The impact of a generic enterprise broad-based black economic empowerment strategy on employee satisfaction.

Abstract

This study seeks to explore the impact of a generic enterprise broad-based black economic empowerment (B-BBEE) strategy on employee satisfaction in South Africa. The objective of this study is threefold and aims to identify factors considered when developing a generic enterprise BBBEE strategy; determine whether the generic enterprise B-BBEE strategy is aligned to the BBBEE Act; and to assess the impacts of the generic enterprise B-BBEE strategy on employee satisfaction. A quantitative research approach was adopted to gain knowledge and objective data for this study. The study began by conducting explanatory research at a chemical manufacturing enterprise based in Durban, South Africa with the aim to determine the cause-and-effect relationship of an enterprise B-BBEE strategy on employee satisfaction. The study sample population consisted of 113. The population was sub grouped into employers and employees which equated to 108 employees and 5 employers of which 96 employees and 5 employers participated. Two questionnaires were generated for data collection. Descriptive analysis was performed to obtain statistical information on the percentage frequencies, mean and standard deviations of the collected data to draw measurement of the objectives. The findings revealed that the enterprise BBBEE strategy was found to be aligned to the B-BBEE Act’s five scorecard elements which is a priority, and a mandatory requirement to achieve B-BBEE compliance for a generic enterprise. Further to this alignment it was identified that the generic enterprise B-BBEE strategy includes BBBEE initiatives and training opportunities for employees and communities of which employees agree contributes to their education and welfare. Recommendations were provided for the enterprise to evaluate the B-BBEE legislation requirement timely which will aid with resourceful strategy development, implementation, and continual improvement, to this end future study recommendations could focus on the relationship with, or the impacts of an enterprise B-BBEE strategy on, the performance of the enterprise.