A new study has revealed manufacturing SMEs are the most concerned about the impact of auto-enrolment in comparison to other sectors.
The survey, carried out by business software and services provider Sage UKI which also questioned media and construction businesses, saw 42 percent of manufacturers state concern over the potentially damaging effects of auto enrolment, above the national average of 38 percent.
Almost two thirds (61 per cent) of the small manufacturers questioned are concerned about the cost of making employee contributions and the impact this will have on cash flow, while over half (57 per cent) are concerned about the administrative burden it will place on them.
These figures are significantly higher than the national averages of 40 per cent and 51 per cent respectively and significantly more than other sectors, such as media and IT.
Lee Perkins, Managing Director of Sage UKI’s start-up and small business division, said the impact of auto-enrolment can be minimised for businesses prepared to follow the right procedures.
“Auto-enrolment is looming large on the horizon for small businesses, but it isn’t too late to keep its impact to a minimum. There are steps businesses can take to help reduce the time and cost pressures, including implementing the right software to help reduce the administrative burden,” he said.
Amongst other key sectors, construction businesses are also more concerned than most about the changes, with 53 per cent worried about the cost of contributions and 45 per cent saying the administrative costs could cause problems.
Media and marketing businesses are the least concerned about introducing auto-enrolment in the New Year, with less than a third of respondents (31 per cent) saying it has the potential to damage their business.