Company Profile
Hewitt Associates
Company Overview
Hewitt Associates (NYSE: HEW) provides clients with best-in-class human resources consulting and outsourcing services. Hewitt consults with more than 3,000 large and mid-size companies around the globe to develop and implement HR business strategies covering retirement, financial and health management; compensation and total rewards; and performance, talent and change management. As a market leader in benefits administration, Hewitt delivers health care and retirement programs to millions of participants and retirees, on behalf of more than 300 organizations worldwide. In addition, more than 30 clients rely on Hewitt to provide a broader range of human resources business process outsourcing services to nearly a million client employees.
Company History
It's a long way from a single bank building in Lake Forest, Illinois to our status today as the world's largest provider of multi-service human resource outsourcing. But the path we've followed since 1940, when Ted Hewitt founded his insurance brokerage firm, has proven wise for us and for our clients: understand what makes successful companies and provide products and services to help them and their people succeed.
By the 1950s, our agility at providing sound ideas and workable solutions had already established us as a provider of actuarial and related employee benefits and compensation services for major employers. And as we grew, so did our need for new offices. We opened the first Hewitt regional office in Minneapolis in 1959, then opened several others from coast to coast.
We branched into Toronto, Canada in 1974 and went overseas in 1985, opening offices in Paris and in St. Albans, outside London. Since then, we've opened dozens of new offices.
Today, we have more than 3,000 clients, including the world's most successful companies—more than half the FORTUNE 500® and more than a third of the FORTUNE Global 500®. Our reach is truly global, with approximately 23,000 associates in offices in 33 countries spanning the globe.
We'll handle more than 70 million HR-related customer interactions from nearly 20 million employees and retirees this year. And our addition of HR BPO pioneer Exult in 2004 cements our standing as the only firm capable of integrating HR outsourcing and HR consulting to deliver solutions that help companies maximize their HR investment.
For more information, please visit our Hewitt History Time Line.
Notable Accomplishments / Recognition
Located in 33 countries around the world, Hewitt has offices across Asia Pacific, Europe and the Americas, and employs approximately 23,000 associates.
Founded in 1940, Hewitt is headquartered in Lincolnshire, Illinois. The company is led by Chairman and Chief Executive Officer Russell P. Fradin.
Achieved global revenue of approximately $2.9 billion in fiscal 2007.
Clients include more than half the FORTUNE 500® and more than a third of the FORTUNE Global 500®.
Nearly 95% of our largest clients have worked with Hewitt for at least five years.
Recognized as one of America's Most Admired Companies (FORTUNE, 2008, 2007, 2006, 2005, 2004).
Named as the top end-to-end outsourcing provider (Workforce Management, 2007).
Leads the HR Business Process Outsourcing (BPO) industry with a 37% share of the market (Everest Global, Inc., November 2007, based on total contract value).
Named China's HR Consulting Firm of the Year for Talent Management (ChinaSTAFF Magazine, 2007).
Benefits
Associate Benefits
Medical and dental care is just the beginning of our commitment. At Hewitt, our benefits are proof positive that your success is as important as ours. From day one, we protect your health. We invest in your future. And we do little things that make a real difference.
Take a closer look at all of the advantages that we're able to offer. It's everything you expect from an organization that is focused entirely on people—and then some.
Programs to Keep You Healthy
Medical Care
To protect you and your family against extraordinary medical expenses. The Medical Plan provides a range of choices— depending on your location: a managed Deductible Plan with a Health Reimbursement Account, a Preferred Provider Organization (PPO) option, an Exclusive Provider Organization (EPO), and a Health Maintenance Organization (HMO) option. All these options include prescription drug coverage.
Dental Care
To provide you and your family with coverage for preventive dental care and protection against extraordinary dental expenses. The plan pays all or a portion of eligible expenses for a wide range of services and gives you the option of going to the dentist of your choice.
Vision Care
To help you pay expenses associated with eye care. The plan provides coverage for exams, lenses, frames, and contact lens expenses.
Health Care Spending Account
To provide you with a tax-effective means of paying for eligible health and related expenses not covered by medical, dental, or vision plans. You can deposit up to $5,000 pre-tax into this account each year. Features of Hewitt's Your Spending Account administrative services also make it convenient for you to use these pre-tax account dollars to help you pay for your or your covered family member's eligible expenses.
