BEE, or Black Economic Empowerment, is a complex scheme that is often poorly misunderstood. In 2007 the government published an official gazette explaining the BEE act of 2003 and what the codes meant in detail, for both employers and employees.
Who has to comply with BEE?
Everyone. State bodies, public and private entities are all required to comply with BEE codes, however the size of an organization makes a big difference. If an enterprise has a turnover of less than 5 million rand a year, or they have very few employees, they are generally exempt from BEE requirements.
How does a company become BEE compliant?
A company earns a BEE rating/score based on certain requirements. A company wins points by having an affirmative action plan in place, by being owned and managed in part by black South Africans, by spending money on skills developments for previously disadvantaged employees, by investing in small black-owned companies and doing business with other BEE compliant companies.
Generally, smaller enterprises have fewer requirements – the larger the company, though, the more stringent the codes. Companies with an annual turnover of over 35 million rand generally have to do more to be BEE compliant.
How will BEE affect you as an employee?
BEE is intended as a method to rectify past injustices and ensure that people who were previously denied a fair chance in the workpace can compete fairly. Race is not the only qualifier, however. Female employees, those under 35 or above 65, and those from rural backgrounds are also in protected groups. Thus, for a large company, BEE may require a certain degree of representation from these groups.
For prospective employees, this can sometimes be an emotionally-charged topic and something that has to be managed realistically. It’s a common misconception that unqualified employees will be given preferential treatment if they fall within protected groups, but on the ground, what this means is that individuals with comparable skills and education can be differentiated according to factors over and above their suitability.
How can BEE benefit you as an employee?
For large enough companies, BEE points are earned when the enterprise devotes a portion of its annual turnover to skills development. This means there may be learning programmes that you can benefit from if you are a black South African.
Universities, colleges and workplaces may have formal or informal programmes in place to ensure that employees are developing skills valuable for the empowerment of all South Africans. It pays to enquire about these if you are employed at a large organization.
What can I do if I feel unfairly discriminated against?
A company’s BEE status is calculated on many factors, only one of which is the group the employees belong to. For small and medium sized enterprises, it is likely the case that management can employ people based on their own requirments. If you suspect that an organization is not upholding its BEE requirements, you are within your rights to query the HR department.
Realistically, BEE is a large scale social justice scheme that means that individual employees will have to adjust according to the needs and requirements of the organizations they wish to work for. If you are a black South African, you can take advantage of certain privileges afforded by BEE.
However, if you are not in one of the preferred groups, you will have to do what all employees must do regardless: ensure that you have the edge when it comes to education, skills and attitude and constantly seek ways to improve.
