Company Perspectives Hewitt Associates is a global human resources outsourcing and consulting firm delivering a complete range of integrated

services to help companies manage their total HR and employee costs, enhance HR services, and improve their workforces.

History of Hewitt Associates, Inc.

The Lincolnshire, Illinois-based Hewitt Associates, Inc. is a global management consulting firm specializing in the outsourcing of corporate human resources (HR) programs such as healthcare benefits, stock options and investment accounts, retirement programs, and severance packages. Hewitt represents many Fortune 500 companies, administering their investment and benefit programs and offering their clients a host of related services, many of them online. Hewitt not only pioneered the use of automated benefit programs, but brought the HR industry into the Internet age by launching a series of online programs and software packages. In the Beginning: 1940s-70s Edwin "Ted" Hewitt founded Edwin Shields Hewitt and Associates on October 1, 1940, as a brokerage house focusing on insurance and personal financial services. It was a heady time in the United States; population had grown to 132 million, the economy was robust, and President Franklin Delano Roosevelt was reelected for a record third term. Unfortunately, the war raging in Europe was about to bring the United States into what became World War II. During and after the war, Hewitt's particular expertise became immensely valuable when the government instituted "pay-as-you-go" income taxes in 1943 and the U.S. cost of living increased more than 25 percent in 1945. Once the war and its rationing ended, Americans returned to work and the economy recovered. Hewitt's clients, many of whom had manufactured goods for the war effort, returned to their customary businesses and thrived. Hewitt began offering its clients statements to track their employee benefits and had pioneered the use of specific financial goals for company investments. Hewitt's programs were the first of their kind to be approved by the Internal Revenue Service; they were so cutting edge the U.S. Department of Labor asked the firm to create forms for the welfare and pension programs of the 1950s.

The company began to conduct in-depth surveys to find out which benefit programs worked best and which ones needed improvement. In the 1980s Hewitt researched numerous issues and began issuing its findings industrywide on subjects such as offering benefits to part-time employees. During the decade the firm revolutionized employee benefit packages once again. Hewitt continually sought to better its programs. Significant Growth: 1980s and 1990s Never content to be an industry leader.By the 1960s the Hewitt firm continued to expand its pension and benefit plans. the Hewitt Investment Group. full versus partial hospital reimbursement. and rising health plan deductibles. Hewitt was so respected for its work in the field that it was the only company asked by the U. up from 48 percent two years before. 401(k) programs. Hewitt also offered its clients several flexible investment strategies for employee benefit packages. fluctuating profit-sharing percentages. as Hewitt found automated benefit programs had increased remarkably from 1986 to 1988. government to consult on the Federal Interagency Task Force from 1964 to 1968. Another topical issue was computer use for automated benefit calculations. In a survey detailed in PC Week (November 6. which led to the formation of a new consulting firm.S. mental health benefits. creating more sophisticated programs for its clients. While such a practice became commonplace in the pension and employee benefits of larger corporations. . in 1974. 1989). Hewitt Technologies was created in 1988 to monitor and respond to the industry's rapidly changing technological needs. Hewitt responded to the expanding use of technology by designing computerized benefit programs and software so companies could manage their benefit plans. The Task Force was responsible for the design and implementation of the new Employee Retirement Income Security Act. Hewitt had surveyed 700 companies to find 71 percent had become either fully or partially automated in their administration of benefits plans. as the first company to design pension and benefit plans tied to a corporation's revenue and growth projections. including its trademarked Benefit Index to track the performance of benefit programs. The use of computers had finally begun to take hold in larger businesses. it was another in Hewitt's growing list of industry firsts. The Benefit Index was another industry first and soon became the standard to which all aspired. In the next decade Hewitt began offering its clients an increasing number of innovative products.

