Businesses Say Discussion And Communication Around Pensions Has Improved

Four in ten businesses measuring the impact of auto-enrolment within their organisations say the measure has led to staff paying more into their pension, according to new research.

A similar proportion of firms (42%) responding to Employee Benefits/Close Brothers Pensions Research said they have introduced wider communications relating to pensions and pension saving as a result of the measure.

Some 37% also said auto-enrolment has caused them to review or change their existing pension provision.

Meanwhile, three in ten firms said staff are more engaged in their pension scheme and how it is run since auto-enrolment came into effect.

Around two-thirds of organisations said the measure has increased running costs, although this is less than expected.  In a 2012 survey, 74% of respondents said they expected compliance with auto-enrolment to increase their costs.

A total of 216 firms were surveyed by the Employee Benefits/Close Brothers Pensions research in September this year, and to date 60 per cent of those surveyed have assessed the impact of auto-enrolment on their businesses.

Expert Opinion

This study has put an interesting spotlight on how businesses have reacted to the introduction of auto-enrolment, as well as how the implementation of the changes has impacted on their organisation. <br/> <br/>"Irwin Mitchell’s own research on the matter earlier this year indicated that it has not always been smooth sailing for businesses, with many saying they would approach the introduction of the scheme in a different manner if they had to go through it again. Like the study above, our findings also revealed that the additional administration had an impact on operations, with a thirds of companies taking on extra staff to deal with it. <br/> <br/>"While there are of course benefits to auto-enrolment, it is clear that its introduction can be challenging and businesses should not delay in seeking advice on how they can make the necessary changes in the easiest possible manner. Companies should also ensure they utilise available technology to ensure essential, ongoing compliance post-staging works on a cost effective basis." Nigel Bolton - Partner