South Africa: National Skills Survey, 2007
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1 South Africa: National Skills Survey, 2007 Commissioned by the Department of Labour October 2008 Andrew Paterson, Mariette Visser & Jacques du Toit Education Science and Skills Development Research Programme Human Sciences Research Council, South Africa
2 ii Table of Contents List of Tables... List of ACRONYMS... Acknowledgements... vii xii xiv Chapter 1: Introduction Skills development, competitiveness, and wellbeing... 1 Aim of the National Skills Survey of The Skills Development Levies Act (1999)... 2 Developments in the NSDS since its inception... 2 Methodology of the National Skills Survey of Organisation of this report... 3 Chapter 2: Research design and methodology of the National Skills Survey 2007 Type of design... 5 Target population... 5 Sample frame... 6 Sampling technique... 8 Questionnaire design and pilot testing... 9 Call centre and postal strategy... 9 Response rates Data management Weighting and analysis Operationalising the term skills training Lessons learned... 13
3 iii Chapter 3: Private enterprise training in South Africa and the National Skills Development Strategy (NSDS) Introduction Participation in training Enterprises providing training Training rates to measure participation in training Training rates of permanent, non-permanent and disabled categories of employee Training rate (A) Permanent and non-permanent employee participation in training Disabled employee participation in training Training rates of permanent employees: Comparing rate A and rate B Training rate (B): Training rates of permanent employees disaggregated Enterprise size and training Training in SETAs Training rate and occupational category Training according to national and international standards Training expenditure Training expenditure as a percentage of payroll Training expenditure per trained employee and across all employees Training expenditure in SETAs Participation in the levy grant scheme Enterprise size and grant claims Grant claims by SETA Grant claims and propensity to provide training Development of workplace skills plans Enterprise size and workplace skills plans Enterprises with WSPs by SETA Registration with SETAs Enterprise size and registration with a SETA Satisfaction with services provided by the SETAs Enrolment in Learnerships Enterprise participation in Learnership programmes Registration of Learnerships between 2003 and 2005/ Equity in the NSDS... 52
4 iv Gender Gender and occupation Race Race and occupation Equity targets expressed in terms of the NSDS The NSDS from the perspective of the national skills surveys of 2003 and Summary. 63 Chapter 3 Appendix.. 65 Chapter 4: Analysis of training rates and training expenditure in private enterprises Introduction Population of enterprises Size of enterprise and workforce Distribution of enterprises and employment Ownership Number of years in operation Population of employees Distribution of permanent and non-permanent employees Disabled employees Employees who left employment in 2006/ Training rates in private enterprises in South Africa in 2006/ Training rate calculated for permanent, non-permanent and disabled Personnel: Training rate A Training rate calculated for permanent employees: Training rate B Comparison of training rates 2000, 2002/3 and 2006/ Training rate by ownership category Training by occupation Training rate by enterprise size and SETA Training rate by enterprise size Training rate at SETA level Training rate and gender Training rate and race Training rate by occupational code and race... 90
5 v Training rate by occupational code and enterprise size Expenditure on training Overall expenditure Expenditure and enterprise size Expenditure by SETA Summary Chapter 4 Appendix 98 Chapter 5: Training activities, training needs and training infrastructure Introduction Skills needs Factors causing employee turnover Meeting skills needs Skills underdeveloped or lacking in enterprises Occupations in which skills upgrading was required Factors causing enterprises to increase training in the 2006/7 financial year Training delivery modes Participation in types of training Learnerships and apprenticeships Enterprises implementing learnerships Employees registered for learnerships Apprenticeships Training according to recognised training standards Human resources development practices Training infrastructure and processes Strategic enterprise training and related documents Responsibility for training in the enterprise Relationship between enterprises and SETAs Registration of enterprises with SETAs Enterprises claiming grants Enterprises not claiming grants Ratings of SETA services Conclusion
