HR Business Processing Outsourcing With Examples

8/2/2019 HR Business Processing Outsourcing With Examples

1/26

HR Business Processing Outsourcing

Overview

ADP's Human Resources Business Process Outsourcing (HR BPO) is about creating better serviceat the company level. It is about transforming how HR services are delivered. BPO also means

improved cost transparency and business efficiencies for your company.

HR BPO is the practice of shifting the responsibility for three or more transactional processes,such as payroll, benefits administration and call centers, to a single vendor that's made itsreputation in these areas, while freeing up HR specialists to concentrate on strategicallyimportant tasks such as succession planning and executive coaching. Enterprises around thecountry are considering it.

Advantages

HR BPOs main advantage lets an organization eliminate all the transactional, repetitive,important, but low value-added parts of HR and concentrate on the essentials.

It also gives companies access to new technology they cannot afford themselves such asemployee self-service.

BPO also means improved cost transparency and business efficiencies for your company With HR BPO, organizations can maximize their return on investment.

ADP Mid-Sized HR Outsourcing Solutions

ADP is redefining workforce management with your needs in mind, bringing together yourmission-critical functions in a single web-based system that eliminates redundant tasks, reduces the

potential for errors, and makes it easy for managers and employees to do what they need to do in

the most efficient manner. Our suite of leading-edge HR tools strengthens how these important

functions are managed and delivered.

With ADP Workforce Now, youll gain the tools you need to handle diverse HR challenges,without adding to your headcount. Best of all, youll have the support of a trusted partner whounderstands your goals and mirrors your commitment to your business, your employees and yourbottom line.

ADP Workforce Now Comprehensive HR is designed to give businesses like yours the powerto compete at a higher level. This solution gives your HR staff ready access to a dedicated teamof HR Specialists and an Employee and Manager Service Center to support your core payroll,benefits administration, and HR administration needs from recruitment to retirement.

ADP ResourceSMoffers you a way to gain access to HR professionals to answer those HR administrative

questions and offload tasks. It encompasses a complete flexible and integrated human resource


2/26

management solution with everything from payroll and tax filing, employee assistance, training programs,

risk management and HR Administration functions plus benefit administration.

Professional Employer Organization

A Professional Employer Organization (PEO) provides integrated services which enable business owners

to cost-effectively outsource the management of human resources, employee benefits, payroll and

workers compensation. PEOs deliver these services through a co-employment model. ADP's Professional

Employer Organization (PEO), TotalSource, provide employers with a comprehensive Human

Resources outsourcing solution that helps reduce the costs and complexities related to employment and

human resources management. ADP integrated PEO services enable employers to deal with the costs,

complexities, and administrative burdens of human resources and employment management.

HR Business Process Outsourcing for Large

Businesses

ADPs HR Business Process Outsourcing (BPO) solution delivers better HR for the middle-market

to provide your organization with the best total value. No one knows the HR BPO domain like

ADP; after all, we invented HR outsourcing more than a half-century ago, and weve led the

industry in developing and implementing best practices ever since.

We offer comprehensive, fully integrated HR, benefits and payroll solutions with higher qualityservice and lower cost than in-house. Couple that with our unparalleled knowledge of the mid-market and our strategic partnering approach with clients and youve got the best HR BPOoffering out there. Our rock-solid financial strength enables us to keep investing in the bestprofessionals, cutting-edge technologies and best-of-breed solutions. It all adds up to our robust

value proposition that no other firm can match: Better HR for mid-market companies like yours.

Benefits of choosing ADPs HRBPO solution:

Economic BenefitsReduce HR department total cost of ownership (TCO) up to 40%; lower HRcapital investments and operating expenses for staff, infrastructure and technology.

Strategic BenefitsAlign HR resources with strategic business plans; free your HR executives tofocus more on strategy; provide your employees with better benefits and retirement information.

Operational BenefitsProvide operational excellence and integrated solutions; implement world-class best practices; and standardize for economies of scale and process efficiencies.

Technology BenefitsProvide you with ready access to the most proven HR technology platformin the outsourcing industry, which we designed from the ground up for mid-market companies.

Human Resource BenefitsProvide you with better information and analytics for managing yourworkforce; provide your employees with more choices and greater control over their benefits andcareers.

Risk Management BenefitsEstablish strong governance structure, program management,regulatory compliance, risk assessment/mitigation and total quality assurance programs.

Corporate Sustainability BenefitsManage environmental, health, safety programs; reduceenergy requirements for offices, data centers, equipment; reduce paper and waste.


3/26

Range of Services

Pre-Employment ServicesCareer centers, sourcing/recruiting, applicant tracking, screening, on-boarding, employment tax credits, compliance.

HR AdministrationIntegrated HR, benefits and payroll solution; manager/employee self serviceportal; compensation and performance management, compliance, reporting.

Benefits AdministrationHealth & Welfare, carrier enrollment, call centers, COBRA, FSA,commuter benefits, employee communications, leave administration, reporting.

Payroll AdministrationGross-to-net processing, accruals, garnishments, general ledger, onlinepay statements, checks, direct deposit, tax filings, reconciliation, reporting.

Time & Labor ManagementTime/attendance, data collection, scheduling, absencemanagement, activity tracking, analytics, payroll integration, reporting.

Retirement ServicesDefined contribution plans, executive deferred compensation plans,premium only cafeteria plans, recordkeeping, reporting.

Recruitment Process Outsourcing (RPO) ServicesSolutions that help find, recruit, hire andretain top talent.


4/26

HR Business Process Outsourcing

We are pioneers in the HR business process outsourcing (HR BPO) industry and were one of thefirst providers to offer multi-process services. Today we serve more clients than any provider,

and our client satisfaction is the best in the industry. The 2010 Black Book of Outsourcing, anindependent research firm that surveys the buyers of HR BPO services, reports that Aon Hewittis ranked #1 in client satisfaction among all providers.

As the largest benefits and broad HR BPO provider in the world, Aon Hewitt handles more than240 million HR-related customer interactions a year for more than 21 million employees andretirees.

Whether your organization is a complex global enterprise, a growing mid-sized business, orsomewhere in between, we can help you:

Lower and control costs

Improve delivery Reduce compliance risk Free up time to focus on strategic HR Improve the ROI of your HR investments

Our HR BPO Business

Aon Hewitts HR BPO business provides administrative services across all HR areas, includingbenefits. We serve nearly 30 HR BPO clients and more than a million employees in over 100countries. Our services are delivered by more than 5,000 experienced colleagues located in six

full-service delivery centers across the globe.

