The retirement plan administration industry is experiencing a shift as more Third-Party Administrators (TPAs) are realizing the value of moving from manual processes to automated solutions. With increasing client demands, stricter regulatory requirements, and competitive pressures, it’s clear that traditional methods of managing retirement plans are no longer enough. By embracing digital transformation, TPAs can reduce manual workloads, improve accuracy, and provide a more seamless client experience.

This guide walks TPAs through the steps they can take to transition from manual processes to automated workflows and the benefits that come with it.

Why TPAs Need to Automate

Manual processes have long been the backbone of many TPA firms. However, as the industry grows more complex, these methods become less efficient and more prone to errors. Common challenges with manual tasks include:

• Time-consuming data entry: Entering and scrubbing payroll/census data, and compliance reports by hand consumes valuable time that could be spent on higher-value tasks.

• Increased errors: Manual data entry increases the likelihood of errors, which can lead to compliance issues and costly mistakes.

• Client frustration: Delays in client communication, slow onboarding processes, and lack of real-time updates frustrate clients who expect faster service.

• Difficulty scaling: As TPAs grow, manual processes become harder to manage and less sustainable.

Automation solves these problems by streamlining workflows, reducing human error, and allowing TPAs to scale their operations efficiently.

1. Start with Key Manual Processes

The first step in your digital transformation journey is identifying the most time-consuming and error-prone manual processes in your firm. These often include:

• Payroll integration and report processing: Most TPAs have their plan sponsor clients fill in their census data in a template Excel file. Plan sponsors hate doing this. They also make mistakes!
  

• Client onboarding: Onboarding new clients often requires gathering, validating, and entering large amounts of data manually.

• Task management: Keeping track of projects, deadlines, and client communications can be difficult when relying on spreadsheets and manual updates.

• Brokerage account trust accounting: TPAs that offer self-directed brokerage account options to their plan sponsors need to scan, sort, file, and enter data from thousands of pages of asset statements every month.
  

Once you’ve identified the areas where automation can have the biggest impact, you can begin implementing tools like Stax.ai CX and TA to streamline these processes.

2. Automate Payroll Processing and Data Scrubbing

One of the most impactful areas to automate is payroll processing. For many TPAs, manually uploading payroll reports, validating census data, and ensuring compliance is time-intensive and prone to errors.

Stax.ai CX offers automated payroll integration with over 200 payroll providers. The platform automatically scrubs and validates payroll data, mapping it to the necessary census fields and ensuring that all data is accurate. This significantly reduces the time spent on manual data entry and improves the accuracy of your compliance reports.

By automating payroll processes, TPAs can save hours of work per week, reduce errors, and free up their staff to focus on more strategic initiatives.

3. Streamline Client Onboarding

Client onboarding is another critical area where automation can make a big difference. Manually gathering and entering client data not only delays the onboarding process but also increases the risk of data entry mistakes.

With Stax.ai CX, client onboarding is fully automated, allowing clients to securely submit their data through a white-labeled client portal. The platform handles data collection, validation, and integration, ensuring that everything is set up correctly from the start. This automation speeds up the onboarding process, providing a better experience for your clients and ensuring that they can quickly begin using their retirement plans.

4. Automate Task and Project Management

Keeping track of tasks, deadlines, and client communications manually can be overwhelming, especially as your client base grows. Using spreadsheets or relying on email threads to manage projects often leads to missed deadlines, dropped tasks, and frustrated clients.

With Stax.ai CX, TPAs can automate task creation, track project milestones, and set up automated reminders for important deadlines. The platform provides a clear, centralized view of all tasks, allowing your team to stay on top of their workload and ensure nothing falls through the cracks.

Automation in task management not only boosts productivity but also improves collaboration and accountability within your team.

5. Enhance Client Communication with Automation

Client expectations are higher than ever. They expect timely responses, real-time updates, and seamless communication throughout the plan administration process. Automating client communication is key to meeting these demands.

The Smart Inbox in Stax.ai CX integrates with email platforms like Outlook and Gmail, allowing you to automate follow-ups, track client sentiment, and ensure that no message goes unanswered. This automation streamlines communication, reduces response times, and ensures that your clients are always informed.

By automating email management and client communication, TPAs can improve client satisfaction, build stronger relationships, and reduce the time spent manually managing communications.

6. Embrace Data-Driven Insights

Automation doesn’t just save time—it provides valuable data that can drive better business decisions. Stax.ai CX delivers real-time analytics and insights, allowing TPAs to monitor performance metrics, track client engagement, and identify areas for improvement.

With automated reporting and data visualization, TPAs can gain a clear understanding of their operations and make informed decisions to improve productivity, client retention, and overall business growth.

The Road Ahead: Making the Shift to Automation

Moving from manual processes to automated workflows may seem daunting, but with the right tools and approach, it can be a seamless transition that delivers immediate benefits.

To begin your digital transformation, start small. Automate key tasks like payroll processing and client onboarding, and gradually introduce more automation as your team becomes comfortable with the changes. By taking a phased approach, you’ll minimize disruption to your operations while still realizing the benefits of increased efficiency and reduced errors.

Stax.ai CX is designed to support TPAs at every stage of their digital transformation journey. Whether you’re just starting to explore automation or looking to fully digitize your operations, our platform provides the tools you need to succeed.

Digital transformation is no longer optional for TPAs—it’s essential to stay competitive and meet the growing demands of clients. By automating manual tasks, TPAs can improve accuracy, save time, and deliver a superior client experience.

With Stax.ai CX, TPAs can streamline their operations, reduce manual workloads, and set themselves up for long-term success. Now is the time to embrace automation and take the first steps toward a more efficient, scalable future.

Happy automating!