I wrote an article recently on three of the biggest misconceptions relating to auto enrolment which received some really nice feedback via email, twitter, linkedin and the odd phone call.

Firstly if you read the article, liked it and either sent me a tweet, or an email or a linkedin message or taking the time to pick the phone up. Thank you.

If you read it and enjoyed it, thanks for taking the time for doing that too.

However the issue with an article it seems that like books, films and albums….everybody has their top 3 auto enrolment misconceptions!  Therefore I want to share another couple of issues which have been mentioned has potential top contenders for auto enrolment misconceptions…

1. Everybody knows about (and is preparing for) auto enrolment

As you imagine we’ve been talking about auto enrolment a lot! We’ve been talking about it to fellow professionals, legal and accountancy experts and employers. Sometimes when you spend so much time talking about a particular subject you forget that  other people have working lives where they DON’T spend their time talking about these changes.

However Auto enrolment will eventually impact every single employer and every  single employee over the course of the next few years with many employers having less than a year to comply…

…Perhaps, just perhaps we need to understand as professionals and as employers we need to talk about Auto Enrolment more.

We’ve been having quite a few conversations recently with employers who need to comply within the next year and still have relatively little awareness of how greater impact auto enrolment will have on their businesses.

The assumption is that business owners are ‘on top of this’.  They know what they need to do and know exactly how to do it. We’re finding the reality is nothing can be further from the truth.

We’re talking to intelligent, committed Managing Directors, Finance Directors and HR professionals of businesses who (sort of) know the basics of auto enrolment….but haven’t started preparing properly or doesn’t know where to start!

Now is the time for business owners and professionals to start to truly focus on ensuring they ‘get auto enrolment right’

2. Auto Enrolment is “Job and Knock”

When I was a student many years ago I used to make a little bit of money during the holidays as a “drivers mate”.  This involved jumping in an van (sometimes a transit and sometimes a small HGV) and delivering packages to a wide range of businesses across London and the South East.

There was one particular phrase which all the drivers loved. “Job and Knock”.  Effectively this meant that once the job was done they could finish for the day and go home.

One of the most common misconceptions about auto enrolment is that the process of complying with the rules is a “Job and Knock” process.

The assumption is that once it’s completed everyone can ‘clock off’, relax and be in a position where auto enrolment regulation is complied with.

The reality is about as far from this as you can get!

Compliance to the new regulation, among other tasks, requires firms to keep records, continuously opt in and opt out individuals as and when required, conduct tasks for new starters, report to the regulator, and phase contributions in.

These tasks need to be continuously completed, checked and reviewed to ensure compliance.

So, Auto enrolment is less “Job and Knock” and more “Continuously rinse and repeat”

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So to conclude.  A couple of questions.  Did you previously think that auto enrolment compliance is about “Job and Knock” as opposed to “Continuously Rinse and Repeat”? and do you feel you have enough information to help your firm (or your clients firms) comply?

Also, what other misconceptions have you been party to? or is there something about auto enrolment you need to confirm?

As ever I look forward to hearing your thoughts.