Whilst Auto Enrolment has already been embraced by majority of the companies with more than 50 employees, there are more than 17,000 companies that are on the edge of staging.
Survey of small business
A survey undertaken showed 43% of these companies who are on the cusp of staging are worried that they will not be able to offer their staff with pay increases in the future. Employees feel similar thoughts, with 72% of employees working in companies who have a staff of less than 50 are fearful that they may not see increases in their pay, due to the work place pension regulations.
Some 21% of companies who have less than 5 employees feel that they may be put of business due to auto enrolment.
Many businesses who have 1 – 5 employees are of the opinion that their product/service costs would have to increase to absorb the Auto Enrolment implementation and running costs.
Comments by Matthew Mitten – Mathew Mitten, director of Enrolsme, stated:
“These are worrying trends, given small businesses are the lifeblood of the economy. Employment in this sector may be affected with a third claiming they won’t be able to recruit more staff; and almost one fifth telling us they will have to reduce their investment plans.”
“However, even more concerning is the portion of small companies that believe automatic enrolment could see them going out of business all together. This was certainly not the goal of the legislation. These are tricky times for small business in the UK and more should be done to help support them.”
Other findings of the survey
The survey undertaken also stated that despite the media hype publicising the legislation, a third or employers are not sure what Auto Enrolment means. In contrast, 90% of employees are agreeable with Auto Enrolment, with the majority worrying about their financial position when they retire.
To find more information about auto enrolment and how it would affect your business, contact Avery Clifton on 0118 907 9224.