6 vi Chapter 6: Skills development in South Africa in 2007: Key features and challenges Purpose Structure Factors impacting on the training rate Training rate increase Factors causing enterprises to increase training Satisfaction with services provided by the SETAs Rising training volumes generate wide disparities in access by enterprise size Expenditure on training Relationship between expenditure and training rate Price, effort and duration of training Training rate in occupational categories Variation between SETAs in training performance Training to recognised standards Equity in training Training equity in the NSDS: Race/gender/disability of all trained workers Training equity in the NSS2007: Workers trained as a proportion of all workers employed by race, gender and disability Enterprise participation in the NSDS Enterprise registration with a SETA Enterprises making grant claims Grant administration system struggles to capture enterprises Sustaining training practises Supply side a hidden dimension Conclusion References
7 vii List of Tables TABLES Table 2.1: Sector Education and Training Authorities (SETAs) in Table 2.2: Sample frame of enterprises disaggregated by employment size and SETA 7 Table 2.3: Results of unsuccessful calls to targeted enterprises 10 Table 2.4: Results of follow-up calls 10 Table 2.5: Response rate by SETA 11 Table 2.6: Location of enterprises according to province 12 Table 3.1: Enterprises reporting employee participation in training by enterprise size in 2006/07 compared to 2002/03 20 Table 3.2: Table 3.3: Table 3.4: Table 3.5: Enterprises reporting employee participation in training by SETA in 2006/07 compared to 2002/03 Training rates for permanent employees in comparison with rates for non-permanent and disabled employees in 2002/03 and 2006/07 Training ratios for permanent, non-permanent and disabled employees by enterprise size in 2006/07 compared to 2002/03 (%) Training ratios for permanent, non-permanent and disabled employees by SETA size in 2006/07 compared to 2002/03 (%) Table 3.6: Training ratio by enterprise size and occupational category in 2002/03 and 2006/07 (%) 27 Table 3.7: Training ratio by SETA in 2006/07 compared to 2002/03 (%) 29 Table 3.8: Occupational categories NSS2003 and NSS Table 3.9: Comparison of training rates by occupational category 2002/03 and 2006/07 31 Table 3.10: Training ratio by enterprise size and occupational category in 2006/07 (%) 32 Table 3.11: Table 3.12: Table 3.13: Table 3.14: Permanent employees engaged in training according to standards by enterprise size in 2002/03 Permanent employees engaged in training according to standards by enterprise size in 2006/07 Permanent employees engaged in training according to standards by enterprise size in 2002/03 (%) Permanent employees engaged in training according to standards by enterprise size in 2006/07 (%) Table 3.15: Permanent employees engaged in structured training by SETA in 2002/03 (%) 35 Table 3.16: Permanent employees engaged in structured training by SETA in 2006/07 (%) 36 Table 3.17: Training expenditure as a percentage of payroll by enterprise size 37 Table 3.18: Average training expenditure by enterprise size in 2006/07 compared to 2002/03 (ZAR) 38 Table 3.19: Average training expenditure by enterprise size in 2006/07 compared to 2002/03 (ZAR) 38 Table 3.20: Training expenditure by SETA in 2002/03 and 2006/07 (ZAR) 39
