HR Business Processing Outsourcing Overview

ADP's Human Resources Business Process Outsourcing (HR BPO) is about creating better service at 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 its reputation in these areas, while freeing up HR specialists to concentrate on strategically important tasks such as succession planning and executive coaching. Enterprises around the country 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 as employee 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 your mission-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 who understands your goals and mirrors your commitment to your business, your employees and your bottom line. ADP Workforce Now Comprehensive HR is designed to give businesses like yours the power to compete at a higher level. This solution gives your HR staff ready access to a dedicated team of 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 ResourceSM offers 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

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 quality service and lower cost than in-house. Couple that with our unparalleled knowledge of the midmarket and our strategic partnering approach with clients and youve got the best HR BPO offering out there. Our rock-solid financial strength enables us to keep investing in the best professionals, 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 HR BPO solution:

Economic Benefits Reduce HR department total cost of ownership (TCO) up to 40%; lower HR capital investments and operating expenses for staff, infrastructure and technology. Strategic Benefits Align HR resources with strategic business plans; free your HR executives to focus more on strategy; provide your employees with better benefits and retirement information. Operational Benefits Provide operational excellence and integrated solutions; implement worldclass best practices; and standardize for economies of scale and process efficiencies. Technology Benefits Provide you with ready access to the most proven HR technology platform in the outsourcing industry, which we designed from the ground up for mid-market companies. Human Resource Benefits Provide you with better information and analytics for managing your workforce; provide your employees with more choices and greater control over their benefits and careers. Risk Management Benefits Establish strong governance structure, program management, regulatory compliance, risk assessment/mitigation and total quality assurance programs. Corporate Sustainability Benefits Manage environmental, health, safety programs; reduce energy requirements for offices, data centers, equipment; reduce paper and waste.

Range of Services

Pre-Employment Services Career centers, sourcing/recruiting, applicant tracking, screening, onboarding, employment tax credits, compliance. HR Administration Integrated HR, benefits and payroll solution; manager/employee self service portal; compensation and performance management, compliance, reporting. Benefits Administration Health & Welfare, carrier enrollment, call centers, COBRA, FSA, commuter benefits, employee communications, leave administration, reporting. Payroll Administration Gross-to-net processing, accruals, garnishments, general ledger, online pay statements, checks, direct deposit, tax filings, reconciliation, reporting. Time & Labor Management Time/attendance, data collection, scheduling, absence management, activity tracking, analytics, payroll integration, reporting. Retirement Services Defined contribution plans, executive deferred compensation plans, premium only cafeteria plans, recordkeeping, reporting. Recruitment Process Outsourcing (RPO) Services Solutions that help find, recruit, hire and retain top talent.

HR Business Process Outsourcing

We are pioneers in the HR business process outsourcing (HR BPO) industry and were one of the first 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, an independent research firm that surveys the buyers of HR BPO services, reports that Aon Hewitt is ranked #1 in client satisfaction among all providers. As the largest benefits and broad HR BPO provider in the world, Aon Hewitt handles more than 240 million HR-related customer interactions a year for more than 21 million employees and retirees. Whether your organization is a complex global enterprise, a growing mid-sized business, or somewhere 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, including benefits. We serve nearly 30 HR BPO clients and more than a million employees in over 100 countries. 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 and technologies to deliver a holistic customer experience. Our HR BPO offer is broad and includes comprehensive HR administration combined with built-for-purpose HR tools, including our myHR Desktop and CS Pro. The myHR Desktop seamlessly integrates with Aon Hewitts benefit offers and commercial talent partnersenabling a consolidated entry point, customer experience and integration platform for all HR programs.
Our Administrative Services

Our administrative services leverage best-practice processes and innovative technology solutions that enable employees, managers and HR professionals to acquire, develop, reward and manage their workforce effectively. Our administrative solution is comprehensive and includes the following services:

Workforce Administration Payroll

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 bestpractice processes and innovative, intuitive tools, which include our proprietary myHR selfservice platform along with the following administrative activities:

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

Payroll
We help our clients reward their talent using an integrated approach to managing total compensation. Our model includes either implementing our proprietary benefits, compensation and payroll technology platforms or supporting existing systems along with the following administrative activities:

Benefits: Program delivery and administration; recordkeeping and reconciliation; benefit accounting; invoice review and payment; and supplier sourcing and management for health and welfare, defined contribution and defined benefit programs. Compensation: Administration of salary, bonus and stock options; salary surveys; and total rewards communication. CompLink is the engine behind our broader compensation administration solution which combines technology, automation and operational support to provide clients with efficient and accurate compensation planning and administration. Payroll: Time and attendance, on- and off-cycle pay, garnishments and taxes and accounting. Total Rewards: Aon Hewitts Total Rewards Solutions can educate employees and candidates about the total annual value of the rewards you provide them.

