Transforming the future through B-BBEE in the retail sector

In the bustling yet challenging landscape of South Africa's economy, the retail sector holds a significant position, contributing a robust 14% to the nation's GDP. It's a sector that touches the lives of countless individuals, both as consumers and employees. One vital framework that impacts the retail sector is B-BBEE (broad-based black economic empowerment). In this blog post, we'll delve into the ways in which the YES (Youth Employment Service) initiative aligns with and supports transformation efforts in the retail sector. We'll also explore why retailers are increasingly opting to embrace this transformation and the remarkable benefits that come with it.

Why retailers join the YES initiative

Broad-based transformation in the retail sector has often been perceived as slow-moving. Nevertheless, some trailblazing retailers, like Shoprite and The Foschini Group (TFG), have taken the lead. These visionary retailers have chosen to partner with YES because transformation is major priority for their businesses, and the programme integrates seamlessly with their core values.

Retailers will also take on a YES programme to foster economic growth, empower youth, cultivate a talent pipeline, enhance skills, promote career advancement, secure jobs, and substantially boost youth employment among the B-BBEE-defined demographic.

Benefits of the YES programme for retailers

1. Gain up to 2 levels up on your B-BBEE scorecard: The main benefit of B-BBEE for retailers is the potential to enhance competitiveness. Achieving B-BBEE targets sets retailers apart in a crowded market, granting access to government contracts, improving reputation, and demonstrating a commitment to social responsibility.
2. Claim on informal training: By meeting YES targets, retailers can claim up to 50% of the employee’s YES skills training costs as informal training expenditure under categories F and G.
3. Create an EE-conscious talent pipeline: As employment equity (EE) guidelines become more stringent, retailers are faced with a talent shortage of suitable skilled senior candidates. This problem is mitigated by tailoring their YES programme, selecting talented YES Youth with EE in mind, with the view to upskill them through the company’s long-term EE strategy.
4. Increased social impact: YES has a remarkable social impact footprint, benefiting youth, the economy, and corporate entities. It fosters the development of young people from disadvantaged backgrounds who become future leaders and job creators.

What the YES initiative means to retailers

Embarking on a YES programme isn't only for supporting B-BBEE transformation goals; it's a versatile tool that aligns with various sustainability drivers, including B-BBEE, corporate social investment or responsibility (CSI/R), Sustainable Development Goals (SDG), and environmental, social, and governance (ESG) initiatives. The approach and focus depend on the retailer’s overall strategy.

For B-BBEE purposes, YES can elevate a company by up to one or two levels on the scorecard, enhancing competitiveness and relevance. Beyond B-BBEE, YES facilitates the creation of a talent pipeline for employment equity and integrates with youth talent strategies.

Furthermore, YES can be tailored to green energy agendas, generating projects that not only create jobs but also contribute to community upliftment and poverty eradication.

Thousands of youth participants in these programmes gain a quality work experience, making them three times more employable after completion. This breaks the cycle of: "I can't get a job without experience, and I can't get experience without a job."

Crafting a solution aligned with the retailer's strategy is paramount. Retailers need internal buy-in to ensure success. Defining the required skill sets for the project and setting measurable goals are vital. YES also provides a means to measure project success beyond its programme duration.

Join the movement

Retailers operating in South Africa have an opportunity to make a meaningful impact through B-BBEE transformation and YES partnership. Focusing on critical pillars such as skills development, ownership, and enterprise and supplier development can enhance competitiveness, empower youth, and contribute to a thriving economy.

Get a B-BBEE boost before your financial year-end.

For your first year with YES, your business can receive its B-BBEE level up immediately if youth are contracted before your financial year-end.

Over 1,600 businesses have registered and are changing youth lives.

The Youth Employment Service (YES) is the biggest private sector youth employment programme in the country that is affecting broad-based change across sectors, provinces and communities.

Businesses can place youth internally in their own structures, or in YES vetted host partners through the turnkey solution. Through the turnkey solution, YES works with host partners across South Africa to place youth.

Calculate your target to gain B-BBEE levels and change youth lives. Or email us at corporatesupport@yes4youth.co.za