Training Benchmarks for the Finance and Accounting Services Sector (Fasset) November 2017 Prepared by EE Research Focus

Training Benchmarks for the Finance and Accounting Services Sector (Fasset) November 2017 Prepared by EE Research Focus

Training Benchmarks for the Finance and Accounting Services Sector CONTENTS 1. INTRODUCTION... 3 2. TRANSFORMATION OF THE SECTOR... 4 2.1 Employment of Black People in the Sector... 4 2.2 The Employment of Women in the Sector... 15 3. STAFF TURNOVER... 27 4. SCARCE SKILLS... 28 5. STAFF TRAINING AND DEVELOPMENT... 30 5.1 Percentage of the Workforce Trained... 30 5.2 Training Interventions per Employee... 31 5.3 NQF Levels of Training Interventions... 32 6. CONCLUDING REMARKS... 34 7. ANNEXURE 1... 35 LIST OF TABLES Table 1: Percentage black employees according to subsector... 4 Table 2: Percentage black employees according to organisation size... 6 Table 3: Percentage blacks employed in managerial positions according to subsector... 8 Table 4: Percentage blacks employed in managerial positions according to organisation size... 10 Table 5: Percentage blacks employed in professional positions according to subsector... 12 Table 6: Percentage blacks employed in professional positions according to organisation size. 14 Table 7: Percentage women employed according to subsector... 16 Table 8: Percentage women employed according to organisation size... 18 Table 9: Percentage women employed in managerial positions according to subsector... 20 Table 10: Percentage women employed in managerial positions according to organisation size 22 Table 11: Percentage women employed in professional positions according to subsector... 24 Table 12: Percentage women employed in professional positions according to organisation size... 26 Table 13: Percentage of employees who left their organisations... 27 Table 14: Scarce skills according to OFO major group 2012-2017... 28 Table 15: OFO occupations (unit group) in which shortages were experienced 2012-2017*... 29 Table 16: Percentage of employees trained according to subsector 2014 2016*... 30 Table 17: Percentage of employees trained according to organisation size 2014-2016... 31 Table 18:: Percentage employees trained according to occupational category: 2014-2015*... 31 Table 19: Average number of training interventions per employee according to subsector: 2014-2016*... 32 Table 20: Average number of training interventions per employee according to organisation size: 2014-2016*... 32 Table 21: Percentage of training interventions according to NQF levels* 2014-2015*... 33

1. INTRODUCTION Since its inception in 2000, Fasset has been collecting and analysing information on its sector. Most of the information is collected through the various grant applications submitted by employers to the Sector Education and Training Authority (SETA). In addition to its other functions, Fasset has committed itself to the provision of benchmarks of training and development that can be used by the sector. The term benchmarking refers to the process of comparing key performance indicators for one organisation with the indicators for others that are considered to represent the industry standard or best practice for that field. A distinction is made between performance benchmarking, which provides a comparison of key performance indicators, and best practice benchmarking, which focuses on action. It explains why others are getting the results they are getting and what can be done to improve the practices of one s own organisation. 1 At this stage the information available to Fasset does not allow for the identification of best practice in the sector. It only provides for performance benchmarking i.e. quantitative indicators of what is happening in the sector and in the respective components of the sector. This report includes a selection of indicators pertaining to the transformation of the sector, staff turnover, scarce skills, and the training offered in the sector. Where possible, the indicators are shown for the entire period over which Fasset has been collecting information. However, some indicators can t be given for the whole period because of changes in the grant system or because of changes in the grant application formats. In these instances only the most recent years are given. 2 1 Government of Alberta, Benchmarking Best Practices, http://www.finance.alberta.ca/publications/measuring/results_oriented/module2_overview.pdf, accessed 22 December 2011. 2 Government of Alberta, Benchmarking Best Practices, http://www.finance.alberta.ca/publications/measuring/results_oriented/module2_overview.pdf, accessed 22 December 2011.