We integrate our rich experience, proven delivery model and industry-leading tools andtechnologies to deliver a holistic customer experience. Our HR BPO offer is broad and includescomprehensive HR administration combined with built-for-purpose HR tools, including ourmyHR Desktop and CS Pro. The myHR Desktop seamlessly integrates with Aon Hewittsbenefit offers and commercial talent partnersenabling a consolidated entry point, customerexperience and integration platform for all HR programs.

Our Administrative Services

Our administrative services leverage best-practice processes and innovative technology solutionsthat enable employees, managers and HR professionals to acquire, develop, reward and managetheir workforce effectively. Our administrative solution is comprehensive and includes thefollowing services:

Workforce Administration Payroll
http://www.aon.com/human-capital-consulting/hrbpo/workforce_administration.jsphttp://www.aon.com/human-capital-consulting/hrbpo/payroll.jsphttp://www.aon.com/human-capital-consulting/hrbpo/payroll.jsphttp://www.aon.com/human-capital-consulting/hrbpo/workforce_administration.jsp


5/26

Total Rewards Learning and Development Services Performance Management Services Recruitment Process and Staffing Outsourcing Absence Management Flexible Spending Account Administration Dependent Verification Services Advocacy Services Compliance Services Supplier Management Executive Workforce Analytics Specialized HR Solutions Retirement and Financial Services

Workforce Administration

We help our clients manage their workforce and business effectively and efficiently with best-practice processes and innovative, intuitive tools, which include our proprietary myHR self-service platform along with the following administrative activities:

Workforce administration: Employee records management, life events, employmentevents, reduction in force, organization structure changes and I-9 administration.

Payroll

We help our clients reward their talent using an integrated approach to managing totalcompensation. Our model includes either implementing our proprietary benefits, compensationand payroll technology platforms or supporting existing systems along with the followingadministrative activities:

Benefits: Program delivery and administration; recordkeeping and reconciliation; benefitaccounting; invoice review and payment; and supplier sourcing and management forhealth and welfare, defined contribution and defined benefit programs.

Compensation: Administration of salary, bonus and stock options; salary surveys; andtotal rewards communication.

CompLinkis the engine behind our broader compensation administration solutionwhich combines technology, automation and operational support to provide clients withefficient and accurate compensation planning and administration.

Payroll: Time and attendance, on- and off-cycle pay, garnishments and taxes andaccounting.

Total Rewards: Aon HewittsTotal Rewards Solutions can educate employees andcandidates about the total annual value of the rewards you provide them.

Total Rewards
http://www.aon.com/human-capital-consulting/hrbpo/payroll.jsphttp://www.aon.com/human-capital-consulting/hrbpo/payroll.jsphttp://www.aon.com/human-capital-consulting/hrbpo/total_rewards.jsphttp://www.aon.com/human-capital-consulting/hrbpo/learning_development_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/performance_management_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/recruitment_process_outsourcing.jsphttp://www.aon.com/human-capital-consulting/hrbpo/absence_management.jsphttp://www.aon.com/human-capital-consulting/hrbpo/spending_account_administration.jsphttp://www.aon.com/human-capital-consulting/hrbpo/dependent_verification_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/advocacy_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/supplier_management.jsphttp://www.aon.com/human-capital-consulting/hrbpo/executive_workforce_analytics.jsphttp://www.aon.com/human-capital-consulting/hrbpo/specialized_hr_solutions.jsphttp://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/compLink.jsphttp://www.aon.com/human-capital-consulting/hrbpo/compLink.jsphttp://www.aon.com/human-capital-consulting/hrbpo/total_rewards.jsphttp://www.aon.com/human-capital-consulting/hrbpo/total_rewards.jsphttp://www.aon.com/human-capital-consulting/hrbpo/total_rewards.jsphttp://www.aon.com/human-capital-consulting/hrbpo/compLink.jsphttp://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/specialized_hr_solutions.jsphttp://www.aon.com/human-capital-consulting/hrbpo/executive_workforce_analytics.jsphttp://www.aon.com/human-capital-consulting/hrbpo/supplier_management.jsphttp://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/advocacy_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/dependent_verification_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/spending_account_administration.jsphttp://www.aon.com/human-capital-consulting/hrbpo/absence_management.jsphttp://www.aon.com/human-capital-consulting/hrbpo/recruitment_process_outsourcing.jsphttp://www.aon.com/human-capital-consulting/hrbpo/performance_management_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/learning_development_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/total_rewards.jsp


6/26

We help our clients reward their talent using an integrated approach to managing totalcompensation. Our model includes either implementing our proprietary benefits, compensationand payroll technology platforms or supporting existing systems along with the followingadministrative activities:

Benefits: Program delivery and administration; recordkeeping and reconciliation; benefitaccounting; invoice review and payment; and supplier sourcing and management forhealth and welfare, defined contribution and defined benefit programs.

Compensation: Administration of salary, bonus and stock options; salary surveys; andtotal rewards communication.

CompLinkis the engine behind our broader compensation administration solutionwhich combines technology, automation and operational support to provide clients withefficient and accurate compensation planning and administration.

Payroll: Time and attendance, on- and off-cycle pay, garnishments and taxes andaccounting.

Total Rewards: Aon Hewitts Total Rewards Solutions can educate employees andcandidates about the total annual value of the rewards you provide them.

Learning and Development Services

We help our clients develop their workforce with our comprehensive talent management deliverymodel that provides an integrated approach to managing performance and delivering effectivetraining. Our model includes implementing and supporting best-in-breed technology systems andthe following administrative services:

Learning and development: Learning paths and certificates, course catalogadministration, event scheduling and logistics, evaluation and assessments, accountingand content development and sourcing.

Performance management: Planning and evaluation support, feedback collection, andindividual profile maintenance.

Succession planning: Maintenance of succession trees, tracking and monitoring of highpotentials and development of incumbent and candidate profiles.

Performance Management Services

We help our clients develop their workforce with our comprehensive talent management deliverymodel that provides an integrated approach to managing performance and delivering effectivetraining. Our model includes implementing and supporting best-in-breed technology systems andthe following administrative services:

Learning and development: Learning paths and certificates, course catalogadministration, event scheduling and logistics, evaluation and assessments, accountingand content development and sourcing.
http://www.aon.com/human-capital-consulting/hrbpo/compLink.jsphttp://www.aon.com/human-capital-consulting/hrbpo/compLink.jsphttp://www.aon.com/human-capital-consulting/hrbpo/compLink.jsp


7/26

Performance management: Planning and evaluation support, feedback collection, andindividual profile maintenance.

Succession planning: Maintenance of succession trees, tracking and monitoring of highpotentials and development of incumbent and candidate profiles.

