NEST Insight - the annual snapshot of the automatic enrolment landscape
03 February 2014
The report NEST Insight 2014 highlights the importance of lessons learned by employers who have lead the way with automatic enrolment, it also identifies that there are significant gaps in employer experience.
For those of you who have already staged, it will come as no surprise that research revealed that employers encountered unexpected challenges as they planned for their staging date. Lessons learned from these employers can, if the opportunity is taken, go a long way to helping 30,000, or so, employers set to stage in the coming year.
Research also revealed that automatic enrolment has been largely welcomed by individuals, with opt out rates at a low 10 percent, set against the predicted 15 percent opt rate it would appear at this early stage that government policy has been a success. However, research also revealed that this success has been achieved as an almost direct result of the hard work of employers who were the first to stage and NEST Insight 2014 highlights some significant top tips from recently staged employers for employers currently planning towards their staging dates:
Don’t underestimate how long it will take. Talk to your pension and payroll providers as soon as possible.
Assess your workforce to understand how your workers are affected.
Communicate with staff clearly and early. Engage and involve them with their new rights. Have a communication plan and involve all relevant departments of your business.
Examine systems, particularly payroll. Make sure they’re ready and capable.
Get help if you need it from experts and external advisors.
‘Don’t fall for these misconceptions.’
‘Once we’ve chosen the pension provider everything will be done for us.’
‘There’ll be a lot of work leading up to the deadline but then our work is done.’
‘We have to offer a pension to all staff.’
‘It’s like the stakeholder pensions. Most people will opt out.’
‘Our payroll provider will tell us what we need to do with regard to payroll.’