The Importance Of Annual Employment Equity Reports

 

Skills development and employment equity are fundamental to running a successful business. These also ensure a solid socioeconomic future for South Africa.

 

What is the purpose of an employment equity report?

 

To comply with the Employment Equity Act 55 of 1998 it is mandatory for registered businesses to submit an employment equity report to the Department of Labour. Employers are responsible for observing the Act and inclusively reporting the ways in which they have done so.

 

This involves logging the employees into their designated groups according to the B-BBEE specifications: race, gender and disability are marked characteristics that are discerned. The employees’ current occupation is recorded and they are assigned groups:

 

•   Africans
•   Coloureds
•   Indians
•   Whites
•   Males
•   Females

 

The occupational levels of these individuals must be recorded. Levels include:

 

•    Top Management
•    Senior Management
•    Professionally Qualified
•    Skilled Technical
•    Semi-skilled
•    Unskilled

 

When should employers submit this report?

 

Employers are expected to submit the annual report by the first working day of October. When using electronic reporting, it is acceptable to submit reports on 15 January of the following year.

 

Employers appointed on or after the first working day of April and before the first working day of October are expected to submit reports by the first working day of October the following year.

 

Why are annual employment equity reports important?

 

The annual reports are necessary as they confirm that B-BBEE requirements are being met by organisations. There is no guarantee of compliancy if these reports are not submitted. By submitting mandatory reports to the Department of Labour it is certified that employers are following the guidelines for a successful, legitimate South African business.

 

The report must be an honest reflection of what is being done – not the goals the business hopes to achieve. It must be all-inclusive to represent the entire workforce in the profile. These are quantifiable goals reflecting achievement and not the goal set by the businesses in its employment equity plan.

 

For South Africa to achieve the socioeconomic status it strives for, the entire workforce must grow together. Annual reports ensure this is the case. In this way we can keep the country moving forward as a unit.