Recruitment Process Outsourcing

Aon Hewitt Recruitment Process Outsourcing has the proven experience, proprietary tools andtechnology to help you acquire top talent in the marketplace efficiently and effectively. Wepartner with global organizations to build strategic, scalable talent acquisition solutions thatsupport the end-to-end hiring of 65,000 people and assessment of 10 million candidates eachyear. Our state-of-the-art RPO solution combines experts in candidate sourcing, operations, andtechnology with dedicated recruitment teams ensuring candidates and hiring managers have

exceptional hiring experiences.

Expertise

Aon Hewitt has recruiting experts with deep expertise in Financial Services, Hospitality,Manufacturing, Professional Services, Technology and the Public Sector. Our clients aretypically large global organizations with dynamic needs that require a scalable solution to meetpeak hiring activities across broad geographies and all job families. From high volume positionsthat require the operational expertise to keep the candidates moving efficiently through the hiringprocess to hard to fill positions such as engineering, investment bankers, skilled trades andspecialized industry sales functions that require innovative and proactive search techniquesthe

Aon Hewitt delivery model provides your company the flexibility to excel even with theambiguity of your changing talent acquisition needs.

Global Approach

Our global infrastructure allows us to collaborate with a client about the solution that typicallystarts in one region of the world but allows for future expansion to a truly global solution. Ourproprietary technologies and partnerships with leading third part technologies allow us to offerclients an integrated approach to talent acquisition around the world. Our proprietarytechnologies are currently helping clients across 5 continents optimize their hiring process. Asthe largest HR Business Process Outsourcing provider in the world, we have tremendous global

infrastructure to grow with our clients needs. We currently have Aon Hewitt Business ProcessingOutsourcing Service Centers providing talent acquisition services in the United States, Canada,the United Kingdom, India, and Poland.

Value

Aon Hewitt is the leading HR BPO provider in the world. Work with a firm that you can havethe confidence understands Outsourcing, Governance and continues to invest in its business to


8/26

bring the best solutions to clients. We have helped our clients significantly improve their hiringprocesses, improve quality of hire and reduce turnover, enabling them to achieve better businessoutcomes. Some of the key improvements our clients are typically seeing:

Reduce cycle time to fill by 20-40 percent Reduce early turnover by 10-20 percent Reduce average recruiting costs by 15-30 percent Reduce business unit effort on hiring process by 35-65 percent

End-to end recruitment

Our talent acquisition professionals focus solely on ensuring your company is hiring the toptalent to help you excel in the future. Our candidate sourcing team combines the latesttechnologies, market analysis, and targeted outreach to attract the best. Our operationsprofessionals ensure the logistics of the hiring process are smooth and efficient. Our dedicatedrecruitment teams manage the candidates and hiring manager relationships and ensure the hiringmanager is seeing the top candidates. We offer comprehensive all inclusive solutions for everyposition your company or specialized high volume programs for specific positions across yourenterprise.

Point Recruitment Solutions

We also offer more targeted solutions that address the major challenges of candidate sourcing,candidate assessment and selection, recruitment administration support, and recruitmenttechnology.

Candidate Sourcing Solutions

Generating quality candidates is the life-blood of any recruitment program. Without a significantnumber of the right candidates being attracted to your opportunities, the entire hiring process willsuffer on the quality of new hires, cycle time to fill, and business unit confidence in yourrecruitment department. Our sourcing programs are designed to ensure certain that passive andactive candidates learn of your opportunities. We design aggressive and efficient sourcingstrategies that deliver results. Our integrated recruitment strategy utilizes the following maincomponents

market research and analytics social media and diversity strategies postings and ad placement database mining and resume screening pipeline creation and management outbound email and calling campaigns

Candidate Assessment and Selection

Few decisions are as important as selecting the people who will help the organization succeed.Even when your labor pool is flooded with job seekers, it is difficult to identify just the right


9/26

employees to move the organization forward. A valid testing system takes the guesswork out ofbuilding a pool of qualified, job-ready candidates. Well-designed pre-employment tests areknown to be strong predictors in identifying those who will be successful on the job. AonHewitts validated pre-employment testing are proven to:

Improve on-the-job and training performance

Decrease turnover Identify candidates with the required select for skills Pin-point gems in a large candidate pool Reduce costs associated with poor selection decisions Improve on-the-job safety behavior

Recruitment Administration

Precision execution is critical for a hiring program to work effective and efficiently. Once theright candidates have been sourced and pre-screened, ensuring the process flows as smoothly andefficiently as possible is needed to ensure you close the best candidates. Aon Hewitt has the

experience and scalability you need across these critical functions to ensure your cyclical hiringneeds are met with precision. We ensure flawless execution of the following key components

interview process management candidate tracking and ATS disposition candidate correspondence offer process management reference checking background check and drug test coordination onboarding support reporting and process analysis

Recruitment Technology Management

A successful implementation of your Recruitment Technology is a key component to the successof any large recruitment program. Aon Hewitt has the experienced implementation and ongoingtechnical resources to optimize your use of technology. We help clients makes the right decisionsabout which systems and components you should be implementing and how to implement themin the most effective manner to maximize their functionality for your business needs. Wecurrently manage the Recruitment Technology globally across clients for more than 500,000employees leveraging our preferred relationship with the industry leading recruitmenttechnology.

Absence Management

We offer fully integrated solutions that help companies solve absenteeism issues. Specifically,we provide comprehensive Family Medical Leave (FML), Leave of Absence (LOA), Short-TermDisability (SRD) and Long-Term Disability (LTD) claim and case management. Our solutionscontinuum includes risk management, analytics and claim and leave administration.


10/26

To do this, we combine best-in-class competencies in patient advocacy, disability and leavemanagement, data, technology and analytics, reporting and effective return-to-work programsthat provide measurable, positive outcomes. Our unique approach results in absence reductionsbetween 10 and 25%.

Absenteeism has a significant impact on total costs. While most recent cost management effortshave focused entirely on health care benefits, studies show that managing absence may actuallybe more effective in the long term. Aon Hewitts Absence Management Solutions help youimprove your financial and operational performance by minimizing the costs, impact onproductivity and risk associated with all forms of health-related absence. Our approach goes wellbeyond simply tracing absence after the fact. We help you understand why and where absenceoccurs and offer solutions that best address the underlying causes.

Our comprehensive absence management approach includes:

Proactive customer service from trained advocates that focus on your needs and those ofyour employees

Highly effective return-to-work solutions Proprietary, web-based technology that integrates data, analytics, case management and

communications

Spending Account Administration

We offer end-to-end solutions that help employers and their employees maximize tax-savingopportunities while navigating the legal and practical complexities of spending accountadministration.

We are also able to administer highly specialized, company-specific spending account programs.Aon Hewitt's spending account options include:

Section 125 Health Care Section 129 Dependent Care Health Reimbursement Health Savings Retirement Health Wellness and Employee Credit Plans Commuter Benefit Plans Adoption Assistance Tuition Reimbursement Health-Based Productivity Programs

Employees who participate in flexible spending accounts and other tax-favored accountprograms can save time and money. Nevertheless, managing the details of these accounts can bechallenging for both employees and employers.


