SECTOR SKILLS PLAN - Services Seta

1 SECTOR SKILLS PLAN2020/21 Services SETA I SECTOR SKILLS plan 2020/2021 21 February 2020 DIRECTORATE SETA SUPPORT DEPARTMENT OF HIGHER EDUCATION AND TRAINING BY HAND Services SETA SECTOR SKILLS plan 2020/21 FIRST DRAFT SUBMISSION 14 JUNE 2019 This update of the Services SETA SECTOR SKILLS plan 2020/21 is aligned to the revised SECTOR SKILLS plan Framework issued by the Department of Higher Education and Training. Central to the revised Framework is the inclusion of a chapter on Monitoring and Evaluation. The inclusion of Chapter 5 has directed the Services SETA to critically reflect on internal operations and the use- of reported performance information for evidence-based decision-making Another key consideration is alignment to the National SKILLS Development plan (NSDP).

2 The NSDP places greater emphasis on outcomes and impact. Through this outcomes-orientated approach, the NSDP has improved the use of theory of change in the design and implementation of training interventions; with a strong focus on impact at the Services SETA. Furthermore, the long-term vision of the NSDP, has allowed the Services SETA to plan for short- to medium-term SKILLS interventions, thereby, allowing time to demonstrate impact. The utilisation of employer interviews and capacitation of employer and SKILLS Development Facilitators submitting Workplace SKILLS Plans and Annual Training Reports, resulted in improved quality of research findings on SKILLS demand.

3 These improvements were further strengthened with SKILLS demand analysis exercises carried out among industry role players, captains of industry and validation workshops. The Services SETA continues to invest in primary research to adequately profile the SECTOR with regards to economic performance, employer profile and labour market profile. Findings from five primary research studies have been used for this update. The research agenda places greater emphasis on impact of ICT and the Fourth Industrial Revolution on the Services SECTOR jobs and SKILLS . After a rigorous stakeholder engagement, the lists of Hard-To-Fill Vacancies, SKILLS Gaps and Priority SKILLS (PIVOTAL) are included in this SECTOR SKILLS plan .

4 Yours sincerely MRS AMANDA BUZO-GQOBOKA CHIEF EXECUTIVE OFFICER DR MARIA MARINKIE MADIOPE CHAIRPERSON: ACCOUNTING AUTHORITY 01 August 2019 Official Sign-offIt is hereby certified that this SECTOR SKILLS plan : was developed by the Management of the Services SETA in consultation with the Department of Higher Education and Training was informed by extensive primary and secondary research and complimented by comprehensive literature reviews involved representative stakeholder consultations accurately identifies hard-to-fill vacancies and SKILLS gaps to inform strategic and annual performance Sibusiso Dhladhla Signature: .. Executive Manager: Planning Date: .. Ms Amanda Buzo-Gqoboka Signature.

5 Chief Executive Officer Date: .. Dr Maria Marinkie Madiope Signature: .. Chairperson: Accounting Authority Date: .. For more information, please contact: Services SETAPO Box 3344 Houghton2041 South AfricaTel: +27 11 276 9600 Fax: +27 86 5277 026 Email: 978-0-621-47410-7 01/08/201901/08/201901/08/2019 Services SETA I SECTOR SKILLS plan 2020/2021 ForewordThe update of this Services SETA s SECTOR SKILLS plan (SSP) 2020/21 coincides with the first anniversary of the current Accounting Authority of the Services period has provided us with a reasonable time to understand the challenges and opportunities within the Services SECTOR , as well as the appropriateness of the Services SETA s operating model.

6 At SECTOR level, we have observed the many challenges facing the SECTOR and employers. The SECTOR is confronted with a slow growth in the economy with knock-on effect on job creation and protection of existing ones. The wave of the Fourth Industrial Revolution poses further vulnerability to job losses. At the same time, the potential for new ones exists and requires us to act with speed. Whilst the Services SECTOR is the largest employer, employment is concentrated in the precarious informal SECTOR and lower occupational categories. This calls for special attention to up-skilling the current labour force to improve their prospects of re-employment in the productive industries that drive the growth of the economy with sustainable jobs.

7 Of critical importance in this regard is the need to leverage technology to deliver superior training intervention with the requisite speed without compromising policy level, this SSP coincides with the inaugural Nationals SKILLS Development plan (NSDP) and the updated SSP Framework and Guidelines. The former places a greater emphasis on medium-term planning (five years); demonstrable impact; workplace-learning and improved throughput rate. We welcome these commitments as they will ensure stronger alignment between the SSP and Strategic plan , and ultimately the Annual Performance plan . We have begun a process of continually engaging with our biggest employers to strengthen our collaboration for SKILLS development, and particularly, placement of unemployed learners in the workplace.

8 This initiative will result in an improved completion rate and increased employment prospects for our unemployed learners. The emphasis on demonstrable impact is welcomed. Working with our management, we will design effective Monitoring and Evaluation Frameworks around all interventions, with effective implementation mechanisms. Implications of the above highlight the need to strengthen institutional research mechanisms for evidence-based decision-making. Pursuant to this goal, the Services SETA will forge closer working relationships with academic research centres. Organisational performance information will be used to strengthen evidence-based decision-making.

9 In conclusion, the Services SETA will continue to champion transformation in line with the NSDS III, NSDPI and White Paper on Post-School Education and Training. Particular attention will be paid to women empowerment and increasing access to rural youth and people with Maria Marinkie MadiopeChairperson: Accounting AuthorityDate: 01 August 2019DR MARINKIE MARIA MADIOPECHAIRPERSON OF THE ACCOUNTING AUTHORITYSERVICES SETA I SECTOR SKILLS plan 2020/2021 Services SETA I SECTOR SKILLS plan 2020/2021iTABLE OF CONTENTSTABLE OF CONTENTS iLIST OF TABLES iiiLIST OF FIGURES iiiLIST OF ACRONYMS ivEXECUTIVE SUMMARY vRESEARCH PROCESS AND METHODS viiCHAPTER ONE: SECTOR PROFILE Introduction Scope of Coverage Key Role-Players Economic Performance Employer Profile 8 The size of the Services SECTOR 8 Participation in SKILLS development Labour Market Profile 13 Employment by SECTOR 13 Occupational trends 15 Demographic profile Conclusion 19 CHAPTER TWO: KEY SKILLS CHANGE DRIVERS Introduction Factors Affecting SKILLS Demand and Supply Policy Frameworks Affecting SKILLS Demand and Supply Addressing National Priorities Conclusion 27 CHAPTER THREE.

10 OCCUPATIONAL SHORTAGES AND SKILLS GAPS Introduction Sectoral Occupations Demand 29 Hard-to-fill vacancies 29 SKILLS gaps Extent and Nature of Supply 38 The extent of occupational SKILLS supply in the SECTOR 38 The state of education and training provisioning Sectoral Priority Occupations and Interventions (PIVOTAL) 45 Research methods used to identify occupations in the PIVOTAL list 45 The main findings that informed the PIVOTAL list 46 Envisaged outcomes from the identified interventions 46 Consultative processes used to arrive at the occupations identified in the PIVOTAL list 46 Quantifying the SETA PIVOTAL list 46 Ranking of the Priority list Conclusion 49 CHAPTER FOUR.