Why Is It So Hard to Find Administrators

[ERISA1]

We have been looking for DC Administrators for our full service, non-producing TPA practice (which includes Balance Forward Plans). We have had a very hard time finding candidates with experience in this type of firm. We get lots of applications from people who've worked in very big firms such as Vanguard, ExpertPlan, etc. But very few from small, full service, firms. We've advertised repeatedly on BenefitsLink and Monster. We're considering using head-hunters, but their fees are very high for a small TPA.

Do you have any insights into how to find Administrators? We used to be able to hire well-educated administrators straight out of the Philadelphia Institute for Paralegal Training; they had a certificate program in retirement plans. Where do they grow administrators now - and how can they be found?

We are located in the Philadelphia suburb of Bucks County. If you, or anyone you know is a potential candidate, please check our ad - Law Offices of R. David Danziger. As mentioned in the ad, we are offering a referral fee.

Thanks.

Dave

[Belgarath]

Are you simply not getting inquiries/applications, or just not getting the type you want?

I've heard similar laments from other sources. And while it's a "chicken or egg coming first" sort of circle, I think a good deal of it has to do with the job and real estate market. When things are good, people are much more likely to take a chance, sell their house, and move. Now that prices are way down, many people cannot afford to do so. Also, in 2-income households, it may be very difficult for the second person to find an acceptable job even if the first one does.

All of this then feeds on itself, so that people are much less likely to look, since it's too difficult or unaffordable, and since they know it is unaffordable/difficult, they don't bother to look/apply...

There may be lots of other reasons, of course. This is just a personal theory based upon anecdotal evidence.

[rcline46]

We have had to grow our own for quite some time. Spend a lot of time training and sheparding them through classes.

There is almost no trasferability of skills out of this industry. It is practically a dead end, and actually rather small. Finding people who have training and want to stay in is like finding hen's teeth. You may want to start recruiting from accounting courses in junior college or even right out of high school.

[K2retire]

When I was looking a couple of years ago, there were plenty of administrators, but no jobs. Now it seems that the job openings are expanding. Not sure what has happened to all the people who wanted to change jobs. But the people I talk to definitely are not interested in relocating.

[BG5150]

We get lots of applications from people who've worked in very big firms such as Vanguard, ExpertPlan, etc. But very few from small, full service, firms.

Years ago, the big firms had people doing everything: processing, testing, filings, etc. Then the industry trended toward "functionalizing," the companies creating departments for each type of work. So now people in those firms are exposed to one area of expertise and only a modicum of knowledge in the others.

[ERISA1]

Hi All - Thanks for your feedback and insights. I am learning, even as we correspond, that there are administrators available; but, they are not in active search mode and/or don't want to put their resumes out in the public realm. I always identify my firm by name on BenefitsLink ads - to assure applicants they are not applying to their current employer. I'm realizing; however, that our commuity is small. So, even if person is eager to speak, they might not want to get started by responding to a public ad.

I am learning that (1) you've got to network and reach out to potential contacts instead of merely posting an ad and expecting candidates to come knocking; and (2) Recruiters offer value (at high price) because they are taking the time to network and reach out.

I will still advertise on BenefitsLink; but I am taking supplemental steps. PS - If you know of any potential candidates in the Philadelphia area, I will greatly appreciate it if you will give me a call or suggest that they call me - in complete confidence. My number is 215-322-4202.

Have a great day.

[shERPA]

Once you get to a certain size you need to structure your company such that you have an advancement path so that you can grow your own. We've have new employees hired for clerical and trust accounting grow into full administrators if they have the aptitude and the interest. My two very strong DB/DC administrators came up this way.