Automatic Enrolment: How are employers reacting to the changes?


Automatic Enrolment: How are employers reacting to the changes?The roll out of Automatic Enrolment is now well under way and as we move in to 2015 smaller employees, with less than 50 employees will have to comply with the new rules.

So how has Automatic Enrolment gone down with the employers who have already complied with the new rules? Has it had a positive impact on their business or have the changes caused problems?

A new survey reveals the answers.

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The research, done by Close Brothers Asset Management, looked at 900 employers who have already been through their Staging Date, it found:

  • 62% of employers feel positive about Automatic Enrolment
  • 38% believe that long-term gain to the business outweighed any sort-term disruption

However the reaction from some employers was less positive:

  • Nearly two-thirds of employers believe Automatic Enrolment will have a negative impact in the longer term
  • 19% think it will mean staff pay and benefits will have to be reduced
  • 16% believe it will impact on their ability to hire new staff
  • Businesses with a turnover of between £750,000 and £1 million are most concerned with 77% of these firms feeling negative about Automatic Enrolment

Nervous employers

The survey also asked employers who had not yet reached their Staging Date for their views:

  • 52% of businesses are worried about the process
  • Whilst 33% are nervous about the costs involved

During 2015 employers with between 30 and 60 staff will have to comply with the Automatic Enrolment rules. Many experts believe that these businesses, as well as those which are even smaller, may struggle to set aside sufficient time, resources and cash to meet the new rules.

If firms are to avoid heavy penalties for non-compliance it is vital they plan carefully and start the process at least three months before their Staging Date.

One option is of course to bring in external support from experts such as Independent Financial Advisers. Having taken many businesses through their Staging Date our team of experts are here to help your business and can be contacted on 0115 933 8433 or by emailing