Small Businesses Face Fines for ‘Risky Hiring Practices’
Number of UK employers being fined for non-compliance with new pension regulations up 300% in last three months
Two thirds of small enterprises are running the risk of being fined for ‘risky hiring practices’, according to research from Jobandtalent.
The survey of 500 small firms revealed that just 25% of business owners feel up to speed with employee rights and employer regulations while just 12% admitted to having ‘limited to no understanding’ of present employment regulations.
With the deadline for auto-enrolment approaching, the number of employers being fined up to £10,000 a day for non-compliance with new pensions regulations has risen 300% in three months.
When asked about their recruitment processes, 67% of those surveyed revealed that they don’t have any individual dedicated to hiring or HR, and of those 77% answered that the responsibility for hiring falls on the business owner.
James Peck, UK managing director of Jobandtalent, said:
“We know that small business owners need to hire great talent to grow, but this research sadly shows that a number of UK small businesses are still taking enormous risks when hiring and managing their staff.
“Most small businesses sadly don’t have an HR function or dedicated employment expertise, so the time burden of finding new talent and the risk of non-compliance with employment regulations are both major pain points.”
Worried about auto-enrolment and the new pension regulations? Read this guide on our sister site Startups.co.uk.