Catherine O’Flynn (MHC employment law partner)
With just months to go before Ireland’s pensions auto-enrolment scheme takes effect on 1 January, a Mason Hayes & Curran (MHC) survey shows Irish employers are still not fully prepared.
The survey, conducted during the a pension update webinar (9 October) gathered responses from 270 employers across various sectors.
It found that 66% of businesses are still working on their compliance plans, while a further 18% have yet to begin any preparations.
Just 16% of respondents said they are fully ready, with systems and processes in place.
Stephen Gillick (MHC head of pensions) said businesses are juggling multiple priorities as the January deadline looms.
“Auto-enrolment will bring entirely new processes for payroll, HR and finance teams. We are working closely with clients to design and test these systems, but the biggest challenge now is turning awareness into action.”
Concerns
The survey also identified employers’ biggest concerns.
More than half (51%) said the administrative and HR burden was their main challenge, followed by the cost of contributions (27%) and employee engagement and communication (22%).
Catherine O’Flynn (MHC employment law partner) highlighted the importance of clear internal communication during the transition.
“Auto-enrolment represents a significant shift in how employees will save for retirement,” she said.
“Employers will need strong communication strategies to manage expectations and ensure transparency. We’re advising clients on legislative compliance, reviewing employment documents, and developing effective internal messaging to help build trust and confidence among employees.”
When asked about anticipated employee reactions, 66% of employers predicted mixed responses, while only 27% expected a mostly positive reception.
Clear guidance
In terms of support needs, 60% of employers called for clear and practical compliance guidance.
Others sought tools to manage contributions (17%) and ready-to-use employee communication materials (22%).
Gillick concluded: “The message from employers is consistent: they need simplicity and clarity.
“A straightforward compliance framework with clear operational steps would eliminate much of the uncertainty. “Our pensions and employment teams are already working to identify the key actions needed to achieve full compliance before the January deadline.”
The auto-enrolment scheme aims to increase pension coverage among workers by automatically enrolling eligible employees into a retirement savings plan, with contributions from both employers and the State.