information on - sector education and training authority

Information on Sector Skills Planning

01Information on Sector Skills Programmes

1. MICT SETA’s Vision and Mission ........................................................022. Introduction ........................................................................................023. SSP Purpose ......................................................................................024. SSP Process .......................................................................................035. MICT SETA Sector Skills .....................................................................046. Skills Development Facilitators (SDFs) ..............................................047. Mandatory Grants ..............................................................................05 7.1 Mandatory Grants Process ........................................................058. Discretionary Grants ..........................................................................059. Skills Development Levies Breakdown ..............................................0610. Sector Skills Planning .........................................................................07 10.1 Workplace Skills Plan (WSP) ......................................................07 10.2 Annual Training Reports (ATR) ...................................................07 10.3 Inter-Seta Transfers ....................................................................0711. Scarce Skills .......................................................................................08 11.1 Scarce Skills ...............................................................................08 11.2 Absolute Scarcity .......................................................................08 11.3 Relative Scarcity ........................................................................0812. Critical Skills .......................................................................................09 12.1 What are Critical Skills? ..............................................................0913. Organising Framework of Occupations (OFO) ..................................0914. Contact the MICT SETA ......................................................................10

Contents


The SETA develops a Sector Skills Plan (SSP) annually in accordance with the Skills Development Act requirements. The SSP is developed to support:

• National Skills Development Strategy (NSDS III)• National Development Plan• New Growth Path• Industrial Policy Action Plan• Human Resource Development Strategy for South

Africa. • White Paper on Post Schooling Education and

Training• The National Integrated ICT Policy Review Report• Strategic Integrated Projects (SIPs)

Provision of:

2. Introduction

3. SSP Purpose

Sector Profile

Labour Market Trends

Sectoral Key Skills Issues Change Drivers

Skills Demand and Supply

Partnerships Supporting

Programme Delivery

SkillsStrategy

Additionally, the SSP serves as a basis for the

SETA’s Strategic Plan and a valuable source for the sector’s Career Opportunities Guide.

To be recognised as the leader in the development of a highly skilled, knowledge based information society.

The MICT SETA generates, facilitates and accelerates the processes of quality skills development at all levels in the MICT sector.

1. MICT SETA’s Vision and Mission


4. The SSP Process

Review of current SSP, guided by the DHET requirements

Focus Group:Analysis and Consolidation

SME,SDForaConfirmationand Finalisation

Review and Sign-off

Field Research Desk Research

Interviews Surveys Literature (trends) Review

WSPs/ATRs Analysis


MICT SETA Sector Skills Demand and Supply Model

Macro-economic Reference Scenario:• Prepareamacro-economicscenario

which takes into account cyclical and structurally induced industry output.

Including a trace in sub sectors closely associated with the MICT

industry.• Theme:cyclicalandstructural

demand

Expansion demand:• Investmentandemployment

projections are combined with a set of sectoral economic indicators

to determine demand by trade/occupation + WSPs

• Includedemandoftrades/occupations by all other sectors that

employ these trades

Replacement demand:• Estimateeffectofretirementsas

signalled by mortality rates and withdrawals from the labour force

Occupational demand:• Combineexpansiondemandwith

retirement demand

DEMAND SUPPLY

LMI

Education and training component:

• NumberofgraduatesfromMICTlearning programmes + general

education system (colleges and universities) + immigration

data – used to determine available labour force by trade/

occupation

Excess supply:• Determinesurplusorshortage

by combining supply + unemployed less the recorded

demand in WSPs• Indicator: excess demand

or supply• Qualitative indicator:

outlook positive or negative

6. Skills Development Facilitators (SDFs)SDFs are employees of organisations. Their responsibility is to collect and submit to the SETA, their organisational data relating to past and planned training.

5. MICT SETA Sector Skills


8. Discretionary GrantsA Discretionary Grant is a grant paid to employers to implement various learning programmes that address scarce and critical skills in individual workplaces. At the same time, the implementation of these learning programmes assists the SETA to achieve its commitments as agreed with the Department of Higher Education and Training.