Total Rewards

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

Benefits: Program delivery and administration; recordkeeping and reconciliation; benefit accounting; invoice review and payment; and supplier sourcing and management for health and welfare, defined contribution and defined benefit programs. Compensation: Administration of salary, bonus and stock options; salary surveys; and total rewards communication. CompLink is the engine behind our broader compensation administration solution which combines technology, automation and operational support to provide clients with efficient and accurate compensation planning and administration. Payroll: Time and attendance, on- and off-cycle pay, garnishments and taxes and accounting. Total Rewards: Aon Hewitts Total Rewards Solutions can educate employees and candidates 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 delivery model that provides an integrated approach to managing performance and delivering effective training. Our model includes implementing and supporting best-in-breed technology systems and the following administrative services:

Learning and development: Learning paths and certificates, course catalog administration, event scheduling and logistics, evaluation and assessments, accounting and content development and sourcing. Performance management: Planning and evaluation support, feedback collection, and individual profile maintenance. Succession planning: Maintenance of succession trees, tracking and monitoring of high potentials and development of incumbent and candidate profiles.

Performance Management Services

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

Learning and development: Learning paths and certificates, course catalog administration, event scheduling and logistics, evaluation and assessments, accounting and content development and sourcing.

Performance management: Planning and evaluation support, feedback collection, and individual profile maintenance. Succession planning: Maintenance of succession trees, tracking and monitoring of high potentials and development of incumbent and candidate profiles.

Recruitment Process Outsourcing

Aon Hewitt Recruitment Process Outsourcing has the proven experience, proprietary tools and technology to help you acquire top talent in the marketplace efficiently and effectively. We partner with global organizations to build strategic, scalable talent acquisition solutions that support the end-to-end hiring of 65,000 people and assessment of 10 million candidates each year. Our state-of-the-art RPO solution combines experts in candidate sourcing, operations, and technology 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 are typically large global organizations with dynamic needs that require a scalable solution to meet peak hiring activities across broad geographies and all job families. From high volume positions that require the operational expertise to keep the candidates moving efficiently through the hiring process to hard to fill positions such as engineering, investment bankers, skilled trades and specialized industry sales functions that require innovative and proactive search techniques the Aon Hewitt delivery model provides your company the flexibility to excel even with the ambiguity of your changing talent acquisition needs.
Global Approach

Our global infrastructure allows us to collaborate with a client about the solution that typically starts in one region of the world but allows for future expansion to a truly global solution. Our proprietary technologies and partnerships with leading third part technologies allow us to offer clients an integrated approach to talent acquisition around the world. Our proprietary technologies are currently helping clients across 5 continents optimize their hiring process. As the 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 Processing Outsourcing 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 have the confidence understands Outsourcing, Governance and continues to invest in its business to

bring the best solutions to clients. We have helped our clients significantly improve their hiring processes, improve quality of hire and reduce turnover, enabling them to achieve better business outcomes. 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 top talent to help you excel in the future. Our candidate sourcing team combines the latest technologies, market analysis, and targeted outreach to attract the best. Our operations professionals ensure the logistics of the hiring process are smooth and efficient. Our dedicated recruitment teams manage the candidates and hiring manager relationships and ensure the hiring manager is seeing the top candidates. We offer comprehensive all inclusive solutions for every position your company or specialized high volume programs for specific positions across your enterprise.
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 recruitment technology.
Candidate Sourcing Solutions

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

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

employees to move the organization forward. A valid testing system takes the guesswork out of building a pool of qualified, job-ready candidates. Well-designed pre-employment tests are known to be strong predictors in identifying those who will be successful on the job. Aon Hewitts 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 the right candidates have been sourced and pre-screened, ensuring the process flows as smoothly and efficiently 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 hiring needs 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 success of any large recruitment program. Aon Hewitt has the experienced implementation and ongoing technical resources to optimize your use of technology. We help clients makes the right decisions about which systems and components you should be implementing and how to implement them in the most effective manner to maximize their functionality for your business needs. We currently manage the Recruitment Technology globally across clients for more than 500,000 employees leveraging our preferred relationship with the industry leading recruitment technology.

