Change management is like guiding an organization—or an entire industry—from where it is now to where it wants to be. In the retirement industry, change is a constant companion, driven by regulations, tech advancements, and the need for better outcomes.

TPAs are the cat wranglers of this world, connecting plan sponsors with the systems that run 401(k)s. They're key players in change management, tasked with aligning employees, employers, IT teams, and regulators toward modernization. Just like herding cats, managing change is about more than just new processes or tech—it's about dealing with the human side of change to ultimately boost everyone's retirement security.

The industry faces challenges like burdensome regulations, legacy systems, and stakeholder resistance. Managing these is like herding cats: complex and sometimes messy, but with the right approach, it leads to positive outcomes. With nearly 900,000 new retirement plans expected by 2028, effective change management is more crucial than ever (Theresa Conti, Plan Consultant Winter 2025, 40-41).

At its best, change management minimizes disruption and maximizes benefits, all while taking care of people.

Part 1: Why Change?

Much like a cat reluctant to leave its favorite spot, the thought of change can make even seasoned professionals cringe. Yet, shifts in demographics, technology, and regulations mean the industry must move beyond the status quo to stay ahead.

Demographics

The retirement savings gap and an aging population are front and center. Despite more 401(k) plans, many employees aren't saving enough. A Principal survey found 59% of non-savers thought they were saving. This gap calls for changes in communication and plan structure. Plus, many are delaying retirement due to insufficient savings, highlighting the need for better planning.

• Implications: Change management can redesign plans and improve communication to boost participation and savings. It can also implement financial wellness programs to address barriers to saving.

Regulatory Burden

The industry is heavily regulated, with new laws like Secure 2.0 and ongoing IRS updates keeping everyone on their toes. The pace of change requires quick adaptation to stay compliant.

• Implications: Change management ensures smooth, timely implementation of changes. It involves updating documents, training employees, and communicating changes to secure retirement futures.

Technological Changes

Tech advances are moving fast. Embracing automation, data analytics, and cybersecurity transforms business operations, increasing efficiency and accuracy.

• Implications: Change management facilitates smooth tech integration by training and supporting staff, ensuring effective and efficient implementation.

Market Dynamics

TPAs face pressure to compete as large firms gobble up smaller ones. They need to stand out and offer unique value. Keeping up with legislative changes and scaling to handle more plans requires efficiency and innovation.

• Implications: Implications: Change management helps firms implement strategies that differentiate them from larger competitors, offering specialized services and personalized client care.

• Reflections: The growth in retirement plans presents opportunities and challenges. To thrive, TPAs must embrace change management to handle increased demand while delivering exceptional service.

Part 2: Herding Cats Stax.ai Style

In a world where legacy systems are as stubborn as grumpy cats, Stax.ai empowers TPAs to herd cats their way—focusing on people, sparking innovation, and embracing adaptability.

Empowering TPAs

Stax.ai provides AI-based cloud systems and workflow solutions that streamline operations. TPAs can reduce manual processes, freeing up time for strategic tasks and client relations. The platform scales to handle growing client demands, supporting data collection and customizable workflows.

• Implications: Automating tasks improves productivity, allowing staff to focus on high-value activities. Efficient resource allocation enhances overall effectiveness. Scalability supports business growth without operational constraints, crucial for long-term success.

Focus on People

People naturally resist change, fearing job loss or complexity. Stax.ai emphasizes keeping people at the center, ensuring tech enhances, not replaces, the human touch. Comprehensive training and support ensure employees feel valued and comfortable with new systems.

• Implications: A human-centric approach encourages engagement and reduces resistance. Training leads to smoother transitions and better tech use, reducing the learning curve and building competence. Ongoing support provides resources for success.

Innovation and Adaptability

Stax.ai is dedicated to innovation, evolving its platform to meet industry trends and regulatory changes. It ensures data accuracy and compliance through advanced validation and error correction. Seamless integration with existing systems minimizes disruption.

• Implications: Easy integration supports smooth change management, minimizing downtime and ensuring continuity. Staying ahead of trends keeps TPAs competitive and responsive to challenges. Adaptability ensures compliance with ever-changing regulations.

Final Thoughts

It’s easy to get caught up in the mechanics of change management and the best way to bring about a transformation in your firm. But let’s not forget the end purpose of herding those proverbial cats is to enhance employee retirement outcomes. Employees are the end user. While herding the different elements of change can be challenging, the end remains the same: to create a more efficient and user-friendly environment that benefits every employee's financial future, to build a framework for the retirement plan that supports better decision-making, greater engagement, and more efficient management.