Automation has made retirement plan administration faster and more efficient. Payroll files can be transmitted automatically. Contributions can be processed faster. Participant notices can be delivered electronically. Routine transactions can happen without anyone touching them.
That is all good—until automation becomes an excuse for bad service.
Too often, providers design systems that work perfectly when everything fits neatly inside the box. The problem is that retirement plans don’t always fit inside the box. Payroll mistakes happen. Ownership changes. Participants have unusual circumstances. Plans merge. Companies get acquired. Someone eventually has a problem that the computer wasn’t programmed to handle.
That is when you find out whether the provider actually has a service model or simply has software.
I’ve seen situations where the answer to a problem becomes, “The system won’t allow it.” That might explain why something happened, but it doesn’t solve the problem. The sponsor doesn’t care that the computer says no. They want somebody who understands the plan and can figure out what needs to happen next.
Automation should eliminate repetitive work so talented people can spend more time handling complicated situations. Instead, some providers seem to use automation as a justification for reducing service staff and pushing sponsors toward self-service.
There is nothing wrong with self-service when the task is simple. The problem is forcing a sponsor to navigate menus, portals, chatbots, and ticket systems when they actually need a knowledgeable person.
The retirement plan business is still a people business.
Technology should help providers serve clients better. It should never become a wall between the provider and the plan sponsor.
If your automated system works great 95% of the time, that’s wonderful. Your reputation will probably be determined by what your people do during the other 5%.