Auto Enrolment, the pensions avalanche and an uncomfortable ‘no’

One of the most important lessons I’ve learned, and as a positive optimistic person something I understand the need to do but am still quite uncomfortable with, is the importance of  saying ‘No’.

You see I prefer to say ‘Yes’ or ‘I can help’ but have realised that in Life and especially in Business sometimes it’s better to make a decision to say ‘no’.  A couple of years ago I wrote this article about why I say ‘no’ to certain private clients.

However as more and more companies find themselves quickly approaching their ‘staging date’ (the date they need to ensure they comply with auto enrolment) I believe that we’re going have to say ‘no’ a lot more.  This time it won’t be private clients it will be to representatives of firms trying to get ready for Auto Enrolment who have left it way too late.

In fact, we are already seeing examples of companies struggling to comply with the new regulation.  Yesterday, whilst conducting some initial consultancy work for a medium sized employer, we received our first ‘reality check’.

The employer in question had less than 8 months until their ‘staging date’ and hadn’t yet got a clear plan in place on how to comply.  Although 8 months may seem like a long time for most employers to prepare it’s becoming clearer and clearer that it’s not.

Whilst the work we’re conducting on behalf of that firm is currently on a consultation only basis work we now need to make a tough decision.

If, once our research has been conducted, it’s clear that due to the fact that the firm in particular has left it too late to comply we’ll have no choice but to confirm our inability to help them with auto enrolment compliance over the longer term.

The pensions regulator suggests employers should start to prepare at least 18 months prior to their staging date and at the moment this ‘feels’ about right for most employers.  For some employers 12 months may be sufficient. However it’s highly unlikely that 6 months preparation for an employer’s ‘staging date’ will be enough.

There is a new really useful ‘timeline planner’ on the pensions regulator website which is designed for employers to provide an indication of the timescales involved in ensuring that a company complies.  You can find the Auto Enrolment timeline planner here.

I’ve said it before (however I’m pretty sure I’ll say it again) but the key to ensure that any company, be it your firm, your friends firms or your clients firms is to plan and prepare early.

Don’t be caught (or let your clients be caught) in the avalanche of companies who didn’t plan or prepare early enough.

Author

Chris Daems

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