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Scarce Skills in the Fasset Sector
Revised : 15 March 2007
Foreword
This scarce skills guide is the second in a series of guideline documents released
by Fasset. In early 2006, Fasset released the first guideline document.
Interested stakeholders wishing to identify scarce skills within the Fasset sector
will be able to make use of this document. Educationalists, learners, parents,
policy-makers, and education and training providers will find it relevant for career
and scarce skills planning processes. By providing information, this will enable
users to keep abreast of the needs of sector. With this knowledge, those
interested in scarce skills will be better equipped to address the shortage of skills
in the finance and accounting sector.
This guideline clearly expresses the
enormous and serious shortage of
financial professionals in the sector
(and outside of the Fasset sector),
specifically in the black1 and disabled
population groups. The Fasset
interventions reflect our alignment to
addressing the skills shortages and
the commitment of the sector to skills
development and transformation.
1 The term ‘black’ includes African, Indian and Coloured individuals.
Wishing all users the best in their
application of information contained
within this guide.
Cheryl James, CEO
Scarce Skills Guide 2007 Updated 15/03/2007
1
Introduction to Fasset
Fasset is one of more than 20 Sector Education and Training Authorities
(Setas) established in terms of the Skills Development Act of 1998 (SDA).
Encouragement of training in South African employers, via the recovery of a
Skills Development Levy (SDL)2 as grants claimed from the Seta, is one of the
central aims of the SDA.
Setas are also required to address skills shortages in their sector via
interventions as decided from time to time by the Seta Management Board.
Firms are required to register with a Seta according to their core business
activity.
Fasset is the Seta for firms working in the accounting, finance, management
consulting and other financial services industries. These industries are
represented on the Fasset Management Board, who are guided in their
strategic decision-making by the Vision and Mission of the Seta.
Fasset Vision
Fasset sees its role as:
To influence the effective operation of the labour market,
through effective skills development, so as to ensure the
appropriate supply of competent labour necessary to compete in
the global economy.
In order to achieve our vision, we have set out the mechanisms in the mission
statement.
2 Collected through the Skills Development Levies Act of 1999.
Fasset Mission
In order to achieve the vision of the Seta, a number of broad goals are
reflected in the mission statement. Our mission statement reads:
To improve the competence of employees and potential employees,
thereby enhancing productivity in the sector
To increase the level of investment in education and training in this
sector and to optimise the return of this investment
To encourage employers and employees to adopt a culture of life-long
learning
To ensure the quality of training and education in the sector and to
support the development of standards in line with the NQF and to
actively promote these standards
To expand the provision of education and training in the sector through
sound partnerships with public and private providers of education and
training
To enhance co-operation between the public and private sectors
To support the objectives of the Employment Equity Act of 1998
To enhance access to learning opportunities in the sector
To position the sector as the 'sector of career choice' for prospective
learners and new entrants into the labour market.
In order to position the sector as the 'sector of career choice' for prospective
learners and new entrants, and ensure that the demand for certain skills is
met by the supply of these skills, a number of interventions will be required by
the Seta. School leavers deciding of a course of study and employees looking
to further their education and skills, will be able to consult this scarce skills
guideline document in order to determine where the demand for skills lie in
the Fasset sector, and obtain more detail on the educational routes available
to acquiring specific skills.
Beyond the focus of the Fasset sector, the addressing of scarce skills has a
broader economic benefit to the South African economy. In order to ensure a
healthy and thriving economy; shortages of skills must be addressed as skills
development is a catalyst to a productive and wealthy nation.
Fasset, in line with its mission statement, has conducted research into what
skills are in demand and scarce in the sector, and have made this research
available to its stakeholders via this booklet.
What is a Scarce Skill? What is a Critical Skill?
The term ‘scarce skill’ refers to those occupations that are characterised by a
scarcity of qualified and experienced people (current and anticipated). In other
words, occupations in which numerical imbalances exist in employment
because of a difference between the demand for and the supply of skills.
