Page 6 - Business Studies Grade 12
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To help job-seekers find work and employers find suitably qualified
employees.
To provide new entrants to the labour market with work experience.
1.3 Impact of the Skills Development Act on employees.
Advantages Disadvantages
It improves the quality of life of Many service providers that offer
workers as they earn more when training are not SAQA accredited.
they complete training and acquire
skills.
Productivity is increased as SETAs are not well organised and
employees have better skills. courses offered do not have course
content.
It creates self-employment as It is monitored and controlled by
people will be equipped with skills the government departments that
to start their own businesses. do not have education and training.
It makes people employable as Employees find themselves forced
they have skills required in various to do training they do not
industries. necessarily want to undergo.
It provides a range of opportunities During training, employee workload
for employees to further their own and deadlines remain and thus put
skills at low or no cost at all. pressure on them.
There is improvement in work Permanent employees become
prospects and labour mobility. unsettled when learnership workers
out perform them in the work place.
1.4 Impact of the Skills Development Act on employers.
Advantages Disadvantages
It leads to economic growth and Incentives are only paid to
therefore benefits all businesses. employers when they employ
people from designated groups.
Employers save money and time Learnership workers require lots of
since the workplace is used for coaching and mentoring thus there
learning and training. is strain on employers.
Employers employ people who Employers have the difficult task of
struggle to get employment thus managing learnership workers
qualifies them for learnership whose only income is from SETAs.
incentives paid for by SETAs.
By encouraging their employees to There is extra administrative work
participate in learnerships, because of learnership workers.
employers get tax concessions.
Businesses may be able to claim Businesses with a wage bill of
back some costs related to R500, 000.00 a year have to pay
training from SETAs. the Skills Development Levy.
Employers have to hire specialists
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