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Why you need a good BEE Consultant.

The Broad-Based Black Economic Empowerment (B-BBEE) Codes, are a complex set of rules and regulations and are no longer simply a “tick box” exercise. There is a tremendous shortage of reliable and accurate BEE advice which leaves many business owners confused and frustrated when it comes to developing and integrating a BEE strategy that works for their company.

Why a BEE consultant? A BEE consultant is vital for every company that needs to comply with today’s BEE legislation. Years ago, you could patch a BEE plan together but today your certificate earns your customers points towards their certificate the higher your rating the more desirable your company.

A good BEE consultant is a BEE expert that has served time as a Bee analysist, undergoes continuous training in the latest legislation, keeps up to date with the latest BEE codes, interpretations, SANAS and the BEE Commissioner and is able to translate their learnings into a strategic plan for your company while taking into account all tax and legislative incentives and requirements.

The difference between a BEE Consultant and a BEE Verification Analyst?

  • A BEE Consultant is a professional advisor to different business categories ranging from small, medium, and large businesses in all sectors. They are actively involved in assisting your businesses with BEE queries and preparing your company for a successful BEE verification. A BEE Consultant will assist you to achieve your desired level of B-BBEE in the most cost-effective way.

  • A BEE Verification Analyst is the person who deals with the verification process from an independent and impartial point of view by verifying the companies BEE Compliance on date of Audit. Once the analyst has all the necessary information, it is verified by the Verification analyst and then by the technical signatory. Under the SANAS R47 a Bee verification company is not permitted to offer BEE consulting and is seen as an offence under the BEE Act.

What are the elements of a B-BBEE Strategy?

The strategy is the companies plan and timeline as to who, by when and how each element is tackled. The BEE consultant provides planning advice and is involved in drafting and customising the BEE strategic plan according to the client’s needs of budgeting to achieve the maximum benefit from the plan. A BEE strategy encompasses the following elements:

  • A detailed explanation of the BEE elements and an overview of the latest BEE legislation.

  • A detailed document requirement list of the documents that the company will need to supply the consultant.

  • A detailed report which consists of a snapshot is developed by the consultant – in other words where the company is today regarding their BEE.

  • A strategic plan is the outcome of the snapshot that the company agrees to implement and details a Rands per point scenario.

  • Proposals regarding restructuring of occupational level changes, ownership structure, correct skills spend via learnerships, bursaries as per EAP targets. Calculations for the monetary targets, with suggested initiatives to assist companies with a view to earning optimal points on the scorecard.

  • Evaluating EE and Skills with runs in parallel and collecting applicable incentives vi Seta, ETI and H12 incentives to save the company money.

The B-BBEE strategy is the monthly accountability guide for both the client and the BEE consultant to keep track of effective implementation under each element.

Detailed consulting advice on the following BEE scorecard elements

  1. Ownership – what ownership entails and the various ownership structures that are available to the company.

  2. Management Control – reflecting the current position of employees as well as future changes, bearing in mind the EE act

  3. Skills Development – training and skills development need to take place during the upcoming year based on the company’s projected payroll, submitting the WSP and ATR, guiding the company with the HR, ETI and Seta allowance, Sourcing(if required) students for learnerships, bursaries, submitting of seta contracts. Possibly implementing the YES incentive if the company qualifies.

  4. Procurement – spend on BEE suppliers and identifying where the shortfalls and opportunities are in terms of the scorecard, having solutions for companies to make up these critical points.

  5. Supplier, Enterprise, and Socio-Economic Development – defining which enterprise will qualify as a beneficiary, what rand target is and what needs to be implemented for that beneficiary during the financial year based on financial figures supplied by the client.

The closer a company works with a BEE consultant the better the results – companies need to partner with their consultant, and they need to engage with each other. Employee appointments once made -if incorrect as per the demographic representation can have a disastrous outcome on the company’s points earnings and ultimately BEE Level.

In conclusion, BEE changes as your business evolves, as does legislation. All companies face challenges, but herein possibly lie the possible opportunities. The role of a Strategic BEE consultant cannot be over emphasized, BEE is a process and not a once-off exercise if your company is to survive in today’s times.

For more BEE information, read our FAQ Blog for BEE Questions.

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