The term ‘critical skill’ refers to particular elements of an occupation, or the
qualitative deficiencies that may exist or develop in the skills apparatus of the
existing workforce.
A company may experience a shortage of Chartered Accountants (CA’s) in
their local economy. For example, due to the migration of students to Cape
Town from e.g. De Aar in the Northern Cape, there may be difficulties in
recruiting and retaining CA staff. This shortage is a scarce skill.
Should the existing CA’s in De Aar have a knowledge gap in the area of e.g.
GAAP, as trainers may not wish to make the drive to De Aar, and such a skill
is important to the functioning of a CA, this skills gap is referred to as a critical
skills gap.
A skills need may arise from the business environment and the labour market
situation. The skills needs of the sector can be seen in terms of the need for
new workers, the development of skills in critical skills areas, and the
rectifying and prevention of the formation of skills gaps.
In addressing the skills needs of the sector, provision should also be made for
opportunities for career advancement, transforming the population group
profile of the sector, increasing the absorption of unemployed youth,
increasing the employment of people with disabilities and addressing
institutional constraints that may hamper skills development.
The Development of New Workers
The sector needs to ensure that the flow of new entrants into the labour
market is sufficient to fill new employment opportunities as well as to replace
workers who leave the labour market or the sector. A large enough flow of
new entrants to the labour market will prevent the development of new areas
of scarcity and the exacerbation of existing skills shortages. The population
group (including race, gender and disability) composition of new entrants in
the labour market is of critical importance to the attainment of transformation
and equity objectives.
Growth in Demand
The legislative and policy changes that have a bearing on corporate
governance and financial and accounting practices in the public and private
sectors all tend to stimulate the demand for the financial services offered by
the Fasset sector. The demand for financial services is also driven by
economic growth.
A particular challenge for the sector is to replace people who have moved out
of the labour market or out of the sector. Although some recruitment has
occurred from other sectors, the general trend is rather for people to enter into
financial occupations via the Fasset sector and then to move into other (more
senior) positions in other sectors. This leaves Fasset sector with the
responsibility to train more people than it otherwise would have trained.
The loss of skilled personnel is not limited to the local labour market –
permanent emigration and temporary employment abroad are causing a
substantial drain of people with financial skills in South Africa.
Growth in Supply
If one looks at the output of the higher education sector, it seems as if the
supply of skills is growing at a sufficient pace to keep up with the growth in
demand. However, the Fasset sector is by no means the only sector that is
drawing from this skills pool. At this stage, little information is available on the
demand for financial skills in the total economy. A direct comparison cannot
therefore be made between demand and supply. Another key question is
whether the higher education system will be able to sustain its growth,
especially in the midst of the current restructuring of the sector and the
changed subsidy formulas applied by the Department of Education.
The increase in the numbers of black graduates in the general fields of
commerce, business management and business administration should to
some extent ease the pressure on the sector to change its racial profile.
However, the change in the specialised field of accounting is slower and
requires more focused attention. As this problem has its roots in the school
system, especially in the number and quality of Grade 12 passes in
mathematics, it should be addressed from this level and upwards.
Professional qualifications are highly valued and sought after in the Fasset
sector. For certain functions (e.g. the audit function), professional
qualifications are a prerequisite. The pace at which professionals qualify is
therefore a critical issue in the supply side of the market.
Current Scarce Skills
Scarce skills manifest in unfilled positions that exist over prolonged periods of
time, in above-average growth in remuneration and in the inability of small
organisations and rural areas to attract skilled people. Research shows that
scarce skills already exist in the sector, mainly in the professionals, and
technicians and associated professional occupations. These occupational
categories are also experiencing above average growth. However, it is
evident that the shortages are often related to very special skills sought by
employers.
The lack of qualified blacks is experienced as a serious problem, especially in
the higher level occupations and professional designations. Many (especially
large) employers find it difficult to meet their employment equity targets
because of the unavailability of suitably qualified black staff.