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-Term Disability (SRD) and Long-Term Disability (LTD) claim and case management. Our solutions continuum includes risk management, analytics and claim and leave administration.

To do this, we combine best-in-class competencies in patient advocacy, disability and leave management, data, technology and analytics, reporting and effective return-to-work programs that provide measurable, positive outcomes. Our unique approach results in absence reductions between 10 and 25%. Absenteeism has a significant impact on total costs. While most recent cost management efforts have focused entirely on health care benefits, studies show that managing absence may actually be more effective in the long term. Aon Hewitts Absence Management Solutions help you improve your financial and operational performance by minimizing the costs, impact on productivity and risk associated with all forms of health-related absence. Our approach goes well beyond simply tracing absence after the fact. We help you understand why and where absence occurs 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 of your 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-saving opportunities while navigating the legal and practical complexities of spending account administration. 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 account programs can save time and money. Nevertheless, managing the details of these accounts can be challenging for both employees and employers.

Aon Hewitt's Spending Account Administration team, using our proprietary Your Spending Account online tool, offers complete administration that helps employers and employees easily 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 from HR 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 and participation by adding a Your Spending Account debit card, which enables employees to pay for 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 and submitting and processing paper receipts. When paper receipts are received, 95 percent of claims are processed within three days and reimbursements are made daily. Aon Hewitt provides administration through Your Spending Account for hundreds of thousands of employee accounts annually. All types of accounts are supported, including Section 125 health care spending accounts, Section 129 dependent care spending accounts, Health Reimbursement Accounts, retirement health accounts, credit and wellness plans, commuter benefit plans (transit and parking), adoption assistance programs/plans and education reimbursement programs/plans.

Dependent Verification Services

Aon Hewitt's Plan-Smart and Plan-Guard dependent eligibility solutions help companies verify that eligible dependents maintain access to anticipated benefits and costly, ineligible dependents are removed from coverage as quickly as possible. Plan-Smart performs a complete audit of an enrolled dependent population. Plan-Guard's ongoing dependent verification services preserve the integrity of the benefit plans on an ongoing basis and protect the results of the comprehensive audit. Employees' dependents drive up to 70 percent of a company's health care costs, but in extreme cases, as many as 15 percent of dependents may actually be ineligible for coverage because of age, marital status or failure to qualify as a legal dependent. Carrying all those extra people can add 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. Our knowledgeable and experienced benefit professionals ensure a smooth verification process and

measurable results. Working with Aon Hewitt enables you to manage eligibility issues in a more objective environment, which helps mitigate potential participant concerns about sharing sensitive, 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 or periodic verification, full population or random sample of plan participants or an initial amnesty period that allows employees to voluntarily drop ineligible dependents. A wide variety of companies have used Aon Hewitt's Dependent Verification Services to verify eligibility 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 that percentage 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 by providing unique, high touch solutions to a variety of business and employee-specific issues. We do this by offering personal navigation of challenging health and retirement benefit issues to individual employees. Our team of highly trained advocates helps identify, navigate and resolve a 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 care consumers, better prepared to seek optimal treatment solutions. Employees often find it confusing to sort out the complexity of today's health care and benefit plans, not to mention the confusion around medical diagnoses and treatment protocols. They need information on access to care and claims issues from medical to vision, prescription drugs to Medicare. Sometimes employees turn to HR for help in addressing these complicated and time-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 sensitive health information with HR out of fear that the information might affect an employment decision. 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

Lessen employee frustration in resolving issues and increase satisfaction and appreciation of benefit plans Resolve issues within the plan's ERISA-compliant deadlines by which employees must file claims Improve employee productivity by helping them resolve distracting plan-related problems Identify trends and track health plan performance

Aon Hewitt advocates are experienced in claims processing and knowledgeable about provider billing practices, medical terminology and accepted industry standards. We have escalated contacts at insurance companies and use those contacts to get fast resolution. Our goal is 24-hour resolution for critical issues and five-day resolution for noncritical issues. The turnaround time is often affected by responses from third partiesbut even in those situations, our Advocates provide 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 also measure the impact of recurring issues and measure how much time and money companies saved as a result of making adjustments. Additionally, reporting can measure the increase of employee satisfaction levels as a result of Advocacy Services. These are only a few of the issues our reporting may address. Aon Hewitt's Advocacy Services include:

