Auto Enrolment admin burden increasingly heavy

The majority of employers are now feeling the weight of administering auto-enrolment (AE).

According to research by Close Brothers, more than three-quarters (76%) of firms to have completed AE said they were noticing an increased demand on their time.

The figure was up seven percentage points from September and furthermore, 7% of employers admitted they were spending a day or more per month dealing with the check and requirements.

The survey of 400 employers found that as a result the number of employers considering changing their auto-enrolment process system was increasing.

Almost half (45%, up from 43%) said they were seeking to review this while 17% (up from 14%) felt there were areas to improve on to meet their Employer Duty.

Worryingly, employers' confidence that they were meeting their Employer Duty was falling, with just 34% (down from 36%) confident they complied fully and had robust systems in place.

Similarly, 46% believed they were adequately dealing with requirements, down from 48%.

Close Brothers Asset Management head of corporate proposition Maxine McIntyre said: "Perceptions of automatic enrolment are clearly shifting as employers begin to come to terms with the ongoing work involved in the process, with many finding that there is yet more to be done to be as efficient as possible.

"While the majority of those who have staged are still confident they have met requirements, there is growing concern more can be done and needs to be done to meet and exceed their Employer Duty.

"In the long-term, auto enrolment will bring with it more business benefits than complications, once the initial administrative bridge has been crossed, and seeking the right support now will help ease initial difficulties."

Posted: Tue 03 Feb 2015
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