November 2016 Servest ETI Presentation - PowerPoint Presentation

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November 2016

Servest ETI Presentation

About Servest

Established in 1998, Servest is Africa’s leading integrated facilities management company, providing a range of specialist technical and soft service offerings

Servest provides opportunities for permanent meaningful employment, in support of over 5,500 South African companies in a range of specialised business support solutionsServest employs approximately 30,000 employees

Servest operates ethically and actively participates in industry body leadership at a senior level, whilst actively participating in centralised collective bargaining in all sectors in which we operate. We are strong advocates for fair labour practice and compliance across the board Servest is 53% black owned, in partnership with Kagiso Tiso Holdings (KTH) in a deal which was heralded as the first ‘post-graduate’ empowerment deal in South Africa

Servest

is

Africa’s leading provider of specialised facilities services and fully integrated f

acilities

m

anagement

solutions

We commend the government on

the ETI. We believe it has been an extremely effective and successful intervention

Servest has been actively supporting the ETI since its inception in 2014The ETI has given us renewed focus on the importance of investment in South Africa’s youthIt has incentivised us to employ more young job seekers, with limited opportunities. We have and continue to provide them with comprehensive training, which has equipped them with the skills required to be fully integrated into the workplace and the broader economy

Servest supports the extension and continuation of this effective and much needed incentive. We believe the proposed R20m cap will limit the ability of firms to create youth employmentServest has commissioned research, which was conducted by Kehinde Oluwaseun Omotoso of the University of Pretoria, to better understand the impact of the ETI in

our own organisation. We would like to present the highlights to you today, which we believe demonstrates the many positive impacts of the ETIServest and the ETI

ETI

s

taff employment and retentionSince inception, a total of 14,592 employees who qualified under ETI requirements have been permanently employed by Servest. Of this total 7,891 (54.1%) of the employees have been retained

Total ETI staff retained per division

Total ETI claimed since inception

Consolidated total ETI claims per year

ETI Related Costs (ETI Training Spend)

ETI Claimed vs. ETI Spend

Current year ETI Training Snapshot

For the 2015/2016 year to date a total of

6,780 employed learners are being trained, of which 2,944 (43.42%) are ETI supported learners

ETI Upliftment Achievements

Servest has grown significantly in recent years. This, in conjunction with the ETI has allowed Servest to direct new

employment

opportunities towards the youthThe ETI has provided the supported employees the opportunity to acquire new job related skills and

experience and opportunities for future development, advancement and promotionThe direct result is higher earnings for the majority of youth employed under the initiativeFeedback from employees under this incentive, is that their standard of living has greatly improved. Being full time employees, most have benefited from the first time inclusion into formal benefits such as provident funds, life insurance, death and disability cover Over 95% of the ETI supported employees are Black Africans

and 34% are B

lack females

ETI Upliftment Achievements

To a large extent,

the incentive

has contributed to the growth of the company, which in turn has lead to even more

employment of young inexperienced job seekersWe believe that those staff who have left Servest after being employed under the ETI scheme, have acquired important skills and work experience, which made them more employableApproximately 300 people have succeeded in attaining higher levels of employment as a result of internal promotionETI

also drives better

compliance with tax and industry

regulations

ETI Recommendations

The ETI has enabled us to employ and retain youth and invest in training and skills development. It has also helped our business grow, which has allowed us to employ more people. To this end , we respectfully recommend:

We believe the ETI is achieving its objective of creating job opportunities for young people, and so should be extendedTreasury reported mixed results for large businesses . We have demonstrated that as a large user of the ETI, we have implemented the incentive in a manner that is consistent with its objectives

The imposition of a R20m cap per employer would limit our access to the scheme and the positive effects thereof.  This would be contrary to the intention of the scheme, which is to stimulate and support as many young people accessing first time employment as is possibleWe recommend that rather than impose a financial cap for all employers over R20m, that either: - The cap should be removed entirely, alternatively; - The cap should be raised to R50 million per employerThese options would enable larger firms, that have capacity to employ and train large numbers of youth in excess of their business requirements, to significantly scale up youth employment efforts for the benefit of the economy and society at large.

Thank you