Businesses Are Still Leaving Auto Enrolment Too Late
New figures from NOW: Pensions shows that many companies are still leaving Auto Enrolment compliance until the last minute, a recipe for disaster.
Overall, most are calling pensions Auto Enrolment a success and it has indeed been fairly smooth so far. Although some firms had been leaving it quite late, few actually left Auto Enrolment compliance so late that they were actually fined. Now, however, just when you might think businesses have learnt their lesson, it’s the turn of smaller and smaller businesses to stage and there are signs that they are in no hurry to start working on their Auto Enrolment compliance.
NOW: Pensions, one Auto Enrolment provider, found that of the 4,279 companies that it signed in 2014, 17% left it too close – or even after their deadline – before completing their application.
Furthermore, 8% of businesses only made contact with NOW: Pensions after their staging date, while 9% made contact in the same month as their staging date.
The other 83% weren’t perfect compliers either. While The Pensions Regulator recommends beginning the Auto Enrolment process six months before their staging date, only 20% of businesses did so.
Given that this data focusses on larger companies, most of which have HR departments in place to tackle issues such as Auto Enrolment, some experts are worried that an even higher percentage of smaller businesses will leave Auto Enrolment to the last minute. The same data could look even worse this time next year unless small business begin preparing for their staging dates sooner rather than later.
Photo credit goes to Guy Sie