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August 2023

The importance of employee engagement in hospitality
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The growing importance of employee engagement [Hospitality Talks interview] 

The growing importance of employee engagement [Hospitality Talks interview]  2500 1667 Growth Partners

Each month Katy Moses, MD of KAM, chats with hospitality industry leaders as part of the Hospitality Talks series. In this latest episode, we share our insight, predictions, and advice to help the industry thrive.

In the new video our CEO of employee services, Scott Read discusses the growing importance of employee engagement and reveals new insights from our recent research.

Hospitality Talks: The Importance of Employee Engagement

Watch this episode of Hospitality Talks with KAM where we discuss our latest research and white paper and Scott’s thoughts on how to measure profitablity from employee engagement services.

Prefer to read?

Read the transcript of the discussion between Scott and Katy for this episode of Hospitality Talks here…

Katy:
Hello, and welcome to this episode of Hospitality Talks. I am absolutely thrilled to be joined by Scott Read, who is the CEO of employee services for Growth Partners. Scott, thank you so much for joining me. We’ve had some research recently conducted that we did together about employee engagement services, but for anyone out there who hasn’t seen that research or doesn’t know who you are, do you just want to give a brief introduction?

Scott:
Yeah, definitely. Thank you, Katie. Growth Partners is a payroll and pension business. We set it up about five years ago with a view of doing payroll and pensions very differently and adding a huge amount of value to what is traditionally commonly outsourced service that businesses will look to use, and that value is all around. How many other employee benefits, employee engagement type services could we include at a really cost effective way? In essence, can you get all of these tools and services at the same price as what you would normally outsource your payroll for? So something that’s commonly done, but ultimately not, given the wide range and breadth of additional services and value-added services alongside it.

We did that because both myself and the person who founded Growth Partners back in 2017 have a background in employee engagement – he had probably 20 years of experience and knowledge of the employment employee engagement sector, and I’d worked alongside him for the previous ten years. So it really helped us, and we felt that it was a way of getting employee benefits and employee engagement services to smaller to medium-sized businesses that wouldn’t traditionally invest in it.

Katy:
Before I started KAM, I ran a recruitment agency. And, of course, employee benefits was a sort of buzz phrase that we used a lot of the time, and it encompassed holiday, maybe a gym membership. This is quite some time ago, remember? What is the difference between benefits and employment engagement services? What exactly is an employment engagement service?

Scott:
I think it’s a great question, because employee benefits and employee engagement is massively misunderstood, and I think it means something different to everybody. I mean, even the people that you interviewed during the whitepaper we did together, they’ve all got a slightly different take on what employee engagement is, which is really interesting to read for me.

Employee engagement comes down to trying to achieve something within your business, right? And that sounds really vague, so I will explain…what I always talk to people about is, how can you unlock the discretionary effort from your employees?

And that’s the question that I pose myself, which is, effectively, I’ve got employees working nine to five or, I don’t know, six till ten in a pub or a restaurant or whatever, and everybody has a set of tasks that they need to do during their shift or during their day’s work. I personally have a to-do list that I write at the beginning of every day of the things that I want to achieve that day. And subconsciously, you have almost a level of acceptance of what looks good for the day. If I get to the bottom of that list, is that a good day? If I get the top three done because they’re quite massive tasks, is that a good day? And in reality, everybody has this subconscious acceptance of what good looks like.

And what I mean when I talk about unlocking that discretionary effort is, how do you get the individual to do the next two things on their to-do list even though the end of their shift is there, or even though they’ve already had a really productive day. And you can’t do that by management alone in terms of just asking them to do it for a start. It’s not right. Everybody’s got to get the work-life balance.

We are well beyond the ‘you work an extra hour and now because that’s just what’s expected of you, right?’ That’s not the culture that society sees as acceptable anymore – for all the right reasons, but actually, it’s about an individual caring, passionately about what they do, the company that they work for, and wanting to go above and beyond.

And I guess a couple of examples for me, it would be:

Technically it’s clocking off time (whether we have a technical clock in off time or not is another question for another day) but ultimately I can look at my to-do list and say, no, do you know what? There are two or three things that I still need to get done today because I don’t want them to dictate or change what tomorrow looks like or the next working day.

