(Taken and adapted from the Minister of Labour Speech: Skills for Productive Citizens for All, 2001)

The purpose of this document is to analyse the relevant South African legislation and policies relating to skills development and employment equity (Skills Development Act, Employment Equity Act, National Human Resource Development Strategy and the National Skills Development Strategy) to ensure that there is complete synergy and adherence of a Skills Gap Analysis (SGA) / Skills Audit to these.

1. The Purpose of Skills Development

It is widely agreed that South Africa is not yet equipped with the skills it needs for sustainable economic and employment growth and social development. Hence the Skills Development Act and the Skills Development Levies Act were passed in 1998 and 1999 respectively. The legislation charged the Minister of Labour to prepare a National Skills Development Strategy, taking into consideration the advice of the National Skills Authority.

The National Skills Authority was established in terms of the Skills Development Act, 1998. It is made up of representatives from organised business, labour, government and organisations that reflect community and provider interests. Its functions include, among others, advising the Minister of Labour on a National Skills Development Strategy.

The National Skills Development Strategy represents the culmination of research and discussion within the Department of Labour and the National Skills Authority. The National Skills Authority has reviewed many comments and views that emerged during this consultation and addressed the guidelines and parameters for skills development in the spirit of this strategy document. The Strategy outlines the contribution that skills development will make to our emerging National Human Resources Development Strategy. The Government is committed to the development of the people of South Africa and all government departments are working together closely to ensure that people have education and skills to contribute meaningfully to their respective vocations as well as the national economy. The Department of Education, for example is committed to reforms in general schooling as well as further and higher education. Similarly the Department of Trade and Industry is encouraging innovation and entrepreneurial development; and the introduction of new technology and innovation geared for SITA, is underpinned by the most basic and fair of all skills development initiatives – the facilitation of a skills auditing process.

The Skills Gap Analysis (SGA) or Skills Auditing Process

The purpose of a SGA is partnership between an employer and employee. The two fundamental needs of an employee (resulting from over 25 years’ research by the Gallup Organisation) is to firstly know what is expected of them at work; and secondly, to have the tools to perform their job. The SGA seeks to address both of these by: firstly, determining what the skills required are in terms of new technology or systems to be implemented and further, to translate these into specific kinds of training to achieve this; and secondly, to determine where each individual is at in terms of the difference between their current skills levels and their required skills levels, and then allocate the appropriate training intervention accordingly.

The fundamental approach of transparency, commitment and accountability to measure progress is endorsed in the National Skills Development Strategy and therefore forms the basis of a skills audit process, the vehicle for formulating a skills development plan. Section 15 of the Employment Equity Act stipulates that development and training be implemented as measures to ensure that all employees have equal employment opportunity in all occupational categories and levels. Further, Section 16 and 17 of the Act state that employees must be consulted on the audit and analysis of the workforce profile as well as the development and implementation of a plan to address equity. To ensure meaningful consultation, organisations must disclose relevant information subject to Section 16 of the Labour Relations Act 66 of 1995. This is in the spirit of transparency and democracy to ensure that the Skills Development Strategy meaningfully addresses the relevant empowerment and equity issues rather than being superficial and politically correct.

The greatest challenge of implementing a skills development plan is to actively mobilise employers, government departments and organisations alike, and the appropriate and accepted vehicle to do this is the skills audit process.

To achieve and maintain transparency, fairness and confidentiality, the Sector Education and Training Authorities (SETA) and the Provincial Offices of the Department of Labour have been constituted and tasked to provide a quality assurance, monitoring and accreditation function for all skills development activities. Thus, all development interventions or Human Resource decisions are to be endorsed accordingly.

The National Skills Development Strategy in essence sums up the following:

• All development support should be directed towards the acquisition of skills that are needed by employers and 'customers' and that increasingly will reflect qualifications and standards that are part of the National Qualifications Framework (NQF). Skills development is about enabling and empowering individuals through the acquisition of competencies that are in demand. It is not about the provision of diversionary activities simply to keep people active for short periods of time or about merely filling programmes offered by training providers. Skills must be linked to quality provision and qualifications (either in whole or part) that hold currency throughout the country.
• Skills development is as much about building the capacity of people to engage in actively contributing to and participating in making decisions that affect investment and work, as it is about equipping people to execute the roles and functions that will flow from them.
• The intention is to create opportunities for those in work as well as for the unemployed; for new entrants to the job market as well as for older people; for women as well as men and for people with disabilities who for too long have not been valued for their capabilities.

The strategy is underpinned by six guiding principles (Adapted from the Minister of Labour Speech: Skills for Productive Citizens for All, 2001): 

• Lifelong learning: Workplaces are changing continuously. If individuals are to shape these changes and take advantage of them to improve the quality of their lives, they need to upgrade and improve their skills continuously;
• The promotion of equity: There are not only legacies to be erased but positive interventions are demanded if we are to build an inclusive society and widen opportunities. Through skills development, not only are opportunities for disadvantaged groups provided, but effective collaboration amongst people from diverse backgrounds is encouraged;
• Demand-led: For too long skills development has been pursued in the absence of a realistic assessment of how the skills are to be employed. The emphasis will be on the skills and competencies required to support productivity, international competitiveness, the mobility of employees, and meeting defined and articulated needs;
• Flexibility and decentralisation: The role of Government and the National Skills Authority is to provide the framework, direction and coordination for the skills strategy and to monitor its implementation. Public and private employers and workers are best placed to make judgements about priorities and to determine the most effective providers to meet those needs;
• Partnership and co-operation: At national, sector, provincial, and organisational levels. The definition and implementation of the skills development strategy should be based on partnerships between and amongst relevant constituencies;
• Efficiency and effectiveness: The delivery of skills development programmes and initiatives must be characterised by cost-efficiency and should lead to positive outcomes for all those who invest in training and skills development.  

3. Conclusion

In conclusion, a skills audit process, or Skills Gap Analysis is not only aligned to the national legislation, but is integral to it. Perhaps three important aspects to the process that should be emphasised here are: it is for training purposes only; it is not for placement, hiring or firing purposes; and finally, that confidentiality of the information gathered must be ensured.

4. References

Employment Equity Act
Labour Relations Act
Skills Development Act
The National Skills Development Strategy, April 2001 – March 2005
Skills for Productive Citizens for All, Minister of Labour, February 2001