2. TRANSFORMATION OF THE SECTOR 2.1 Employment of Black 3 People in the Sector Training Benchmarks for the Finance The first measure of transformation of the sector is the total number of black employees. In 2001 only 36% of the employees in the Financial and Accounting Services Sector (Fasset s sector) were black. This percentage has improved gradually to 63% in 2017 as shown in Table 1. The subsectors that were lagging slightly behind the rest in 2017 are the Accounting, Bookkeeping, Auditing and Tax Services subsector (55%); and the Business & Management Consulting Services (55%), although all the subsectors display on-going improvement over the 17-year period. The transformation of the sector took place mainly through the organisations that employ 50 or more people. The organisations with fewer than 50 employees remained mostly white as indicated in Table 2. Table 1: Percentage black employees according to subsector4 Subsector Investment Entities & Trusts & Company Secretary Services 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014** 2015 2016 2017 Percentage black employees 35 41 42 43 44 47 51 55 57 56 57 60 53 43 56 60 63 Stockbroking & Financial Markets 38 37 39 38 41 47 57 55 54 56 58 56 51 51 66 62 71 Development Organisations 58 56 64 81 69 76 73 79 77 79 79 77 84 68 87 85 84 Accounting, Bookkeeping, Auditing & Tax Services Activities Auxiliary to Financial Intermediation Business & Management Consulting Services 35 35 32 33 35 40 41 44 44 47 50 52 49 49 52 51 55 48 48 55 49 51 71 72 74 75 77 78 49 75 44 66 69 73 47 36 40 41 42 49 50 46 53 47 48 61 42 30 56 62 55 SARS & Government Departments 64 65 65 65 67 66 67 68 70 70 70 71 74 71 76 75 78 Total 36 39 37 42 43 47 49 53 54 56 58 57 56 48 60 60 63 3 The term black includes African, coloured and Indian people. 4 In 2015 updated data were drawn for years 2001 to 2012. To ensure consistency in the annual weighting of data to a sectoral total, each participating organisation received the same subsector code over the fourteen- year period. However, the 2001 to 2012 data in this report were still obtained from the WSP analysis reports where the subsector codes of organisations could differ from year to year. -4-

* From 2013 foreign employees were separately classified from the four main race groups without indicating whether they were African, white, coloured or Indian. In 2016 non- South African workers include people from countries all over the world, especially Europe. ** In 2014, the race of more than 15 000 employees was not indicated. As many of these people may be black, the percentage black employees in the sector may be higher than the percentages reported in the tables. -5-

Table 2: Percentage black employees according to organisation size 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Organisation size Percentage black employees 1 to 9 employees 33 28 28 32 31 32 32 32 32 28 45 32 34 33 36 40 38 10 to 19 employees 32 34 33 33 33 34 36 38 37 37 43 37 36 38 37 40 43 20 to 49 employees 35 33 33 37 36 39 40 39 41 39 41 39 40 42 43 42 48 50 to 149 employees 43 43 44 44 45 51 50 53 52 53 53 55 51 41 58 56 59 150+ employees 36 44 39 49 51 54 57 61 62 62 63 62 61 60 64 64 68 Total 36 39 37 42 43 47 49 53 54 56 58 57 56 41 60 60 63-6-

The percentage of black (African, coloured and Indian) managers in the sector increased from 16% in 2001 to nearly 50% of management in 2017 (Table 3). In the subsector SARS (South African Revenue Service) and Government Departments 52% of management were black in 2001 and this percentage increased to 75% in 2017. The subsector Development Organisations (79%) had the highest percentage of black managers in 2017. However, transformation was noticeable in all the subsectors especially since 2012. Over the last four years the portion of black managers in most subsectors showed substantial increases. For example, black managers increased by 8% in the Accounting, Bookkeeping, Auditing and Tax Services subsector the subsector which represents 37% of the total sector s work force.

