How Completing your WSP Will Improve your Learning Culture and Retain Top Talent
According to Forbes, 66% of employees would leave their current jobs if they feel underappreciated by their employers. In a fast-paced, competitive working environment, holding onto your top talent saves you time, money and company resources. Luckily, we have a solution. By setting up a WSP, investing in staff training and developing a learning culture you can retain some of your top talent. Don’t believe us? Read on to find out more.
What is a WSP:
For those that don’t know what we’re talking about, a WSP, also known as a Workplace Skills Plan, outlines the existing skills shortages within a business and how the company plans to address these shortages through various training initiatives. This needs to be done annually by a qualified Skills Development Facilitator (SDF) and submitted to the company’s relevant SETA.
Why is it important to submit your WSP to SETA:
Complying with this process can be greatly beneficial for your business in the long run. The first benefit is that you can earn some much-needed BBBEE points for the Skills Development section of your scorecard. Getting these points is vital. Failing to comply with this section could result in dropping a BEE level on your scorecard. Furthermore, you will not receive BBBEE points if you fail to submit a WSP and ATR to your SETA.
If you do submit these documents, however, you could get the opportunity to receive up to 69.5% back on your Skills Development Levy through mandatory and discretionary grants from your SETA. The mandatory grant is allocated at 20% whereas the discretionary grant is allocated at 49.5%.
Additionally, it’s important to keep in mind that registering for any accredited learnership can grant you various Tax Rebates from SARS. You can claim these rebates per learner that you train.
Last but not least, developing an effective Workplace Skills Plan can produce better-trained employees which in turn can improve the overall productivity of your company and boost employee morale.
Who is required to submit WSP:
With so many benefits in mind, you may be itching to start your own WSP. However, there are requirements for businesses that wish to submit their WSP. These businesses need to have an annual payroll of over R500 000 and pay a Skills Development Levy. This requirement falls under the Skills Development legislation.
Why it’s better to retain employees than to hire new ones:
Statistics show that it can cost you three times more money to hire a new employee than to promote an existing employee. Investopedia states that it can take up to six months before you can actually see a return on investment from a new hire. Therefore, it is much cheaper to retain and promote an existing employee through employee training. But why is this the case? We’ve unpacked the various reasons below:
The first major issue is hiring costs. Whether you decide to hire internally with your own team or outsource a recruitment agency, each will come with its own set of costs. This includes paying for job advertisements, meeting various salary expectations, and spending money on the use of company time.
Another factor to consider is the initiation process after a new employee is hired. They will need to familiarise themselves with the company, meet with various staff members and learn different work processes and procedures. This in itself will take a large chunk of company time, which ultimately results in spending money.
Lastly, there is no guarantee that this new employee will add value to your company or choose to stay with you long-term. Even if they are a great catch you can still run the risk of losing them to other employers down the line. This means you would have to go through the rehiring process all over again.
How training and development can create employee retention:
With new innovations creating better work opportunities and benefits, it’s no surprise that the working world has become extremely competitive. Employees are getting poached at a rapid rate by both national and international organisations. Therefore, keeping top talent has become more important than ever. One promising solution is to invest in employee learning and development. In fact, in 2019 LinkedIn released a Workplace Learning Report that stated that 94% of workers said they’d stay at their companies if their employers invested in their careers. Investing in the training of your employees can benefit them in the following ways:
- They feel valued. At the end of the day, your employees are people and to build a loyal relationship with them they need to feel appreciated. By investing time and money into their training they ultimately feel like you care about their growth and their place in your company. This will make it easier for them to embody the core values and purpose of your brand.
- They feel motivated. When you train your staff, you give them a new level of confidence and responsibility. This, in turn, will make them feel inspired to excel. When this happens, employees are more likely to develop new ideas, increase productivity, reach business goals at a faster rate, and more.
- They enhance their skill set. Employees get excited about the prospect of improving their skills and ultimately advancing in their careers. A study done by Gallup, a company recruited by Amazon, found that upskilling has become one of the most sought-after employee benefits. It opens more doors for employees to advance their career opportunities and improve their earning potential.
- Better job satisfaction. When employees have access to skills training, there is no need for them to seek this help elsewhere. They ultimately feel supported by the company and perform their daily tasks with confidence.
What is a learning culture for businesses:
Perhaps the most effective way to ensure your staff reaps the benefits of employee training is by setting up a learning culture in your company. Simply put, a learning culture is creating an environment that encourages consistent learning and improvement. This advocates for individuals to look for new ways to develop and improve themselves, their teams, and the organisation as a whole. Having a team that is able to consistently learn and adjust can set your business up for long-term success.
Why developing a learning culture is important for your business:
So far, we’ve spoken a lot about the benefits of skills development for your employees. Luckily, there are plenty of other benefits that your company as a whole can enjoy from implementing an effective learning culture. These include:
- Creating a ‘growth mindset’ within your company. Having a growth mindset means you are always looking for challenges, new ways to develop skills, and taking advantage of learning opportunities. This in itself can have many benefits for your business. It can encourage your employees to work harder, share their knowledge with others, perform better, and adapt to change more effectively than those with a ‘fixed’ mindset.
- Learning to adapt to change. Being able to adapt to change is one of the most crucial skills a company can have in today’s day and age. By creating an environment where employees are constantly asking questions and bettering their skill sets, your company will be in a better position when change strikes. This will help your company stay on top of trends, remain innovative, and ultimately become future-proof.
- Addressing weaknesses in your staff. Regularly running evaluations can help you find any weak links that pop up within your business. Therefore, you can easily address these weaknesses to save time and increase productivity. This will make sure that each employee is equipped with the right skills to work at their best.
Who is responsible for workplace skills plan:
In order to get the ball rolling on developing a Workplace Skills Plan you need to consult with a qualified Skills Development Facilitator (SDF). These are Skills Development professionals that are appointed by a company to be a liaison between the company and their SETA. Their various roles and functions include:
- Helping employers develop a WSP in line with SETA requirements
- Submitting the WSP to the relevant SETA
- Advising employers on how to best implement their Workplace Skills Plan
- Acting as the contact person between the SETA and the company
- Communicating all SETA initiatives, benefits and grants to employers
- Informing employees and branch offices about events and grants offered by the SETA
- Advising employers on the quality assurance requirements set up by SETA
- Being a resource for all elements involved in Skills Development
What documents do you need to submit an WSP:
Once you’re ready to start the process of submitting your WSP, your SDF will request specific documentation from you. You will be guided throughout this process with your SDF but in general, you will need the following documentation:
- Proof of training that you have completed in the past year
- A Workforce profile
- Statutory training you have planned for the year ahead
- Discretionary or additional training you have planned for the year ahead
What is the deadline for a Workplace Skills Plan:
As mentioned earlier, a new WSP needs to be submitted to your SETA every year. The annual deadline for this submission is before the 30th of April of every year.
Next Steps:
If you are needing to complete and submit your WSP before the end of April, Edge Training has a solution for you to make sure you submit your documentation in record time. We have over 20 years of experience in the Skills Development sector and provide BBBEE learnerships, workshops, short courses and online training for all your Skills Development needs. Reach out to one of our representatives today to start your Skills Development journey.