For many organisations, annual spend on skills development or socio-economic development bursaries become a focus only once the end of their financial year is fast approaching.
Skills development teams often wait for economically active population (EAP) calculations to be finalised once the commission for employment equity reports are issued in June or July and leviable amounts can be estimated.
For socio-economic development the wait for net profit figures to be estimated more accurately before committing to spend, thinking it’s safer to hold off until targets are “confirmed”.
On paper, this sounds like a careful and responsible approach but in reality, it’s one of the main reasons bursary programmes underperform.
Limited mindsets
This pattern reflects a transactional mindset, treating bursaries as a once-off expense instead of a strategic investment. The thinking goes: let’s wait until we know exactly what we need, then spend just enough to hit the number and secure the required points on the B-BBEE scorecard.
The problem is that transformation doesn’t work like that. People and partnerships don’t move at the pace of spreadsheets.
When companies delay bursary spend planning until late into their financial year, every decision becomes reactive. Students are selected in a rush, paperwork piles up, and spend is forced through simply to close the gap before year-end.
The focus shifts from impact to compliance, from building skills to buying points. And while the budget may technically be spent, the organisation gains little in return. The “just-spend-it” mindset leads to predictable problems.
‘Convenient’ choice
Candidates are often chosen for convenience rather than alignment. The student’s field of study may have nothing to do with the company’s industry or talent requirements.
Sometimes students are selected because they are the only ones still available or because the paperwork was easiest to gather. The result is a poor fit, low engagement, and no lasting connection between the student and the business. This erodes return on investment.
Mariëtte van Wyk 20 Oct 2025 More than a financial transaction
A bursary should be more than just a financial transaction; it should build a future skills pipeline. When bursaries are awarded strategically, they feed directly into learnerships, internships, a YES or graduate programme.
This method of planning identifies the level of talent a business will need in two or three years’ time. But this will only happen when bursary planning begins earlier, with a clear sense of purpose and partnership. When it’s delayed, the majority of that potential value is lost.
Unnecessary risk and delays
Waiting for EAP data before acting also creates unnecessary risk. EAP shifts are generally predictable, and a small movement in demographic targets will rarely justify months of delay.
Companies that wait for final confirmation often end up paying more in the last-minute rush, through higher administration costs, limited candidate availability, and missed implementation deadlines.
Planning that is based on informed estimates, early in the academic year, usually always produce a better outcome than waiting for absolute certainty, which can happen too late into the financial year.
There’s another hidden cost too. Teams under pressure to spend quickly often bypass proper due diligence. Documentation becomes rushed, contracts are incomplete or inaccurate, and universities are slow to respond. By the time the evidence is compiled, it’s too late for verification - or the spend falls outside the correct financial period.
Money leaves the measured entity’s bank account, but it doesn’t translate into measurable scorecard value as allocations into student accounts might only be reflected in the next financial year. The question of when did the student receive the benefit of the bursary is often the deciding factor in whether such spend is allowed or not for the period it was intended.
Long-term strategy
Organisations that consistently manage their bursaries earlier, do the opposite. They treat bursaries as part of a long-term talent and transformation strategy, not a once-off compliance exercise.
Mapping internal skills needs will likely better forecast EAP outcomes. This approach allows the organisation to secure top students, align funding to business priorities, and gathering the documentation well before audit season.
This early strategy builds loyalty and retention, helping students feel connected to the company that invested in them from the beginning and not one that found students to provide support to at the last minute.
In the end, the cost of waiting far outweighs the risk of acting early.
Spend with purpose
A transactional approach may protect short-term budgets, but undermines long-term value. Strategic bursaries, planned with intent and linked to real business outcomes, not only improve scorecards but create pipelines of future employees, strengthen brand reputation and simplify verification.
The question isn’t whether to spend. It’s whether to spend with purpose. Because waiting for the perfect target often means missing the opportunity altogether.