Health Care/Wellness Credits
To help you pay the costs of the health care choices you make. Each year from Hewitt, you receive medical and dental/vision credits based on your elections, and wellness credits based on your wellness pledges to help purchase your health care coverage. You can use all available credits to help purchase your medical, dental, and vision coverage. If you have other means of coverage and/or do not need coverage through Hewitt, you can also "opt out" and use your available credits to help purchase other benefits, take them as cash after-tax over each pay period during the year, or contribute them to your Retirement and Savings Plan account.
Wellness Screening Program
To help protect your physical well-being. Hewitt encourages you to have exams and certain wellness screenings every year or two, depending on your age, by providing coverage under the Hewitt medical plan you enroll in, typically 100% of in-network, covered expenses after your co-payment.
Programs to Build Financial Security
Retirement and Savings Plan
To help you in your overall retirement strategy and to save for your retirement. You choose how your savings are invested among a variety of investment funds and can take loans against your vested balance. You also may easily roll a 401(k) balance into this plan from a prior employer.
Annual Hewitt Retirement Contribution
Hewitt makes an annual contribution to your savings account based on your total pay (base pay plus variable pay) received during the plan year. You vest in Hewitt's annual contribution after 3 years of service.
Company 401(k) Match
Hewitt makes a dollar-for-dollar match on your 401(k) contributions, up to the first 4% of your base pay annually.
Financial Planning
To help you make informed financial decisions regarding your retirement savings. Associates have access to financial planning seminars offered throughout the year. Financial projection software is also available.
Programs to Protect Your Income
Short-Term Disability (STD)
To provide you with continued income if you are disabled for up to six months. The Short-Term Disability plan will pay you 100% of pay replacement for up to 7 weeks of disability, if needed, following your initial week of disability as a qualifying period with pay replacement from your Paid Time Off bank. If needed, 80% pay replacement follows for up to 18 weeks of disability. Long-Term Disability benefits may be available following 6 months of qualified disability.
Long-Term Disability (LTD)
To provide you with continued income if you are disabled for longer than six months. Benefits equal to 60% of your pre-disability base pay may be provided if you are still unable to work after six months of continuous disability.
Life Insurance
To provide you and your survivors with financial protection in the event of your death or the death of a covered dependent. Basic Associate Life Insurance is provided to you. In addition you can choose to purchase Optional Associate Life Insurance and Dependent Life Insurance. The benefits you receive depend on the coverage in effect when you or your covered dependent dies.
Accidental Death and Dismemberment (AD&D) Insurance
AD&D Insurance is designed to pay benefits if you or a covered dependent dies or suffers certain physical losses because of an accident. You may choose to purchase Optional AD&D Insurance for you and your dependents. The benefits you receive depend on the coverage in effect when you or your covered dependent dies or suffers a covered loss as the result of an accident.
Long-Term Care
To help you pay for care-giving services should you or a family member experience an illness or disability resulting in chronic incapacitation and the need for ongoing care. You may choose from a range of daily benefits at special group insurance rates you pay through convenient payroll deductions.
Programs to Provide Time Away
Paid Time Off (PTO) Bank
To provide paid time away from work for rest and relaxation, to attend to personal/family matters, to recover from illness/injury, or for additional holidays or vacation time. The number of hours of PTO you accrue annually is determined by how many complete years of service you have at the end of each month. If you're a full-time associate with less than four completed years of service, you earn 18 days each year. The annual rate of accrual increases at 4, 8, and 12 complete years of service, up to a maximum of 27 days each year.
Holidays
To recognize national holidays. Hewitt provides eight paid holidays each year. Six scheduled holidays are observed by Hewitt throughout the U.S., and two are provided during the year as "floating" holidays to meet your personal needs.
PTO Buying
To provide associates with additional flexibility in scheduling and taking PTO. Each year during the flexible benefits enrollment period, full-time associates may buy up to five additional days of PTO in one-day increments.
Civic/Jury Duty
To enable associates to serve. You receive your full pay if you are called to serve as a juror—plus any stipend or reimbursement you receive from the jury commissioner—up to a maximum of two weeks (ten days) within a one-month period every two years.
Bereavement
To provide associates with time to make arrangements, attend services, and grieve if an immediate family member dies. Typically, associates may take one day (and potentially up to three days under certain circumstances) of paid bereavement time.
Programs to Make Your Life Easier
LifeCare™
To help when you or a family member is struggling with work or family issues. LifeCare is a national resource and referral service available to help associates with parenting, education, elder care, legal, financial, or health and well-being issues.
Associate Assistance Plan (AAP)
To provide you and your immediate family with timely professional counseling to help assess problems, provide short-term assistance, and provide referral for more in-depth help when needed.