Or for somebody else, it might be the element of my job is to serve the food. But actually, I’ve got two minutes whilst I’m waiting for the food to be ready from the chef, and I can see that the dust bins are overflowing and need to be emptied. So actually, I’m going to take it upon myself to do that extra bit, when actually I could be completely justified in standing there and waiting for the food to be ready for me to serve. But instead of being told by my manager to do something, I’m voluntarily doing it and going the extra mile.

So it’s very much about using employee engagement services to create a positive culture within businesses where you are working as a team by choice, and actually, you want as the employee to add as much value as the employer is adding to your life, essentially. 

I think so many businesses, for all the right reasons, look at employee engagement as almost a list of employee benefits. And what you can do is you can believe you’re doing a truly amazing job for your staff. And genuinely, you’re convinced that you’re doing everything right because in front of you, you have a checklist of “do I do anything about emotional wellbeing? Do I pay people the right? Are people getting holidays more than statutory? What are all the things that we do?” And you can go down this tick list and you could tick every single one of them and go, brilliant, look how great we are as an employer. 

But actually, do you regularly pay them late? Do people wake up on payday and not know whether their money is going to be in their account first thing or whether it’s going to be mid-afternoon? Now, that one act in itself undoes everything else that you’re trying to do. 

And even if you get that right, do you actually create a culture whereby people understand why you’re putting these benefits in place, what the benefits actually are to the employee? Because in reality, a really good employee benefit or employee engagement culture, there should be benefits to the employees, but also to the employer. And it’s that double-handed approach of. Why are we doing this? Are we communicating? Why are we doing it? And I guess, more importantly, what’s the strategy behind every element of it? 

There’s no point ticking and saying, we’ve got the most popular top ten employee benefits. So what if they’re not relevant to you or they’re not being used an example of that is ‘we do a cycle to work scheme. Yeah, but your staff might all live literally 200 yards from the building.’ What benefit is that really doing? You’re creating maybe a green culture and it fits with another strategy that you might have, but is it actually the right place for you to invest your money to support your staff? And conversely, people might have a cycle-to-work scheme in as much I know you like your bikes, but if I was to get on a bike, I’m talking about that’s a 50 miles journey to work every day. It’s not realistic that that cycle-to-work scheme is going to be something that actually motivates me. 

So find the right benefits for your staff and have a strategy about what is it that you want to implement? Why are you implementing it? Can you then communicate that to all so that they understand what you’re trying to do? And then ultimately, can you measure whether that’s having an impact on your business or not? And for me, it’s the strategy and the communication piece that takes it from a list of things that you can do to actually driving engagement and driving that of the discretionary effort. Because if the employee doesn’t understand what you’re trying to do and why, then you’ll never unlock it.

Katy:
I suppose this isn’t just about attracting new staff, is it? I mean, these are some statistics, I think, that were in the white paper that we wrote together – there were 149,000 hospitality vacancies at the end of last year and you’ve got all of these fantastic initiatives like Hospitality Rising who are going to come in and change the perception of the industry and make it a more attractive place to work. But presumably we all know that it is cheaper and easier to retain the staff that you’ve got than it is to bring on new staff. So does employee engagement have a place to sit in that area of hospitality as well in the retention? 

Scott:
Absolutely. I think one of the people who was interviewed used the phrase that “employee engagement services are an essential part of a business and then they went on to say they’re costly, but ultimately, if they’re applied right, it’s worthwhile rather than a cost.” And I think the problem that you’ve got with employee engagement services (and it’s a challenge that’s been there since employee engagement benefits became a thing in reality) is so many businesses look at them as a drain on the bottom line because there’s a £10,000 cost or £50,000 depending upon the size of the organisation, ultimately people see it as well that’s money off the bottom line and we’re not going to get a return on that. 

The hardest thing to do if you’re trying to sell it to somebody is to give them the tangible benefit from a monetary point of view. Businesses that adopt it and work it really well have stopped trying to monetise what it does for them. Ultimately, they just know that over a period of time, their staff loyalty increases, retention increases, recruitment costs go down, and productivity goes up.