11/26

Aon Hewitt's Spending Account Administration team, using our proprietary Your SpendingAccount online tool, offers complete administration that helps employers and employeeseasily navigate the legal and practical complexities of these accounts. The website's innovative,user-friendly technology provides full administrative support and requires little or no time fromHR staff.

With one click of a mouse, employees can:

Submit claims Check available balances Review claims status View a list of eligible expenses

You can further boost your health care spending account program's efficiency, value andparticipation by adding a Your Spending Account debit card, which enables employees to payfor eligible out-of-pocket expenses as they're incurred. Approximately 83 percent of card

transactions are validated automaticallyminimizing the hassle of paying out of pocket andsubmitting and processing paper receipts. When paper receipts are received, 95 percent of claimsare processed within three days and reimbursements are made daily.

Aon Hewitt provides administration through Your Spending Account for hundreds of thousandsof employee accounts annually. All types of accounts are supported, including Section 125health care spending accounts, Section 129 dependent care spending accounts, HealthReimbursement Accounts, retirement health accounts, credit and wellness plans, commuterbenefit plans (transit and parking), adoption assistance programs/plans and educationreimbursement programs/plans.

Dependent Verification ServicesAon Hewitt's Plan-Smart and Plan-Guard dependent eligibility solutions help companiesverify that eligible dependents maintain access to anticipated benefits and costly, ineligibledependents are removed from coverage as quickly as possible. Plan-Smart performs a completeaudit of an enrolled dependent population. Plan-Guard's ongoing dependent verification servicespreserve the integrity of the benefit plans on an ongoing basis and protect the results of thecomprehensive audit.

Employees' dependents drive up to 70 percent of a company's health care costs, but in extremecases, as many as 15 percent of dependents may actually be ineligible for coverage because ofage, marital status or failure to qualify as a legal dependent. Carrying all those extra people canadd thousandsif not millionsto your annual benefit costs. Verifying dependent eligibility,however, can be time-consuming and complicated for your HR staff.

Aon Hewitt's Dependent Verification Services can verify the eligibility of your employees'dependents, eliminating that potentially tedious task from your HR staff's responsibilities. Ourknowledgeable and experienced benefit professionals ensure a smooth verification process and


12/26

measurable results. Working with Aon Hewitt enables you to manage eligibility issues in a moreobjective environment, which helps mitigate potential participant concerns about sharingsensitive, personal information with their employer.

With Aon Hewitt's Dependent Verification Services, you can:

Reduce future dependent health care costs Improve employee understanding of what's driving health care costs Reduce compliance risk under Sarbanes-Oxley, ERISA and DOL guidelines

Our Dependent Verification Services can be customized with options such as one-time orperiodic verification, full population or random sample of plan participants or an initial amnestyperiod that allows employees to voluntarily drop ineligible dependents.

A wide variety of companies have used Aon Hewitt's Dependent Verification Services to verifyeligibility among active, inactive, retiree and COBRA populations. With an average reduction in

the number of eligible dependents of 8 percent for the initial audit and two to three times thatpercentage on an ongoing basis, the resulting cost savings are substantial.

Advocacy Services

Aon Hewitt's Advocacy Services team takes care of your HR department and employees byproviding unique, high touch solutions to a variety of business and employee-specific issues. Wedo this by offering personal navigation of challenging health and retirement benefit issues toindividual employees. Our team of highly trained advocates helps identify, navigate and resolvea variety of issues by clarifying employee requests to carriers and clarifying plan rules to

employees. We also offer medical clinicians who help employees become informed health careconsumers, better prepared to seek optimal treatment solutions.

Employees often find it confusing to sort out the complexity of today's health care and benefitplans, not to mention the confusion around medical diagnoses and treatment protocols. Theyneed information on access to care and claims issues from medical to vision, prescription drugsto Medicare. Sometimes employees turn to HR for help in addressing these complicated andtime-consuming problems, putting more pressure on an already lean HR staff. Other times,employees leave troubling issues unresolved simply because they're reluctant to share sensitivehealth information with HR out of fear that the information might affect an employmentdecision. Aon Hewitt's Advocacy Services help solve these issues.

We provide advocacy for nearly 4 million participants at a wide variety of client organizations.Advocacy Services help employers:

Reduce the time HR staff spends on escalated issues Operate within HIPAA's privacy rules and eliminate perceptions that an employee's

health problems could factor into employment decisions


13/26

Lessen employee frustration in resolving issues and increase satisfaction and appreciationof benefit plans

Resolve issues within the plan's ERISA-compliant deadlines by which employees mustfile claims

Improve employee productivity by helping them resolve distracting plan-relatedproblems

Identify trends and track health plan performanceAon Hewitt advocates are experienced in claims processing and knowledgeable about providerbilling practices, medical terminology and accepted industry standards. We have escalatedcontacts at insurance companies and use those contacts to get fast resolution. Our goal is 24-hourresolution for critical issues and five-day resolution for noncritical issues. The turnaround time isoften affected by responses from third partiesbut even in those situations, our Advocatesprovide consistent follow-up to ensure the fastest resolution possible.

Advocacy Services also provide detailed reporting that helps employers identify the root cause of

recurring issues that may indicate a need for comprehensive plan adjustments. Reporting can alsomeasure the impact of recurring issues and measure how much time and money companies savedas a result of making adjustments. Additionally, reporting can measure the increase of employeesatisfaction levels as a result of Advocacy Services. These are only a few of the issues ourreporting may address.

Aon Hewitt's Advocacy Services include:

Passionate, highly trained professionals with extensive medical, claims and customerservice experience

Enabling/assisting with access to prescription drugs and other company-provided benefits

Research and resolution of billing issues and unpaid claims Referrals to doctors and hospitals as well as health and wellness programs Explanations of additional coverage options such as Medicare Education for annual enrollment choices in employer and Medicare plans Facilitation of second opinions when needed

Compliance Services

Aon Hewitt helps companies effectively manage HR-related risk and compliance issues. Ourdedicated teams of experts offer a variety of highly specialized services that delve deeply intotechnical topics, keeping clients on the right side of the issues.

We offer professional services in a variety of areas including:

Claims and Appeals Management Qualified Domestic Relations Order (QDRO) Administration Qualified Medical Child Support Order (QMCSO) Administration Form 5500 Preparation Financial Statement Preparation
http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link1http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link1http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link2http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link2http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link3http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link3http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link4http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link4http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link5http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link5http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link5http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link4http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link3http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link2http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link1


14/26

Power of Attorney (POA) and Legal Guardianship (LG) AdministrationClaims and Appeals Management

Decisions about claims can be challenging and time-consuming for HR departmentsespecially

if there are insufficient resources to manage the process within the plan's ERISA-compliant timeframes.

