Management control and employment equity: It’s all about playing the long game

EE isn't just about points or ticking a compliance box. (Image source: 123RF)

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When we talk about B-BBEE, the first thing that often comes to mind is ownership. But transformation doesn’t stop at who owns the business.

There’s another very important question: Who is actually helping to run it? 

Who makes the decisions? Who leads teams and projects? Who is progressing through the management tiers?

That’s where management control comes into play.

Management control measures the representation and participation of Black individuals, including Black women, within executive or board structures.

Depending on the applicable B-BBEE code or sector code, this can include executive, senior, middle and junior management as well as Black employees with disabilities.

Headcount tells you who’s in the building. Management control tells you who’s helping to run it.

An executive director sits on the board while being involved in day-to-day management. A non-executive director provides strategic direction and oversight but generally isn’t involved in daily operations.

Think of your workforce as a chessboard.

Management control (MC) looks at who has progressed into influential positions. Employment equity (EE) helps build the board by identifying representation gaps, workplace barriers and opportunities for people to enter, develop and progress.

The pawns may not start as the most powerful pieces, but they’re essential – and importantly, a pawn that progresses far enough can be promoted.

That’s your transformation pipeline.

Representation of Black people with disabilities is another important part of the picture.

Meaningful inclusion goes beyond ticking a box. Businesses should consider recruitment, reasonable accommodation, accessibility, development and career progression – remembering that not all disabilities are immediately visible.

It’s not simply about having a piece on the board; it’s about giving that piece the opportunity to move forward.

South Africa’s employment equity landscape changed significantly in 2025, with an amended framework and new five-year sectoral numerical targets.

Designated employers – generally those with 50 or more employees – must develop Employment Equity Plans for 1 September 2025 to 31 August 2030, considering applicable sector targets and the economically active population (EAP).

Think of EAP as a demographic benchmark for the economically active population across race and gender groups.

Simply put: EAP helps you understand the landscape; your EE targets help you plan where you need to go.

EE isn't just about points or ticking a compliance box.

Where applicable EE reporting and compliance requirements aren't met, this may affect the employment equity portion of management control, potentially resulting in lost B-BBEE points.

Non-compliance can also lead to enforcement action and financial penalties and may have implications for obtaining an Employment Equity Certificate of Compliance, particularly when contracting with the state.

Picture this: verification is approaching, your management control position is looking great… and then a key Black senior manager resigns.

With both management control and employment equity being measured at current, a resignation, promotion or even an appointment can change the picture you had in mind for verification.

And that is why employment equity is an important ongoing workforce of planning and compliance processes.

Management control and EE shouldn’t be separate exercises.

EE identifies the gaps → recruitment brings in talent → skills development builds capability → succession and promotion create progression → management control reflects the result.

Instead of only asking: “Who do we need in senior management?” ask, “Who are we developing to get there?”

Sustainable transformation isn't about moving one piece into position just before verification.

It’s about building a strong enough pipeline that when someone progresses, changes roles or leaves, you already know your next move.

Management control shows where your pieces are today. Employment equity helps you plan where they need to go tomorrow.

And just like chess, transformation is won by thinking more than one move ahead.