CIPD urges SMEs to plan ahead for auto-enrolment
The Chartered Institute of Personnel and Development has urged SMEs to plan ahead for auto-enrolment to pension schemes to avoid unnecessary costs and also guarantee they get access to the best advice and pension schemes.
A recent CIPD report, Pensions auto-enrolment: the lessons for SMEs, warns that any company staging in 2014 needs to start preparations now to overcome the challenges associated with limited resources.
CIPD performance and reward adviser Charles Cotton explained of SMEs: "They are unlikely to have access to the same levels of expertise or support networks as their larger counterparts, and many fear it could be a costly exercise for their business."
The study undertakenfound many SMEs are afraid that it will be difficult to absorb both the administrative costs of adopting auto-enrolment and the cost of their employer contributions.
More than a quarter anticipate they will need to reduce salary increases, with 22% expecting to need to implement a pay freeze in order to cope with the costs.
For information on employment law and your obligations please contact Vaishali Thakerar at Lawson-West on 0116 212 1000.View all