8 viii Table 3.21: Enterprises claiming grants by size in 2006/07 compared to 2002/03 (ZAR) 40 Table 3.22: Enterprises claiming grants by SETA in 2006/07 compared to 2002/03 (ZAR) 41 Table 3.23: Enterprises claiming grants by training rate category in 2006/07 42 Table 3.24: Enterprises having workplace skills plans by size in 2006/07 compared to 2002/03 43 Table 3.25: Enterprises with workplace skills plans by SETA in 2006/07 compared to 2002/03 44 Table 3.26: Enterprises having workplace skills plans by training rate category in 2006/07 45 Table 3.27: Enterprises reporting registration with a SETA by size in 2006/07 compared to 2002/03 46 Table 3.28: Enterprise rating of SETA services by size in 2002/03 47 Table 3.29: Enterprise rating of SETA services by size in 2006/07 47 Table 3.30: Enterprise rating of SETA services by size in 2006/07 48 Table 3.31: Enterprises with employees registered in Learnerships in 2006/07 49 Table 3.32: Number and percentage of firms with employees registered in Learnerships in 2006/07 49 Table 3.33: Percentage share of learners registered in Learnerships in 2006/07 by enterprise size 50 Table 3.34: Learners registered in Learnerships by June 2003 and in 2005/06 by SETA 51 Table 3.35: Percentage share of learners registered in Learnerships by June 2002/03 compared to 2006/07 by SETA 52 Table 3.36: Training ratio by gender and enterprise size in 2006/07 compared to 2002/03 (%) 53 Table 3.37: Training ratio by gender and occupational category in 2002/03 (%) 54 Table 3.38: Training ratio by gender and occupational category in 2006/07 (%) 54 Table 3.39: Training ratio by race and enterprise size in 2006/07 compared to 2002/03 (%) 55 Table 3.40: Training ratio by race and occupational category in 2002/03 (%) 56 Table 3.41: Training ratio by race and occupational category in 2006/07 (%) 57 Table 3.42: Training access by race 1999/00, 2002/03 and 2006/07 (%) 58 Table 3.43: Training access by gender 1999/00, 2002/03 and 2006/07 (%) 58 Table 3.44: First NSDS Objectives 2001 to 2005 and Second NSDS Objectives 2005 to Table 3.45: The Core Principles of the National Skills Development Strategy, Table 3.46: Indicators for the NSDS and compared 61 Table 3.47: Table 4.1: Table 4.2: National Skills Development Strategy objectives and indicators based on data available in the National Skills Survey 2007 Number of enterprises and number of employees (Permanent and non-permanent) in 2006/07 SETA share of total employment and of total number of enterprises in the sample (%) in 2006/ Table 4.3: Ownership by enterprise size (%) in 2006/07 72 Table 4.4: Ownership by SETA (%) in 2006/07 72 Table 4.5: Number of years in operation by enterprise size in 2006/07 73 Table 4.6: Number of years in operation by SETA in 2006/07 74
9 ix Table 4.7: Employee status by enterprise size in 2006/07 75 Table 4.8: Employee status by enterprise size in 2006/07 (%) 75 Table 4.9: Employee status by SETA in 2006/07 75 Table 4.10: Employee status by SETA (%) in 2006/07 76 Table 4.11: Disabled employees by enterprise size in 2006/07 77 Table 4.12: Employee status by SETA in 2006/07 77 Table 4.13: Number of permanent employees leaving employment by enterprise size in 2006/07 78 Table 4.14: Number of permanent employees leaving employment by SETA in 2006/07 79 Table 4.15: Table 4.16: Training rates for permanent personnel in comparison with rates for non-permanent and disabled personnel in NSS2007 Training ratio of permanent, non-permanent and disabled employees by enterprise size (%) (Training Rate A) in 2006/ Table 4.17: Training rate of permanent employees (Training Rate B) in 2006/07 81 Table 4.18: Training rate of permanent employees by ownership status and enterprise size (%) in 2006/07 84 Table 4.19: Training rate of permanent employees by ownership status and SETA in 2006/07 85 Table 4.20: Training rate of permanent employees by occupational group in 2006/07 (%) 86 Table 4.21: Training rate of permanent employees by enterprise size and SETA (%) in 2006/07 87 Table 4.22: Training rate of permanent employees by gender and enterprise size (%) in 2006/07 88 Table 4.23: Training rate of permanent employees by gender and SETA in 2006/07 (%) 89 Table 4.24: Training rate of permanent employees by race and enterprise size in 2006/07 (%) 90 Table 4.25: Training rate of permanent employees by occupational category and race 2006/07 (%) 91 Table 4.26: Training ratio by SOC code (according to the OFO) and enterprise size in 2006/07 (%) 92 Table 4.27: Expenditure on training by enterprise size 2000/01 to 2006/07 93 Table 4.28: Expenditure on training by SETA 2000/01 to 2006/07 95 Table 5.1: Factors causing employee turnover by enterprise size 102 Table 5.2: Factors causing employee turnover by SETA 103 Table 5.3: Actions undertaken to meet skills needs by enterprises in 2006/07 by size of enterprise 104 Table 5.4: Actions undertaken to meet skills needs by enterprises in 2006/07 by SETA 105 Table 5.5: Skills underdeveloped or lacking in enterprises by enterprise size 106 Table 5.6: Skills underdeveloped or lacking in enterprises by SETA 107 Table 5.7: Occupations requiring skills upgrading during 2006/07 by enterprise size 108 Table 5.8: Occupations requiring skills upgraded during 2006/07 by SETA 109 Table 5.9: Factors causing enterprises to increase training in the 2006/7 year by enterprise size 110 Table 5.10: Factors causing enterprises to increase training in the 2006/7 year by SETA 112 Table 5.11: Participation of permanent employees in types of training by enterprise size 114 Table 5.12: Participation of permanent employees in types of training by SETA 114