The other thing the white paper does is clearly talk about the link between happiness and productivity 

That in itself has to mean happiness equals productivity, which ultimately is what every CEO and FD is after within their organisation anyway. 

But probably not the first strategy that they put together to demonstrate how they were going to be profitable in the first place. They’re much more likely to go and speak to a supplier about reducing costs or chain supplier to get more margin in a product than they are thinking about, I need to invest in my staff because that will ultimately get us greater profitability. The reason for that is because they are tenuous financial examples that you will give. You have to a certain extent take a leap of faith that by investing in this you’ll get a return. 

I think the key thing that I also need to stress there is that if ultimately the management within your organisation isn’t supporting what you’re trying to do by creating that culture, then please don’t invest in it because it will just be money off the bottom line. Because how it is communicated, how you then manage your staff, how you pay them properly on time, how you encourage them to save or make their money go further. All of those things are pointless if fundamentally you’ve got a bad manager running a site because it just that’s the thing that overrides everything. So the management have to be on board with what the strategy is. 

So it’s a top-down strategy that everybody needs to be engaged with. And one of the things that I’ve always found is how do you make sure that all those managers are invested in it. And we all as people managers give our staff objectives. How many give them people objectives? In my opinion, every manager should have a people objective as much as a financial or a commercial one. 

I agree. I wholly agree. And I think that we are as an industry changing for the better when it comes to looking after our people. But there is still a way to go. And obviously having access to employment engagement services is one of the tools that we should all be looking at to recruit and retain. 

Katy:
Scott, thank you so much for your time. I’m afraid that is all that we have time for. Although I am going to come and personally pick your brains on employment engagement and see what we’re doing right and wrong at CAM and see where we should be making some changes. 

Employee engagement services in hospitality research paper

Our new study led by insights and research consultancy KAM reveals how employees in the hospitality sector feel about the employee engagement services available to them. Download a copy here.

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About Growth Partners

We’re a payroll provider and so much more. We’re on a mission to make employers’ and employees’ lives easier, happier and healthier. We provide an end-to-end solution for payroll, pensions and employee engagement services. You can book a demo here or see how much you can save, or even earn by outsourcing services to us.

How payroll outsourcing works in 2023
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An introduction to payroll outsourcing – how payroll outsourcing works in 2023

An introduction to payroll outsourcing – how payroll outsourcing works in 2023 1280 720 Growth Partners

The UK payroll system plays a crucial role in the smooth running of a business – ensuring employees are paid accurately and on time while complying with legal and regulatory requirements.

35% of UK employees would find another job if they were paid incorrectly even once, and 51% would lose trust in their employer and resent them (Sage, 2023). Statistics like this show the pressure on payroll managers for data accuracy and on-time processing.

As a business grows and evolves, the demands on its payroll department increase and often present a need to assess the advantages and opportunities available within the payroll landscape.

The growth of a business means that its’ leaders have an important decision to make. Do they invest in additional key staff such as payroll clerks, finance managers, and HR support, or do they outsource?

Additions to headcount are expensive, but the perception is they help maintain a level of control within the business, which isn’t strictly true. Enabling key outsourced partnerships at an early stage of business growth can be pivotal to ensuring the chosen partners grow with them.

Business owners are always thinking about growth, productivity, and profitability. The notion that maintaining control over these services gives greater certainty can be problematic and is often contradictory to reality.

In this comprehensive guide to outsourced payroll, we explore:

  • the range of payroll outsourcing options
  • potential benefits for your business, and
  • what things to look out for.

We’ll also share insights into maximising its potential by leveraging specialised outsourced payroll providers.

What are the options for payroll outsourcing? 

It’s important to note the scope of services provided by payroll service providers can vary depending on three main things; the type of provider you choose, the specific provider and the package or plan you opt for. It’s advisable to understand what each type of provider offers before selecting one that aligns with your business requirements.

