1. The UK Pensions Landscape

UK pension schemes often require specialised project work which requires some form of pension fund recruitment.

De-risking plays a large part, especially pension buy-out (and pension buy-in). However, with legislative changes on the horizon and pensions dashboards not far around the corner, it seems unlikely that the projects associated with pension schemes are going to dry up.

In the case of GMP reconciliation, we have seen the traditional pension consultancies being hired to take the burden away from pension scheme trustees and pension managers.

However, this wasn’t without well-documented challenges around resourcing. So much so, David Walmsley, writing on a blog behalf of The Pensions Regulator, stepped into the debate late in 2024, stating: “Demand for pension administration services has put a strain on resources.” He goes on to list the same GMP issue I highlight but also touches on pensions dashboards and an increase in DB transfers.

We all agree that driving forward better member outcomes should be the goal here. It’s why Zatori is an active member of the Pension Administration Standards Association (PASA). So, for pension managers, in-house pensions administration teams, and pension trustees alike, what are the options to tackle their pension fund recruitment challenges in 2025 and 2026?

We wanted to start by outlining the challenges our research has uncovered.

2. Challenges Faced by Pension Managers, In-house pensions teams and Trustees

• Access to talent: Where do you look to secure the very niche and specialist skill sets that you need? It can seem quite daunting and hard to know where to start.
• High Costs: These projects are expensive to complete, which the scheme ultimately pays for. These costs are often driven higher by the need to improve data health and therefore expensive data cleanse projects are initiated before the work can commence.
• Volume of available talent: How do you secure the volume of talent you need, when you need it? The consultancy market is stretched by the sheer volume of demand. However, the resourcing need is temporary, and therefore it’s challenging to add permanent headcount to the in-house team.
• Managing the resourcing: A pension consultancy will manage the resource for you. However, in doing so, you lose control of them and risk their attention being diverted onto other higher-paying or larger clients. To manage the resource in-house comes with additional administrative challenges around HR, payroll, and others.

3. The Use Case for Hiring Interim Pensions Talent or Pensions Contractors to Help Solve Your Pension Fund Recruitment Challenges

3.1 Cost Efficiency

• Lower Rates: Contractors typically charge lower day rates than consultancies. If you wish to understand more on this front, get in touch, and we can complete a cost comparison analysis.
• Direct Resource Utilisation: Pension funds pay only for the contractor’s work, eliminating hidden charges for project management or unused resources.
• Managed Costs: The cost of the resource is lower and managed directly by the pension scheme, ensuring financial transparency and control. Additionally, payroll and assignment terms are handled by the recruiter, reducing the centralised costs associated with HR and administration.

3.2 Access to Qualified Individuals & Volume of Talent Available

• Tailored Skillsets: Contractors often have deep, niche expertise in areas like data cleansing, regulatory compliance, and buy-out preparation. You can access the skills and experience when you need them.
• Direct Access to Senior Professionals: Unlike consultancies, where you are reliant on them allocating you the right individual (and them being available), contractors are often seasoned professionals who perform the work themselves, providing you with clarity and reassurance around capability.
• Specialist Availability: The contractor market is rich with professionals who have extensive experience working on similar projects, making it easy to find the right expertise quickly. This market is different from the talent pool the regulator refers to, which is stretched, and employers are wary of employment costs. By engaging contractors, pension managers ensure better access to top-tier talent at the outset of a project.
• Re-deployment of the in-house team: We have seen in-house teams deploy administrations specialists with intricate knowledge of the scheme onto the project and then back-fill the resource with a pension administration contractor until the permanent resource returns to the administration team.

3.3 Managing the Resource

• Adaptable Engagement: Contractors can be engaged for as long as needed, whether for a few weeks or several months. This ensures you have the right skill sets and expertise when you need them for as long as you need them.
• Reduction in Contractor Maintenance: Partner with a contractor specialist as it will save you time on this front. For example, at Zatori, we pick up a lot of the fiscal, HR, and general assignment headaches for pensions managers and trustees. This allows you to scale up your teams with far less infrastructure and time investment than that of a permanent employee.
• Controlled Focus: By having direct control over the resource, pension managers can ensure they work solely on their projects without the risk of being pulled away to higher-paying clients.

3.4 Faster Delivery

• Focused Efforts: Contractors are typically single-mindedly focused on completing the specific project at hand, resulting in faster turnaround times.
• Reduced Bureaucracy: Direct reporting lines with contractors can reduce delays caused by layers of management within consultancies.

Martin has been advising businesses in talent acquisition and retention for over a decade. Discuss how you he can help you elevate your strategy, book a call or contact him at martin.wigfield@zatori-consulting.co.uk