A new market for auto-enrolment is now developing, as businesses that have already signed up and implemented their original strategy are now considering the possibility of better solutions and looking for ways to improve.
In the early days of auto enrolment, when support was minimal (although attempted) many businesses’ initial approach was just to ensure that they were complying with the new processes and getting a scheme in place that could be:
- Easily understood by staff
- Integrated well with current payroll procedures
- Able to fulfil all statutory duties
Now that the scheme is well and truly in place and the dust has settled, companies are now beginning to review the scheme; discover how well it has integrated with their current systems and whether or not it is really delivering what staff require.
Not All Smooth Sailing
For many payroll professionals, the first few months of auto-enrolment hasn’t been as simple as they would have hoped. Some of the problems that companies have come across include struggling to integrate the data successfully and a lack of adequate communication between businesses and auto-enrolment agencies which has led to unpaid contributions and incorrect deductions. These problems with some of the solutions has brought issues with the ability to manually assess cases and procedures.
With Time, Comes Experience
Now that many companies have been able to see the wood for the trees and have discovered new ways to refine their auto-enrolment procedures to come up with efficient, understandable systems.
As well as this, those who are expected to offer solutions to issues that these companies’ flag up – the auto-enrolment ‘helpdesk’ – have a better understanding of the practicalities of the systems and how to solve all kinds of issues that may arise.
Making an Informed Choice
As many of us are aware, pension contribution alone will probably not deliver a pot big enough for employee needs. It will be necessary for it to grow faster than inflation and other charges – so it’s important to ensure that employee have the best chance to accumulate a decent retirement income.
With this in mind, it is vital that all employees have access to the best knowledge and information relating to their own needs and choices. But where will this information come from? At the moment, we haven’t seen enough emphasis on informing employees and employers- but rather the emphasis seems to be ensuring that all those who needed to, are enrolled.
But now that the initial upheaval has died down and we all know more about auto-enrolment – are we ready to take this new information and make a better system for all?
Now is the time to review your system and discover whether it is as cost-effective as it needs to be, as seamless as it can be and above all, whether it delivers a satisfactory outcome for retirees.