Employers to rely on existing technology for auto-enrolment

More than 50% of respondents said they expect to rely on their existing payroll and HR systems to fulfil their auto-enrolment duties, according to research by JLT Benefit Solutions.

The latest JLT 250 club survey, which polled around 250 private sector employers, looked at the role of technology in the provision and management of employee benefits, and also considered how this might change following the introduction of auto-enrolment.

The research also found:

  • 45% of respondents are not sure about the length of time that should be set aside for the implementation of auto-enrolment.
  • 30% of respondents said they expect to be able to comply in less than 12 months.
  • 30% of respondents said it was important that employees had the ability to access benefit details through smartphones.
  • 60% of respondents said they already use technology in the provision or management of employee benefits.

Mark Pemberthy, director at JLT Benefit Solutions, said: “Our latest research has highlighted that employers continue to underestimate the amount of time required to be auto-enrolment compliant by their staging date.

“JLT’s recommendation is that larger employers should allow at least 18 months. Our experience of working with organisations staging in the early phases is that these organisations are exposed to a significant risk of not being ready in time.

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“For many organisations, an end-to-end, rules-based system is needed that will cover all aspects of auto-enrolment, including assessing the workforce, enrolment, opt-ins, opt-outs, statutory communications and the comprehensive records that must be kept by the employer if The Pensions Regulator’s (TPR) sanctions are to be avoided.

“Auto-enrolment is likely to be a catalyst for new technology to be embraced, as well as for the review of existing systems.”