NSDS 2005

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NSDS 2005 2010 Implementing a Collaborative
Strategy
Dr Florus P. J. Prinsloo Acting Senior Executive
Manager SETA Coordination Department of Labour
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Department of Labour
Minister Hon M Mdladlana MP
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SETA Coordination
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SETA Best Practice Support
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SETA Performance Management
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National Skills Fund
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National Skills Authority
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Overview of Skills Framework

• Skills Development Act 1998, Amended 2003
• Skills Development Levies Act 1999
• NSDS 2005 - 2010 Document
• Establishes National Objectives Targets
• Grant Regulations Gazette 27801 Amendment
  2006
• Establishes Funding Rules for SETAs
• Service Level Agreement Regulations Gazette
  27801
• Governs relations between DoL and SETAs in
  meeting Objectives Targets
• NSF Funding Windows
• Establishes guidelines, criteria and procedures
  for NSF funded projects and initiatives.

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Funding Framework 2005 - 2010
25
R Billion
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NSDS
5
SETAs
NSF
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Grant Regulations Framework
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NSF FUNDING WINDOWS
No NSF Funding Window NSDS Indicators/Mandates
1 Social Development Initiatives (Incl EPWP) Indicator 3.1 (37)
2 Adult Basic Education Training (ABET) Indicator 3.3 (12)
3 Critical Skills Support Indicators 1.2 4.1(3)
4 Provisioning Support Indicators 2.4 5.3 (SDA Amendment Act) (3,4)
5 Industry Support Programme Indicator 2.3 Job Summit Agreement (5)
6 Informal Sector Support Indicators 3.2 4.3, 5.2(5)
7 Constituency Capacity Building Advocacy Indicator 5.4 (3)
8 Special Projects NSDS Principles (4)
9 Discretionary projects Innovation SDA (5)
Strategic Projects
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NSDS II Objective 1 What Skills?

• 1.1 Sector skills research and planning
• Discretionary Regulation 7(1)(a)
• 23 SSPs evaluated, SC List compiled, agreed with
  Skills Focus Group, DHA, Economic Clusters.
• Organising Framework for Occupations developed
  being implemented.

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NSDS II Objective 1 What Skills?

• 1.2 Critical skills information dissemination
• Discretionary Regulation 7(1)(b) NSF W3
  Critical Skills Support
• Target 7,183 SDFs Sector Specialists
• Actual 8,082 SDFs Sector Specialists
• Four sector guides, others on the way
• National guide list completed

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Employers
DoL PO and LC
SETAs
Active Labour System (Employment
Skills Development Services) ESDS
Register Employers
NSDS Objective 1
Register Scarce And Critical Skills
NSDS Objective 2
Register Occupational Placement Opportunities
Under-Employed and New Entrants
Receive Career Guidance
Register Work-Seekers
Register Occupational Interventions
Register Occupational Placements
Accredit Occupational Programmes
NSDS Objective 5
NSDS Objective 3 4
Accredit Occupational Providers
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NSDS II Objective 2 Workplace Skills?

• 2.1 Large/Medium Firms Mandatory Grants
• Mandatory Regulation 6 and 10.
• Target 3,144 large 4,709 medium firms
• Actual 4,866 large 5,424 medium firms
• R 2,3 billion transferred to SETAs
• R 2,2 billion claimed 92 successes

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NSDS II Objective 2 Workplace Skills?

• 2.2 Small Levy Paying Firms Mandatory Grants
• Mandatory Regulation 6 and 10.
• Target 27106 SMEs supported
• Actual 28,532 SME supported
• Very small number SME levy paying firms

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NSDS II Objective 2 Workplace Skills?

• 2.3 Government Departments
• SD Act Section 30(a)(ii).
• PSETA coordination National Treasury.
• PSETA Re-established, Re-Listed
• Target 1 of Personnel Cost spent on training
• National 1,87 of Personnel Costs
• Provincial No Statistics Available
• 1 of Personnel Cost R 2,7 Billion

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NSDS II Objective 2 Workplace Skills?

• 2.4 National StandardPeople Development.
• SD Act Section 30B Discretionary Regulation
  7(1)(n) NSF W4 Provisioning Support
• Research, policy and advise to MoL
• National Standard being developed with South
  African Bureau of Standards (SABS)

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NSDS II Objective 2 Workplace Skills?

• 2.5 Small BEE Firms BEE Co-ops
• Discretionary Regulation 7(1)(n)
• Sector baseline research
• Small BEE Firm BEE Co-ops Baseline Database and
  Register Developed by SETAs during 2005 - 2006

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NSDS II Objective 2 Workplace Skills?

• 2.6 Industry Support Programme
• NSF W5 Industry Support Programme
• Investments or expansions, DTI linked
• 168 SMEs applied, 93 approved
• 1,178 workers trained

NOT APPLICABLE TO SETAS
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NSDS II Objective 2 Workplace Skills?

