It’s an age old debate for any business looking to implement change, particularly for small owner-managed firms who may only have a limited in-house resource; weighing up time versus money can be challenging. When it comes to auto enrolment, can a business afford the time to properly implement a pension scheme for their employees or would their time be better spent running the business and outsourcing a solution?
This decision is likely to include many factors such as deadline pressures, awareness of pension legislation and as always ‘the elephant in the room’ – cost! Without previous experience of outsourcing this type of service, employers might struggle to estimate how much it will cost to engage with professionals and receive the appropriate guidance. Our suggestion, simply ask, they may be pleasantly surprised.
A small business can receive assistance tailored to their needs without a significant cost burden. A clear benefit to the business of outsourcing is saving time. Instead of researching, understanding what is expected and right for the business, drafting employee communications and implementing a compliant pension scheme which can be very time consuming, resources can be focused on the business. Not only will it save the business time, outsourcing can also demonstrate to employees the business has taken their duties seriously and they are committed to providing a fully compliant arrangement by investing in professional advice.
Get it Right First Time
Recent figures released by The Pension Regulator show that an ever increasing number of businesses are falling foul of the rules with over 15,000 Compliance Notices, 3,728 Fixed Penalty Notices and, most concerning, 576 Escalating Penalty Notices all being issued between 1st July – 30th September 2016, demonstrating the need to get this right first time.
The consideration of time v money will never go away. However, it may end up being much more cost effective to outsource your auto enrolment solution to ensure a qualifying workplace pension is set up, running seamlessly and the business is fully compliant.
As recent winners of the Auto Enrolment Engagement of Year Award at the 2016 Payroll Awards, the experienced corporate benefits team at AAB are fully versed in the world of auto enrolment and would be delighted to discuss the individual needs of any business who want to get straight to the solution.