CIPD urges SMEs to plan ahead for auto-enrolment
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9th January 2014
The Chartered Institute of Personnel and Development has urged
SMEs to plan ahead for auto-enrolment to pension schemes to avoid
unnecessary costs and also guarantee they get access to the best advice
and pension schemes.
A recent CIPD report, Pensions auto-enrolment: the
lessons for SMEs, warns that any company staging in 2014
needs to start preparations now to overcome the challenges associated
with limited resources.
CIPD performance and reward adviser Charles Cotton explained
of SMEs: "They are unlikely to have access to the same levels of
expertise or support networks as their larger counterparts, and many
fear it could be a costly exercise for their business."
The study undertakenfound many SMEs are afraid that it will be
difficult to absorb both the administrative costs of adopting
auto-enrolment and the cost of their employer contributions.
More than a quarter anticipate they will need to reduce salary
increases, with 22% expecting to need to implement a pay freeze in
order to cope with the costs.
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