Listing scarce skills is challenging for organisations in the Financial and
Accounting Services Sector, which comprises mainly small professional
organisations. In these organisations, skills shortages are seldom reflected in
formal vacancies. The organisations tend to grow by taking in more partners
or directors or by taking in more learners on professional learnerships. A small
organisation with growth potential may continue to search for new talent, but it
will not necessarily create posts or have vacancies. However, vacancies
provide some indication of scarce skills.
When asked why they could not fill these particular positions, employers cited
reasons that were all linked to skills shortages or the scarcity of skills. Those
most frequently mentioned were:
Lack of suitably qualified individuals
Lack of suitably qualified black individuals
Lack of suitably qualified people willing to work in certain geographical
(mostly rural) areas
High salaries demanded by applicants
Lack of skilled individuals in the particular business area.
The following occupations have been reported as scarce.
Ran
kin
g
OccupationNeed
for Period *
% of total
need
1 Accountants 616 352 Corporate (Administration & Business) Services
Managers228 13
3 Contract, Program and Project Administrators 157 94 Finance Managers 133 85 General Clerks 114 66 Secretaries 94 57 Other Project Managers not elsewhere classified 47 38 Economists 40 29 Bookkeepers 36 2
10 Financial Investment Advisers and Managers 31 2* 1 April 2006 to 31 March 2007
(The number of people needed has been summed to the 4-digit level of the OFO.)
Current Critical Skills
The people working in the Financial and Accounting Services Sector,
especially professionals, have a constant need for skills development and
therefore critical skills (as currently defined by the Department of Labour) will
probably always exist among a large proportion of the employees in the
sector. For example, it is imperative for many of the professionals to stay
abreast of changes in the tax legislation and other changes in the tax regime,
changes in financial reporting practices and requirements and new computer
software. Some of the critical skills also stem from insufficient training prior to
entering the labour market.
Specialist financial skills are the most important critical skills in the sector and
they are required across all occupational groups. The total list of critical skills
identified by the sector is summarised below. The skills are grouped into six
broad categories and listed in order of priority within each category.
Management and leadership
Specialist financial
Information technology
Communication, customer care and marketing
Support and administration
Personal development
The skills are grouped into six broad categories and listed in order of priority
within each category.
Management and leadership Management skills/leadership skills
Human resources management skills
Workflow and imaging skills
Organisational development/office management skills Specialist financial
Accounting skills
Knowledge of taxation, including VAT and capital gains tax
Bookkeeping skills
Auditing skills
Knowledge of commercial and statutory law
Insurance knowledge
Financial and mathematical skills
Investment and micro-lending training skills
Information technology Computer skills, e.g. word-processing and spreadsheet skills
Specialist information technology skills
Communication, customer care and marketing Communication skills
Marketing skills
Public relations skills
Presentation skills
Client service skills
Support and administration Administration skills
Secretarial skills
Business economics skills
Clerical skills
Reception skills
Personal development People skills
Education/Basic adult education skills
Professional bodies confirmed the need for financial skills across a broad
spectrum of workers in the sector. In the financial market, general financial
and mathematical skills, knowledge of financial market instruments and
financial market analysis, trading knowledge, and computer knowledge and
skills were identified as areas of need.
In the management consulting profession, practitioners need to know what
constitutes ethical behaviour. This subsector requires a combination of
managerial expertise, industry knowledge, technical knowledge and an
understanding of management issues.
In the public sector, a need exists for the following skills:
Literacy and numeracy skills
Basic accounting skills, especially in respect of new people who enter
organisations in entry-level posts
Accounting support skills (e.g. those needed by accounting
technicians)
Auditing skills
Financial management skills
Experience and training in credit control and debt management
Risk assessment skills
Computer literacy
Management skills for newly appointed chief financial officers
Experience in statistical models, econometrics and macro-economic
modelling
Knowledge of and experience in supply chains
Financial sector policy advisory services and
Exposure to public finance coupled with analytical skills with regard to
budgeting, strategic planning and information overload assessments
Addressing Scarce Skills with Learnerships
The existence of Scarce Skills may be filled with the learnership. A list of the
learnerships falling within the Fasset scope are listed below.
