Every UK employer has a legal responsibility to provide a workplace pension for eligible staff. Beyond meeting that requirement, the scheme you choose can also become a genuine benefit that helps you attract and retain good people.

Here's what you need to know about setting up and running a pension scheme for your business.

Your legal obligations

Under auto-enrolment rules, you must automatically enrol eligible staff into a workplace pension scheme and pay into their pension for them. Eligible staff are generally those aged between 22 and state pension age, earning above a minimum amount. Both you and your employee contribute a percentage of qualifying earnings, with minimum contribution levels set by law, though you're free to contribute more if you choose.

Choosing a pension provider

Several providers offer workplace pension schemes designed specifically for auto-enrolment, and choosing between them comes down to a few key factors:

•        Charges applied to the pension pot, since these affect long-term growth

•        Ease of setup and integration with your payroll software

•        The support and communication provided to your employees

•        Investment options available within the scheme

Running the scheme day to day

Once set up, most of the ongoing admin is handled automatically through your payroll software, which calculates contributions and sends them to your provider each pay period. Every three years, you'll need to re-enrol any staff who've opted out, and keep records of the fact that you've stuck to the pensio rules in case The Pensions Regulator asks to see them. Missing these obligations can lead to fines, so it's worth keeping a simple process in place to stay on top of them.

Going beyond the minimum

Some businesses choose to contribute more than the statutory minimum as a way of standing out to candidates and rewarding loyal staff. Even a modest increase in employer contributions can be a meaningful benefit, since it compounds over an employee's working life. If budget allows, it's worth considering as part of your wider benefits offering. Attracting and retaining good staff can give your business a real competitive advantage so it can be money well spent.