This group have so far defied expectations - with far simpler set-ups they are meeting their duties without using their waiting period or contacting their pension scheme as much.
NEST today released new figures on small and micro employers, providing the first insights into their behaviours and experience of auto enrolment. This comes ahead of the majority of employers of this size meeting their staging dates in 2016 and onwards.
The figures show that the early-staging small and micro employers are ‘defying expectations’ by navigating auto enrolment waters far more smoothly than anticipated.
The figures suggest that small employers are generally rising to the auto enrolment challenge. With far simpler set ups, they are meeting their duties without needing to call their pension scheme or use their waiting period as much as larger employers.
Key NEST insights include:
Pure and simple
Smaller employers tend to have simpler worker set-up and payment processes than their larger counterparts and as a result are likely to set up with just one group of workers, and one payment source.
What you waiting for?
Smaller employers are less likely to use their waiting period, compared to their larger counterparts. Almost half (44 per cent) of the employers that staged in the summer of 2014 enrolled their first workers in the three month period after their staging month, indicating that many were using waiting periods to postpone their duties. This reduced to 29 per cent for smalls and 26 per cent for micros indicating that they are getting on with auto enrolment without delay.
Call me, maybe?
Small and micro employers are able to set up and use NEST with less need to call us than the employers that staged in the summer of 2014. When comparing the sign up and initial set-up process, small and micro employers say they call us about half as much as 2014 stagers. When asked, 27 per cent of small and micro employers say they did not call at all. Calling is even less likely among micro employers, with 41 per cent claiming they did not need to call NEST.
In a survey of small and micro employers conducted by NEST*, a significant majority (72 per cent) say they expect to rarely or never call NEST in the future. In fact, our qualitative research** suggests that in the future most expect managing auto enrolment to be very easy and not time-consuming.
Helen Dean, CEO of NEST, commented: ‘This insight and experience shows that small employers are navigating the auto enrolment waters far more smoothly than anticipated. Many consider the staging of small and micro employers the next big test.
While there’s been much speculation, we haven’t had hard evidence until now.
‘These are the first insights of their kind. We’ve looked at the real experiences, thoughts and behaviour of small and micro employers as they navigate their way through auto enrolment. Did they struggle? Did they fail? Is auto enrolment too much for small and micro employers? Our figures show that concerns are largely unfounded. Defying expectations, small and micro employers are rising to the challenge and meeting auto enrolment head-on.
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