Employers are increasingly feeling the administrative burden of auto-enrolment, according to the latest research from Close Brothers Asset Management.

Over three quarters (76%) of businesses are noticing an administrative impact as a result of the ongoing process, an increase of 7 percent compared to September 2014. Additionally, 7 percent of employers have now noted a significant impact, stating that staff are spending a day or more per month dealing with the checks and requirements.

Maxine McIntyre, Head of Corporate Proposition at Close Brothers Asset Management said:

“Perceptions of automatic enrolment are clearly shifting as employers begin to come to terms with the ongoing work involved in the process, with many finding that there is yet more to be done to be as efficient as possible. While the majority of those who have staged are still confident they have met requirements, there is growing concern more can be done and needs to be done to meet and exceed their Employer Duty.”

The number of employers considering changing their auto-enrolment process system is increasing as a result. Close Brothers Asset Management’s latest Business Barometer survey, which questioned over 400 employers across the UK, found that the number seeking to review their processing system has risen to 45 percent, up from 43 percent in September. Of these, 32 percent plan to review their systems within the next year. Additionally, a further 5 percent would review their system if they changed payroll provider.

McIntyre added:

“In the long-term, auto-enrolment will bring with it more business benefits than complications, once the initial administrative bridge has been crossed, and seeking the right support now will help ease initial difficulties.”

Employers’ reported that rates of meeting their Employer Duty regarding auto-enrolment is falling. In September, 36 percent were confident they complied fully and had robust systems in place. This has fallen to 34 percent. Similarly, 46 percent now believe they are adequately dealing with requirements, down from 48 percent. In contrast, 17 percent of employers now believe there are areas to improve upon, compared to 14 percent in September.





Steff joined the HRreview editorial team in November 2014. A former event coordinator and manager, Steff has spent several years working in online journalism. She is a graduate of Middlessex University with a BA in Television Production and will complete a Master's degree in Journalism from the University of Westminster in the summer of 2015.