TITLEN
LRD
N
o. NQF
PROFESSIONALBODY
1 Professional Qualification: Chartered Certified AccountantThe Chartered Certified Accountant Programme confers the designation ACCA. Members are recognised to perform the Audit Function in the UK and certain European and other countries. Employees without formal tertiary qualifications gain access by means of the ACCA Certified Accounting Technician Programme.
2039
9
7 Association of Chartered Certified Accountants (ACCA )
Ms Nirri Nair or Ms Tonia Couloubis
(011) 459 1900nnair@acca.org.za /
couloubis@acca.org.za
2 Certified Accounting TechnicianCertified Accounting Technicians function as accounts support staff offering assistance to professional Accountants. This qualification affords access for employees without formal tertiary qualifications, to the ACCA Chartered Certified Accountant designation.
2039
7
5
3 Professional Qualification: Chartered Management AccountantAllows learners who meet the minimum entrance requirements and successfully complete this qualification to register as Chartered Management Accountants with the designation ACMA. 20
400
7
Chartered Institute of Management Accountants (CIMA)
Ms Natercia Faustino(011) 268 2555
natercia.faustino@cimaglobal.com
4 National Diploma: Management AccountingIdeal for individuals moving into management positions and for those who wish to begin specialising in Management Accounting. Includes, among others, the roles of Cost Accountant, Accountant, Management Accountant and Financial Manager.
2440
6
6
5 National Certificate: Business AccountingIdeal for learners entering the workplace who will be involved in providing accounting support services and also aimed at current employees in similar positions who require a formal certificate in basic accounting skills.
2441
8
5
6 Post Graduate Professional Qualification: Professional Accountant in BusinessCommercial and Financial Accountant: Commerce and IndustryCommerce and Industry members of the Institute provide a number of accountancy related services to companies, close corporations, partnerships, sole proprietors, trusts and various other types of small business and non-corporate undertakings.
2039
2
7 South African Institute of Professional Accountants
(SAIPA)Mr Rishard Mahomed Habib
(011) 486 0283habib@saipa.co.za
TITLE
NLR
D
No. NQ
FPROFESSIONAL
BODY
7 Post Graduate Diploma: Professional Accountant in PracticePractising members of the Institute perform duties as an Accounting Officer and provide a number of accountancy related services to companies, close corporations, partnerships, sole proprietors, trusts and various other types of small business and non-corporate undertakings.
2039
1
7
8 Certificate: Accounting TechnicianEnables new entrants into the financial sector to become proficient in their career as an Accounting Technician or Accounting Support Professional. Learners support and assist senior professionally qualified Accountants in the fields of finance, management accounting, taxation, auditing and payroll.
2040
2
5
FassetMr Aboo Amod(011) 476 8570
aboo.amod@fasset.org.za
9 Certificate for Registered Accounting ClerkRegisted Accounting Clerks assist Bookkeepers and Accountants. They are entitled to register as Certificate members of the Institute with the designation CICB(SA) and access the Registered Bookkeeper qualification.
2036
2
3
Institute of Certified Bookkeepers (ICB)
Wedaad Shira(021) 421 1110
enquiries@icb.org.za
10
Certificate for Registered BookkeeperRegistered Bookkeepers assist Accountants and Financial Managers. They are entitled to register as Associate members of the Institute with the designation AICB(SA) and access the qualifications of, among others, the IAC and SAICA.
2036
3
4
11
National Diploma: Technical Financial AccountantFinancial Accounting Technicians undertake basic Bookkeeping and Accounting procedures in a variety of situations. They function within general Accounting and Financial Management roles where they lend support to the Accountant and/or the Financial Manager.
