SKILLS TRAINING AND DEVELOPMENT: POISED TO UNLOCK SOUTH AFRICA’S ECONOMIC POTENTIAL

SKILLS TRAINING AND DEVELOPMENT: POISED TO UNLOCK SOUTH AFRICA’S ECONOMIC POTENTIAL

BY NICOLE MCCAIN

The skills training and development sector holds the power to change South Africa’s economic trajectory by promoting the inclusion of all demographic groups. Research by the United Nations has found that increasing access to skills and education can have a direct effect on reducing poverty levels and increasing economic activity.

At the level of basic education, studies show that for each year of schooling, an individual can increase their lifetime earnings by around 10%. But education has also been directly linked to a country’s ability to increase its domestic product (GDP) growth and meeting the skills shortage can have profound impacts on business activity within the local market.

Aside from creating economic growth, continuous training and development can have numerous benefits for a company: Ongoing training improves organisational, team and individual performance. A business with an engaged workforce will achieve a 59% lower staff turnover rate, and ongoing empowerment of

staff will create more effective leaders and confident workers.

But the country’s skill shortage has left more than a third of companies struggling to fill their positions. Many of the shortages lie in practical skills, such as artisans and technicians, and with so many companies standing to benefit from skills development, it is no surprise that businesses are willing to invest in training. South African companies on average invest around 4% of payroll on training, with 64% of training designed externally and 62% of training is delivered externally.

This need for continued skills training and development has resulted in a robust sector comprised of various levels of education providers. The higher education landscape encompasses universities, universities of technology, comprehensive institutions, and various kinds of colleges, as well as private training providers. These providers work under the guidance of the Department of Higher Education and the National Skills Authority, to ensure courses and learning modules are accredited and regulated.

A DIVERSE SECTOR

Mapping transformation with the South African industry

75 300

The number of staff employed in the public higher education sector

50.8%The percentage of posts filled by Black South Africans at higher education institutions

52 000

businesses have been created in the education and training sector

The Education, Training and Development (ETD) industry supports in the region of 52 000 businesses in 14 subsectors, according to 2018 data supplied by the ETDP SETA. And the industry has great potential as a job creator, with research showing it is expanding year on year, having grown by 4% this annum.

The 50 public TVET colleges, with 250 campuses, employ over 18 000 staff. Roughly 10 800 of these jobs are in lecturing positions, providing tuition to over 705 000 students.

There are 26 universities in the country, which employ over 57 300 permanent staff and provide tuition to over 685 000 full-time students. There are also 290 private Further Education and Training (FET) colleges, which provide training in a specific occupational field, and 125 private higher education institutions.

TRANSFORMING THE HIGHER EDUCATION LANDSCAPE

In the private sector, there are many opportunities for transformation to take place, explains Sharon van der Heever, chairperson for the Association for Skills Development in South Africa (ASDSA).

ASDSA represents skills development practitioners and skills development administrators.

“Transformation is taking place, but the problem is that there are many barriers facing the small and medium sized enterprises which are driving transformation.”

The business landscape, along with the regulatory framework governing private training operators, is not very conducive to small business ownership, explains Van der Heever.

To qualify and gain accreditation to offer a single standard unit (a learning module), can cost in the region of R40 000, she explains. To recover that cost, the service provider would need to train around 40 students. Added to this is the complex legislation that governs the sector and the need for qualified staff to offer the courses.

“It takes a long time to recover your costs and build a reputation in the industry. There are also many barriers to small businesses and red tape that they must navigate,” she says.

To encourage smaller service providers, and in turn transformation, much needs to be done at government level to reduce red tape, offer tax rebates and provide improved training for businesses owners, Van der Heever believes.

“Corporate clients also tend to favour larger training operators over smaller suppliers, which means a mind shift is needed,” says Van der Heever.

Diversity creates a space for critical thinking, by encouraging the challenging of stereotypes and preconceptions. Not only does it allow students and educators to begin conversations about cultural difference, but diversity also stimulates economic growth and reduces poverty.