the new office opened in Orlando in 1997. Hewitt was ahead of the curve again in 1998 when it partnered with the California-based Financial Engines. Public officials decried the incentives. Compare Now . during a fiscal year (ending in September) in which Hewitt's revenues reached close to $700 million. according to Business Insurance magazine. when it secured lucrative incentives to open a new benefits management center in Orlando. As companies began looking for ways to bolster the bottom line.Ads by Google Retirement Pension Plans . In a time when few received raises and those who did received only cost-of-living increases. Such advancements. Florida.www. Despite the furor. Hewitt also continued its in-depth . landed Hewitt among PC Week's Top Ten Most Technologically Innovative Companies. Hewitt clients were among the first to view nearly every facet of their company's benefit programs with a few simple keystrokes.and elder-care benefits. however.Bifm. child. By 1997 more than 100 large companies outsourced their benefit programs to Hewitt. and could seek online investment advice and make changes in real-time. Quotes & Invest in Best Pension Plan. to offer its clients financial advice over the burgeoning "information superhighway" or Internet. an online investment firm.Edu. benefits were often the first place executives looked for a quick fix. Hewitt started retooling retirement packages and healthcare benefits to keep its customers from making drastic changes. Hewitt also researched other benefit additions such as flextime scheduling. The company ran into controversy. Of particular interest were retirement programs since few seniors could withstand the effects of inflation and soaring healthcare costs.in By the beginning of the 1990s Hewitt had ventured abroad and offered tailored benefit programs to corporations in the United Kingdom.Compare Features. Yet many of Hewitt's clients were feeling the pinch of a struggling economy and inflation. covering about nine million worldwide employees. believing that Hewitt was favored over other firms that could have offered more jobs and revenue for the city.Top Faculty FullTime/weekend Classes in Delhi . The firm had brought in more than $250 million in revenues for 1990 and was ranked the fourth largest benefit management and consulting firm in the world.Highest Pass % in India. Hewitt not only managed these HR services but provided both the companies and their employees with the opportunity to view their benefits with ease.MyInsuranceClub.com/Pension_Plan CFP Financial Planning . and HMOs (health management organizations) versus PPOs (preferred provider organizations). along with being the first HR industry firm to launch a corporate web site.

000 individuals. Hewitt hoped that Sageo's online format would not only simplify the benefits process but lower employer costs as well. paying off debt. a leading retirement and HR management consulting firm. Share prices rose as high as $23 the following day. The company also announced the merger of its British and Irish operations with the United Kingdom's Bacon & Woodrow. Hewitt wasted little time in putting its new funds to work. Malaysia. Hewitt went public with an initial offering of 11 million shares (at $19 per share). Ireland-based Becketts. Sageo was designed for retirees and companies with numerous older employees. Not only was the company broadening the scope of its operations. Funds raised through an initial public offering would spearhead expansion. healthcare industry. faster. As the decade closed. and Hewitt was eager to conquer more of Europe and Asia. but it offered clients advanced tools to outdistance their competitors. an investment consultancy firm. to offer this growing population the same benefits provided to Hewitt's 150 corporate clients and their 15 million worldwide employees. Hewitt also unveiled plans for Sageo. and spearheading expansion plans for the United Kingdom and China. Under the ticker symbol HEW on the New York Stock Exchange.000 healthcare programs worldwide. In 2001 Hewitt formally announced its intention to become a publicly traded company after nearly six decades as a private firm. a benefits consultancy. Texas. In 2003 Hewitt took over the Cork. and bought the software programs and payroll services of Cyborg Worldwide Inc. Sageo had enrolled nearly a dozen companies and represented 500. With revenues topping the billion-dollar mark in 2000. prompted the Chicago-based Crain's Chicago Business to name Hewitt one of the . The Initiative's findings led to testimony for the government and various agencies in an attempt to reform the U. A New Era: 2000 Onward By early 2000 Hewitt's expansion moved forward with new offices near Houston. Hewitt was poised for further growth both domestically and abroad. and an increased presence in Asia with a new office in Kuala Lumpur.S. Hewitt executives pondered the benefits of going public. Within a few months of its debut. purchasing France's Finance Arbitage. These moves. choose.surveys. developing the Health Value Initiative in 1999 to measure the effectiveness and quality of more than 2. along with several others. and enroll in benefit programs. Hewitt's HR management services had become known for their cutting-edge technology and the company's ongoing commitment to offer newer. a comprehensive online service where participants could compare. and more comprehensive programs would take it to the top of the industry in the next century.