Tuition Reimbursement
To help you further your individual development. Reimbursement for 85% of the cost of tuition for approved courses taken at an accredited institution. The maximum reimbursement is $5,000 per year. Reimbursable expenses in excess of $5,000 in any year are "banked" for reimbursement in future years as long as you remain an active associate at Hewitt. However, if your reimbursable expenses exceed $5,000 in any year, you can "bank" them for payment in future years.
Group Legal
To offer you a cost-effective way to obtain legal help. This plan provides access to attorneys (at no charge) for most legal services, including real estate transactions, creating or updating wills, creating or updating trusts, and civil or criminal court proceedings. Reimbursement for attorneys outside the plan is also provided, up to certain limits.
Stop Smoking Plan
To provide financial support when you or an immediate family member decides to quit smoking. Reimbursement is 75% of the cost of an approved smoking-cessation treatment program. After you have quit smoking for at least 12 months, the plan reimburses the remaining 25% of treatment costs.
Health and Benefits Fair
To support your efforts to stay healthy. Most Hewitt locations sponsor a fair each year offering simple wellness tests (blood pressure or cholesterol screenings, for example) and the opportunity to talk to experts about health, benefits, or fitness issues.
Conveniences and Discounts
To help associates cost-effectively meet personal and professional needs. Conveniences and discounts vary by location, but often include: discounts on entertainment (movies, theme parks, etc.), auto purchases, auto or other personal insurance, cell phones, clothing, computers, home office equipment, fitness center memberships, Hewitt Gear, etc.
Programs to Help You and Your Family
Dependent Care Spending Account
To provide you with a tax-effective source of funds for eligible dependent care expenses. You can deposit up to $5,000 pretax to an account each year, subject to IRS restrictions, to cover expenses included for dependent care.
Sick Dependent Care
To provide reimbursement for sick dependent care expenses incurred while you are at work. You can be reimbursed for up to five days per year, in full- or half-day increments, for additional expenses related to the care of an eligible sick dependent while you are at work.
Adoption Assistance
To provide you with financial assistance and time away when adopting a child. Reimbursement of up to $5,000 of eligible adoption-related expenses for each successful adoption (limit two adoptions per year), plus one week of paid time off.
Overnight Dependent Care
To ease the financial burden of dependent care when you are out of town on business. You'll receive reimbursement of dependent care expenses incurred if you and your spouse are out of town overnight on business or if you work significantly beyond your normal hours.
Overnight Care for Pets
To ease the financial burden of caring for pet(s) when you are out of town on business. You'll receive reimbursement of pet sitting or kenneling costs (up to $20 daily) if you are out of town overnight on business and incur expenses by having someone care for your domestic pet(s).
Interest-Free Computer Loans
To provide financial support for associates in need of home computer equipment. You may take out an interest-free loan to purchase a home computer, printer, modem and/or fax and repay the loan through convenient payroll deductions.
Programs to Recognize Your Contribution
Service Recognition Program
To recognize long-term commitment and contributions to the firm. You'll receive a certificate and your choice of service-recognition gifts when you celebrate your 5-, 10-, 15-, 20-, 25-, 30-, and 35-year anniversaries with Hewitt.
Splash
To provide additional time off in your anniversary years, at five-year increments. "Splash" is additional paid time off you receive in certain years to recognize your service with Hewitt. If you're a full-time associate, you're eligible for a week of Splash time in the year you reach your fifth year of service with Hewitt. In your tenth year of service, you receive two weeks of Splash time. In your 15th year, and every five years thereafter, you earn three weeks of Splash time.
Service Credits
To provide additional credits from Hewitt to help you pay for the cost of the flexible benefits you choose to enroll in. You will receive service credits based on your length of service with Hewitt. You can use all available credits to help purchase your medical, dental, and vision, flexible spending accounts, and/or purchased PTO benefit coverage options. If you have other means of coverage and/or do not need coverage through Hewitt, you can "opt out" of benefit options and elect to take any remaining credits as cash after-tax over each pay period during the year, or contribute them to your Retirement and Savings Plan account.
Programs to Help Our World
Hewitt Time for Hewitt Concerns
To support associates who wish to give back to their communities. Hewitt will provide up to two days of paid time off each year for you to volunteer your time to help an eligible human services or educational cause.
Hewitt Foundation
To support associates' charitable giving. The Hewitt Foundation accepts contributions from associates and distributes them to organizations nominated by associates.
Matching Gift Plan
To encourage support of educational institutions. Hewitt will match your contribution, up to $500 per year, to a college or secondary school of your choice.