A Mandatory Grant is a grant that is paid to levy-paying employers on the basis of the submission and approval of the Annual Training Reports (ATRs), Workplace Skills Plans (WSPs), including PIVOTAL Training Plans (PTPs) and PIVOTAL Training Reports (PTRs), where applicable.

7. Mandatory Grants

7.1 Mandatory Grants Process

Annual Training Reports (ATRs) and Workplace Skills Plans (WSPs) submissions

Receipt of Dept. of Higher Education and Training levy reports and upload on the

MICT SETA Management System

ATRs and WSPs evaluation and approvals

Mandatory Grants payment report from theSMSforverificationand

approval purposes

Payment of skills development levies by employers to SARS

Mandatory Grants payment on a quarterly basis


9. Skills Development Levies Breakdown

From April 2013

National Skills Fund - NSF

Mandatory Grant

Discretionary Grant

SETA Administration

of which at least 80% towards PIVOTAL (Approximately 10%

non-PIVOTAL and 40% PIVOTAL)

(20%)

(20%)

(49.5%)

(10.5%)


10. Sector Skills Planning

Sector Skills Planning ensures:

• Development of credible labour market information system

• Input into the Organising Framework of Occupations• Ad-hoc research in support of skills planning• An accurate list of scarce and critical skills• Approval and registration of Skills Development

Facilitators• Review of the on-line grant system• Annual update of the SDF Manual and SDF training

workshops and roadshows• Development of the WSP/ATR submission template• Timeous submission of WSPs/ATRs• Evaluation and approval of submitted WSPs/ATRs• WSPs/ATRs monitoring and evaluation• Payment of Mandatory Grants• Inter-SETA transfers

10.1 Workplace Skills Plan (WSP)A WSP is a document that articulates how the employer is planning to address the training and development needs in the workplace. Organisations need to search for the best possible training solutions to invest in their staff’s career paths when implementing their annual skills development plans. Keeping up to speed with industry trends and staying relevant is therefore pivotal when bridging gaps between organisations’ present realities, their skills development needs and employees’ career aspirations. Skills development is very important in South Africa, especially in the long term.

10.2 Annual Training Reports (ATR)An ATR is a record of training and development undertaken over the previous year in relation to what wasplannedfor.Towardstheendofeachfinancialyear, every organisation that submitted a WSP is required to submit an ATR that records training and development that was implemented. Records of all education, training and development activities shouldbeavailabletoconfirmtheinformationinthereport.

10.3 Inter-SETA Transfers

Inter-SETA Transfers (IST) are processed due to:

• The organisation having registered with the incorrect SETA

• The organisation’s core business having changed since the previous registration and now better suits the industrial code of another SETA

• The organisation falling within the jurisdiction of more than one SETA.

The entire process may take up to six months

The Inter-SETA application is submitted through the IST-01 form to the SETA

that the organisation is currently registered with.

Once received, the SETA will approvetheapplicationiftherequestisjustified,

and forward the signed application to the Department of Higher Education

and Training

The Department will then verify the request and submit to the South

African Revenue Services (SARS).

SARS will process the change request.


11. Scarce Skills

11.1 Scarce Skills:

Those occupations (positions in the organisation) in which there is a scarcity of qualified andexperienced people, currently or anticipated in the future, either:

• Because such skilled people are not available or• They are available but do not meet employment

criteria.

11.2 Absolute scarcity: Suitably skilled people are not available, for example:

• A new or emerging occupation, i.e. there are few, if any, people in the country with the requisite skills (qualificationandexperience)andeducationandtraining providers have yet to develop learning programmes to meet the skills requirements.

• Firms, sectors and even the country are unable to implement planned growth strategies and are experiencing productivity, service delivery and quality problems directly attributable to a lack of skilled people.

• Replacement demand scarcity where there are no people enrolled or engaged in the process of acquiring the skills that need to be replaced.

11.3 Relative scarcity: Suitably skilled people are available but do not meet other employment criteria, for example:

• Geographical location, i.e. people unwilling to work outside of urban areas.