Aon Hewitt's Claims and Appeals Management team provides companies of all sizes with a staffthat's trained and experienced in making claims determinations. Using guidelines based on yourplan's own rules and drawing on research gathered from Aon Hewitt's proprietary systems,applicable plan provisions, summary plan descriptions, call recordings, and other sources, theClaims and Appeals Management team makes timely and accurate first-level determinations,while carefully protecting participant privacy.

With Aon Hewitt's Claims and Appeals Management team, you can:

Reduce time spent by HR staff on your claims and appeals Provide unbiased and consistent benefit determinations that are well-documented Help ensure that your plan's ERISA-compliant time frames are satisfied. Protect participant privacy and confidentiality Use the team's research and documentation to assist with any second-level appeals where a

fiduciary decision is required Use Claims and Appeals Management team reports to track issues and trends

Aon Hewitt's Claims and Appeals Management team handles issues for all types of benefit plans,including health and welfare, retirement, disability and spending accounts. Team members areknowledgeable analysts with vast experience in claims processing and customer service. With a

wide variety of clients and nearly 4 million participants, the Aon Hewitt Claims and AppealsManagement team associates efficiently process thousands of claims each year.

Qualified Domestic Relations Order (QDRO) Administration

In addition to the employee's financial and emotional upheaval, divorce is also complicated andtime-consuming for HR staff charged with reviewing a Qualified Domestic Relations Order(QDRO) to assign all or part of a participant's retirement benefit to an alternate payee.

Aon Hewitt's QDRO Administration services offer a standardized, streamlined process thatenables companies to reduce the administrative burden on the HR staff. Our expert QDRO team

reviews court orders quickly, objectively and accurately in accordance with client-specificrequirements. Advantages of QDRO Administration include:

Reduced HR involvement in employees' divorce issues, freeing up valuable time for strategicinitiatives

Availability of preapproved court orders, enabling participants to minimize their attorneys' fees Improved possibility of first-time qualification as a result of our user-friendly Web-based tool

QOCenter.comwhere model orders can be completed online
http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link6http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link6http://www.qocenter.com/http://www.qocenter.com/http://www.aon.com/human-capital-consulting/hrbpo/compliance_services.jsp#link6


15/26

Availability of online order tracking, allowing participants, alternate payees and attorneys tocheck the progress of their order's qualification at any time

Easy-to-understand written communications provided to the parties at regular stages of theprocess

Aon Hewitt's QDRO team serves hundreds of companies and reviews thousands of QDROs each

year. Team members are dedicated, full-time experts that include paralegals with deep expertisein QDRO Administration.

Qualified Medical Child Support Order (QMCSO) Administration

Qualified Medical Child Support Orders (QMCSOs) and National Medical Support Notices(NMSNs) are ERISA-governed court orders that require a company to enroll an employee'seligible child(ren) in group health coverage.

The QMCSO and NMSN process includes:

Determining whether the order fully complies with federal rules and the terms of the employer'sindividual plan(s)

Identifying the type of coverage in which to enroll the child(ren) Determining the maximum amount of deductions that can be taken from the employee's paycheck

under state law Enrolling the child(ren) with an approved QMCSO or NMSN with coverage Communicating to the various parties (employee, custodial parent, attorneys, state agencies)

regarding whether an order is approved or denied and keeping them clearly informed of nextsteps

Child support issues create emotional and financial distractions for employees. For HR, the

process of reviewing QMCSOs and NMSNs is time-consuming and complicated. If adetermination is flawed or untimely, it may result in a child being improperly denied court-ordered coverage. This, in turn, can result in financial exposure or legal problems for theemployer.

Aon Hewitt's QMCSO Administration service offers a standardized, streamlined process thathelps ensure accurate and timely QMCSO administration. Our experienced team of professionalsreviews the order and approves or denies it within 15 business days. When an order is approved,the team coordinates the process of adding the child(ren) to the appropriate coverage with theclient's benefits administration team. The service also includes the cutting-edge websiteQOCenter.com, a user-friendly tool that allows parties to manage orders online. QOCenter.comprovides informational resources and, in addition, functionality that lets parties draft ordersonline, reducing their attorney fees.QOCenter.comalso enables parties to track the status of anyorder currently under review.

Aon Hewitt's QMCSO team serves a wide variety of companies of all sizes in all industries andreviews more than 30,000 QMCSOs and NMSNs each year. The team is made up of dedicated,caring experts with deep knowledge of the rule-bound QMCSO and NMSN processes. The team
http://www.qocenter.com/http://www.qocenter.com/http://www.qocenter.com/http://www.qocenter.com/http://www.qocenter.com/http://www.qocenter.com/http://www.qocenter.com/


16/26

delivers friendly, professional and consistent administration that minimizes HR involvement inemployees' divorce and related personal issues, freeing up time to focus on strategic activity.

Form 5500 Preparation

Most organizations that offer employee retirement and welfare benefit plans are required to file aForm 5500 each yeara time-consuming, highly specialized task that internal HR staff oftenlacks the time or expertise to complete. Moreover, penalties can be steep$1,100 each day afiling is late.

Aon Hewitt's Form 5500 Preparation service is provided by a dedicated team of experts whooffer a high degree of knowledge and commitment to timely, consistent and accurate filings.

With Aon Hewitt's Form 5500 Preparation, you get:

Signature-ready Forms 5500 and all related attachments for defined benefit, defined contributionand health and welfare plans (except audited financials)

Summary Annual Reports for each plan, including an electronic version Extension preparation (Form 5558) Filing guidance to minimize penalties for delinquent filings in accordance with the Delinquent

Filer Voluntary Compliance Program Management of data collection from multiple sources Response on your behalf to Internal Revenue Service or Department of Labor inquiries for

prepared filings Expert consulting to ensure accurate and complete filings

We serve hundreds of clients with thousands of filings each year, giving us the exposure andexperience to deal with a wide range of unique situations. Our breadth of knowledge also reduces

the time your staff spends gathering data for filingswhich further boosts the efficiency and costeffectiveness of this resource-intensive task.

Financial Statement Preparation

All employee benefit plans with more than 100 participants must submit a financial statementand audit report along with the annual Form 5500or face penalties that easily run $100,000 ormore for each plan. Compiling the information needed is highly technical, specialized andextremely time consuming.

Aon Hewitt's Financial Statement Preparation team can perform the majority of the preparation

and audit work for you. Not only does this save a huge amount of time and effort for your staffand auditors, but our services help you file complete and accurate financial statements on time,every time, significantly reducing your risk of penalties.

