According to a recent survey in the UK, more than 2,300 small business owners do not know the meaning of auto-enrolment, and few of them revealed that the additional cost would affect the rate of employing new workers. By 2018, Auto-enrolment will be compulsory for all British companies. This will enable business owners to contribute to their worker’s pension expect if they opt out.
A national analysis that consists of more than 2,000 small-scale businesses has revealed that about 35% of them do not know about the auto-enrolment while 43% of respondents replied that the cost of contributing to worker’s pensions would affect the rate of employing new workers.
The analysis was taken by an online services marketplace known as Bidivine.com. They asked their registered small business holders some questions concerning auto-enrolment.
The new legal action will force most businesses in the UK to donate to their worker’s pension latest by February 2018. All staffs will be enrolled automatically in their work pension plan and except if they decide to opt out. Refusal can lead to high fines or imprisonment for business owners and executives.
When interviewed ‘has your business before now fulfill the pension auto-enrolment?’ About 35% of the respondents did not know the significance of auto-enrolment, while 33% answered no.
Also, more than 43% of respondents replied that the cost of contributing to staff’s pensions would affect employing new workers and almost 62% believed that all their workers would opt in.
Bidvine questioned respondents if they feel there has been adequate information and support for small business when it comes to auto-enrolment. About 65% responds were ‘no,’ compared to the 35% that said ‘yes.’
About 34% of the respondents know the closing date for auto-enrolment compared to the 65% that did not.
When asked if they will agree with auto-enrolment being made necessary, more than 43% responds was yes, while 31% believed that it should not be compulsory if businesses will contribute to their worker’s pensions.
The size of the business and when it begins to pay workers will affect anytime the government wants it to be automatic enrolment. But the deadline for all enterprises is February 2018.
According to the Co-founder of Bidvine.com, Russ Morgan said,
“We required getting more insight into the decision of small businesses about auto-enrolment and how it will affect every worker in the UK. We were surprised that most of them are not familiar with it!
“We were delighted to discover that all business owners accept the idea of the auto-enrolment. Also, it is upsetting that just 43% said that the additional expenses would affect employing new workers. Though it is something, the government should have considered in the nearest future as it may affect employment rate.”