3621
3
5
12
National Certificate Small Business Financial ManagementSpecifically designed for those learners who are, or wish to become, owner-managers and for learners who are responsible for the keeping of financial records of a small business. 48
736
4
13
Certificate: Office AdministrationThe learnership in Office Administration is aimed at people in clerical and administrative positions in all businesses in all industries. An Office Administrator provides a supportive role in any business. 23
618
5
14
Certificate: Public Sector AccountingSpecifically designed for Accounts Administrator in the public sector who realise the importance of completing a professional qualification that will equip them with the necessary skills to cope effectively with the demands of their changing environment.
2035
2
4
FassetMs Yogini Sigamoney
(011) 476 8570yogi.sigamoney@fasset.org.za
15
Diploma: Public Sector AccountingSpecifically designed for Accounting Technician in the public sector who realise the importance of completing a professional qualification that will equip them with the necessary skills to cope effectively with the demands of their changing environment.
2035
3
5
16
Chartered Accountant : AuditingThe Audit Specialism focuses specifically on Auditing, allowing registered Chartered Accountants to approve annual financial statements in Public Accounting and Auditing Practice when registered with the Public Accountants’ and Auditors’ Board.
4891
3
7South African Institute of
Chartered Accountants (SAICA)Mr Gerald Ndlovu(011) 621 6600
geraldn@saica.co.za
17
Chartered Accountant : Financial ManagementChartered Accountants function as Heads of Accounts Departments in the roles of Financial Director, Chief Financial Officer, Financial Manager and Financial Controller. Experienced Chartered Accountants have ample opportunity to move into specialist, operational and frontline positions.
4891
2
7
TITLE
NLR
D
No. NQ
FPROFESSIONAL
BODY
18
FET Certificate: Debt RecoveryThis is for any individual who is or wishes to be involved in the Debt Recovery function within the business sector and is intended to enhance the provision of service within the field of Debt Recovery within the business and commerce sector.
4902
1
4
FassetMr Aboo Amod (011) 476 8570
aboo.amod@fasset.org.za
Conclusion
The Financial and Accounting Services Sector has to ensure a sufficient
number of new entrants into the labour market, address skills shortages and
prevent skills gaps from occurring. Interventions to address skills shortages or
scarce skills have to be aimed at three levels:
a) School level
The provision of a sufficient number of new entrants into the labour market
starts at school level. Schools have to produce enough matriculants with
endorsements and with mathematics and accounting as subjects.
b) Tertiary education level
At the tertiary education level, access to the higher education system has to
be ensured and unnecessary institutional constraints have to be reduced so
as to provide a sufficiently large pool of graduates (especially in the
specialised field of accounting) who can take up professional and technical
positions in the financial services field.
c) Professional level
At a third level, it is also essential to increase the number of people in
learnerships who can obtain the professional qualifications and designations
required in the sector. Critical skills gaps are generally the result of insufficient
training prior to entry into the labour market, technological changes, and
legislative and policy changes to which the sector is exposed on an ongoing
basis. Skills gaps can occur across the whole spectrum of functions
performed in the sector and can affect all levels and categories of workers.
However, the indications are that the main areas currently requiring attention
are specialist financial skills (which cover a wide spectrum of skills needs),
computer skills (ranging from basic computer literacy to highly specialised
information technology skills) and managerial skills.
Websites of Interest
Career24: www.careers24.com
Career Information, Assessment Technologies and Services: www.careers.co.za
Centre for Higher Education Development, University of Cape Town: www.ched.uct.ac.za
E Financial Careers, UK: www.efinancialcareers.co.uk
GradX.Net: www.gradx.net
MAPP Assessment, USA: www.assessment.com
Personality 100, USA: www.personality100.com
The Princeton Review, USA: www.princetonreview.com
University of the Witwatersrand, Johannesburg: www.wits.ac.za
US Department of Labour, Bureau of Labor Statistics: www.bls.gov
Wetfeet, USA: www.wetfeet.com
Listing of Professional Bodies & Education Providers
Professional bodies are involved in education and quality assurance for
specific qualifications and professional designations, have unique entrance
requirements and offer many opportunities and services to their members.
