Last week, the Government confirmed that the number of people now auto enrolled on a workplace pension had hit the one million mark. This means that one million people are now making better financial provisions for their retirement, and their employers are matching the level of contribution too.
It is hoped that as the staging dates continue to unfold, auto enrolment will help rectify the UK’s pension scheme slump. Other recent figures have highlighted that the number of people with a workplace pension is only 8.2 million – the lowest it has been for 60 years. But with individuals living longer, this issue needs to be addressed urgently.
Pleasingly, Pensions Minister Steve Webb applauded HR professionals whose efforts have helped turn the concept of auto enrolment into a reality. When details of the pensions reform were first announced, there was a distinct sense of concern as to the level of work this was going to create for already stretched Human Resources teams. But the industry pulled together to communicate, air fears and devise solutions to streamline the workload that would inevitably accumulate.
Cascade’s auto enrolment module has already provided a crucial helping hand for clients with over 3,000 employees, and elsewhere customers with fewer employees are fully prepared for their turn in the timeline.
The key thing in ensuring auto enrolment does not turn into a nightmare, is preparation. Organisations cannot pick and choose whether or not they follow the rules of this pension reform –auto enrolment compliance is obligatory. A dismissive approach is therefore unwise. Even if the staging dates mean you have 12 more months until auto enrolment affects your business, the time to act is now.
HR and payroll teams need to be equipped with a best practice approach to handling this administratively-intensive task. Having the right processes and procedures in place will not only ensure the right boxes are ticked by the right people; it will also mean auto enrolment is properly communicated and employees truly understand what the initiative is all about. Furthermore, if software exists as an invisible administrator that undertakes a large proportion of the ongoing monitoring of employees eligibility for instance, HR and payroll teams will not be distracted from the more value-adding elements of their day-to-day roles.
Auto enrolment will represent a large change to many companies, even those that have offered some kind of workplace pension previously. So don’t be tempted to ‘go it alone’. Speak to the people that can help you.
If you are a Cascade customer and you haven’t yet signed up for our intuitive auto enrolment module, then speak to your account manager as soon as possible. If you are not already a client, but you would like to know if Cascade can help your business, call us on 0113 255 4115, email email@example.com or complete our short enquiry form today.