November 23, 2012
Two surveys by the Chartered Institute of Personnel and Development (CIPD) have put the spotlight on employer and employee attitudes to auto-enrolment in workplace pensions.
A survey of more than 1,000 employers revealed that the vast majority (88%) are fully aware of their requirements to auto-enrol staff into a pension scheme, but only half (51%) have taken steps to ensure their pension arrangements meet the needs of the business and employees.
Meanwhile, a survey of 2,000 employees by CIPD found that 62% of those not currently saving through a workplace pension intend to stay opted in when they are auto-enrolled. As a result, the CIPD predicts that the overall percentage of those in a workplace pension could increase from 52% to 82%.
Its report – Labour Market Outlook: Focus on pension auto-enrolment – also finds that 49% of employers predict auto-enrolment will have no impact, with the remainder predicting it may affect wage growth and other staff rewards.
Commenting on the impact on SMEs, Charles Cotton, CIPD rewards adviser, said: "The challenge of successfully implementing automatic pension enrolment is no less daunting for small and micro employers, who often do not have HR professionals to whom they can turn. That it is why it is vital to the success of these reforms that, before smaller companies reach their staging date, medium and large employers share their experiences of automatic enrolment and suggest ideas and solutions for this vital part of the UK economy."
The CIPD, in conjunction with KPMG, has published a dedicated resource area on its website to provide employers with guidance on pensions and auto-enrolment.