Four talent tips for TPAs
Technology has the potential to revolutionize the way everyone, including third-party administrators (TPAs), work. But there’s no denying that attracting and retaining the best talent is still one of the key drivers to long-term success. We’ll look at research on TPA employee satisfaction and offer tips to help keep your employees happy.
Hiring needs and challenges for TPAs
Employee compensation and benefits represent 55% of revenue and 70% of expenses for TPA firms. Staying connected with employees and addressing any signs of dissatisfaction can help you create a positive and rewarding work environment, which can in turn support a strong return on your investment.
More than 80% of TPA firms plan to add employees in 2025. The competition for top talent is fierce, and the demand for the best candidates is intense. Now that working from home is the norm, physical location may no longer limit your, or your competitor’s, talent pool. Even if you’re not actively hiring, your competitors may be—and they may target your top performers who have the skills and experience they desperately want.
Tips for TPA employee retention
How can you stand out and keep your best employees happy, engaged, and loyal? Offering a competitive compensation package alone may no longer be enough. You need to consider going beyond the paycheck and give employees a compelling reason to choose and stay with your firm.
The results of a TPA employee survey highlight key areas for improvement and can help guide discussions on enhancing your workplace environment and leadership strategies.
1 Set clear goals for your employees
The landscape for many TPA firms has shifted dramatically due to regulatory, economic, and technological changes. With these shifts, long-standing systems and processes have evolved and, in some cases, created confusion and uncertainty.
- 27% of employees are unsure about how their performance will be measure and lack clear performance objectives for the next year
Work closely with all your employees to set annual goals that align with your business objectives so results can be clearly measured. And be sure they know how to achieve their goals.
2 Communicate your business strategy to employees
Strong leaders make big differences because employees look for firm and consistent leadership. Employees want reassurance, not just about their role and performance, but also regarding the company’s viability and success.
- 66% of TPA employees are unsure of the firm’s high-level business goals and what company success actually looks like
- 38% want more feedback on their own personal performance
Share your business plan with employees so they have a clear picture of areas that they should focus on and how their contributions can add to your firm’s success. Give your employees opportunities to ask your leadership team questions so they feel part of your business challenges and solutions.
3 Stay connected to your employees
Many factors influence morale. Keeping employees engaged and satisfied with their jobs can be challenging. Economic uncertainty—combined with increased employee turnover, heavier workloads, and the shift to remote work—can take a toll on morale.
- Only 19% of TPA employees rate the team morale as excellent
Keep in close communication with your employees so you can stay connected to how they feel about their job and your company. Let employees know your goals related to employee satisfaction.
4 Measure your client satisfaction and share with employees
Customer satisfaction matters to employees. Despite facing challenges and turmoil, most employees believe they deliver exceptional service to their clients. But only one-third of TPA firms seek formal client feedback, leaving many without tangible measures of their service for validation.
- 82% think their clients would give a good or very good service rating
Connecting with your clients regularly can help set clear expectations and measure their satisfaction with your services. Create a process to get feedback and turn what you learn into ways you can improve how you operate. Sharing client feedback with your employees can help them feel connected and understand how their role affects client satisfaction.
Solving employee retention challenges
Finding the right employees and keeping them happy requires a major investment from your firm. You can protect your investment by keeping your eye on the company culture and performance of your top employees. Use the research on employee satisfaction at TPA firms to help create a work environment that’s both desirable and rewarding for employees.
Important disclosures
Important disclosures
This publication includes the results of commissioned Anonymous Staff Survey, TPA Adviser Satisfaction Survey, CATScan™ Client Survey, and Business Benchmarking diagnostics conducted by Business Health Pty Ltd on behalf of Manulife John Hancock. Business Health Pty Ltd and Manulife John Hancock are not affiliated, and neither is responsible for the liabilities of the other. The information contained in this publication is provided for informational purposes only and should not be relied upon as the sole basis for making business, legal, or investment decisions. Business Health’s tools have been created to allow the owners of TPA businesses to measure and benchmark their firm’s performance against a relevant, high integrity, and contemporaneous marketplace data set. All statistics, unless otherwise specified, have been provided by Business Health Pty Ltd and have been compiled from data collected through the use of proprietary third-party administrator diagnostic business tools. Business Health uses secure, purpose built, proprietary web portals to collect information individually and directly from the owners of TPA firms, their employees, their clients, and their referring financial advisor business partners. All statistics, benchmarks, and insight are compiled from the latest data contained in Business Health’s data warehouse or a subset based on an appropriate/applicable time period at the time of production. As of 6/22/25, in total, data has been provided by 2,881 TPA staff members, 6,156 TPA clients, 472 TPA referral partners, and 554 TPA firms.
The content of this document is for general information only and believed to be accurate and reliable as of the posting date but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Consult your own independent advisor as to any investment, tax, or legal statements made.
This is intended for an intermediary audience.
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