The four types of payroll providers are:

  1. Accountant
  2. Payroll bureau/specialist payroll provider
  3. Professional Employer Organisation (PEO)
  4. Umbrella

Four types of payroll provider

1. Outsourcing payroll to an accountant

The key is to find an accountant that specialises in payroll. They can ensure your payroll is accurate and compliant with all applicable laws and regulations. You are ultimately responsible for any inaccuracies, but they can advise on any change in legislation and deadlines.
When considering outsourcing payroll to an accountancy firm, it’s crucial to assess their proficiency in payroll processing since not all accountants specialise in this field. It’s also essential to review their client track record, and how familiar they are with industry regulations. You need to ensure they cater to the specific needs and scale of your business. Consider the costs involved, the level of service, and the support they can offer.

2. Outsourcing payroll to a payroll bureau/specialist payroll provider

Payroll bureaus specialise in payroll services. They have extensive expertise in payroll processing, tax calculations, compliance, and other payroll-related tasks. By outsourcing payroll to them, businesses benefit from their specialised knowledge, accuracy, efficiency, and time savings. Payroll bureaus may offer services tailored to specific business needs, handle complex payroll processes, and help ensure compliance with regulations. They can often provide advanced payroll software and systems. They offer scalability and data security and allow businesses to focus on their core operations knowing payroll management is handled by experienced professionals.
When considering outsourcing to a specialised payroll bureau, verify the bureau’s reputation, experience, and service offerings to ensure they align with your payroll needs. Confirm their ability to customise services to your unique requirements and enquire about data protection measures. You can compare pricing structures and take into consideration the level of customer support you may need versus what they offer.

 

3. Outsourcing payroll to an umbrella company

When outsourcing payroll to an umbrella company, contractors or freelancers become employees of the umbrella company. The umbrella company then handles administrative and payroll-related tasks. Contractors submit timesheets, and the umbrella company calculates payments, deducts taxes, and ensures compliance with regulations.
Using an umbrella company can be convenient for contractors who want to focus on their work and prefer to have the administrative responsibilities taken care of by a third party. Using an umbrella company means contractors will become employees for payroll purposes. They may have slightly reduced flexibility and control compared to operating as a self-employed individual. Businesses using contractors, no longer need to worry about IR35 with an umbrella company.
When considering outsourcing payroll to an umbrella company, you should assess the fees and services, and understand any impact of being employed by an umbrella company. Contractors should also consider consulting with professional advisors to ensure the umbrella company services align with their specific needs and circumstances, e.g. IR35.

 

4. Outsourcing payroll to a Professional Employer Organisation (PEO)

PEOs take on various HR and payroll responsibilities on behalf of a business. One of the key functions handled by a PEO is payroll processing.
With a PEO, they become the employer of record for your employees, while you retain control over their day-to-day work and operations. This includes the PEO taking on responsibility for compliance with all HMRC and Pension Regulator requirements, taking the liability away from you. If you use contractors, you won’t need to worry about IR35 with a PEO. PEOs take on payroll tasks such as calculating wages, deductions, and taxes and ensuring accurate and on-time payment of wages. PEOs also manage tax and compliance matters. This expertise and focus on compliance can provide peace of mind and help mitigate potential compliance risks associated with payroll management.
PEOs also provide businesses with HR services to help them grow. The aim is for the business to be able to focus on growth and rely on the expertise and resources of the PEO to handle all the complexities of payroll, pensions, and HR administration.
When looking at outsourcing to a PEO, factors to consider are reputation, financial stability, compliance track record, experience, level of customer support, data security measures, and understanding of your specific business needs. You should also assess the range of HR services they provide for both employers and employees as part of the package.

I435 off-payroll working rules

What are the benefits of outsourcing payroll over keeping it in-house? 

Enhanced data security and confidentiality
Managing payroll data comes with data security responsibilities, such as maintaining up-to-date security measures, regular backups, and staying informed about evolving data privacy regulations. It can require dedicated resources and expertise, depending on the size and complexity of your payroll operation.

Outsourcing to a provider with robust data security measures to protect sensitive employee information will relieve you of this burden. They use secure systems for data storage, transmission, and backup, ensuring confidentiality and compliance with data protection regulations.

Utilise personnel effectively
Outsourcing payroll not only frees up staff members who were previously responsible for payroll tasks but contributes to increased overall productivity and efficiency within the organisation. Where you have capable and flexible staff, you can reutilise them in the business towards core business activities, strategic initiatives, or projects that contribute to company growth. Staff members are empowered to use their skills and expertise, leading to improved performance.