Table 3: Percentage blacks employed in managerial positions according to subsector Subsector Investment Entities & Trusts & Company Secretary Services 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Percentage black managers 15 17 16 16 18 20 26 28 28 27 30 29 29 39 27 40 52 Stockbroking & Financial Markets 9 12 10 13 12 14 19 23 22 26 28 23 25 27 44 47 47 Development Organisations 38 40 39 70 56 56 61 58 63 65 65 69 73 65 77 82 79 Accounting, Bookkeeping, Auditing & Tax Services Activities Auxiliary to Financial Intermediation Business & Management Consulting Services 18 17 17 17 16 22 18 20 22 29 34 32 33 33 35 42 40 17 12 21 21 12 15 21 21 32 44 46 28 50 28 30 54 61 10 15 16 16 18 19 20 21 23 25 27 37 27 14 39 42 41 SARS & Government Departments 52 56 50 50 54 52 56 56 55 59 59 60 73 64 70 67 75 Total 16 18 17 19 23 23 21 27 29 33 36 34 36 32 40 47 47-8-

Different small organisations (those that employ fewer than 50 people) participate from year to year, which could be observed in the fluctuation of the percentages of black managers in these organisations from year to year as indicated in Table 4. Over the 17-year period medium (50 to 149 employees) and large (150 and more employees) organisations showed the highest increases in the employment of black managers. Black s portion of management increased by 30% in medium organisations and 38% in large organisations. -9-

Table 4: Percentage blacks employed in managerial positions according to organisation size 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Organisation size Percentage black managers 1 to 9 employees 13 10 9 14 14 14 14 13 15 13 34 20 16 15 21 19 20 10 to 19 employees 12 15 14 14 14 14 15 18 19 15 28 16 17 18 19 24 24 20 to 49 employees 17 12 13 15 16 17 16 17 19 19 27 18 19 24 24 24 26 50 to 149 employees 12 21 26 19 33 27 23 25 30 30 31 34 29 20 29 41 42 150+ employees 17 22 20 25 30 30 27 36 38 40 40 39 42 36 45 54 55 Total 16 18 17 19 23 23 21 27 29 33 36 34 36 32 40 47 47-10-

Due to the professional character of the Fasset sector, employment of black professionals is a key issue in terms of transformation. In addition, professionals form the pipeline from which managers are sourced, while they also create work for administrative support staff. Overall, the portion of blacks as part of the broad professional group, expanded from 25% in 2001 to 55% in 2017 as shown in Table 5. Above average representation of black professionals in the sector in 2017 are found in the subsectors Development Organisations (72%), SARS and Government Departments (72%) and Stockbroking and Financial Markets (58%). However, the subsector Activities Auxiliary to Financial Intermediation represents a variety of organisations from year to year, which cause fluctuations in the subsector s data as seen in table 5. -11-

Table 5: Percentage blacks employed in professional positions according to subsector Subsector Investment Entities & Trusts & Company Secretary Services 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Percentage black professionals 16 17 23 25 25 27 32 37 38 36 37 40 43 25 44 47 47 Stockbroking & Financial Markets 20 19 20 27 29 28 31 35 37 36 37 44 42 40 55 56 58 Development Organisations 60 57 54 65 69 73 65 72 70 74 75 75 79 80 87 95 72 Accounting, Bookkeeping, Auditing & Tax Services 27 25 22 22 25 30 28 33 38 48 49 50 53 49 54 48 56 Activities Auxiliary to Financial Intermediation 25 22 43 42 25 19 32 31 38 51 52 23 47 39 34 63 38 Business & Management Consulting Services 23 26 22 26 33 31 36 27 39 32 32 43 36 29 37 38 41 SARS & Government Departments 58 58 58 58 61 59 64 68 76 72 72 72 69 64 73 73 75 Total 25 28 24 30 31 32 37 40 43 46 46 47 48 45 52 51 55-12-

In 2017 most professionals (59%) in large organisations in the Fasset sector are black (Table 6). Over the 17-year period, black s share of management in these organisations increased from 26. Organisations that employ fewer than 50 people showed smaller increases over the same period. -13-