Passionate, highly trained professionals with extensive medical, claims and customer service 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. Our dedicated teams of experts offer a variety of highly specialized services that delve deeply into technical 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

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

Claims 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 time frames. Aon Hewitt's Claims and Appeals Management team provides companies of all sizes with a staff that's trained and experienced in making claims determinations. Using guidelines based on your plan'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, the Claims 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 are knowledgeable 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 Appeals Management 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 and time-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 that enables 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-specific requirements. Advantages of QDRO Administration include:

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

Availability of online order tracking, allowing participants, alternate payees and attorneys to check the progress of their order's qualification at any time Easy-to-understand written communications provided to the parties at regular stages of the process

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 expertise in 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's eligible 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's individual 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 next steps

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 a determination is flawed or untimely, it may result in a child being improperly denied courtordered coverage. This, in turn, can result in financial exposure or legal problems for the employer. Aon Hewitt's QMCSO Administration service offers a standardized, streamlined process that helps ensure accurate and timely QMCSO administration. Our experienced team of professionals reviews 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 the client's benefits administration team. The service also includes the cutting-edge website QOCenter.com, a user-friendly tool that allows parties to manage orders online. QOCenter.com provides informational resources and, in addition, functionality that lets parties draft orders online, reducing their attorney fees. QOCenter.com also enables parties to track the status of any order currently under review. Aon Hewitt's QMCSO team serves a wide variety of companies of all sizes in all industries and reviews 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

delivers friendly, professional and consistent administration that minimizes HR involvement in employees' 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 a Form 5500 each yeara time-consuming, highly specialized task that internal HR staff often lacks the time or expertise to complete. Moreover, penalties can be steep$1,100 each day a filing is late. Aon Hewitt's Form 5500 Preparation service is provided by a dedicated team of experts who offer 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 contribution and 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 and experience 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 cost effectiveness of this resource-intensive task.
Financial Statement Preparation

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

Serves as auditor contact as issues arise, relieving your HR staff from these time-consuming and technical 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 well as VEBA trusts. We prepare nearly 200 benefit plan financials annually for a wide variety of clients.
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 LG requests they receive each year. And, while a simple request for a change in control might not seem to be critically important, to the employee or their designee looking to make decisions on health care, pension, 401(k) accounts, life insurance or guardianship, that simple request takes on a great deal of significance for the affected employee. Aon Hewitt's POA/LG Administration team gets right down to business, providing fast, accurate processing 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 and budget.

Our review team is staffed with experienced experts. We also benefit from internal legal and research resources with extensive experience in HR-related law. POA and LG-related customer service is provided through existing benefits centers and is fully integrated with existing benefits administration.

Supplier Management
We offer a full range of third-party strategic sourcing and supplier management services designed 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, with integrated supplier management a key driver in the delivery of services to our clients. Aon Hewitt offers a full range of Third-Party Strategic Management services designed to deliver reduced costs, increased performance and reduced risk.

Today, our Third-Party Supplier Management team manages hundreds of third-party relationships. The team consists of experienced, strategic sourcing experts with backgrounds from 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 Analytics

Aon Hewitts most recent Human Capital Institute Talent Practices Maturity Study showed that 83% of respondents said that HR reports workforce metrics to senior management on a regular basis. However, only 10% said that they employ metrics to gauge the effectiveness of workforce management practices consistently across their organization and only 7% consistently use metrics to align human capital investments with business results. Why would a business assume so much risk by not aligning HR data with strategic decisions on how to make best use of their talent? Without the right tools, workforce data can feel more like a burden 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 raw data into actionable business intelligence for executives requires hours of manual data collection and formatting. Assuming the data reaches the real decision makers in the business (which doesnt always happen), the quality of the data can be called into question if the process of generating the numbers is not completely transparent. That mistrust of the data can lead to decisions based on hunches and anecdotes rather than facts.