• 2.7 ABET for Workers
• Discretionary Regulation 7(1)9c) and optional
  Mandatory Regulation 6 and 10.
• Target 41, 588 workers entered ABET Level 4
  Programmes
• Actual 17,590 workers entered ABET level 4
  programmes
• Serious challenge being addressed through best
  practice workplace model with DoE

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NSDS II Objective 2 Workplace Skills?

• 2.8 Workers in Programmes
• Discretionary Regulation 7(1)(d)
• Target 29,297 workers entered
• Actual 79,198 workers entered
• Learnerships, apprenticeships, bursaries,
  internships and skills programmes linked to
  registered unit standards
• Linked to scarce and critical skills

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NSDS II Objective 3 Employable skills?

• 3.1 Social Development EPWP
• NSF W1 Social Development Initiatives
• DoL Provinces (LCs), 25 accredited training,
  placement categories,
• 90,911 unemployed trained with 54 placement rate
  
• Includes EPWP
• Accreditation of programmes is a major focus

NOT APPLICABLE TO SETAS
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NSDS II Objective 3 Employable skills?

• 3.2 NLPs, NGOs, CBOs, Community Co-ops
• Discretionary Regulation 7(1)(n) and NSF W6
  Informal Sector Support.
• Target 466 organizations supported
• Actual 829 organizations supported
• Definitions, locations and sectoral determination
  are challenges

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NSDS II Objective 3 Employable Skills?

• 3.3 ABET for Unemployed
• NSF W2 ABET
• NSF roll out of 20,000 unemployed persons from
  July 2006 onwards.

NOT APPLICABLE TO SETAS
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NSDS II Objective 4 Employable Skills?

• 4.1 Unemployed in Programmes
• Discretionary Regulation 7(1)(d) and NSF W3
  Critical Skills Support
• Target 29,568 unemployed entered
• Actual 37,227 unemployed entered
• Learnerships, apprenticeships, bursaries,
  internships and skills programmes linked to
  registered unit standards
• Linked to scarce and critical skills
• Key Issue is Impact - Placement

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NSDS II Objective 4 Employable Skills?

• 4.2 Work Experience
• Discretionary Regulation 7(1)(e)
• Target 8,301 learners in workplaces
• Actual 3,693 learners in workplaces
• Linked to critical skills
• Key is FET / HET agreements with workplaces.

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NSDS II Objective 4 Employable Skills?

• 4.3 New Venture Creation Learners
• Discretionary Regulation 7(1)(f) and NSF W6
  Informal Sector Support.
• Target 1,669 young people contracted
• Actual 1,731 young people contracted
• Challenge is sustainability through business
  mentoring support

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NSDS II Objective 5 Provisioning Skills?

• 5.1 Institute S or O Excellence
• Discretionary Regulation 7(1)(g)
• Target 55 ISOEs
• Actual 103 ISOEs
• Challenge is completion of framework and
  development of FETs as ISOEs

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NSDS II Objective 5 Provisioning Skills?

• 5.2 New Venture Creation Providers
• Discretionary Regulation 7(1)(h) and NSF W6
  Informal Sector Support.
• Target 33 providers
• Actual 58 Providers

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NSDS II Objective 5 Provisioning Skills?

• 5.3 ETQA / SAQA Services
• Discretionary Regulation 7(1)(i) and NSF W4
  Provisioning Support
• Policy development in progress
• Linked to Ministerial Process of NQF Review

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NSDS II Objective 5 Provisioning Skills?

• 5.4 Stakeholder Capacity Commitment
• Discretionary Regulation 7(1)(j) and NSF W7
  Constituency capacity building advocacy
• NSA constituency based
• SETA Board Member Capacity Building NSA Policy
  in progress

NOT APPLICABLE TO SETAS
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SETA PERFORMANCE ASSESSMENT SYSTEMOverview

• A comprehensive and detailed performance
  assessment system has been developed and is in
  the process of being used to assess the
  performance of the SETAs for the 2005-2006
  period. The total system is a fully integrated
  model that will eventually measure SETAS across
  three dimensions

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SETA PERFORMANCE ASSESSMENT SYSTEMDimensions

• The Outputs of SETA activities (e.g. number of
  learners) against annual negotiated targets
  specified in annual service level agreements.
• The Outcomes or Impact of SETA activities (e.g.
  number of learners placed in employment) over
  the medium to long term verified through research
  process conducted as part of he Departments
  Research, Monitoring and Evaluation partner
• The accuracy and currency of all SETA data
  verified on site by the relevant Department
  personnel through regular and planned quality
  assurance processes.

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SETA PERFORMANCE ASSESSMENT SYSTEMElements

• Skills Development Act as amended
• Mandate
• National Skills Development Strategy
• National Targets
• Service Level Agreement Regulations
• Framework for SLA
• Service Level Agreement Schedules
• Operationalise SLA
• Performance Assessment Scorecard
• Measurement Methodology

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SETA PERFORMANCE ASSESSMENT SYSTEMImplementation

• Performance Assessment scorecard Guideline
  detailed explanatory document that strives to
  remove all ambiguity from the NSDS and allows
  SETAs to achieve effective results in an
  effective manner. The guideline also serves as a
  capacity building and development document for
  all SETA Stakeholders.

