Half Of Employers Not Ready For Pension Enrolment
Written by Geoff Newman on 12/06/2012
Research has shown that almost 50 per cent of employers have not taken any steps to be ready for the implementation of the new pensions auto-enrolment which is due to come in to effect later this year in some sectors.
The study, which was conducted by a benefits consultancy firm, showed that only 31 per cent of businesses said they felt ready for its implementation, while 42 per cent said that they had made some moves towards becoming ready but that they did not have everything in place.
Speaking about this, a spokesperson for the consultancy firm said, “We are very concerned about the number of employers that still appear to be in denial about this issue. Auto-enrolment is not a theoretical exercise. Employers need to understand that it is going to happen, and preparations need to be made in the very near future”
Employers, including recruitment agencies, need to be aware of their obligations when it comes to being prepared. Staging dates for the majority of employers have already been released and even though some companies will not be required to comply until 2013, it is being urged that they ready themselves as soon as possible.
Chief executive of NOW: Pensions, Morten Nillson, said, “While it is concerning that employers have not made more steps to prepare for auto-enrolment, there is time for employers who have staging dates in 2013....auto-enrolment can be relatively straightforward.”
Geoff Newman from recruitment agency RecruitmentGenius.com believes the new legislation could not have happened at a worse time for employers and will lead to job losses. “The government recognises that it must cut red tape, reduce the burden on employers and reduce the cost of employing staff in order to stimulate job creation. However actions speak louder than words. Right when the UK should be focusing on creating growth the government distracts employers with yet more ridiculous and costly legislation.”