01 Feb 2024 saw the release of proposed updated Employment Equity Targets, Focusing on Diversity within the Workforce
Big changes are coming to the Employment Equity Act! The Department of Employment and Labour has revised its targets, aiming to increase diversity and representation, in all management positions, from junior to top management.
Here’s what you need to know:
- New law, new targets: In April 2023, President Ramaphosa signed the legislation empowering the Minister of Labour to set sector-specific targets for different industries.
- Draft targets published: Draft targets for various sectors are open for public comment until May 2nd, 2024.
- Focus on all management positions: The revised targets prioritize achieving diverse leadership teams. For example, in manufacturing, 40% of top management should be from designated groups (Black people, women, people with disabilities), with at least 15% being female.
- Goodbye specific quotas: The new system replaces individual quotas for African, Coloured, and Indian employees with a broader “designated groups” category.
- Nationwide reach: Provincial and national targets are merged, creating a single national target for each sector.
- Faster progress expected: The department aims to accelerate progress towards fairer representation in workplaces, acknowledging the slow pace of previous efforts.
What does this mean for businesses?
Companies with more than 50 employees will need to adapt to the new targets. This might involve:
- Reviewing workforce demographics: Assess how your company aligns with the revised targets, especially in senior management.
- Developing strategies: Implement plans to attract, recruit, and promote talent from designated groups to achieve the desired representation.
- Staying informed: Closely monitor updates and public comment outcomes regarding the final targets.
Keep in mind: These are draft targets, and the final version might be adjusted based on public feedback. This is your opportunity to exercise your right to comment during this 90 day window and to prepare for potential changes and so ensure your company complies with the evolving Employment Equity Act. Click here to read the full draft regulation.
Unsure of what this all means for you and your company? Choose EconoBEE as your consultant for a stress-free Employment Equity process, from A-Z! Our expertise and commitment to staying updated on regulations ensure you meet your compliance needs effortlessly.