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SETA Performance Assessment Scope

• NSA Endorsement KRAs
• NSDS 2005 - 2010 Success Indicators
• NSDS 2005 - 2010 Equity Principles
• NSDS 2005 -2010 Governance
• NSDS 2005 - 2010 Funds Management
• NSDS 2005 - 2010 Provincial Linkages
• Non NSDS 2005 2010 Indicators

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• SCORECARD CONTENTS 2005 - 2006
• NSDS 2005 - 2010 Success Indicators
• Total of 16 9 this year all next year
• NSDS 2005 - 2010 Equity Principles
• Total of 5 Indicators, All Discretionary Funded
• NSDS 2005 -2010 Governance
• Based on Official Audits
• NSDS 2005 - 2010 Funds Management
• Grant and Admin Management
• NSDS 2005 - 2010 Provincial Linkages
• Reporting only this year
• Non NSDS 2005 2010 Indicators
• None, but can make a come back

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• SCORECARD SUMMARY
• Indicator / KRA Weighting
• Fixed 20 for Funds, Other Sector Specific
• Data Verification Measurement
• Go No-Go
• Impact Assessment Measurement
• Not for 2005 -2007 but 2008 onwards

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Development

• Lessons learnt from 2003-2005 Scorecards
• Retain output measurements but improve on data
  verification and impact assessment
• Contemporary theory
• Systems Theory Balanced Scorecard
• Stakeholder input
• SETAs
• Broad DoL Directorates
• NSA

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SUSTAINED IMPACT
Systems Theory
ECONOMIC GROWTH
TIME CONSTRAINT
OUTCOMES
INPUTS
OUTPUTS
ACTIVITIES
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The MISSION
FIDUCIARY PERSPECTIVE
CUSTOMER PERSPECTIVE
INTERNAL PERSPECTIVE
Public Sector Balanced Scorecard
LEARNING GROWTH PERSPECTIVE
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SETA Scorecard - Systems Theory - Balanced
Scorecard
Quantitative Score 1- 5 vs SLA Targets
Data Verification at SETA
Impact Assessment with LMP-RPP
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SETA Scorecard - Systems Theory - Balanced
Scorecard
Quantitative Score 1- 5 vs SLA Targets
Outputs
Data Verification at SETA
Inputs Activities
Impact Assessment with LMP-RPP
Outcomes Impact
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SETA Scorecard - Systems Theory - Balanced
Scorecard
Short Term Fiduciary Customer Perspectives
Quantitative Score 1- 5 vs SLA Targets
Outputs
Internal Learning Growth Perspectives
Data Verification at SETA
Inputs Activities
Long Term Fiduciary Customer Perspectives
Impact Assessment with LMP-RPP
Outcomes Impact
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Timelines
31 Mar
30 Sep
31 Mar
Previous Year Annual Report Scorecard
30 Jul
30 Nov
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Timelines
31 Mar
30 Sep
31 Mar
Previous Year Annual Report Scorecard
Next Year SLA
30 Jul
30 Nov
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Timelines
31 Mar
30 Sep
31 Mar
Previous Year Annual Report Scorecard
Next Year SLA
Conference
30 Jul
30 Nov
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Timelines
31 Mar
30 Sep
31 Mar
Previous Year Annual Report Scorecard
Next Year SLA
SETA Business Processes
Conference
30 Jul
30 Nov
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Timelines
31 Mar
30 Sep
31 Mar
Previous Year Annual Report Scorecard
Next Year SLA
SETA Business Processes
Conference
30 Jul
30 Nov
Never ending annual cycle of sector skills
planning and forecasting (OFO)
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2004 2005 Measurement Scale
0 20 21 40 41 60 61 80 81 100
1 2 3 4 5
Poor Performance Under Performance Average Performance Over Performance Excellent Performance
2005 2006 Measurement Scale
Percentage Score 0 - 60 61 - 80 81 - 100 101 - 120 gt120
Rating 1 2 3 4 5
Performance Description Performance is Poor Performance is below Requirements Performance meets Requirements Performance is above Requirements Performance is Excellent
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Provisional Overall SETA Performance Results
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SETA Reserves After Commitments
FIETA 12 3
THETA 22 3
WR SETA 58 2
FOODBEV 12 1
BANKSETA 13 1
SERVICES 18 0
INSETA 4 0
MQA 3 0
CTFL SETA 0 0
PSETA 0 0
FASSET -1 0
CETA -95 -6
TOTALS 1,243 4
ETDP SETA 172 16
LGSETA 151 13
ESETA 75 11
SASSETA 75 11
HWSETA 80 9
MAPPP SETA 83 8
ISETTSETA 120 7
AGRISETA 56 6
MERSETA 242 6
CHIETA 58 4
TETA 85 4
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Thank you for your attention.