10 x Table 5.13: Enterprises with employees registered in Learnerships by enterprise size in 2006/07 (%) 115 Table 5.14: Number of enterprises with employees registered in Learnerships by enterprise size in 2006/07 (Number) 115 Table 5.15: Enterprises with employees registered in Learnerships by SETA in 2006/07 (%) 116 Table 5.16: Enterprises with employees registered in Learnerships by SETA in 2006/07 (Number) 117 Table 5.17: Number of employees registered in Learnerships by enterprise size in 2006/ Table 5.18: Number of employees registered in Learnerships by SETA in 2006/ Table 5.19: Number of registered apprenticeships by enterprise size in 2006/ Table 5.20: Number of registered apprenticeships by SETA in 2006/ Table 5.21: Permanent employees engaged in training according to standards by enterprise size in 2006/ Table 5.22: Training according to standards by enterprise size in 2006/07 (%) 122 Table 5.23: Permanent employees engaged in structured training by SETA in 2006/07 (Number) 122 Table 5.24: Permanent employees engaged in structured training by SETA in 2006/07 (%) 123 Table 5.25: Participation of permanent employees in types of human resources development practices by enterprise size 124 Table 5.26: Human Resource Development practices used in enterprises by SETA 126 Table 5.27: Table 5.28: Table 5.29: Proportion of enterprises in possession of strategic enterprise training related documents by enterprise size (%) Proportion of enterprises in possession of strategic enterprise training related documentation by SETA (%) Allocation of responsibility in the enterprise for training in 2006/07 by enterprise size (%) Table 5.30: Allocation of responsibility in the enterprise for training in 2006/07 by SETA (%) 129 Table 5.31: Composition of the training committee by enterprise size (%) 130 Table 5.32: Composition of the training committee by SETA (%) 131 Table 5.33: Enterprises registered with a SETA by enterprise size (%) 132 Table 5.34: Enterprises registered with a SETA by enterprise size (Number) 132 Table 5.35: Enterprises registered with a SETA by SETA (%) 133 Table 5.36: Enterprises claiming and not claiming grants against levy payment by firm size (%) 134 Table 5.37: Enterprise claiming and not claiming grants against levy payment by SETA 136 Table 5.38: Enterprise ratings of SETA services by enterprise size 137 Table 5.39: Enterprise rating of the services of SETAs by SETA 138 Table 6.1 Enterprise rating of SETA services by size in 2002/03 and 2006/ Table 6.2 Training expenditure as a percentage of payroll by enterprise size 150
11 xi Table 6.3 Comparison of average expenditure (in ZAR) on training per trained employee, 2002/03 and 2006/ Table 6.4 Highest and lowest SETA performance in percentages for selected training indicators from NSS2003 and NSS Table 6.5 Training access by race as defined by NSDS targets: 1999/00, 2002/03 and 2006/07(%) 156 Table 6.6 Training access by gender as defined by NSDS targets: 1999/00, 2002/03, and 2006/07(%) 157 Table 6.7 Enterprise interaction with the levy-grant system by size in 2002/03 and 2006/07 160
