Turner Little reports on the findings of new research, which suggests that the majority of British small companies do not fully understand employment regulations.
Auto enrolment
According to The Pensions Regulator, many companies are failing to fulfil their auto enrolment obligations. Every British employer must enrol certain workers in a workplace pension scheme by a specific deadline, incurring financial penalties if they do not comply. Within the last three months, the number of employers who have been fined for not complying has increased by 300%.
Understanding regulation
A new poll of 500 UK small to medium-sized enterprises (SMEs) sheds more light on this issue. Small Business writes that just 37% of respondents have a sound understanding of staff rights matters and employment regulations, keeping themselves continuously updated on regulatory changes.
In contrast, a quarter of SMEs said that they understand existing employment regulations, but find it hard to stay abreast of changes. Meanwhile, 12% of those questioned admitted that they have little or no understanding of existing legislation in this arena, or of upcoming changes.
Hiring process
JobandTalent, an online professional network, also questioned SMEs about how they take on new talent. Over two thirds (67%) admitted that they do not have a member of staff dedicated to sourcing talent, hiring or HR. The vast majority (77%) of these companies said that they believe that the responsibility for taking on new talent belongs to the firm’s owner.
The research also found that 22% of SME owners surveyed take between two and five days to hire, as well as ‘onboard’ a new recruit. The tasks involved in this process include setting up the new employee’s tax and insurance, checking their references, registering them on the company’s payroll and enrolling them in a workplace pension scheme. These complex tasks deprive small business leaders of the time they need to continue developing strategy, so they can drive their business forward.
Handling admin
Many SME leaders, find they do not have the time to keep updated with employment regulations. Failing to adhere to these regulations could impose financial penalties on your company, depriving it of essential growth capital. Utilising Turner Little’s miscellaneous corporate services, will provide vital support with key admin tasks. This will ensure that you can devote your time towards on core business strategy and growth.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
