KiwiSaver evaluation reports

Employer survey results

Research report 1.2

IRD Shoulder Number:

Document summary: This report examines awareness, understanding and reactions to KiwiSaver amongst employers, and assesses whether they felt informed about their obligations under KiwiSaver.

Document content:

Executive summary

Background and objectives

This report forms one part of an overall evaluation of the effectiveness of Inland Revenue's KiwiSaver communications campaign. The overall campaign evaluation objectives are:

• to assess the awareness, understanding and reactions to KiwiSaver amongst the target audiences (within the context of Inland Revenue's external communications)
• to assess the extent to which Inland Revenue external communications assisted target audiences to prepare for the KiwiSaver introduction and thereby make informed choices
• to assess whether communications contributed towards participation.

This report examines awareness, understanding and reactions to KiwiSaver amongst employers, and assesses whether they felt informed about their obligations under KiwiSaver. Other parts of the evaluation examine the impact on individuals and the role of scheme providers.

Method

500 telephone interviews were conducted with employers between 1 September and 2 October 2007. The sample of employers was sourced from Inland Revenue and included all pay as you earn (PAYE) registered employers.

Conclusions and key findings

Inland Revenue's employer specific communications were central to the successful implementation of KiwiSaver.

The campaign has reached all employers and there are very high levels of awareness around most of Inland Revenue's communication materials.

• 80% of employers were spontaneously aware of at least one aspect of the Inland Revenue campaign targeted specifically at employers.
• Virtually all employers in our sample were aware of the Inland Revenue campaign after it was described to them (only one claimed to be unaware of any Inland Revenue communications).

Although there is a mixture of positive and negative views about the initiative itself, this mix of views has not translated into ratings of the material itself.

• 81% of employers agreed that the Inland Revenue communication was straightforward and easy to understand. Those that disagreed tended to say the information was too confusing or not clearly explained.
• 91% of employers said the employer guide was helpful. Other Inland Revenue communications to employers were regarded as being helpful by most employers.

The majority of employers (62%) said that KiwiSaver related information was sent to them in time, however some said the information did not come in time to help them get organised for KiwiSaver.

• Just over a fifth (22%) of all employers said that the employee information packs did not come in time.
• 19% said the employer guide did not come in time.
• Larger organisations and those in the service sector were more likely to say the information did not come in time. These employers were more often subject to questions from staff about KiwiSaver which they may have felt unable to answer without receiving the employee packs.

The long term impact is likely to be minimal because those employers that say they did not receive the employee packs or employer guides in time were no more likely to be negative about the KiwiSaver initiative overall.

Most employers (86%) say they feel informed about their obligations under KiwiSaver. In terms of knowledge of specific legal obligations:

• Around nine in ten employers were aware that they had to:
  • check if new employees were eligible to join KiwiSaver
  • distribute KiwiSaver employee packs to new employees who qualify or existing employees that ask for one
  • deduct KiwiSaver contributions and forward them to Inland Revenue with PAYE payments.
• Levels of awareness were lower when it came to understanding the need to:
  • send details of new employees who are enrolled automatically to Inland Revenue (82%)
  • act upon an employee's contributions holiday notice (52%)
  • provide new employees with an investment statement if they had an approved alternative KiwiSaver scheme (50%).

Some, particularly owner-operators of small businesses, are still not fully aware about their obligations. It is possible that these employers will not fully grapple with the issues until they are forced to do so by circumstances.

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Date published: 29 May 2008

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