HEWITT ASSOCIATES, INC.
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Hewitt Associates Inc. (NYSE: HEW) is an international human resources (HR) outsourcing and consulting company that delivers a complete range of integrated services to help businesses manage their total HR and employee costs, enhance HR services and improve their workforces. Also known as Hewitt, it is the world’s largest provider of multi-service HR business process outsourcing (BPO) and the only company that fully integrates HR outsourcing and consulting. The company is headquartered in Lincolnshire, Illinois, USA.
Hewitt’s historical root dates back to October 1940 when Ted Hewitt formed Edwin Shields Hewitt and Associates as an insurance brokerage specialized in financial planning for business executives. The company opened its first Hewitt regional office in Minneapolis, Minnesota in 1959 and subsequently organized several others from coast to coast. It branched into Toronto, Canada in 1974 and went overseas in 1985, opening offices in Paris and in St. Albans, outside London. Since then, the company has opened dozens of new offices.
Hewitt aids clients in developing, implementing and delivering strategies, programs and technologies, and helps manage the human elements necessary to acquire, develop, motivate and retain the talent required to meet business objectives. The company operates two business segments: Outsourcing and Consulting. In September 2006, it generated revenues of 70% from Outsourcing business and 30% from the Consulting segment. At that time, the Outsourcing segment was organized into two business lines: Benefits and Human Resources BPO, while the Consulting segment was organized within two lines of business: Benefits Consulting and Talent and Organization Consulting. In addition, the Consulting segment also provided tailored communication services, which included Outsourcing, to client solutions in all of its service areas.
Located in more than 30 countries throughout the world, Hewitt has offices across Asia Pacific, Europe and the Americas and employs approximately 24,000 associates. The company is led by Chairman and Chief Executive Officer (CEO) Russell P. Fradin.
Hewitt Associates, Inc. (Hewitt) is a provider of human resources outsourcing and consulting services. It operates in three business segments: Benefits Outsourcing, Human Resource Business Process Outsourcing (HR BPO) and Consulting. The Benefits Outsourcing and HR BPO segments manage, streamline, automate and administer the client’s human resource programs. On June 30, 2009, it acquired the remaining 72.25% of the outstanding shares of BodeHewitt AG & Co. KG (BodeHewitt). In February 2009, the Company completed the selling of its Latin America HR BPO business. In February 2010, the Company announced that it has completed a partial divestiture of its Executive Compensation Consulting business in North America. In March 2010, the Company acquired Senior Educators Ltd. (Senior Educators), a Web-based retiree medical insurance exchange that provides assistance to Medicare recipients. In May 2010, it acquired HRAdvance Inc. In September 2010, it acquired EnnisKnupp.
Description and history
Hewitt Associates, Inc. (Hewitt) is a provider of human resources outsourcing and consulting services. The Company operates in three business segments: Benefits Outsourcing, Human Resource Business Process Outsourcing (HR BPO) and Consulting. The Benefits Outsourcing and HR BPO segments manage, streamline, automate and administer the client’s human resource programs. On June 30, 2009, the Company acquired the remaining 72.25% of the outstanding shares of BodeHewitt AG & Co. KG (BodeHewitt). In February 2009, the Company completed the selling of its Latin America HR BPO business. In March 2009, Hewitt completed the selling of its net assets relating to its HR BPO mobility services business. On January 31, 2008, the Company completed the sale of its net assets of its Cyborg business (Cyborg). In February 2010, the Company announced that it has completed a partial divestiture of its Executive Compensation Consulting business in North America. In March 2010, the Company acquired Senior Educators Ltd. (Senior Educators), a Web-based retiree medical insurance exchange that provides assistance to Medicare recipients. In May 2010, the Company acquired HRAdvance Inc. In September 2010, the Company acquired EnnisKnupp, a provider of investment advisory services.
Benefits Outsourcing Segment
The Company’s Total Benefit Administration (TBA) platform integrates the administration of the client’s benefits programs, including defined benefit, defined contribution, and health and welfare. The TBA system allows integrated, single-system administration with multiple access channels. Using the Web-enabled, self-service center, Your Benefits Resources (YBR), client employees can execute transactions and manage their benefit programs using modeling tools, and a range of other support tools. The health and welfare service offering is built on the core benefits administration (CBA) platform.
Hewitt, through the call centers provide access to pension counselors who are knowledgeable about employees’ pension programs and who can explain the employees’ options and how the pension plans work. The Company provide defined contribution plan administration both to the mid-market and the large market.
