Hewitt Associates

THE SCOOP

Resourceful human resources

In October 2010, Aon Corporation completed its purchase Hewitt Associates in order to expand the reaches of its consulting arm. This purchase was valued at almost $5 billion, and nearly tripled the size of their consulting divisions. As a result of the merger, the newly formed Aon Hewitt intends to operate as an independent business line of the larger corporation. In addition, their consulting services intend to eliminate redundancy by firing around 1,500 employees, saving the company an estimated $280 million.

Hewitt Associates is one of the world's largest management consulting firms specializing in maximizing organizations' investment in human resources solutions.  Its claim to fame: It is the world's largest provider of benefits and multiservice HR business process outsourcing, and integrates HR outsourcing and consulting.  The firm's 23,000 employees, working from 110 offices in 33 countries, serve more than 3,000 clients, which include nearly two-thirds of the Fortune 500 companies and more than a third of the Fortune Global 500.

 

Hewitt might be big, but it's likable, too-nearly 95 percent of Hewitt's largest clients have worked with the firm for at least five years.  In fact, the firm has been recognized as one of America's Most Admired Companies by Fortune magazine every year since 2004.

A list of firsts
The firm was founded in 1940 by Ted Hewitt as an insurance brokerage in a bank building in Lake Forest, Ill.  As Hewitt Associates grew, so did its expertise, and the firm pioneered a number of now-standard HR functions.  In the 1940s, it designed the first noncontributory employee savings and pension plan recognized by the Internal Revenue Service.  In the 1950s, it was the first to measure ongoing investment performance for defined benefit plans.  In the 1960s, Hewitt was one of the first consulting firms to tie benefits and compensation to corporate goals and missions, communicating total compensation as part of a business plan.  In the 1970s, it designed the total compensation measurement methodology to gauge the value of salary packages, and in the following decade it was the first to design a large employer 401(k) plan.  In the 1980s, Hewitt created one of the first full-service, outsourced benefits centers.

In 2000, Hewitt became the first firm to provide HR benefits process outsourcing services-including benefits, payroll, HR information systems, recruiting, learning and other HR services-integrated with consulting expertise.  Today, the firm provides services annually to more than 20 million employees around the globe.

HR, covered
Hewitt's business is broken down into three business segments: HR consulting services, HR benefits outsourcing services and integrated HR business process outsourcing solutions.  The firm works with clients to create and manage retirement programs; design and deliver health plans; help attract, keep and reward the best employees; find ways to reduce HR costs; address HR and people issues in mergers, acquisitions and divestitures; administer HR and Benefits programs; communicate and drive organizational behavior changes; and develop comprehensive HR solutions to improve clients' bottom lines. 

In 2009, Hewitt's HR consulting business saw its revenue drop by 1 percent, after seeing it grow by 12 percent the previous year..  The segment, which comprises 33 percent of the firm's total revenue, consists of four main practices: retirement and financial management, health management, communication, and talent and organization consulting. 

Making up slightly more than half of Hewitt Associates' revenue in 2009, however, was its benefits outsourcing segment.  The unit offers clients a way to outsource their defined benefit, defined contribution, and health and welfare administration services, as well as absence management, flexible spending and participant advocacy programs.  Pulling up the rear in Hewitt's 2009 ledger books was its HR BPO segment, which made up 16 percent of revenue. 

 

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Hewitt Associates


100 Half Day Road
Lincolnshire, IL 60069
Phone: (847) 295-5000
Fax: (847) 295-7634
www.hewitt.com

STATS


  • Employer Type: Public
  • Stock Symbol: HEW
  • Stock Exchange: NYSE
  • Chairman & CEO: Russell Fradin
  • 2010 Employees: 23,001

Major Office Locations

  • Lincolnshire, IL

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