Professional Bodies
Institution Contact Number Website AddressAssociation for the Advancement of Black Accountants in South Africa (ABASA) 011 621 6737 www.abasa.org.za
Association of Black Securities and Investment Professionals 011 325 7605 www.absip.co.za
Association of Chartered Certified 011 537 1760 www.acca.org.za
Institution Contact Number Website AddressAccountants
Chartered Institute of Management Accountants 0861 246 272 www.cimaglobal.com
Financial Planning Institute 011 475 1149 www.fpi.co.za
Financial Services Board 012 428 8000 www.fsb.co.za
Franchise Advise and Information Network (FRAIN) Project 0860 103 703 www.frain.org.za
Institute for Public Finance and Accounting 012 470 9450 www.ipfa.co.za
Institute of Certified Bookkeepers 021 421 1110 www.icb.org.za
Institute of Certified Public Accountants of South Africa 011 486 0283 www.cpa-sa.co.za
Institute of Chartered Secretaries and Administrators 011 403 2900 www.icsa.co.za
Institute of Internal Auditors 011 450 1040 www.iiasa.org.za
SASBO The Finance Union 011 467 0192 www.sasbo.org.za
South African Board for Personnel Practice 011 773 6222 www.sabpp.co.za
South African Institute of Chartered Accountants 011 621 6600 www.saica.co.za
The Institute of Marketing Management 011 628 2000 www.imm.co.za
Tertiary Education Institutions
Institution Contact No Website AddressCape Peninsula University of Technology
021 959 6121www.cput.ac.za
Central University of Technology, Free State
051 507 3911www.cut.ac.za
Durban Institute of Technology 031 308 5111 www.dit.ac.za
Mangosuthu Technikon 031 907 7111 www.mantec.ac.za
Nelson Mandela Metropolitan University, Port Elizabeth
041 504 2111www.nmmu.ac.za
North West University, Potchefstroom 018 299 1111 www.nwu.ac.za
Rhodes University 046 603 8111 www.ru.ac.za
Tswane University of Technology 012 703 2255 www.tut.ac.za
University of Cape Town 021 650 9111 www.uct.ac.za
University of Fort Hare 040 602 2011 www.ufh.ac.za
University of Johannesburg 011 406 2220 www.ujhb.ac.za
University of Kwa-Zulu Natal 031 260 2212 www.ukzn.ac.za
University of Limpopo 015 268 9111 www.ul.ac.za
Institution Contact No Website AddressUniversity of Pretoria 012 420 3111 www.up.ac.za
University of South Africa 012 429 4111 www.unisa.ac.za
University of Stellenbosch 021 808 2908 www.sun.ac.za
University of Free State 051 401 3000 www.uovs.ac.za
University of the Western Cape 021 959 2911 www.uwc.ac.za
University of the Witwatersrand 011 717 1000 www.wits.ac.za
University of Venda 015 962 8000 www.univen.ac.za
University of Zululand 035 902 6029 www.uzulu.ac.za
Vaal University of Technology 016 950 9348 www.vut.ac.za
Bibliography
Fasset, Analysis of Grant Submissions Year 4, September 2005.
Fasset, Analysis of Grant Submissions Year 5, In progress.
Fasset, Analysis of Grant Submissions Year 6, In progress.
Fasset, The Need for Strategic Learnerships in Finance, Accounting,
Management Consulting and Other Financial Services, Johannesburg,
2003.
Human Sciences Research Council, Skills Development in the Financial
and Accounting Sector, Fasset, Johannesburg, October 2002. (Fasset
Sector Study)
Fasset Sector Skills Plan 2005 to 2010, Update for the 2007/2008
Financial Year, Draft 29 August 2006
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