Table 6: Percentage blacks employed in professional positions according to organisation size 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Organisation size Percentage black professionals 1 to 9 employees 17 19 16 20 19 20 22 23 27 21 40 29 33 31 29 37 39 10 to 19 employees 16 18 20 21 20 22 25 26 29 32 40 32 30 33 32 35 37 20 to 49 employees 21 22 22 31 30 27 27 26 33 32 34 34 34 35 39 41 43 50 to 149 employees 27 22 24 25 27 32 33 36 41 44 45 45 43 38 48 51 47 150+ employees 26 32 25 33 34 36 41 47 51 51 49 53 54 55 57 53 59 Total 25 28 24 30 31 32 37 40 43 46 46 47 48 40 52 51 55-14-

2.2 The Employment of Women in the Sector While Fasset s sector always employed more women than men, women s share of the workforce increased from 55% in 2001 to 58% in 2016, before decreasing to 55% in 2017 ( Table 7). In 2017, the subsectors SARS and Government Departments (62%), Activities Auxiliary to Financial Intermediation (67%), and Accounting Bookkeeping, Auditing and Tax Services (57%) share of women employees were the same or higher than the share of the total sector (55%). -15-

Table 7: Percentage women employed according to subsector Subsector Investment Entities & Trusts & Company Secretary Services 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Percentage Female Employees 50 50 57 56 51 49 48 47 47 48 48 48 50 53 53 53 50 Stockbroking & Financial Markets 49 50 49 50 51 47 43 45 46 46 46 48 50 47 50 51 45 Development Organisations 47 48 55 54 47 44 46 49 50 53 53 44 50 46 51 55 47 Accounting, Bookkeeping, Auditing & Tax Services Activities Auxiliary to Financial Intermediation Business & Management Consulting Services 54 56 52 53 55 54 55 58 58 58 57 58 57 56 58 58 57 59 64 68 66 69 59 64 61 63 67 67 51 71 63 69 65 67 49 50 54 55 55 56 55 52 56 50 50 56 47 49 53 57 49 SARS & Government Departments 62 62 62 62 62 62 62 62 61 62 62 62 61 62 61 62 62 Total 55 56 55 56 57 55 55 55 56 56 56 56 56 55 57 58 55-16-

In 2017, women represent almost 55% of the workforce in small- medium- and large organisations in the sector (Table 8). However, the percentage of women employed in large (150 and more employees) organisations showed the highest growth over the past 16 years: from 48% of the workforce in 2001 to 55% in 2017. -17-

Table 8: Percentage women employed according to organisation size 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Organisation size Percentage Female Employees 1 to 9 employees 61 62 62 63 63 61 60 60 61 60 61 61 60 61 63 59 59 10 to 19 employees 56 59 59 61 60 61 61 60 61 59 60 59 61 61 60 58 57 20 to 49 employees 54 56 55 57 57 56 58 58 58 61 62 60 58 57 60 60 56 50 to 149 employees 53 52 52 57 54 52 51 54 52 54 54 54 57 56 57 58 56 150+ employees 48 52 50 51 52 52 52 55 55 55 55 55 56 54 56 58 55 Total 55 56 55 56 57 55 55 55 56 56 56 56 56 55 57 58 55-18-

Despite the fact that most employees in the sector are women, they are still in the minority on management level (45% of managers). However, substantial growth in women managers occurred in the sector since 2001. In that year only 28% of managers were women, compared to 45% of current managers (Table 9). Over the 17-year period, Investment Entities and Trusts and Company Secretary Services remained the subsector with the smallest share of women employment, while Development Organisations showed the highest increase in women: from 14% in 2001 to 51% in 2017. -19-

Updated: October 2016 Table 9: Percentage women employed in managerial positions according to subsector Subsector Investment Entities & Trusts & Company Secretary Services 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Percentage Female Managers 15 19 23 25 20 21 24 24 27 27 28 31 28 33 34 41 38 Stockbroking & Financial Markets 21 21 25 27 27 29 27 31 30 33 35 33 34 36 42 49 46 Development Organisations 14 18 37 34 24 24 24 34 28 31 31 28 31 32 33 53 51 Accounting, Bookkeeping, Auditing & Tax Services 29 24 26 25 30 28 27 28 33 39 41 43 42 42 43 50 44 Activities Auxiliary to Financial Intermediation 31 24 30 26 28 30 33 34 39 48 49 37 49 46 47 46 54 Business & Management Consulting Services 31 29 26 27 32 27 30 37 39 41 42 39 38 33 39 45 37 SARS & Government Departments 35 35 36 34 36 37 35 37 39 38 38 39 45 40 46 43 47 Total 28 24 26 30 29 28 29 33 35 38 40 40 40 39 42 48 45-20-

