Understanding the changes in Skills Development: What you need to know about the QCTO

The changes to the skills development landscape are imminent – is your BEE plan ready?

The skills development landscape as we now it, is set for fairly significant changes. Not only will these changes impact your skills development plan, reporting to the SETA, but could also significantly affect your BEE scorecard.

As the Quality Council for Trades and Occupations (QCTO) takes over the accreditation, implementation and certification of all occupational qualifications from SETAs, companies need to understand what the implications of these changes are to ensure that they safeguard their skills development initiatives and ensure that there is minimal risk not only to their Skills Development scorecard, but on the BEE scorecard as a whole.

The impending change from SETA (Sector Education and Training Authority) to QCTO qualifications is part of the government's efforts to streamline and improve the country's education and training system.

If you have heard about this change from the SETA system to the QCTO you may have wondered what this means for your company’s skills development initiatives and BEE scorecard.

This change will undoubtedly affect:

• Current accredited training
• Registering new qualifications
• Learnerships - cost, implementation; timing; absorption
• Workplace Skills Plans

Firstly, what is the QCTO?

When SETAs were established in the 2000s, they were responsible for developing and implementing sector-specific training programs and qualifications to address skills gaps in various sectors of the economy. The QCTO was then established in 2010 to take over from the SETA system and streamline the education and training system. Its role was to ultimately oversee the address skills gaps in the South African labour market.

QCTO qualifications are based on the Occupational Qualifications Framework (OQF), which provides a single, unified system for developing and recognizing qualifications across all sectors. The QCTO works closely with various industry stakeholders to ensure that the qualifications it develops meet the needs of the economy.

What are the actual differences between the QCTO and the SETA system?

One of the key differences between SETA and QCTO qualifications is that QCTO qualifications are standardized across all sectors. This means that a qualification obtained in one sector is recognized in all other sectors. Other key differences include:

• Standards: The QCTO sets the standards for occupational qualifications, while the SETAs develop and quality assure qualifications within their respective SETAs.
• Learnership programme structure:
  

1. SETA Learnerships: Under the SETA system learnerships comprised of two components, 30% classroom time and 70% on the job work experience. Assessments were conducted by accredited Training Service Providers following the completion of each learning programme throughout the duration the learnership (12 months)
2. QCTO Learnerships: Under the QCTO learnerships are comprised of three components
   

1. Knowledge component – classroom sessions exploring theory
2. Practical component – includes simulated workplace training subject to assessment by accredited workplace assessors
3. External Integrated Summative Assessment – a final exam written in a central assessment center.
   

• Duration: SETA learnerships are mostly 12 months long. The duration of QCTO learnerships will depend on the number of credits for specific qualifications.

When will this change occur?

The change from SETA to QCTO qualifications has already begun – since the QCTO’s inception in 2010. The QCTO has been working with SETAs to ensure a smooth transition, and many qualifications have already been transferred to the QCTO's oversight. As of now, all new occupational qualifications are being developed and quality assured by the QCTO. Top of Form

The accreditation of all SETA qualifications will expire on 30 June 2023 which a one-year grace period for enrolment and a 3-year teach-out period. What this means exactly is:

1. The learner enrolment end date for pre-2009 qualifications and unit standards shall be 30 June 2024.
2. The learner achievement end-date is 30 June 2027, registered candidates have 3 years complete their qualifications.

From 1 July 2024 all qualifications under the SETA system will no longer be recognised and all learnership registration will take place under the QCTO system.

Contact Transcend if you would like to:

• learn more about the upcoming changes in the skills development landscape
• ensure that you safeguard your skills development efforts and your BEE scorecard.