In many cases, businesses do not have a dedicated payroll team, and payroll becomes an additional task for someone to handle. This task is time-consuming and can detract from other important responsibilities. By outsourcing payroll, businesses alleviate this burden. It also enables employees to engage in tasks they enjoy, or ‘signed up for’ ultimately enhancing job satisfaction.

Expertise and knowledge: staying up to date with complex legislation
In most cases, it becomes the outsourced providers’ responsibility to stay updated with changing tax laws, labour regulations, and reporting requirements. They ensure your business stays compliant with these laws, reducing the risk of penalties or legal issues. PEOs and umbrellas take on all liabilities, so any compliance issues sit with them rather than you for complete peace of mind. When outsourcing to a payroll bureau or accountancy firm, check the service level agreement to understand their approach to liabilities.

Scalability and flexibility: adapting to business growth and seasonal fluctuations
Outsourcing payroll offers scalability to accommodate your business growth. It can be great if you have seasonal fluctuations in employee numbers. Whether you need to onboard new employees quickly or downsize your workforce, payroll providers can adapt to your changing needs. This flexibility helps maintain a smooth workflow without the need for significant adjustments to your processes or your headcount. Some providers may charge for this service, so this is something to check as part of your decision-making process.

Streamlined processes and efficient workflow management
By leveraging the expertise, automation, and technology offered by outsourced payroll providers, outsourcing payroll can streamline processes and create efficient workflow management. Benefits include simplifying payroll administration, automating tasks, minimising errors, providing accurate reporting, integrating with timekeeping systems and offering employee self-serve portals. This ultimately leads to increased efficiency.

Technology and automation: unlocking innovative solutions
Many outsourced payroll providers offer online portals or software that allow employees to access their payroll information, e.g. pay slips and P11Ds. This self-service feature reduces administrative work for businesses and empowers employees to manage their payroll-related information. It’s also helpful for employees to have this information in one place should they ever need it for proof of earnings, for example. You may also benefit from outsourcing payroll if handling employee queries around pay, and pensions is a concern for you.

 

Key Considerations for Choosing a Payroll Provider 

We’ve discussed the range of options available when it comes to outsourcing payroll and we’ve highlighted some of the key benefits. If you’re considering outsourcing your payroll, here are four key things to consider before making the transition:

Compliance and data security
As discussed, payroll involves handling sensitive employee information, so data security is paramount. Enquire about the payroll provider’s data security measures, such as encryption, access controls, backups, and compliance with data protection regulations like GDPR. Understand their protocols for data handling, confidentiality, and disaster recovery.

Service level agreements (SLAs) and support
An SLA outlines the level of service and performance commitments between you and the payroll provider. It defines key metrics, such as payroll processing accuracy, response times for enquiries, and issue resolution timelines. Carefully review the SLA to ensure that it aligns with your performance expectations and that the provider is accountable for meeting agreed-upon service levels.

Payroll issues can arise at any time, so it’s essential to understand the support availability offered by the provider. Determine their support hours and channels. Ideally, the provider should offer prompt and reliable support during your business hours to address any payroll-related concerns or questions that may arise. Evaluate their process for resolving issues, their escalation procedures, and the expertise of their support team. Consider how they handle employee queries, the availability of support channels, and the quality of their customer service in addressing employee concerns. Look for providers with multiple communication channels such as live chat and UK-based call centres. Self-service options for employers and employees can also enhance query handling.

Pricing models and cost-effectiveness
Evaluate the different pricing models offered by payroll providers, such as flat monthly fees or per-employee charges, and choose the one that aligns with your budget and business needs. Ensure the pricing structure is transparent, without any hidden costs or unexpected fees. Additionally, compare the cost of outsourcing payroll with the expenses associated with keeping it in-house, such as salaries, payroll software, employee training, tax regulation updates, and the time and effort required for payroll processing.

Assess the overall cost-effectiveness of outsourcing payroll by weighing the financial investment against the benefits gained, such as reduced administrative burden, improved accuracy, compliance expertise, and access to advanced payroll technology. Ultimately, selecting a payroll provider that offers a fair and transparent pricing model, while delivering cost-effective solutions, can contribute to the long-term success of your business.