In 2017, women occupy a larger share of managerial positions in medium and large organisations than in smaller organisations (50 or fewer employees). Furthermore, men and women occupied almost equal shares of managerial positions in medium and large organisations in 2017 (Table 10). The underrepresentation of female managers in especially very small organisations (employing fewer than 10 people) is mainly the result of fewer women than men opening their own professional practices or starting up their own small businesses. However, over the 17-year period, women s share of managerial positions showed the largest increase in organisations employing from 10 to 19 people and 50 to 149 people,. -21-

Table 10: Percentage women employed in managerial positions according to organisation size 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Organisation size Percentage Female Managers 1 to 9 employees 25 21 24 25 25 25 25 28 28 32 39 34 32 34 37 37 37 10 to 19 employees 18 18 19 23 22 25 25 25 29 29 34 31 38 36 37 42 39 20 to 49 employees 25 21 21 24 24 25 27 30 33 34 36 35 35 36 37 41 39 50 to 149 employees 27 21 27 24 21 25 26 31 33 36 36 35 37 36 39 51 47 150+ employees 30 29 30 37 36 31 33 37 39 41 42 42 42 41 43 49 46 Total 28 24 26 30 29 28 29 33 35 38 40 40 40 39 42 48 45-22-

Table 11 shows an increase of women s share of professional positions in all subsectors since 2001 except in the Business & Management Consulting Services subsector which showed a decrease of 5%. Over the 17-year period under discussion, women s share of professional positions in the sector grew from 39% to 52%. The subsectors Investment Entities and Trusts and Company Secretary Services; Development Organisations; and Accounting, Bookkeeping, Auditing and Tax Services showed the highest influx of women on professional level. -23-

Table 11: Percentage women employed in professional positions according to subsector Subsector Investment Entities & Trusts & Company Secretary Services 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Percentage Female Professionals 24 28 35 35 32 37 37 39 41 40 40 42 43 43 46 49 45 Stockbroking & Financial Markets 28 28 30 30 36 36 38 41 39 40 40 49 42 42 44 46 45 Development Organisations 37 42 45 51 43 38 35 40 50 52 52 46 48 52 55 61 51 Accounting, Bookkeeping, Auditing & Tax Services 42 45 41 41 42 43 45 53 54 54 54 54 55 54 56 65 56 Activities Auxiliary to Financial Intermediation 42 45 41 41 42 43 45 53 54 54 49 31 55 50 52 64 44 Business & Management Consulting Services 47 40 42 42 40 39 42 48 48 49 36 46 45 41 45 49 42 SARS & Government Departments 41 41 38 43 45 47 47 38 49 36 50 50 49 53 54 55 54 Total 39 40 39 42 42 43 45 47 49 48 48 49 51 50 52 59 52-24-

In 2017, the majority (59%) of professional positions in small organisations (1 to 9 employees) is occupied by women (Table 12). Medium organisations showed the highest increase in women professional employment: from 32% of professionals in 2001 to 54% in 2017. Very small organisations (fewer than ten employees) share of women professionals remained relatively stable over the same period: 53% of all professionals in 2001 and 52% in 2017. -25-

