Paul Foot of Sage is right to point to research carried out by the London Business School that concluded that 103 man days were being devoted to auto-enrolment by companies staging in 2013.
I don’t know how you account for time but that looks like a six figure bill to me and unless that cost falls substantially in 2014 and again in 2015, the impact of auto-enrolment will be too heavy for many small businesses to bear.
Which is why we must make auto-enrolment easier. In early 2013, we and some colleagues from the CIPP, payroll software delegates and payroll managers visited the pension minister to ask for easements in the alignment process. We got them and they are now on the statute book.
We are now on a new crusade.
This time, we want to create a common data standard that means that payroll software suppliers and payroll operatives don’t have to build and manage a separate process to deal with each separate pension provider.
To give you an idea, one major payroll software house tells us it currently has 46 different ways to manage the relationships with insurers and master trusts!
So while some of us are creating a common data standard a quorum of leading pension providers. others are visiting the CEOs and management teams of the insurers who are reluctant joiners.
We’ve been here before creating standards for funds administration and we know that this will not be an easy or pain-free process.
The big win is that it should help bring down those 103 days!
In doing so , we hope to keep the momentum established so far going. Auto-enrolment has been a success but only because larger companies were prepared to fork out for consultants like me to set things up their way.
But we need your help!
Many insurers have invested heavily in payroll and HR interfaces which they believe are their USPs, we have to tell them that practitioners are both aware enough and motivated enough to manage auto-enrolment using their existing tools.
By signing up to the Accounting Web “No-one gets left behind” campaign, you are demonstrating that you , as well as all the others on here, are going to engage with auto-enrolment and see your company and/or clients through staging.
Let’s reduce the burden of auto-enrolment so get behind the campaigns of CIPP,BIB and FoAE for a common data standard.