EXCLUSIVE: Cost is the biggest concern for employers implementing auto-enrolment, however, 61% of respondents do not yet fully understand how much the process will cost their business, according to research by Vebnet.
The research, which was carried out by Research Now, found that the second biggest concern is the administrative burden and the third is engaging with the right adviser or provider.
It also found that the top ways respondents have identified to deal with the additional costs of auto-enrolment are:
- Optimising existing benefits schemes to increase take-up and maximise national insurance savings.
- Reducing spend across other areas of the business.
- Introducing salary sacrifice arrangements.
Richard Morgan, director of consultancy services at Vebnet, said: “Auto-enrolment could bring significant cost and administrative challenges for some employers.
“It is important employers understand the impact on their business as early as possible, and identify the resource requirements associated with implementing auto-enrolment.
“This will not only ensure a successful transition, but more importantly, this will allow them to develop business and employee benefits strategies to address any additional costs.”