Investment house Fidelity today announced the launch of its Workforce Management Service claiming the service ensures employers’ pension arrangements remain compliant as auto-enrolment is rolled out.
There is increased complexity around the rules and the number of people needing to be enrolled into occupational pensions has also gone up, with the introduction of auto-enrolment less than 12 months away, said Julian Webb, head of DC and workplace savings business at Fidelity International.
The information technology infrastructure, HR and payroll systems will be stretched as the enrolment launch day approaches, said Mr. Webb.
The cost base will grow significantly as business owners would require to hire more people or set up complex outsourcing arrangements to comply with additional requirements, said Mr. Webb.
Fidelity’s Workforce Management Service manages regulatory requirements and workers’ eligibility criteria for the entire workforce on an ongoing basis.
“The Workforce Management Service is designed to take the heavy lifting out of auto enrolment changes for employers,” said Mr. Webb.
“With analysis showing that auto-enrolment has the potential to increase take up rates by 90 per cent, employers should not underestimate the potential impact that it will have on their HR and payroll departments and the resulting additional headcount and cost that will require,” he added.
“Our new service will save employers both time and money, enable them to ensure a smooth running service to their employees and avoid them having to go into potentially complex outsourcing arrangements with third parties,” he added.
“This is just one of a series of initiatives we are working on for our DC and workplace clients and I will be sharing news of further developments and timings over the coming months,” he concluded.