Learnerships are a crucial part of South Africa’s development, as they help develop skills, knowledge, and competencies that are essential for creating a competitive workforce. Learnerships are important in South Africa, where the economy is transitioning, and the need for skilled workers is increasing.
Learnerships increase the level of productivity in the economy because workers who have been trained are more likely to be even more productive than those who have not had the same level of training. This, in turn, can help to increase economic growth and create more jobs.
What is a learnership?
A learnership is a structured learning programme in which an individual combines work-based learning with formal training. The programme typically consists of on-the-job training and theoretical instruction over a minimum of 12 months. The learner will gain qualifications and experience in a particular field. Learnerships are typically aligned with the NQF, providing a standardised measure of skills and competencies.
The impact on South Africa
Now that we know more about learnerships, we need to understand how significant this is to your company and South Africa as a whole.
The impact of learnerships on the South African economic environment is consequential. Learnerships offer practical experience and job-specific skills. They provide hands-on, practical experience in a real work environment, allowing participants to apply theoretical knowledge.
Regarding job-specific skills, participants gain industry-specific skills that are directly applicable to the workplace. This means more people can enter the labour force, creating diversity and inclusion while also contributing to the economy right away, which in turn can help to reduce unemployment by creating opportunities to build professional networks within the industry, potentially leading to future employment.
Benefits to the employer
Hosting a learnership can provide employers with several benefits. Firstly, it can help meet their B-BBEE targets as it effectively provides meaningful work experience and skills development to previously disadvantaged individuals and assists with compliance and regulations as participation in learnerships can help fulfil these obligations.
Another big factor is the tax benefits accompanying learnerships. In terms of South African tax laws, employers can claim deductions for the total amount of the learnership allowance, which includes both a commencement allowance and a completion allowance for each learner who successfully finishes the programme. This can result in significant tax savings, reducing the overall cost of the learnership programme.
The costs of learnerships might sound daunting as they are not cheap. But for every problem, there is a solution. Therefore, Discretionary Grants (DGs) are made available to companies implementing learnerships.
Discretionary Grants are available to all employers and training providers to help cover the costs associated with learnerships, making them more accessible to everyone. DGs help to minimise the stress of financial obstacles and should not be overlooked. One must also consider that most learnerships are accompanied by stipends and/or allowances. This greatly helps applicants to cover living expenses during the learning period, making it more viable than normal study methods.
In conclusion, we need to understand how much the unemployment rate of our workforce hinders South Africa’s growth and that we all have a social responsibility to contribute to the development of skills within the community. Business owners, in particular, stand to gain significantly by participating in learnerships, as they can enhance their workforce’s skills, meet regulatory requirements, and enjoy substantial tax benefits.
Author:
Shani du Toit
Skills Development Facilitator
Unlock the benefits of learnerships for your business! Contact SEESA at 080 001 1130 or click the link for a callback.