Updated: October 2016 Table 12: Percentage women employed in professional positions according to organisation size 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Organisation size Percentage Female Professionals 1 to 9 employees 53 53 53 53 53 53 53 53 53 52 54 54 54 59 63 59 59 10 to 19 employees 39 44 43 47 46 48 51 49 55 52 50 53 55 56 56 56 55 20 to 49 employees 33 40 41 44 43 44 46 49 52 55 54 53 54 53 56 58 53 50 to 149 employees 32 28 29 37 38 40 43 45 48 50 49 50 51 50 54 69 54 150+ employees 40 42 38 40 40 42 44 46 46 46 46 48 50 49 51 58 51 Total 39 40 39 42 42 43 45 47 49 48 48 49 51 50 52 59 52-26-

3. STAFF TURNOVER The percentage of employees who left their organisations from the 2008/2009 grant scheme year to the 2012/2013 grant scheme year can be seen in Table 13. The overall staff turnover rate for the sector showed fluctuation in all subsectors from year to year due to varied and small participation of organisations. SARS and Government Departments did not provide staff turnover information since 2010. Table 13: Percentage of employees who left their organisations 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 Subsector Percentage of total employment Investment Entities & Trusts & Company Secretary Services 14 19 23 6 10 Stockbroking & Financial Markets 17 23 15 26 41 Development Organisations 9 23 3 ** ** Accounting, Bookkeeping, Auditing & Tax Services 15 25 18 29 27 Activities Auxiliary to Financial Intermediation 23 *41 23 ** 17 Business & Management Consulting Services 22 25 19 13 16 SARS & Government Departments 11 7 ** ** ** Total 18 21 13 24 27 *This high percentage is the result of a figure quoted by one large organisation in the subsector. ** Questions pertaining to staff turnover are not compulsory. Not enough responses received in these subsectors in these years. -27-

4. SCARCE SKILLS One of the goals of the National Skills Development Strategy (NSDS) III is to establish a credible institutional mechanism for skills planning. Data on scarce skills is only reported from 2012 onwards due to the major updating of the OFO in 2010 to better reflect the structure of the International Standard Classification of Occupations (ISCO). The financial sector s employment profile mainly consists of five major OFO occupational groups i.e. managers, professionals, technicians and associate professionals, clerical support workers and service and sales workers. The term scarce skills refers to those occupations in which a scarcity of qualified and experienced people was felt at the current time, either because such skilled people were not available or because they were available but did not meet employment criteria. From 2012 to 2017 the total number of scarce skills reported in the sector increased from 3 138 to 5 147 at an average annual rate of 13%. The highest number of scarce skills reported by employers in the financial sector was for professionals (Table 14). Table 14: Scarce skills according to OFO major group 2012-2017 Year Managers Professionals Technicians & Associate Professionals Clerical support workers Service & Sales workers Total 2012 65 2 855 137 78 3 3 138 2013 38 1 325 104 189 0 1 656 2014 184 3 129 233 239 32 3 817 2015 149 2 260 232 146 24 2 811 2016 647 5 392 212 313 28 6 592 2017 914 4 116 54 63 5 147 Since 2012, the need for the professional group5 Accountants (including trainees) was the most severe (Table 15). High numbers of finance managers, management and organisation analysts, financial analysts, software developers and accounting associate professionals were also required over the six-year period. 5 OFO Unit groups, 2015. -28-

Table 15: OFO occupations (unit group) in which shortages were experienced 2012-2017* OFO Unit group Occupation Number of people needed 2012 2013 2014 2015 2016 2017 1211 Finance Managers 65 38 171 141 358 669 1331 Information and Communications Technology Service Managers 11 6 99 22 2121 Mathematicians, Actuaries and Statisticians 36 10 47 23 119 135 2411 Accountants 2 349 978 2 378 1 635 3 115 1 049 2412 Financial and Investment Advisors 25 148 154 73 267 63 2413 Financial Analysts 180 20 82 86 177 121 2421 Management and Organisation Analysts 167 24 157 132 453 1 2422 Policy Administration Professionals 28 26 202 108 2434 Information and Communications Technology Sales Professionals 124 2511 Systems Analysts 30 17 138 57 2512 Software Developers 11 33 48 33 413 10 2521 Database Designers and Administrators 18 15 8 6 133 56 2522 Systems Administrators 33 36 38 28 2523 Computer Network Professionals 10 33 128 153 8 7 2631 Economists 45 34 43 48 61 41 3313 Accounting Associate Professionals 117 58 99 45 80 4 3324 Trade Brokers 76 73 13 1 3341 Office Supervisors 20 51 78 7 4214 Debt-collectors and Related Workers 133 141 102 4311 Accounting and Bookkeeping Clerks 78 97 5 124 63 *Unit groups with a total of 100 or more vacancies reported over the six-year period are included in this table. **Including trainee accountants & auditors. -29-

