We’re in the thick of fourth-quarter madness. Open enrollment is always a difficult time for benefits administration and human resources (HR) teams and turnover is common, but issues appear to be different than in previous years. And like many employers, outsourced administration firms are experiencing a shift in their staffing, commonly referred to as “The Great Resignation.” We’re observing these staffing issues and the resultant slow in response times and quality firsthand, and so are our clients.

Viewpoints from Virginia Talbot

Outsourced administration firms need to balance labor costs and revenue carefully in the best of times.

As employee attraction and retention become more challenging, we may see fees increase across the board. One firm has already taken this step and I’m hopeful this will help keep their service levels and quality high. 

Employers will want to get ahead of these increases sooner than later.

I recommend two key preparedness actions at this time. First, review current benefit administration agreements for service level guarantees and fees at risk to monitor enforcement of these contract terms. Second, consider if some of these services could be in-sourced or co-sourced to maintain closer control of key processes.

Our Service and HR Technology teams are keeping a keen eye on this phenomenon and will continue to build strategies for employers if this trend persists. Reach out to your EPIC account executives – we’re here to help!


EPIC offers these opinions for general information only. EPIC does not intend this material to be, nor may any person receiving this information construe or rely on this material as, tax or legal advice. The matters addressed in this article and any related discussions or correspondence should be reviewed and discussed with legal counsel prior to acting or relying on these materials.


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Virginia Talbot

Managing Consultant, HR Technology Solutions Group