12 xii List of Acronyms NSDS National Skill Development Strategy NSS2007 National Skills Survey of 2007 NSS2003 National Skills Survey of 2003 SETAs NSF SMLEs SARS FASSET BANKSETA CHIETA CTFL CETA DIDETA (SASSETA) ETDP SETA ESETA FOODBEV FIETA HWSETA ISETT INSETA LGSETA MAPPP MQA MERSETA Sector Education and Trainng Authorities National Skills Fund Small, Medium and Large enterprises South African Revenue Services Financial and Accounting Services Banking Sector Education and Training Authority Chemical Industries Education and Training Authority Clothing, Textiles, Footwear and Leather Sector Education and Training Authority Construction Education and Training Authority Previously, Diplomacy, Intelligence, Defence, and Trade and Industry Sector Education and Training Authority, amalgamated with POSLEC SETA to form Safety and Security (SASSETA) Education, Training and Development Practices Sector Education and Training Authority Energy Sector Education and Training Authority Food and Beverages Manufacturing Industry Sector Education and Training Authority Forest Industries Sector Education and Training Authority Health and Welfare Sector Education and Training Authority Information Systems, Electronics and Telecommunications Technologies Insurance Sector Education and Training Authority Local Government Sector Education and Training Authority Advertising, Publishing, Printing and Packaging Mining Qualifications Authority Manufacturing, Engineering and Related Services Education and Training Authority
13 xiii POSLEC SETA (SASSETA) PAETA (AGRISETA) PSETA SETASA (AGRISETA) SERVICES THETA TETA W&RSETA SOC SPSS ISOC OFO WSP EPWP NGOs CBOs FET HET ISOE PPPs NQF Previously, Police, Private Security, Legal and Correctional Services, amalgamated with DIDETA to form Safety and Security (SASSETA) Previously, Primary Agriculture Education and Training Authority, amalgamated with SETASA to form AGRI Sector Education and Training Authority (AGRISETA, code 20) Public Services Sector Education and Training Authority Previously, Secondary Agriculture Sector Education and Training Authority, amalgamated with PAETA to form AGRI Sector Education and Training Authority (AGRISETA, code 20) Services Sector Education and Training Authority Tourism and Hospitality Education and Training Authority Transport Education and Training Authority Wholesale and Retail Sector Education and Training Authority Standard Occupational Categories Statistical Package for the Social Sciences International Standard Occupational Code Organising Framework for Occupations Workplace Skills Plan Expanded Public Works Programme Non-governmental Organisations Community Based Organisations Further Education and Training Higher Education and Training Institutes of Sectoral or Occupational Excellence Public Private Partnerships National Qualifications Framework
14 xiv Acknowledgements This report on the National Skills Survey of 2007 could not have been conducted without the support of the Department of Labour (DoL) which commissioned the research project, the participation of a large number of private enterprises, and a dedicated team of researchers and administrators in the Education, Science and Skills Development (ESSD) research programme at the Human Sciences Research Council (HSRC). The HSRC team would like to express their gratitude to all private firms that took the time to complete and return the survey questionnaires. Thanks are due to the following persons and organizations: From the Department of Labour: Botshabelo Maja, Florus Prinsloo, Liz Thobejane and a number of colleagues from the Department of Labour who made important contributions in the shaping of the NSS2007 questionnaire. Through the course of the project, Botshabelo Maja and Florus Prinsloo especially continued to support it through the different phases. Francois Fouchè who interfaced between the Department of Labour and the South African Revenue Services in obtaining the sampleframe dataset from the latter. From the Human Sciences Research Council: Matselane Tshukudu who managed project administration, and supervised the largescale questionnaire mailing and procurement processes. Mpo Manthe who controlled submission of questionnaires (postal, and fax), reminder calls with respondents, and coordinated the mailing of questionnaires. Chwayita Msada who as an Intern, participated in interactions with the Department of Labour and the call centre service provider, and provided valuable support in all aspects of the project administration. Jo Lorentzen who made strategic suggestions regarding editing and focusing early versions of chapters in this report. Andre Kraak who played a pivotal role in the commissioning of the NSS2007 by the Department of Labour. Vijay Reddy under whose supportive leadership this project was brought to conclusion. The service providers: i-fundi, the BEE compliant Call Centre Service provider. Lynfer, the BEE compliant Data Capturing Service provider.
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