By early 2005 the newly empowered Hewitt clinched several significant business processing outsourcing (BPO) contracts. For 2004 Hewitt reached solid revenues of $2. the company was named one of America's Most Admired Companies in 2004 by Fortune magazine.2 billion and the firm sustained its 43rd consecutive year of growth. with fiscal revenues topping $1. though not much. Watson Wyatt & Company Holdings. As the year came to a close. The Netherlands.. and had become the United States' largest and the world's second largest benefits outsourcing company.9 billion for the year. Rowe Price Group. hospitality leader Marriott International.C.L. The deal was valued at close to $700 million and was expected to bring in combined revenues of more than $3 billion by the following fiscal year. beverage giant PepsiCo Inc... Sun Microsystems. China. Mercer Inc. In 2004 Hewitt announced the purchase/merger of Irvine. Wachovia Corporation. ranked as one of the 100 Best Places to Work for the fourth consecutive year by Computer World.S. Inc. Vanguard Group Inc. signing publisher Thomson Corporation. In addition. Ireland. Hewitt continued to dominate the U. FMR Corporation. Employees numbered more than 22. according to Business Insurance magazine. Puerto Rico. and others to a roster of more than 2. another HR and consulting firm.. T. California's Exult Inc. and Switzerland) representing more than 18 million employees for its corporate clients.500 international clients. India. benefits industry and aimed to be the world's top provider of outsourced business processing. France.area's fastest growing public firms. Chronology y y y Key Dates 1940 Edwin Shields Hewitt and Associates is founded by Ted Hewitt..000 in nearly three dozen countries (including Brazil. . Principal Subsidiaries Hewitt Financial Services L. Principal Competitors Accenture Ltd. bringing in revenues of $2. Hewitt had fallen a bit short of its $3 billion goal.8 billion. With analysts believing the business outsourcing market would top $33 billion or more in 2006.. Towers Perrin. Singapore. 1964 The company begins consulting on the government's Federal Interagency Task Force.

com/history2/46/Hewitt-AssociatesInc. Wachovia Corp. 1997 Hewitt opens a benefits management center in Orlando. Inc.000Operating Revenues: $2.html#ixzz122Ijhjlf . PepsiCo Inc. 541612 Human Resources and Executive Search Consulting Services. an HR and consulting firm. http://www. 561330 Professional Employer Organizations Read more: Hewitt Associates. . and others. y y y y y y Additional Details y y y y y y Public Company Founded: 1940 as Edwin Shields Hewitt and Associates Employees: 22. 2003 The company acquires HR management firm Cyborg Worldwide. Background Information on Hewitt Associates.89 billion (2005) Stock Exchanges: New York Ticker Symbol: HEW NAIC: 541214 Payroll Services. Inc. Business Description. Information.referenceforbusiness.. 2002 Hewitt Associates goes public on the New York Stock Exchange. 561320 Temporary Help Services. 1988 Hewitt creates a new division to monitor technological advances.Company Profile.. is bought by Hewitt and merged into operations. 2004 Exult Inc. 561310 Employment Placement Services. amidst controversy.y y y 1974 Hewitt forms a consulting firm for investment advice. Florida. 1998 Hewitt and Financial Engines form a joint venture to offer clients online investment advice. 2000 Hewitt breaks the billion-dollar mark in revenues for the first time. History. 2005 Hewitt lands lucrative contracts with Thomson Corporation..

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