Hewitt, through the TBA system manage the clients’ annual enrollment processes, communicate to employees their available options and support employee health and welfare decision-making. Employees can obtain information about available options and model health and welfare benefit costs under different scenarios. In addition, Hewitt’s ProviderDirect tool helps employees select in-network medical providers by criteria, such as specialty, location and gender. The Participant Advocacy service assists employees in resolving health plan eligibility, access and claim issues. The Your Spending Account spending account administration service gives employees a paperless way to manage their health care spending accounts and file claims for reimbursement. The Point Solutions offerings include absence management, clinical advocacy, flexible spending account administration, claims and appeals, your total rewards, and dependent audit.
The Company competes with Fidelity Investments, JP Morgan Chase, T. Rowe Price, ING Institutional Plan Services, Vanguard, Mercer, Affiliated Computer Services, HP EDS/ExcellerateHRO, Watson Wyatt Worldwide, Aon, Automatic Data Processing, Ceridian, Aliquant, Empyrean and Workscape in this segment.
HR BPO Segment
Hewitt provides self-service tools for a range of human resources programs for employees, managers and HR professionals. In addition, the Company provide call centers for those interactions and transactions that require personal assistance. It transmits and transfer data between the client and both their employees and outside parties, such as health plans, trustees and investment managers. It also provide clients with online tools that enable them to report on and analyze the effectiveness of, and the return on investments in, benefits, compensation and human resources programs, and to facilitate communication and project management. The services provided include core process management, workforce management and talent management.
The core process management includes workforce administration services and payroll services. The workforce administration services include employee records management, life events, employee events, reduction in force, organization structure changes and leave management. The payroll services includes time and attendance, on-and off-cycle pay, garnishments, and taxes and accounting.
Hewitt provides a portfolio of services that allow the clients to manage their workforce. The portfolio includes compensation administration services, total rewards services, leave and absence management services, and workforce analytics.
The talent management services provided by the Company includes recruiting services, learning and development services, performance management services, and succession planning services. The recruiting services include need identification, sourcing and attraction, screening, interviewing and selection, offer management, reporting and compliance. The learning and development services include learning paths and certificates, course catalog administration, event scheduling and logistics, evaluation and assessments, accounting, and content development and sourcing. The performance management services include planning and evaluation support, feedback collection, and individual profile maintenance. The succession planning services include maintenance of succession trees, tracking and monitoring of high-potential employees and development of incumbent and candidate profiles.
The Company competes with Accenture, Affiliated Computer Services, IBM, Convergys, Tata, Wipro and NorthgateArinso in this segment.
The consulting services offered by the Company include retirement and financial management consulting, talent and organization consulting, and health management consulting. Hewitt assist the clients in designing overall retirement program strategies aligned with the needs of companies and their employees; providing actuarial analyses and financial strategies to support clients in pension and risk management issues, and consulting on asset allocation, investment policies and investment manager evaluation.
The Company provide clients with strategy and design advice for meeting their people and workforce-related business challenges. It includes acquiring, managing and motivating the talent needed to meet business objectives; recommending compensation and performance management programs that align leaders and the workforce with business objectives; resolving people-related issues that determine the success or failure of organizational changes and business restructurings, such as mergers, acquisitions, divestitures, initial public offerings and joint ventures, and analyze the activities and costs of the human resources function.
The health management consultants help the clients to lower health care costs and improve productivity with strategies, analytics and program management to improve the clinical health of individuals and financial health of benefit programs. The services help clients assess their plans to identify employee health risks and lifestyle behaviors, system issues, compliance concerns and provider performance; design solutions to meet their business goals and the health needs of their employee and dependent populations, and measure and manage results in areas of employee health and productivity, vendor and plan performance, and desired outcomes.
The Company competes with Mercer, Towers Perrin and Watson Wyatt Worldwide in this segment.
Ted Hewitt formed Edwin Shields Hewitt and Associates as an insurance brokerage specialized in financial planning for business executives
Human resources (HR) outsourcing and consulting company
682465 CANADA LTD
ERNST & YOUNG LLP
US SIC Code
100, Half Day Road
City province or state postal code
60069, LINCOLNSHIRE, IL
Phone: +1 847 295 5000
Fax: +1 847 295 7634
Country address: UNITED STATES OF AMERICA
Website url: www.hewittassociates.com