• Equity considerations, i.e. there are few if any candidateswith the requisiteskills (qualificationsand experience) from specific groups availableto meet the skills requirements of firms andenterprises.

• Replacement demand would reflect a relativescarcity if there are people in education and training (formal and work-place) who are in the process of acquiring the necessary skills (qualification andexperience) but where the lead time will mean that they are not available in the short term to meet replacement demand.


12. Critical Skills

12.1 What are Critical Skills?

Specifickeyorgenericskillswithinanoccupation.In the South African context there are two groups of critical skills:

• Key or generic skills, these would include cognitive skills, problem solving, language and literacy skills, mathematical skills, ICT skills and working in teams.

• Particular occupation specific skills requiredfor performance within that occupation to fill a“skills gap” that might have arisen as a result of changing technology or new forms of work within an organisation.

Identifying Scarce Skills against Current Occupations

Scarceandcritical skills are identifiedbygatheringand analysing information in respect of:

• Hard-to-fillvacanciesorlong-termvacancies:In 2014, when compared to 41 other countries surveyed, South Africa came in 4th from the bottom, with only 8% of employers reporting difficulty filling jobs. However, in 2015, thecountry has come in at 30th place, with 31% ofemployersreportingdifficultyfillingjobs–close on the global average of 38%. Reasons for this include the following:

• No appropriately qualified peopleavailable, e.g. new occupation, newqualificationrequired.

• No appropriately experienced peopleavailable, e.g.qualificationis available but experience and application in the work place is a key employer requirement.

• No appropriately qualified and/orexperienced people are available from target groups e.g. female telecom network engineers.

• Sourcing skills from abroad: Where there is hard or anecdotal evidence that key employers in the sector are recruiting skilled workers outside of the country to fillspecificoccupations.

• Higher wages: Where there is hard or anecdotal evidence that the lack of skilled people has resulted in skilled workers demanding higher wages or employers paying a premium for skill.

• Lower productivity levels: Where enterprises or sub-sectors are reporting that scarce or critical skills shortages are beingreflectedinlowerquality,productivityorservice delivery measures. For example, there is greater wastage, more machine down-time, more mistakes, greater need for supervision, more work having to be redone to correct mistakes.

• Lower productivity growth: Where within enterprises, sub-sectors, sectors and even nationally there is less expenditure on innovation, R&D, less product or service value added

• The OFO has been introduced to simplify and standardise the categorisation of occupations. The OFO isaskill-basedcodedclassificationsystem,which encompasses all occupations in the South African context.

• The OFO serves as a key tool for identifying, reporting and monitoring skills demand and supply in the South African labour market.

• The OFO sets the base for linking various occupations to specific skills and assists inidentifying further training needs.

• The OFO is a skill-based classification system,which encompasses all occupations in the South African context.

• The classification of occupations is based on acombination of skill levels and skill specialisation whichmakesiteasytolocateaspecificoccupationwithin the framework

13. Organising Framework of Occupations (OFO)


14. Contact the MICT SETA

Head Office – GautengBlock 2, Level 3 WestGallagher HouseGallagher Convention Centre19 Richards DriveMidrandPO Box 5585Halfway House, 1685Tel: 011 207 2600Fax: 011 805 6833

Cape TownTheBoulevardOfficeParkBlock F, Ground FloorSearle StreetWoodstockCape TownTel: 021 461 3926Fax: 021 461 3939

Kwazulu NatalDurban Bay House4th Floor333 Anton Lembede StreetPO Box 763Durban, 4000Tel: 031 307 7248Fax: 031 307 5842

East LondonBlue Beacon Investments 206Beacon BayPhase 2AWaverleyOfficeParkChiselhurst, 5205PO Box 877East London, 5201Tel: 043 726 0763Fax: 043 726 0709

www.mict.org.zawww.mictseta.net.za

Physical Address: 19 Richards Drive Gallagher Convention Centre Block 2, 3rd Level Halfway House Midrand

Postal Address: PO Box 5585 Halfway House 1685 Gauteng

Tel: +27 11 207 2600/3 Fax: +27 11 805 6833

www.mict.org.za www.mictseta.net.za

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