Our best practices solution:

Follows a proven process for managing financial statement preparation from start to finish


17/26

Serves as auditor contact as issues arise, relieving your HR staff from these time-consuming andtechnical questions

Applies up-to-date knowledge on current required reporting changes Charges lower fees than a typical CPA firm

Members of Aon Hewitt's Financial Statement Preparation team specialize in benefit plan

accounting, including defined benefit, defined contribution and health and welfare plans, as wellas VEBA trusts. We prepare nearly 200 benefit plan financials annually for a wide variety ofclients.

Power of Attorney (POA) and Legal Guardianship (LG) Administration

A fully administered POA and LG process serves both employers and employees well.

Many organizations lack a streamlined approach for dealing with the influx of POA and LGrequests they receive each year. And, while a simple request for a change in control might notseem to be critically important, to the employee or their designee looking to make decisions onhealth care, pension, 401(k) accounts, life insurance or guardianship, that simple request takes ona great deal of significance for the affected employee.

Aon Hewitt's POA/LG Administration team gets right down to business, providing fast, accurateprocessing of all incoming requests. We are able to do this so quickly and effectively because:

We have a dedicated POA/LG review team, well versed in each client's specific requirements. We have a well-defined process surrounding implementation, processing and communications so

administration proceeds smoothly and with purpose. We have tools specifically designed to support these administrative tasks. We communicate current status levels as appropriate, in writing, to participants and agents. We have a defined charge per request, making administration costs easy to account for andbudget.

Our review team is staffed with experienced experts. We also benefit from internal legal andresearch resources with extensive experience in HR-related law.

POA and LG-related customer service is provided through existing benefits centers and is fullyintegrated with existing benefits administration.

Supplier Management

We offer a full range of third-party strategic sourcing and supplier management servicesdesigned to help our HR BPO clients save money, increase vendor performance and reduce risk.

Third-party human resource suppliers play a critical role in HR BPO service delivery, withintegrated supplier management a key driver in the delivery of services to our clients. AonHewitt offers a full range of Third-Party Strategic Management services designed to deliverreduced costs, increased performance and reduced risk.


18/26

Today, our Third-Party Supplier Management team manages hundreds of third-partyrelationships. The team consists of experienced, strategic sourcing experts with backgroundsfrom multiple industries and areas of business expertise.

Aon Hewitt's strategic alliance suppliers include the following:

Current alliance partnerships:

Service awards Outplacement Employment verification

Future alliance partnerships:

Tuition reimbursement EAP services

Learning content

Third-Party Supplier Management services includes:

Supplier evaluation, strategy and transition Sourcing, negotiation and contracting Day-to-day supplier activity management Supplier performance management Risk assessment and mitigation

Executive Workforce AnalyticsAon Hewitts most recent Human Capital Institute Talent Practices Maturity Study showed that83% of respondents said that HR reports workforce metrics to senior management on a regularbasis. However, only 10% said that they employ metrics to gauge the effectiveness of workforcemanagement practices consistently across their organization and only 7% consistently usemetrics to align human capital investments with business results.

Why would a business assume so much risk by not aligning HR data with strategic decisions onhow to make best use of their talent? Without the right tools, workforce data can feel more like aburden than a strategic asset to HR. Some automated reports may produce reams of data but can

feel disconnected from the business without the appropriate context. Too often, transforming rawdata into actionable business intelligence for executives requires hours of manual data collectionand formatting. Assuming the data reaches the real decision makers in the business (whichdoesnt always happen), the quality of the data can be called into question if the process ofgenerating the numbers is not completely transparent. That mistrust of the data can lead todecisions based on hunches and anecdotes rather than facts.


19/26

Aon Hewitts Executive Workforce Analytics (EWA) solution draws upon our deep expertisewith HR data, strategy and reporting and is engineered to help HR leaders deliver greater valueto the business to manage their workforce more competitively. The result is a fully hosted, user-friendly solution that enables HR professionals and business executives to quickly identifyworkforce trends, share key insights and leverage the power of HR data to solve business

problems.

We aggregate your HR data sources into a centralized, Aon Hewitt-hosted HR analytics enginethat users access through an intuitive, web-based portal. Aon Hewitt will configure the EWAsolution around strategically important HR challenges the business wants to address in order todevelop predefined analytics that are accessible across a broad group of business leaders. Someexamples of business challenges EWA addresses are:

How do new hire salaries compare to market and those of terminated and existingemployees?

Are there revealing patterns in turnover?

Where is the organization buying vs. building talent? Is the organization becoming top heavy?

You dont even have to be an Aon Hewitt BPO client to enjoy these extraordinary serviceofferings. We can work with any Enterprise Resource Planning (ERP) system you have in placeand get you up and running quickly so that you can begin analyzing your organizations HR datatrends without having to support new software.

Specialized HR Solutions

Whether an organization strives for a "best-in-class" employer benefit offerings or prefers a morebasic program, Aon Hewitt offers a variety of health, benefit and compensation services that willenhance employees' appreciation and usage of company-provided programs, leading to increasedattraction and retention.

Some of the currently available solutions include:

Gateway Benefits/HR Portal Total Rewards Solutions

Gateway Benefits/HR Portal

A pay, benefits and wellness portal that provides employees with a personalized view of relevantinformation, seamless access to transactions and modeling and a simplified user experience thatserves as a one-stop communication platform.

Finding information about pay, benefits and wellness programs can be time consuming andconfusing for employees. Organizations have good intentions about providing employees withthe information they need, but often struggle to present it in a simple and easy-to-understand
http://www.aon.com/human-capital-consulting/hrbpo/specialized_hr_solutions.jsp#link1http://www.aon.com/human-capital-consulting/hrbpo/specialized_hr_solutions.jsp#link1http://www.aon.com/human-capital-consulting/hrbpo/specialized_hr_solutions.jsp#link2http://www.aon.com/human-capital-consulting/hrbpo/specialized_hr_solutions.jsp#link2http://www.aon.com/human-capital-consulting/hrbpo/specialized_hr_solutions.jsp#link2http://www.aon.com/human-capital-consulting/hrbpo/specialized_hr_solutions.jsp#link1


20/26

way. Depending on the organization, there could be a half dozen or more plan-specific sitesadministered in-house or by third parties that employees need to access to gain a comprehensiveview of available benefits. Often these sites are not connected, require separate logins andprovide employees with too much information, forcing them to self-edit.

Aon Hewitt's Gateway Benefits/HR Portal is designed to bring separate platforms together andaggregate data onto a single site, making it easy for employees to find relevant information,better understand, utilize their programs and enable seamless action taking.

Employers and their employees recognize the benefits of this single portal solution:

Simplified user experience: This one-stop shop provides a personalized entry point into pay,benefits and wellness information.