5. STAFF TRAINING AND DEVELOPMENT The percentage of the workforce that receives training in a particular year is one of the indicators of the extent to which the sector is committed to the development of its workers, although it doesn t provide insight into the kind of training, its duration, or its quality and impact. Calculations in this section are based on organisations that submitted an Annual Training Report (ATR) and a Skills Development Plan (SDP); formerly known as the Workplace Skills Plan (WSP) for a particular year i.e. employment profile 2016 and implemented training for the period 1 January 2016 to 31 December 2015. From 2014 various changes were implemented on the grant application forms: Online capturing and uploading of individual records/data commenced for organisations with 50 or more employees; the reporting period for the ATR has changed from a financial year to a calendar year (only a nine month period ATR was reported for 2013);. an individual may be reported more than once on implemented training; and additional compulsory fields to report on were added to the table that reported on training implemented. Small organisations with 50 or fewer employees submit aggregated training data. From 2015, the grant application forms allowed individuals to be counted more than once if they have been trained on different interventions. As a result it is no longer possible to determine the number of employees in small organisations who received training. To ensure comparability, only 2014 and 2016 training data are reported for large (50 or more employees) organisations in the Fasset sector. 5.1 Percentage of the Workforce Trained Table 16 shows that the majority of employees employed in large organisations received some form of training in 2014 to 2016. More than 70% of employees in the Development Organisations-; and in the Activities Auxiliary to Financial Intermediation subsector received training in 2015 and 2016. Table 16: Percentage of employees trained according to subsector 2014 2016* Subsector 2014 2015 2016 Percentage of Employees Trained Investment Entities & Trusts & Company Secretary Services 73 64 52 Stockbroking & Financial Markets 96 69 52 Development Organisations 100 74 70 Accounting, Bookkeeping, Auditing & Tax Services 72 79 59 Activities Auxiliary to Financial Intermediation 55 75 80 Business & Management Consulting Services 66 60 56 SARS & Government Departments 80 61 Total 74 71 60** * Small organisations with 50 and fewer employees not included. ** Total excluding SARS & Government Departments. -30-

From 2014 to 2016 a drop in the percentage of employees trained in organisations employing from 50 to 149 people is noted (Table 16). Table 17: Percentage of employees trained according to organisation size 2014-2016 Organisation size 2014 2015 2016 Percentage of Employees Trained 1 to 9 employees * * * 10 to 19 employees * * * 20 to 49 employees * * * 50 to 149 employees 91 63 40 150+ employees 71 72 61 Total 74 71 57** * Small organisations (50 and fewer employees) not included in the table because of the way in which they report on training i.e. employees are double counted. ** Total excluding SARS & Government Departments. The majority of managers, professionals, technicians and associate professionals and clerical workers received training in 2014 and 2015 (Table 17). These are the occupational groups in the Fasset sector with the largest employment. Table 18:: Percentage employees trained according to occupational category: 2014-2015* Occupational group Percentage of employees trained 2014 2015 Managers 94 72 Professionals 98 85 Technicians & Associate Professionals 80 96 Clerical Support Workers 60 100 Service & Sales Workers 100 100 Skilled Agricultural, Forestry, Fishery, Craft & Related Trades Workers 100 24 Plant & Machine Operators & Assemblers 8 0 Elementary Workers 24 34 Total 83 87 * Small organisations with 50 and fewer employees not included. 5.2 Training Interventions per Employee The average number of training interventions offered per employee in 2014 and 2016 can be seen in Table 19 and 19. In the sector each employee attended on average 7 training interventions. The Accounting, Bookkeeping, Auditing and Tax Services subsector had the highest number of interventions recorded per employee over the two-year period. Table 19 shows that organisations employing 150 or more employees had the highest number of training interventions per employee in 2014 and 2016. -31-

