Although smaller firms generally believe ‘auto-enrolment’ will be good for their staff and that workers should save for the future, many are still unclear what they need to do, when they need to do it, and how much it will cost.
Over a million small businesses affected
Over the next two years more than a million small and micro businesses will need to set up a workplace pension for their employees under the government’s automatic enrolment rules.
January sees the number of employers reaching their designated staging date – the date on which they need to start complying with auto-enrolment – rapidly ramp up with tens of thousands ‘staging’ each month in 2016 and 2017.
Many still ‘concerned’
John Allan, FSB national chairman, said: “Our message for small employers is auto-enrolment is coming and will affect your business – and the sooner you get to grips with what you need to do, the better off you will be.
“Most of the businesses which have already set up a work place pension told us they found the process fairly straightforward, but we know many remain concerned about their ability to cope.
“These businesses should feel reassured that there is plenty of information and support available to help them through this process, both through the FSB and from the Pensions Regulator.”