This study is aimed at determining the effect of Black Economic Empowerment on employees. The objectives of this study were: <ul> <li>To conceptualize theoretically what Black Economic Empowerment entails and to identify the causes of the Broad Based Black Economic Empowerment Act.</li> <li>To determine the physical, emotional, psychological and social effect of BEE on employees and to elaborate on employees’ experiences</li>. <li>To make recommendations regarding the implementation of BEE based on employees experiences.</li> </ul> This qualitative study endeavoured to answer the following research question: “What effect does BEE have on employees?” By answering this question, the researcher aimed to document experiences to understand the effect of this phenomenon on employees and to make recommendations regarding its implementation in the workplace. Probability sampling methods were used to select the respondents and data was gathered by using semi-structured interview schedules. These interviews were taped-recorded, transcribed and analysed by extracting themes and subthemes. The study was feasible as it was within the financial and practical means of the researcher. Permission was obtained from BOSASA to conduct the study, and use their resources, staff and data. The main themes that emerged from the data analysis are as follows: <ul> <li>Support for BEE</li> <li>Criticism of BEE</li> <li>The role of communication</li> <li>Change leads to mental shifts</li> <li>Changes in the working environment affects employees</li> <li>Attitude towards change impacts on physical effects</li> <li>The importance of development in the implementation of BEE.</li> </ul> From the research findings, the following conclusions and recommendations were made: It can be concluded that there are different opinions regarding the implementation of BEE and we have to acknowledge that there are positive and negative effects thereof. BEE can hold mutual benefits for both employees and the organization, but it is important for open and reciprocal communication channels to be present whilst BEE is being implemented. It was also concluded that although BEE is a legislative process the individuals within the organization definitely experience the ripple effect of the changes that are implemented. On micro-level, it is recommended that all organizations where BEE is being implemented should have open communication channels between themselves and their employees. Opportunities for questions regarding clarity of processes being implemented should be part of the process and communication of information should be reciprocal and not just from a top down approach. On meso-level, it is recommended that different levels of management should receive training regarding BEE, what it entails and how it will be implemented. The reasons for its implementation and the benefits it holds for the organization and employees should be explored during these sessions. On macro-level, it is recommended that the marketing of BEE should become more prominent in the media in South Africa, including newspapers, television and billboards. The emphasis should shift from only reporting on the “large” BEE deals that are done, to the untold stories of the masses that daily experience the positive effects that BEE has had on them as “smaller” organizations and individuals. Organizations should assist in rectifying the harms of the past. It should not only be about implementing BEE for the purpose of getting business deals from government, but also about realizing its significance for the economic growth of our country. This will assist in eradicating fronting and create a culture that is open to change. Copyright / Dissertation (MSW)--University of Pretoria, 2008. / Social Work and Criminology / unrestricted