Personalized communication: The site can be targeted, making it more relevant for everyemployee, as well as more effectively driving behaviors that support company strategies.

Flexible, scalable technology: The Gateway is flexible enough to meet the needs of anyorganization. The portal can be as simple as one page or a comprehensive resource with dozens of

resource pages and an abundance of information. Easier participation with existing programs: Having a single point of entry gives employees a

total overview of all their pay, benefits and wellness program information. The single sign-onmakes it easy to understand and engage in all available options at one time and in one place.

Key Features of Gateway Benefits/HR Portal:

Personalized and targeted communications: Provides employees with personalizedinformation, along with robust educational content, interactive modeling and segmentedmessaging.

Aggregated account information: Offers employees a comprehensive view of their accounts tobetter understand and appreciate all their benefits.

Flexible architecture and presentation:Allows creation of customized architecture, pagelayouts, branding, site name and more to meet the branding and communications needs of anyorganization and the specific benefit programs offered.

Single password sign-on: Simplifies employees' lives by requiring only one password to accessall in-house and third-party benefit providers.

Robust content and updates: Provides the capabilities for your organization to author its owncontent and provide frequent site updates.

Integrated total rewards: Integrates a personalized total reward statement into the solution tohelp companies gain more traction for total rewards.

Total Rewards Solutions

Millions are spent each year on health and retirement benefits, paid time off, ongoing educationand training, opportunities for career growth and more. However, do your employees trulyunderstand all that's being offeredor the real value of those programs?

Aon Hewitt's Your Total Rewards solution is a comprehensive, online approach that providesemployees and candidates with a real-time, up-to-date view of their rewards. This innovative,


21/26

market-leading platform makes personalized information available any time, from any computerwith an Internet connection.

The solution offers:

PersonalizationCommunicates different messages to different audiences, from candidates tohourly workers, senior managers, executives and other audiences that are important to you

BrandingIntegrates with your own graphics, images and site name Rich contentProvides detailed information on all types of rewards and benefits, presented in a

format you choose Interactive featuresIncludes state-of-the-art tools such as modeling, real-time stock feeds and

more

Our basic Your Total Rewards solution educates employees and candidates about the total annualvalue of the rewards you provide them. Our comprehensive solution provides another, deeperlevel of detail to help employees gain a thorough understanding of what's offered and assist themin taking action to maximize the value of their rewards. Either way, employees can easily see the

value of the employment relationship to their careers, families, retirement, wealth accumulationand lifestyles.

The Your Total Rewards website also handles multiple languages and currencies to show eachemployee's personal values in the most meaningful way.

A large number of market-leading companies use Aon Hewitt's Your Total Rewards toeffectively communicate the value of their programs to millions of employees annually.

Retirement and Financial Services

Aon Hewitt provides a variety of services that enhance a company's retirement plan offering andhelp employees tackle financial issues.

These services include:

Personal Finance Center Self-Directed Brokerage Accounts Advisory Services Financial Planning

Personal Finance Center

Unique employee resource provides financial education and guidance covering many types ofpersonal finance issues.

Employees' personal financial issues are costing organizations valuable productivity andengagement. The goal of the Aon Hewitt Personal Finance Center (PFC) site is to provide fastanswers to pressing financial questions so employees can get back to work matters as quickly as
http://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsp#link1http://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsp#link1http://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsp#link2http://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsp#link2http://www.aon.com/human-capital-consulting/hrbpo/advisory_services.jsp#link3http://www.aon.com/human-capital-consulting/hrbpo/advisory_services.jsp#link3http://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsp#link4http://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsp#link4http://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsp#link4http://www.aon.com/human-capital-consulting/hrbpo/advisory_services.jsp#link3http://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsp#link2http://www.aon.com/human-capital-consulting/hrbpo/retirement_and_financial_services.jsp#link1


22/26

possible. The PFC provides sought-after education and guidance covering a variety of personalfinance issues. The site is designed to meet the diverse preferences and learning styles of varyingemployee populations. It provides a robust employee education program online, over-the-phoneand on-site.

The financial education programs on the site are centered on key financial topics, such as"Making the Most of Your 401(k) Plan," "Understanding Asset Allocation," "RetirementPlanning in the 21st Century," "Saving for College" and "Debt Management."

The PFC contains multi-media online education. Articles discuss financial problems andsolutions in easy-to-read terms. Charts and tutorials provide flash presentations that takeemployees through financial topics in a methodical step-by-step manner. Calculators allowemployees to explore what-if scenarios to personalize the education to meet their specificsituations. Also on the site are a variety of two-minute "Small Good Choices" videos that provideadditional solutions to a variety of financial issues.

Some employees need to talk through their issues with a trusted and knowledgeable financialexpert. The PFC is staffed with personal finance specialists who are trained to answer a widevariety of questions. All calls to the PFC are confidential and are free to employees of companiesthat subscribe to Aon Hewitt's Personal Finance Center.

In-person seminar workshops can also be arranged through the PFC. These workshops, led bytrained financial professionals, are designed to educate employees on a specific topic. Mostinclude a worksheet and handouts to help attendees work toward individual solutions.

The PFC also maintains a referral network to leading financial institutions that provide access tofinancial products at a discount to normal retail rate. Available products include:

Retirement Income: Income Solutionspersonalized, no obligation, immediate fixed annuityquotes from leading national insurance carriers

College Savings: 529 Connectionhelps employees determine how much to save for college,provides the estimated cost of college and compares 529 college savings plans

Advisor Referrals: Aon Hewitt Advisor Connection a national network of pre-screened,fee-only (non-commissioned) financial advisors

Currently providing education and guidance to more than one million employees, the Aon HewittPersonal Finance Center services a wide variety of employers and can be customized to tailor thetopics and programs to employees.

Self-Directed Brokerage Accounts

Your employees are a diverse group of individuals with unique financial and retirement needs.Hewitt's Self-Directed Brokerage Windows empowers them to take greater control over theirinvestment decisions.

While the set of funds in your 401(k) plan is designed to accommodate most of their retirementgoals, employees have varying personal and family circumstances that require access to a


23/26

broader range of investments. However, it can be a challenge to open up the investment optionsto accommodate a small number of employees without creating greater confusion for themajority. A Self-Directed Brokerage Account (SDBA) from Hewitt Financial Services providesa simple solution.

Through a Self-Directed Brokerage Account, employees gain access to nearly 300 mutual fundfamilies with more than 3,000 mutual funds available with no loads, waived loads or notransaction fees. Employers may also choose to include access to more than 10,000 publiclytraded stocks, exchange-traded funds, bonds, CDs and more.

Through our award-winning website, employees can:

Learn about thousands of investments using analysis from top research sources such asMorningstar, S&P, Dow Jones, Thomson Reuters and Briefing.com.

