Complete guide to implementing YEs

The YES (Youth Employment Service) programme offers businesses an unprecedented path to achieve sought-after B-BBEE points, which in turn opens doors to new business opportunities and increased profits. Until recently, companies would find themselves “stuck” at a certain point – and could not move beyond a certain B-BBEE level in their current business model.

But YES changes that.

YES offers companies a way to gain up to 2 B-BBEE Levels

It allows companies to gain a whopping 2 B-BBEE levels; through the YES programme designed to address the country’s looming youth employment crisis. Many companies, however, that may have heard about the programme have not yet implemented it despite the obvious advantages.

Transformation consultants say that the practicalities are not clear to companies, leaving them confused or ill-informed when it comes to actually signing up.

As leaders in youth employment solutions and experts in YES implementation, Lulaway sheds light on the most commonly asked questions:

B-BBEE recognition

  • What are the criteria for a corporate to register on the YES programme

Any business can participate by sponsoring youth in employment for 12 months. However, in order to gain B-BBEE recognition through YES, entities need to meet the minimum criteria as below as well as achieve the YES targets below:

Generic Enterprises: Total revenue above R50 million per annum. The company must achieve at least the 40% sub-minimum under each of the priority elements of B-BBEE scorecard. Alternatively, the entity must achieve an average of 50% across the three priority elements.

QSEs & EMEs: Total revenue less than R50 million per annum. The business must achieve at least 40% in two of the three priority elements, with Ownership being one of the two elements alternatively, the business must achieve an average score of 40% across two priority elements with Ownership being one of the two elements.

  • How many additional B-BBEE levels a  business can achieve?

The maximum number of additional points a company can achieve is two. The number of points gained depends on the target headcount, and well as absorption rates of the YES interns once the programme is complete.

  • Can the corporate receive the B-BBEE recognition in the first year of the program?

B-BBEE benefits for the corporate can be claimed within their first year of the YES program. Corporates will be able to receive B-BBEE recognition before the minimum eight (8) months have been completed. It is important to note that the uptake must take place within their financial year-end which is used for B-BBEE verification purposes.

  • How do I calculate my headcount?

Calculating your headcount depends on your company’s turnover, NPAT and number of staff you employ.

How many interns do need to be absorbed into the business after the programme ends 

  • 1 level for meeting the youth employment target headcount and 2.5% absorption
  • 1 level +3 points for 1.5 x youth employment target and 5% absorption
  • 2 levels for doubling the youth employment target and 5% absorption

Generic Entities(Turnover > R50 Million)

YES target headcount is the higher of:

  • 1.5% of the YES entity’s headcount in the preceding year; OR
  • 1.5% of the YES entity’s average Net Profit After Tax (NPAT) from South African operations in the immediately preceding three years, converted to a headcount number by dividing that NPAT number by R55 000;
  • Target determined by Table 1

TABLE 1 

TOTAL REVENUE BAND (RM) MINIMUM BLACK YOUTH JOB
50 – 75 6
75 – 99 7
100 – 149 8
150 – 199 9
200 – 249 10
250 – 299 11
300 – 349 12
350 – 399 13
400 – 449 14
450 – 500+ 15

QSEs and EMEs (Turnover < R50 Million)

These entities target per annum are based on headcount numbers as determined in Table 2.

TABLE 2

EME / QSE HEADCOUNT Y.E.S YOUTH TARGET EME / QSE HEADCOUNT Y.E.S YOUTH TARGET
1 – 19 1 400 – 419 21
20 – 39 2 420 – 439 22
40 – 59 3 440 – 459 23
60 – 79 4 460 – 479 24
80 – 99 5 480 – 499 25
100 – 119 6 500 – 519 26
120 – 139 7 520 – 539 27
140 – 159 8 540 – 559 28
160 – 179 9 560 – 579 29
180 – 199 10 580 – 599 30
200 – 219 11 600 – 619 31
220 – 239 12 620 – 639 32
240 – 259 13 640 – 659 33
260 – 279 14 660 – 679 34
280 – 299 15 680 – 699 35
300 – 319 16 700 – 719 36
320 – 339 17 720 – 739 37
340 – 359 18 740 – 759 38
360 – 379 19 760 – 779 39
380 – 399 20 780 – 799 40

Labour Issues

  • If a candidate resigns or is dismissed can you, and do you need to replace them and in what time frame?

In the event where the candidate does not complete a full 12-month period due to unforeseen circumstances, the YES measured entity needs to ensure that at least eight full months have been completed in order to be eligible for B-BBEE recognition. Furthermore, if any eligible employees fall out of the YES initiative due to any circumstance, the YES measured entity will have one month to replace them in order to be eligible for B-BBEE recognition.

  • Who handles the labour or disciplinary issues?

If the funder hosts the candidates (ie the candidates work for the funder for 12 months), then they are responsible for handling all the labour and disciplinary issues regarding the candidates while on their premises. Alternatively, if another company hosts the candidates (not the funder) then they must handle all the labour and disciplinary issues regarding the candidates while on their premises. To summarize, it is the responsibility of the host company to handle any labour issues that may arise.

Recruitment and payroll

  • Who pays the stipend and handles the payroll of the interns?

The funder pays the stipend to the candidates on a monthly basis for the duration of the program. The payroll is usually handled by the funder, but they may outsource the payroll to companies like Lulaway to manage the payroll on their behalf at an additional fee.

  • How do we go about recruiting and sourcing the interns?

The company can recruit the interns using their own resources; alternatively, companies such as Lulaway provide services where they will recruit for the client, ensuring minimal business disruption

  • How do you monitor the candidates while being hosted by the corporate?

Through monthly or weekly attendance registers and logbooks set out by the funder and recorded by the host employer

  • What is the duration of the programme?

12 months

  • Can you start the programme at any point during the year?

You can start the programme at any time of the year – there are no preselected dates

  • Is there a restriction on the number of candidates you can put onto the YES programme

There is no restriction on YES, however, preferably the funder needs to be able to host the candidates comfortably and with minimal drop-off.

YES Youth Practice Note Amendment to the Gazette

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