One of the biggest mistakes retirement plan providers make is hiring a new employee and assuming they will simply figure things out as they go. The retirement plan business is too complicated for that approach. Yet I have seen firms bring in bright, capable people and provide little more than a login, a desk, and a hope that someone will answer their questions.
Hope is not a training program.
The retirement plan industry is filled with technical rules involving ERISA, the Internal Revenue Code, payroll integration, plan documents, compliance testing, distributions, loans, and fiduciary responsibilities. Nobody walks into this business already knowing all of that. The best administrators, consultants, and relationship managers are developed through education, mentoring, and experience.
Every provider should have a training budget for new employees. That budget should include industry conferences, ASPPA education programs, webinars, professional publications, and internal mentoring. Training should not be viewed as an expense. It should be viewed as an investment in quality and client service.
I have worked at organizations where new employees received little formal training. The result was predictable. People developed bad habits, made avoidable mistakes, and struggled to advance professionally. Some employees spent years performing the same tasks without ever truly understanding why they were doing them.
Contrast that with firms that invest in education. Employees gain confidence, solve problems more effectively, and provide better service to clients. They also tend to stay longer because they see a path for professional growth.
As an attorney, I have continuing legal education requirements. I also spend time keeping up with legislative and regulatory developments. The retirement plan business changes constantly, and professionals who stop learning eventually fall behind.
The firms that treat training as an investment usually outperform the firms that treat it as an expense. That’s why every new retirement plan employee needs a training budget.