Balancing workforce growth with B-BBEE compliance is a priority for many businesses in South Africa. RecruitAGraduate (RAG) offers a practical solution by helping companies secure quality graduate talent while unlocking valuable B-BBEE points across multiple scorecard elements.
As a Level 2 B-BBEE employment agency with 125% procurement recognition, RAG provides many benefits to businesses serious about meeting their transformation goals.
1. Procurement – maximise recognition for your spend
RAG is a 100% female-owned, 51% black female-owned Exempted Micro Enterprise (EME). This ownership structure makes RAG an ideal partner for companies looking to strengthen their Preferential Procurement score.
Every rand spent with RAG counts as R1.25 towards Preferential Procurement recognition. As an EME, the spend with RAG automatically qualifies for this recognition, offering immediate value towards B-BBEE compliance.
Moreover, RAG ensures alignment with sector-specific B-BBEE requirements, helping businesses meet general and industry-specific obligations.
2. Employment equity – build a diverse and inclusive workforce
Recruiting through RAG assists companies in building a workforce that meets Employment Equity targets while developing young talent.
RAG connects businesses with diverse graduates, including candidates across race, gender, and ability, such as those with disabilities and neurodiverse candidates. Hiring from designated groups strengthens both Employment Equity and Skills Development compliance.
By investing in graduate talent through RAG, businesses contribute to workforce transformation and create a more inclusive and representative workplace in line with South Africa's broader goals for employment equity.
3. Skills development – earn B-BBEE points while developing future leaders
Skills Development is a priority category on the B-BBEE scorecard. Hiring graduates through RAG enables businesses to claim points while contributing to developing young professionals.
Recruitment fees paid to RAG qualify as an administrative expense under the Skills Development scorecard, allowing companies to claim these costs.
Additionally, salaries paid to graduates, interns, and learners participating in learnerships, internships, and apprenticeships contribute to the spending on skills development.
Further points can be earned by placing talent from RAG in structured programmes such as learnerships and internships, with additional gains when these include individuals from previously disadvantaged backgrounds or persons with disabilities.
Businesses may also qualify for SETA grants and tax rebates when hiring graduates through structured learning programmes. These incentives make it more affordable for companies to invest in graduate development.
Beyond recruitment and training, companies can increase their B-BBEE points through Enterprise and Supplier Development (ESD) contributions.
If a company funds RAG before formally engaging them as a supplier, the contribution qualifies under Enterprise Development. Once RAG becomes a supplier, further funding is recognised under Supplier Development.
Companies can also boost their Skills Development score by providing bursaries to RAG graduates. Businesses have the option to pay RAG directly to disburse funds to the institution or to pay the institution on behalf of the graduate. Upon completion of the funded course, RAG supports the graduate's placement within the sponsoring company or elsewhere, ensuring a full-circle approach to investment and talent development.
4. Sector-specific workforce planning – prepare for the future
With growing emphasis on sector-specific targets as per the amended Employment Equity Act, businesses must carefully plan their workforce development strategies. RAG supports this process by helping companies build a long-term pipeline of talent.
Hiring graduates now prepares companies for future compliance. Over time, these graduates can progress into middle management roles, ensuring the business meets future diversity and compliance goals.
A focused approach to workforce planning, succession planning, and targeted development helps businesses diversify their workforce and strengthen demographic representation. Companies can effectively integrate graduates and support their professional growth by using initiatives like buddy systems and coaching programmes.
Through its partnerships, RAG also offers access to expert guidance on understanding sector-specific targets and optimising scorecard benefits.
5. Absorption – improve retention and earn additional B-BBEE points
RAG's thorough recruitment process ensures better alignment between graduates and employers, improving the likelihood of retention after initial internships, learnerships, or graduate programmes.
Absorbing graduates into permanent roles builds long-term workforce capacity and earns businesses additional B-BBEE points. With RAG's support in matching the right candidates to the right roles, companies can achieve stronger retention rates and see meaningful impact from their investment in graduate talent.
Partnering with RAG offers businesses a clear pathway to achieving B-BBEE goals while securing a future-ready workforce. RAG provides a comprehensive solution for companies aligning their recruitment strategies with their transformation objectives.
By hiring graduates through RAG, businesses benefit from tangible B-BBEE scorecard advantages and contribute to building a diverse, skilled, and inclusive workforce for South Africa's future.
To learn more about RecruitAGraduate, be in touch here.