Employers in the UK are unprepared for auto-enrolment and pensions are a “ticking time bomb” in their organisations, say HR and payroll providers.
NorthgateArinso research shows 34% of businesses are totally unprepared for auto-enrolment. However, 65% are largely unconcerned by the new regulations, while nine out of 10 see it as a positive force or just another job to do.
“Our findings contradict previous reporting that businesses are resistant to auto-enrolment,” said Bill Thompson, principal business consultant at NorthgateArinso. “Rather than expecting a disaster, they are just getting on with the changes.”
Doug Sawers, managing director at Ceridian UK, said that as well as basic compliance, directors must ensure their solution meets their obligations and is correctly implemented or they will face delays, additional costs and potential fines.
“We have reviewed solutions which at best can be described as ‘band-aid’ approaches,” he said. “If they persist with this kind of approach, they could be in for some trouble ahead.”
The Pensions Regulator has published a guide to auto-enrolment.
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