Recent reports have appeared highlighting that 1.8m small business employers will need to set up a workplace pension over the next three years, as opposed to the originally forecast amount of 1.3m.
Like many other commentators, I wonder how the industry will cope with this demand. Following on from these reports, we are expected to see a peak of around 350,000 small and micro employers being affected by summer 2017.
As I have previously stated, small businesses owner/managers will have to work closely with the auto-enrolment provider community to manage what I can only term as a ‘tidal wave’. So far, the legislation has proved to be a success, but we have only just touched the tip of the work that needs doing.
It will be down to providers like Enrolsme to really support and guide their clients through the auto-enrolment process. Perseverance, commitment and learning will help us and other suppliers to ensure that we provide the best levels of service when the pressure is really on.
Equally, small business owners and managers should start their planning now, and this should include:
– Definition of earnings – the first thing an employer needs to understand is the definition of earnings; which earnings will be included in the pensionable salary and – more importantly – which are not.
– Choose the right pension provider – the sooner they can make this decision the more likely they will put the best scheme in place for their staff. Delaying could mean they have little or no choice when it comes to selecting the pension provider (particularly when the tidal wave arrives).
– Engage your staff – employers need to make a decision on how they will engage their staff. If they opt for a quality scheme this can then act as a catalyst for communicating this to their workforce?
– Select the right levels of support – it is important to seek the right levels of support for setting up the workplace pension scheme. It doesn’t have to be a time-consuming and laborious task.
– Know where you stand now.
– Be prepared to work with your chosen provider to make the process as straightforward and manageable as possible.
Enrolsme is a complete online automatic enrolment solution. Through the system, businesses can be set up with a qualifying and compliant scheme in a matter of hours.
Foster Denovo Enrolsme Ltd is an appointed representative of Foster Denovo Ltd.
Enrolsme is a non-advised process and other options are available which may be better suited to a small business. They may be more complex and they are not offered under this solution. Small businesses who want to explore these options may wish to contact a financial adviser.
Further reading: 5 key attributes to look for in an auto enrolment provider