A half (48%) of UK workers have not been sufficiently informed about auto enrolment by their employers according to new research from Office Angels.
Two-thirds (66%) of employees either don’t understand or only partially understand what auto enrolment actually is or how it will affect their salary. And with almost four in ten (38%) workers neglecting to regularly check whether they have been paid correctly, a significant proportion may not even notice that pension payments have been taken.
Overall, the research revealed a lack of understanding amongst workers: a third (31%) believe that annual income is the only factor which affects pension payments. Only half (50%) of workers understand that auto enrolment is beneficial for their future and standard of living when they retire.
The research also found:
- 40% of workers from companies of between 101-250 employees have still not been informed by their employers of the changes, whose staging date is just four months away in April 2014
- More than half (55%) of UK workers wouldn’t bother with a pension if it weren’t for auto enrolment
- 40% of workers wouldn’t know who to approach if they wanted to discuss any issues related to auto enrolment
- Over a third (36%) of workers do not know how much they will need to pay into the scheme
Angela Smith, Managing Director, Office Angels said: “A shift is needed in attitudes towards pensions in the UK. HR professionals need to take the necessary steps to prepare workers for the change in pension auto enrolment — otherwise, they risk damage to their employer brand, a drop in overall engagement levels, and a breakdown of the relationship they’ve built with their employees.
“Employers must demonstrate long-term commitment in their staff, and help them to take the necessary steps to prepare for a longer future of working. As businesses can no longer use their pension scheme solely as a way to distinguish themselves amongst competitors, they also need to think creativity as to how their benefits package can stand them apart.”
With 33 new regulations for employers to adhere to, auto-enrolment is going to be a challenge for all employers. Putting the actual pension scheme in place is almost secondary to all the administrative duties employers will have to perform, not only at the outset, but each and every time payroll is run. http://www.simplyenrol.co.uk has been launched to help explain employer duties, but also to provide employers with access to around 5,000 advisers across the UK who can provide support, guidance and a complete end-to-end solution.