Check account balances and holdings, place trades and monitor the markets, 24 hours a day,seven days a week.

Create customized model portfolios to track the movement of stocks and mutual funds.Employees have access via phone to a team of licensed investment specialists available from 9a.m. to 5 p.m., Eastern time, Monday through Friday.

You can be assured that a Hewitt Self-Directed Brokerage Account has been designed to offerthe flexibility necessary to meet your participants' needs and your ERISA fiduciaryresponsibilities (e.g., by preventing access to your company stock or investments on margin). Inaddition, periodic reports are available to employees to monitor the investments held.

Advisory Services

Click hereto view more information on Advisory Services.

Financial Planning

Aon Hewitt provides financial education and independent planning services for all types ofemployees in all different financial circumstances. This very personal service enables employeesto take greater control of their financial lives by matching their personal objectives and currentassets to a detailed strategy tailored to their specific circumstances. When delivered by trainedand experienced financial specialists in a conflict-free environment, employees have the greatestchance of creating a plan that uniquely fits their financial requirements. The resultant plan takesinto account the employees own, very specific circumstances and financial objectives.

Hewitt Financial Services includes a team of trained, credentialed financial planners, ready tohelp individual employees develop a financial plan that best meets their personal circumstances.These plans take into account:

Current financial situationassets and liabilities, cash flow Future financial statebased on realistic assumptions about future investment potential Risk tolerancehow safe or aggressive should investment choices be
http://www.aon.com/human-capital-consulting/hrbpo/advisory_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/advisory_services.jsphttp://www.aon.com/human-capital-consulting/hrbpo/advisory_services.jsp


24/26

Demographicstaking into account both purely demographic along with cultural investingpatterns

Financial requirementshow much money is needed to account for lifestyle choices related toeducation, retirement and estate planning

Company-provided benefitstheir specific value to the employeeAon Hewitt financial planners are all CRPC or CFP registered investment advisors. Each holdsFINRA series 6 or 7, 63, and 65 or 66 licenses and brings at least five years of experience to theteam. All are trained to answer questions specific to qualified plans, IRAs and other financialvehicles; investment topics such as mutual funds and asset allocation; and general financialplanning topics such as debt management and retirement or college planning. Since they areindependent and non-commissioned, they naturally seek out all available investment options,providing employees with an unbiased view of which investment options are optimal for themand why.


25/26

Human Resource BPO Deals Are Getting Bigger

BPO can lower the total cost of HR service delivery by 20% to 30%

Human Resources Business Process Outsourcing (HR BPO) may have existed since the 1970s,

when companies farmed out a single, transactional task like payroll or benefits.

However, 1999 marked the launch of what experts call full spectrum outsourcing, which is thetransfer of transactional elements of five or more major HR processes to an outsourcer at onetime. That means a company will give the outsourcer control of any combination of HRfunctions, including benefits, health and welfare, performance, measurements and rewards,retirement, technology and so on.

But the deal is not the only thing. HR BPO is about creating a better service arena at thecompany level. It is about radically transforming how HR services are delivered. HR BPOsmain advantage lets an organization shed all the transactional, repetitive, important, but low

value-added parts of HR and concentrate on the five essentials: sourcing, hiring, training,rewarding and developing human capital.

Today, about 10% of Fortune 500 companies have some kind of HR BPO deal that covers fullspectrum outsourcing, estimates Naomi Lee Bloom, a Managing Partner of Bloom & Wallaceand a recognized consultant and expert in the HR systems and HR BPO industry. Between 50and 60, depending on the exact criteria, multi-year, multi-process (e.g. core HRM recordkeeping,payroll and benefits administration plus HRMS with self service and call center) comprehensiveHRM BPO deals have been signed to date, says Bloom.

There is also a vast middle market of deals that dont have that level of complexity. Those

(users) are signing up in droves, she says, adding that through the end of 2004 there have beensomewhere between 50 and 100 comprehensive middle market deals. I define the "vast middlemarket" more in terms of their complexity factors than by their revenue or headcount. The bulkof the comprehensive HRM BPO deals being done in this market in the US are with Ceridian,ADP, and a host of lesser players, adds Bloom.

In fact, consultant Bill Kutik, of Kutik Communications, asserts that HR BPO is the fastestgrowing segment of the overall Business Process Outsourcing (BPO) market. It has becomeenormously competitive because vendors of all stripes have looked at the 10-figure, five- toseven-year deals that Exult was signing and said, I want some of that.

As is generally the case with a hot industry where there is a lot of money to be made, the HRoutsourcing business has attracted a large number of vendors in recent years. As a result, it isheaded for a shakeout, leading to consolidation.

For example, last year Hewitt Associates, an HR BPO and consulting firm bought Exult, an HRBPO big-deal pioneer. Hewitt also purchased HR software vendor Cyborg Systems in 2003,creating a combined entity that has the capability to provide more of the full spectrum of HRfunctions in one outsourcing swoop.


26/26

One of the reasons why Exult was willing to be bought by Hewitt is that they realized theyneeded a lot more domain expertise and relationships, says Bloom. This is a very toughbusiness in which to make money. Its very tough to get it right.

Meanwhile, it only takes looking at recent newsnamely EDS joint venture with Towers

Perrinto see how companies are joining forces to provide more full spectrum services. InJanuary, EDS paid $420 million for part of Towers Perrins outsourcing business in benefits.

Another growing trend is offshoring on the part of the outsourcer. Many outsourcers are movingactivities to lower cost locations. India is already offshoring to China, says Bloom. The fact isyou wont know where anything is going, and you shouldnt care, as long as there are the rightsecurity and privacy controls in place.

With all this emphasis on creating the one-stop-shop for HR BPO, Kutik warns that usercompanies still may not get everything they need from a single entity. The big lie in HR BPO isthat you are handing over your HR department to a single vendor who will do everything

themselves, says Kutik. That is not true. You are handing it over to a general contractor who isgoing to be managing many of the same vendors you used yourself. Yes, they will manage thembetter, but no, it is not a single vendor doing all your work.

There are a number of advantages to HR BPO. Recent statistics show that HR BPO can lower thetotal cost of HR service delivery by 20% to 30% for the part of the service that is outsourced. Italso gives companies access to new technology they cant afford themselves such as employeeself-service. In addition, with HR BPO, companies get better or at least equal service at lowercosts.

Of course, there will be some inevitable bad train wrecks, says Bloom. Big loud noises, deals

going bad, customers jumping ship, lawsuitsthe same thing we saw in the software industry,she says.

When you sign up with a comprehensive BPO provider, its a marriage, she reminds buyers.You need to make sure they are in a good position to succeed long-term.

HR Business Processing Outsourcing With Examples

Documents

Transcript of HR Business Processing Outsourcing With Examples