By now your staff will have hopefully seen the adverts featuring Nick Hewer, Karren Brady and Theo Paphitis and at least know Automatic Enrolment is coming and will affect them.
But that’s probably all they know.
- They are unlikely to know when their contributions will start or how much they will have to pay in.
- They won’t know their contributions are only based on a percentage of their earnings
- Or that, if they are below 22 or earn less than £5,772 each year, they won’t be automatically enrolled in the first place
To put it simply, most of your staff won’t know enough about Automatic Enrolment, which makes it even more important that you tell them all they need to know. Not only will this benefit them, but it will also save you time, money and help you avoid some potentially awkward questions. Here’s why:
#1: Fewer questions from your staff
Frequent and effective communications will help to reduce the number of questions you get from your staff both before and after your Staging Date.
These communications could take the form of letters, emails, workshops or one to one meetings. But the important thing is that you tell your staff, in plenty of time, what is happening and when. Otherwise you could be left with a very confused and unhappy group of employees.
#2: There are questions you’re not allowed to answer!
Of course you can tell your staff about the basics of Automatic Enrolment.
You can tell them how much they will pay in, where they payments will be made, and when they will start. But you certainly can’t advise them on whether they should opt-out, where to invest their contributions or recommend options for existing pensions.
If you outsource your Automatic Enrolment compliance to an Independent Financial Adviser, all of these questions, and others, which you can’t answer, can be picked up for you. This saves you time and leaves your employees in a better informed.
#3: Cut down on nasty surprises
The recession and economic crisis might be over, but for many families things are still tight.
Losing a few pounds out of pay, that had not budgeted for, could make all the difference, especially for lower earners.
The sooner you tell your staff what will be taken from their pay and when, the sooner they can start to budget for the change.
#4: To improve opt-in rates
We believe most employers want to ‘do the right’ thing by their staff and promote the benefits of Automatic Enrolment.
Employees can of course opt-out and those employers with the highest opt-out rates will be those who have not communicated effectively to their staff.
The more you tell your employees, the more they will understand the benefit of staying in the scheme; giving them a more comfortable retirement.
Do you run a business and have a question about Automatic Enrolment?
Contact our team of specialists today:
0115 933 8433
#5: Think about how you communicate
There are certain mandatory communications which you have to send, but we’d recommend you do more.
But before you do, spend some time thinking about what will work with your employees.
Additional emails or letters, including information and guides might help, but there’s no guarantee they will be read. Posters in the office or information placed on the company extranet might also be ignored.
We believe workshops are the most effective way of communicating with your staff. In the course of a short presentation, perhaps 30 – 40 minutes long, a huge amount of information can be provided and employees can ask questions.
For the best results, publicise the workshops well in advance, encourage your staff to attend and if possible, hold them on ‘office’ time, not before or after work.
We’re here to help
We’ve helped business of all sizes with Automatic Enrolment and on each occasion we have organised workshops. We know they work.
These sessions have helped improve employee knowledge and engagement, whilst reducing the time consuming questions each employer had to deal with.
If you would like to know more about how we can help you communicate with your staff, get in touch with our team today on 0115 933 8433 or by emailing info@investmentsense.co.uk