The transition – implementation and change management
Understand the provider’s implementation process, data migration requirements, and security measures. Assess the training and support provided to ensure a smooth transition and thorough onboarding process.

Conclusion

Before deciding whether to keep a payroll function in-house or outsource it, it’s important to consider your business goal. A business priority is usually growth, so ask yourself do you have the dedicated staff resource for payroll management, and can they scale up rapidly. Is the person managing your payroll already wearing multiple hats? If so, this may spell disaster as soon as a mistake occurs or legislation changes. Are you confident in your process for handling pay queries to avoid an impact on staff retention? Do you have a training policy in place to ensure the payroll team is ahead of all payroll legislation?

Whether managing payroll in-house or outsourcing to specialised providers, organisations can streamline processes, reduce risks, and optimise their resources. By understanding the intricacies of the UK payroll system, evaluating the benefits of different approaches, and implementing best practices, businesses can ensure that their payroll department becomes a strategic asset, contributing to employee satisfaction, regulatory compliance, and overall business success.

Growth Partners’ payroll service

Growth Partners is a payroll provider and so much more. We own a payroll bureau so we have the expertise and scale required for outsourced payroll. We also provide the PEO model combining our expertise in payroll processing, pension auto-enrolment and employee engagement. Growth Partners is a great option if you are looking for a solution that takes on all liabilities with HMRC and The Pensions Regulator.

Our portal-based e-payslips mitigate the risk of data being intercepted with accredited data encryption. We use Amazon Web Services to host our sites, ensuring minimum downtime with extremely high levels of security.

We also provide:

  • A range of employee benefits including Employee Assistance Programme (EAP), private GP, pension guidance, and employee discounts.
  • A range of employer services, including free unlimited employment law support for the business, occupational health services and reduced rates with recruitment providers.
  • A dedicated employee engagement manager to help you and your employees most out of the services available.
  • Ongoing employee engagement consultation from our employee engagement experts so you have everything you need to not only ensure your employees are paid accurately and on time but are happy and healthy at work.

We provide all this at a flat rate of £2 per employee per week. And our new support payments offset this even further. Use our payroll cost-saving calculator to see how much you can save, or even earn by outsourcing your payroll to Growth Partners or book a demo here.

Pension auto-enrolment compliance
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Ensuring pension auto-enrolment compliance: staying ahead of the curve

Ensuring pension auto-enrolment compliance: staying ahead of the curve 1280 720 Growth Partners

As a responsible employer in the UK, it’s crucial to comply with the pension auto-enrolment regulations. Whether you are a start-up or a well-established firm, staying up-to-date with the compliance legislation can be quite challenging, but failing to comply with the legal requirements can result in hefty fines and have damaging reputational consequences.

What is pension auto-enrolment compliance?

Pension auto-enrolment compliance is a legal requirement for employers in the UK to automatically enrol ‘eligible’ employees into a workplace pension scheme. The system was introduced in 2012 to address the growing problem of pension provision and encourage more workers to save for their retirement.

Under the scheme, employers are required to automatically enrol ‘eligible’ employees into a pension scheme, make a minimum contribution, and provide employees with information about the scheme and their rights. Employees do have the opportunity to opt out of the pension scheme if they wish.

The scheme aims to ensure that employees have the opportunity to save for their retirement in a workplace pension scheme, which can contribute to their financial security in later life.

 

Who needs to comply with pension auto-enrolment?

Employers of all sizes in the UK must comply with auto-enrolment regulations. This includes businesses, charities, and not-for-profit organisations. Additionally, even if you employ just one person, you are still required to comply.

Not all employees are classed as ‘eligible’ for auto-enrolment. To be automatically enrolled, an employee must meet the following criteria:

  • Be at least 22 years old but below the state pension age,
  • Work in the UK,
  • Earn a minimum of £10,000 per year.

Employers must provide a workplace pension scheme for eligible employees and make contributions to their pension. However, employees have the option to opt out of the pension scheme if they wish.

