UK organisations are facing £15.4 billion in set-up costs to meet the requirements of auto-enrolment legislation, according to research by independent economic consultancy Centre for Economic Business Research (CEBR) and commissioned by Creative Auto Enrolment.
The Finding your way out of the auto-enrolment maze report found that small employers, with between one and four employees, face an average set-up fee of £8,900 to be compliant with the legislation.
This rises to £12,600 for small to medium-sized employers with less than 100 employees, while employers with between 100 and 250 employees could face a cost of £15,600.
Employers with between 250 and 500 employees could face an average bill of £22,300 for the one-off costs of implementing auto-enrolment.
Employers could be faced with:
- Completing a total of 33 different administrative tasks ahead of their staging date.
- Preparation that could take each employer up to 103 man days.
- The ongoing administrative burden could take more than three days each month for some employers.
How we can help
We have already successfully helped some of our clients design, build and implement Auto-enrolment qualifying schemes that suit the needs of their business and that of their workforce.
The majority of the businesses that we speak to genuinely not only want to comply with the legislation but equally want a quality pension scheme that they and their employees can be proud of, with an emphasis on the best pension providers and investment solutions, and reducing the cost impact on the employee.
Whether you are looking to put in place a bespoke quality scheme or just want to simply comply with the new employer pension legislation then we can help!
We understand that many of our clients do not have the time or resources to be able to analyse which route is the most suitable for complying with this legislation, and then successfully implementing the chosen strategy.
We will shortly be looking to launch a simplified service that will help you plan ahead, and ultimately help you comply with Auto-enrolment, and hopefully taking some of the additional strain (time and cost) away from you.
Watch this space!