Aon Hewitts Executive Workforce Analytics (EWA) solution draws upon our deep expertise with HR data, strategy and reporting and is engineered to help HR leaders deliver greater value to the business to manage their workforce more competitively. The result is a fully hosted, userfriendly solution that enables HR professionals and business executives to quickly identify workforce 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 engine that users access through an intuitive, web-based portal. Aon Hewitt will configure the EWA solution around strategically important HR challenges the business wants to address in order to develop predefined analytics that are accessible across a broad group of business leaders. Some examples of business challenges EWA addresses are:

How do new hire salaries compare to market and those of terminated and existing employees? 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 service offerings. We can work with any Enterprise Resource Planning (ERP) system you have in place and get you up and running quickly so that you can begin analyzing your organizations HR data trends without having to support new software.

Specialized HR Solutions
Whether an organization strives for a "best-in-class" employer benefit offerings or prefers a more basic program, Aon Hewitt offers a variety of health, benefit and compensation services that will enhance employees' appreciation and usage of company-provided programs, leading to increased attraction 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 relevant information, seamless access to transactions and modeling and a simplified user experience that serves as a one-stop communication platform. Finding information about pay, benefits and wellness programs can be time consuming and confusing for employees. Organizations have good intentions about providing employees with the information they need, but often struggle to present it in a simple and easy-to-understand

way. Depending on the organization, there could be a half dozen or more plan-specific sites administered in-house or by third parties that employees need to access to gain a comprehensive view of available benefits. Often these sites are not connected, require separate logins and provide employees with too much information, forcing them to self-edit. Aon Hewitt's Gateway Benefits/HR Portal is designed to bring separate platforms together and aggregate 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 every employee, as well as more effectively driving behaviors that support company strategies. Flexible, scalable technology: The Gateway is flexible enough to meet the needs of any organization. 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-on makes 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 personalized information, along with robust educational content, interactive modeling and segmented messaging. Aggregated account information: Offers employees a comprehensive view of their accounts to better understand and appreciate all their benefits. Flexible architecture and presentation: Allows creation of customized architecture, page layouts, branding, site name and more to meet the branding and communications needs of any organization and the specific benefit programs offered. Single password sign-on: Simplifies employees' lives by requiring only one password to access all in-house and third-party benefit providers. Robust content and updates: Provides the capabilities for your organization to author its own content and provide frequent site updates. Integrated total rewards: Integrates a personalized total reward statement into the solution to help companies gain more traction for total rewards.

Total Rewards Solutions

Millions are spent each year on health and retirement benefits, paid time off, ongoing education and training, opportunities for career growth and more. However, do your employees truly understand all that's being offeredor the real value of those programs? Aon Hewitt's Your Total Rewards solution is a comprehensive, online approach that provides employees and candidates with a real-time, up-to-date view of their rewards. This innovative,

market-leading platform makes personalized information available any time, from any computer with an Internet connection. The solution offers:

PersonalizationCommunicates different messages to different audiences, from candidates to hourly 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 annual value of the rewards you provide them. Our comprehensive solution provides another, deeper level of detail to help employees gain a thorough understanding of what's offered and assist them in 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 accumulation and lifestyles. The Your Total Rewards website also handles multiple languages and currencies to show each employee's personal values in the most meaningful way. A large number of market-leading companies use Aon Hewitt's Your Total Rewards to effectively 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 and help 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 of personal finance issues. Employees' personal financial issues are costing organizations valuable productivity and engagement. The goal of the Aon Hewitt Personal Finance Center (PFC) site is to provide fast answers to pressing financial questions so employees can get back to work matters as quickly as

possible. The PFC provides sought-after education and guidance covering a variety of personal finance issues. The site is designed to meet the diverse preferences and learning styles of varying employee populations. It provides a robust employee education program online, over-the-phone and 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," "Retirement Planning in the 21st Century," "Saving for College" and "Debt Management." The PFC contains multi-media online education. Articles discuss financial problems and solutions in easy-to-read terms. Charts and tutorials provide flash presentations that take employees through financial topics in a methodical step-by-step manner. Calculators allow employees to explore what-if scenarios to personalize the education to meet their specific situations. Also on the site are a variety of two-minute "Small Good Choices" videos that provide additional solutions to a variety of financial issues. Some employees need to talk through their issues with a trusted and knowledgeable financial expert. The PFC is staffed with personal finance specialists who are trained to answer a wide variety of questions. All calls to the PFC are confidential and are free to employees of companies that subscribe to Aon Hewitt's Personal Finance Center. In-person seminar workshops can also be arranged through the PFC. These workshops, led by trained financial professionals, are designed to educate employees on a specific topic. Most include 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 to financial products at a discount to normal retail rate. Available products include:

Retirement Income: Income Solutions personalized, no obligation, immediate fixed annuity quotes from leading national insurance carriers College Savings: 529 Connection helps 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 Hewitt Personal Finance Center services a wide variety of employers and can be customized to tailor the topics 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 their investment decisions. While the set of funds in your 401(k) plan is designed to accommodate most of their retirement goals, employees have varying personal and family circumstances that require access to a

broader range of investments. However, it can be a challenge to open up the investment options to accommodate a small number of employees without creating greater confusion for the majority. A Self-Directed Brokerage Account (SDBA) from Hewitt Financial Services provides a simple solution. Through a Self-Directed Brokerage Account, employees gain access to nearly 300 mutual fund families with more than 3,000 mutual funds available with no loads, waived loads or no transaction fees. Employers may also choose to include access to more than 10,000 publicly traded 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 as Morningstar, 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 9 a.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 offer the flexibility necessary to meet your participants' needs and your ERISA fiduciary responsibilities (e.g., by preventing access to your company stock or investments on margin). In addition, periodic reports are available to employees to monitor the investments held.
Advisory Services

Click here to view more information on Advisory Services.

Financial Planning

Aon Hewitt provides financial education and independent planning services for all types of employees in all different financial circumstances. This very personal service enables employees to take greater control of their financial lives by matching their personal objectives and current assets to a detailed strategy tailored to their specific circumstances. When delivered by trained and experienced financial specialists in a conflict-free environment, employees have the greatest chance of creating a plan that uniquely fits their financial requirements. The resultant plan takes into account the employees own, very specific circumstances and financial objectives. Hewitt Financial Services includes a team of trained, credentialed financial planners, ready to help individual employees develop a financial plan that best meets their personal circumstances. These plans take into account:

Current financial situation assets and liabilities, cash flow Future financial state based on realistic assumptions about future investment potential Risk tolerance how safe or aggressive should investment choices be

Demographics taking into account both purely demographic along with cultural investing patterns Financial requirements how much money is needed to account for lifestyle choices related to education, retirement and estate planning Company-provided benefits their specific value to the employee

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

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 the transfer of transactional elements of five or more major HR processes to an outsourcer at one time. That means a company will give the outsourcer control of any combination of HR functions, 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 the company level. It is about radically transforming how HR services are delivered. HR BPOs main 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 full spectrum outsourcing, estimates Naomi Lee Bloom, a Managing Partner of Bloom & Wallace and a recognized consultant and expert in the HR systems and HR BPO industry. Between 50 and 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) comprehensive HRM 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 been somewhere between 50 and 100 comprehensive middle market deals. I define the "vast middle market" more in terms of their complexity factors than by their revenue or headcount. The bulk of 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 fastest growing segment of the overall Business Process Outsourcing (BPO) market. It has become enormously competitive because vendors of all stripes have looked at the 10-figure, five- to seven-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 HR outsourcing business has attracted a large number of vendors in recent years. As a result, it is headed for a shakeout, leading to consolidation. For example, last year Hewitt Associates, an HR BPO and consulting firm bought Exult, an HR BPO 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 HR functions in one outsourcing swoop.

One of the reasons why Exult was willing to be bought by Hewitt is that they realized they needed a lot more domain expertise and relationships, says Bloom. This is a very tough business in which to make money. Its very tough to get it right. Meanwhile, it only takes looking at recent news namely EDS joint venture with Towers Perrin to see how companies are joining forces to provide more full spectrum services. In January, 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 moving activities to lower cost locations. India is already offshoring to China, says Bloom. The fact is you wont know where anything is going, and you shouldnt care, as long as there are the right security and privacy controls in place. With all this emphasis on creating the one-stop-shop for HR BPO, Kutik warns that user companies still may not get everything they need from a single entity. The big lie in HR BPO is that 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 is going to be managing many of the same vendors you used yourself. Yes, they will manage them better, 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 the total cost of HR service delivery by 20% to 30% for the part of the service that is outsourced. It also gives companies access to new technology they cant afford themselves such as employee self-service. In addition, with HR BPO, companies get better or at least equal service at lower costs. Of course, there will be some inevitable bad train wrecks, says Bloom. Big loud noises, deals going bad, customers jumping ship, lawsuits the 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.