 

List of key duties employers must fulfil for pension auto-enrolment compliance

Employers have a legal obligation to enrol eligible employees into a pension scheme and make contributions on their behalf. Non-compliant businesses may receive harsh penalties, so it’s essential to ensure compliance with pension auto-enrolment regulations.

1. Assess your workforce

Assess your workforce and determine which employees are eligible for auto-enrolment. Remember to monitor any new employees who become eligible for auto-enrolment as per the legislation.

2. Choose a pension scheme

Select a pension scheme that meets the minimum requirements for auto-enrolment. Evaluate the different options available in the market and choose one that’s suitable for your business and employees.

3. Communicate with your employees

Inform your employees about auto-enrolment, including who is eligible, how it works, and the benefits of being enrolled.

4. Set up payroll processes

  • Make sure your payroll process includes auto-enrolment.
  • Ensure that eligible employees are enrolled and contributions are made on their behalf.

5. Keep records

  • Maintain records to demonstrate that you’re complying with auto-enrolment legislation.
  • Keep records of contributions, opt-ins, opt-outs, and all communications with your employees.
  • Submit your Declaration of Compliance to The Pensions Regulator.
  • Carry out your ‘re-enrolment duties’ every three years. 

By following this checklist, you can ensure that your business meets pension auto-enrolment regulations.  

Each of these duties is critical for ensuring that your business fully complies with pension auto-enrolment regulations. Failure to fulfil any of these duties can result in costly consequences, such as:

  • Fines from The Pensions Regulator can range from £50 per day to £10,000 per day depending on the size of your business and the level of non-compliance.
  • Lawsuits from employees who were not enrolled in a qualifying pension scheme could result in significant payouts for your business.
  • Damage to your business’ reputation, as failure to comply with pension auto-enrolment may be viewed as a breach of trust with your employees.

Common auto-enrolment problems faced by employers:

Employers often face several common problems when implementing the scheme, including.

  • Difficulty in selecting a qualifying pension scheme.
  • Ensuring all eligible staff are enrolled in the scheme.
  • Calculating and processing contributions accurately and on time.
  • Managing opt-outs and opt-ins properly.
  • Keeping accurate records for reporting and compliance purposes.

If as an employer you fail to address these issues, you may face penalties for non-compliance.

 

Why pension auto-enrolment compliance should be a priority for your business in the UK

Pension auto-enrolment compliance is a legal obligation that applies to all businesses operating in the UK. Failure to comply with the regulations could lead to financial penalties and reputational damage for your business. Therefore, businesses must take pension auto-enrolment compliance seriously and ensure they fulfil their duties as employers. This will not only ensure compliance with the law but also provide employees with a valuable benefit for their future.

 

How we can help keep you compliant:

As you can see, ensuring auto-enrolment compliance is not a one-off task and does require allocating suitable and competent resources to ensure compliance with employer duties. 

All our clients benefit from our fully comprehensive and compliant pension solution. This includes:

  • Auto-enrolment processing and administration – you never have to worry about managing your employees’ pensions again.
  • We take on full responsibility for ensuring compliance with your auto-enrolment employer duties.
  • Your employees can speak to our in-house friendly experts to get one-to-one support and guidance on their workplace pensions. 
  • Online trackable pension pot for full visibility of the pension scheme. 

We will help you stay on top of your auto-enrolment employer duties and compliance, as well as help your employees engage with their pensions. Book a demo of our services or contact us to find out more.


Amrik Birdi, Pension Consultant and Head of Operations at Growth Partners

blankAmrik has a wealth of knowledge in pensions having joined Growth Partners from KPMG where he was responsible for advising companies and trustees on independent DC provider procurement exercises, DC investment strategy review, DC pensions strategy review, automatic enrolment compliance, and meeting ongoing governance requirements. Amrik spent three years before this as a Pensions Guidance Specialist at Pensions Wise helping members understand their pension and retirement options, empowering them to take control of their retirement journey. With a Diploma in Regulated Financial Planning and Certificate in DC Governance, combined with a Degree in Economics, Amrik is a fully qualified pensions consultant and able to offer strategic support to our clients on their options for workplace pension schemes and auto-enrolment.

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