-BBEE verification. A B-BBEE consultant will assist in achieving your desired level of B-BBEE compliance in the most cost-effective way.
A B-BBEE verification analyst is the person who deals with the verification process from an independent and impartial point of view by assessing the preparation done by the B-BBEE consultant, as explained above. After the B-BBEE consultant has gathered all the necessary information, such information is submitted to a verification agency to be verified by an independent verification analyst and then signed off by a verification technical signatory. A Verification analyst, technical signatory, or verification manager of the relevant verification agency cannot consult with you regarding your B-BBEE strategy; they should always remain independent and impartial.
How does a B-BBEE consultant fit in with a B-BBEE strategy?
Let’s look at how important the development and implementation of a B-BBEE strategy is.
What are the elements of a B-BBEE Strategy?
The B-BBEE strategy is a company’s plan outlining what needs to happen to achieve specific outcomes to fulfil their B-BBEE objectives. The B-BBEE consultant provides planning advice and is involved in drafting and customising the B-BBEE strategic plan according to the client’s business needs for budgeting purposes to achieve the maximum benefit from it. A B-BBEE strategy will include the following elements:
A layout of the terminology used in the plan;
A breakdown of all the B-BBEE elements and overview of the latest B-BBEE legislation;
A breakdown of the gathered information to compile the report;
Different proposals regarding the restructuring of occupational level changes, ownership, proper skills spent on correct EAP targets and accurate calculations for the monetary targets, with suggested initiatives, will be made for implementation to earn optimal points on the scorecard.
The B-BBEE strategy will serve as a guide throughout the year for both the client and the B-BBEE consultant to keep track of the proposals and effective implementation. By following the B-BBEE strategic plan guidelines, a client can rest assured that all the B-BBEE scorecard elements are covered as far as targets and spending are concerned.
Professional advice regarding the following B-BBEE scorecard elements are included:
1) Ownership – what ownership entails and available ownership structures;
2) Management Control – reflecting the current position of employees as well as future changes;
3) Skills Development – training and skills development need to take place during the upcoming year based on the company’s projected payroll;
4) Procurement – spend on B-BBEE suppliers and identifying where the shortfalls and opportunities are in terms of the scorecard;
5) Supplier, Enterprise, and Socio-Economic Development – who will qualify as a beneficiary, what rand value needs will be spent and what needs to be implemented for that beneficiary during the financial year based on financial figures supplied by the client.
A business client must provide the B-BBEE consultant with the required financial figures to correctly compile documentation that makes planning for the financial year possible. The sooner a client starts with their B-BBEE budget and implementation of proposals, the easier it is to achieve the desired B-BBEE level.
In conclusion, B-BBEE changes as your business evolves, along with the updates and newly implemented legislation. Every company faces unique challenges, requirements, and opportunities – and each works within the parameters of specific budgets. A B-BBEE consultant’s role cannot be emphasised enough as B-BBEE is an intricate process and not a once-off exercise. It is an ongoing client-consultant relationship to achieve the desired outcomes as outlined in a company’s B-BBEE strategy.