A survey conducted by provider Standard Life found most of the large employers are still not prepared for the regulatory requirements of auto-enrolment. Only 7 per cent of the big firms have proper plans in place to meet auto-enrolment requirements when they are rolled out next year.
Of the 200 large employers surveyed, 93 per cent had not decided yet on how best to meet the auto-enrolment requirements.
The research also found 54 per cent of the respondents had no strategy about when to start planning for auto-enrolment while 39 per cent had decided on the date but have no firm plans in place yet.
The life and pensions providers also found 56 per cent of employers are undecided on the level of contributions for new members being auto-enrolled.
While 5 per cent employers said they will reduce the current contribution amount, 36 per cent confirmed they will maintain the present level of contributions.
“The research highlights that many employers still have some big decisions to make. The majority of those surveyed will need to commence auto-enrolment at some point during 2013 and there is a great deal of planning work that needs to be undertaken. Therefore 2012 is going to be a busy year”, said Jamie Jenkins, head of corporate strategy and proposition at Standard Life.
“Employers will be looking towards advisers to support them through the challenges and they’ll also be looking to providers to deliver solutions that allow them to implement these changes as painlessly as possible,” he added.
The survey also found half of the employers were not sure about the salary ranges of the employees who were currently not in their pension scheme.
“Spending time now understanding the financial impact of auto-enrolment will help employers identify the difficult decisions that need to be made. The sooner employers start the planning process, the easier the financial and administrative transition will be,” added Mr. Jenkins.