Since it was first mooted, I have always been a little concerned that Auto-Enrolment (AE), and the employer’s contribution in particular, would be yet another barrier to employers who are tentatively seeking to increase their number of employees in these delicate economic times.
My initial concerns have been lessened by the decision to “phase” minimum contributions over several years. Thus the minimum employer’s contribution level of 3% will be achieved in (hopefully) manageable steps for the more hard-pressed employers. This is a good thing.
And I am now starting to see some “green shoots” of a positive (albeit possibly temporary) boost to the UK jobs market as a direct result of this legislation. This evidence arises on two distinct fronts.
The more obvious area is, of course, the pensions industry itself. There will be a spike in demand for AE expertise in the next 18 months (indeed it is already here), and as a result the industry are adding, and retaining, many more staff than would otherwise be expected.
But a less expected piece of good news for the jobs market arises from outside of the pension industry. Increasingly I am seeing HR and Finance delegates at Jelf’s workshops and seminars with “Auto Enrolment” included in their job titles. It is therefore clear that many employer’s have now appreciated the enormity of the task, and have taken decisive action to employ an individual to ensure compliance with the new regulations.
So despite AE being administratively difficult, and of course expensive, for employers, it appears that this legislation may be helping the wider UK economy in ways other than just reducing the savings gap.
Best regards
Steve
Recent Comments