Table 19: Average number of training interventions per employee according to subsector: 2014-2016* Subsector Average number of training interventions per employee 2014 2015 2016 Investment Entities & Trusts & Company Secretary Services 3 4 6 Stockbroking & Financial Markets 5 3 7 Development Organisations 3 2 10 Accounting, Bookkeeping, Auditing & Tax Services 7 8 12 Activities Auxiliary to Financial Intermediation 1 2 3 Business & Management Consulting Services 4 2 9 SARS & Government Departments 3 2 ** Total 5 4 7 * Small organisations with 50 and fewer employees not included. ** Data no available. Table 20: Average number of training interventions per employee according to organisation size: 2014-2016* Organisation size 1-9 employees 10-19 employees 20-49 employees Average number of training interventions per employee 2014 2015 2016 50-149 employees 3 3 5 150+ employees 5 4 10 Total 5 4 9** * Small organisations with 50 and fewer employees not included. ** Total excluding SARS & Government Departments. 5.3 NQF Levels of Training Interventions All training interventions (double counting) offered in government and in organisations with 50 or more employees are included in the calculations in Table 20. It shows that more than 50% of all training interventions in the sector were from NQF levels 5 to 7. -32-

Table 21: Percentage of training interventions according to NQF levels* 2014-2015* NQF level 2014 2015 Percentage of employees Below level 1 16 13 1 1 3 2 3 1 3 6 3 4 16 19 5 20 24 6 16 9 7 18 21 8 4 7 9 0 0 10 0 0 Total 100 100 * Small organisations with 50 and fewer employees not included. -33-

6. CONCLUDING REMARKS In summary it is evident from the data that transformation in favour of the previously disadvantaged is happening within the Fasset sector. The only concern is the slow pace of transformation, which needs to increase. As a result of the different interventions by employers, Fasset, professional bodies in the sector and national organisations who implemented legislation related to Black Economic Empowerment (BEE) and Employment Equity (EE), there has been a gradual increase in black people participating in the sector. In 2001 36% of the total workforce was black. By 2017 this percentage had increased to 63%. In 2001 only 16% of the managers in the sector were black and by 2017 blacks share in managerial positions had increased to 47%. Similarly the percentage black professionals had increased from 25% in 2001 to 55% in 2017. The position of women has also improved over the 16-year period. Although women were always in the majority in the financial sector, only 28% of the managerial positions and 39% of professional positions were filled by women in 2001. These percentages increased to 45% and 52% respectively by 2017. From 2012 to 2017 the total number of scarce skills reported in the sector increased on average by 13% per year. Most of the scarce skills reported by employers in the financial sector were for professionals, especially blacks and female accountants. The majority of employees (managers, professionals, technicians and associate professionals and clerical workers) in large organisations received some form of training in 2014 and 2016. On average each employee received seven training interventions per year most of them at NQF levels 5 to 7. -34-

7. ANNEXURE 1 Spikes in the data can be attributed to the following three reasons. a) Employer submission rates vary from year to year. That has an effect on the data. b) If the data is broken down according to subsector or organisation size, smaller sub-samples of the sample of organisations that submitted grant applications emerge. Generally speaking, the smaller the sample size, the more variability can be expected in time series data. The sampling errors become bigger and the confidence intervals wider. This effect is also present in large national datasets such as the Labour Force Survey (LFS) or the National Accounts data. The data runs smoothly at the aggregate level, but when it is broken down to subsector level or other smaller categories, the percentages may fluctuate from year to year. c) The subsector Activities auxiliary to Financial Intermediation is a Catch all subsector with all sorts of organisations grouped in it. The composition of this subsector changes often, as organisations move in or out of it. It is also relatively small so, an organisation that moves in or out of the subsector can easily cause spikes. -35-