Benefits

PwC: Almost All Fast-Growth Companies Outsourcing HR Functions

PricewaterhouseCoopers Trendsetter Barometer interviewed CEOs of 360 privately held product and service companies identified in the media as being among the fastest growing U

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Hewitt Associates to Provide HR BPO Services to PepsiCo

Firm Continues Growth of HR BPO Business, Signing Eighth Deal Since Close of Hewitt and Exult Merger

LINCOLNSHIRE, Ill. — Hewitt Associates (NYSE: HEW), a global human resources services firm, announced today that it will provide comprehensive HR business process outsourcing (BPO) services to PepsiCo (NYSE: PEP), a world leader in convenient foods and beverages. Financial terms of the deal were not disclosed.

Under a ten-year agreement, Hewitt will provide HR BPO services in the U

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ARINSO International wins HR BPO contract with a global leader in the specialty pharmaceutical and medication delivery industry.

ARINSO International (Euronext Brussels:ARIN), a leading provider of HR technology consulting and outsourcing, announced the successful go-live of an HR BPO contract with a global leader in the specialty pharmaceutical and medication delivery industry. Under this contract, ARINSO People Services provides comprehensive HR services for all US employees. ARINSO provided Benefit Administration Open Enrollment services to the client in October 2005, and commenced the full contracted HRO services in January 2005

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ARINSO International adds new US HR Outsourcing contract

ARINSO International (Euronext Brussels:ARIN), a leading provider of HR technology consulting and outsourcing, announced the successful go-live of an HR BPO contract with a global leader in the specialty pharmaceutical and medication delivery industry. Under this contract, ARINSO People Services provides comprehensive HR services for all US employees. ARINSO provided Benefit Administration Open Enrollment services to the client in October 2005, and commenced the full contracted HRO services in January 2005

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Switzerland Inn Picks The Castleton Group for HRO

Asheville, NC Jim Stilgenbauer, Vice-President of Client Services at The Castleton Groups Asheville office, has announced that the firm has been chosen to provide comprehensive human resource outsourcing services for Switzerland Inn, located in Little Switzerland, North Carolina

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Solaris Health System Selects Egan, Amato & O’Connor as New Employee Benefits Consultant

MANASQUAN, N.J., April 1 /PRNewswire/ — “We are pleased to announce the selection of Egan, Amato & O’Connor as our new employee benefits consulting partner,” says Shirley Higgins Bowers, Vice President of Human Resources for Solaris Health System

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Cruise Control for 401(k) Plan Participants

Running on auto pilot is okay, as long as plan administrators keep their hands on the wheel.

by Larry Heller

Although much has been written about the controls put in place by 401(k) plan sponsors to protect day traders from themselves, participants at the opposite end of the spectrum are often overlooked. Lets call them the auto pilotsthe participants who arent paying much attention to their 401(k) plan. Todays technology and typical plan design have made it very easy for the hands-off participant to remain that way, even in a generous, well-advertised retirement program.

 

Without necessarily understanding the plan or tax rules in any detail, the auto pilots know it is a good thing to contribute some of their pay. So they joined the plan, perhaps with contribution amounts and investments dictated by automatic enrollment. They have been contributing via automatic payroll deduction. Perhaps this plan also offers automatic contribution increases, whereby contribution percentages (of pay) automatically increase upon pay increase, and automatic rebalancing, which saves the participant the effort of reacting to an account that, for example, has skewed far from the investment split that the participant (or the automatic enrollment) originally intended.

 

In this hypothetical (but very possible) scenario, the participant who once chose or defaulted into a healthy contribution level might now be a mere spectator while the plan applies the IRSs annual contribution limitsstopping their pre-tax contributions at this years $14,000 limit, perhaps with an automatic restart of contributions in the first pay period of 2006.

 

On a more sophisticated level, perhaps the participant chose managed accounts, where the participant delegates responsibility to a financial entity authorized by the plan sponsor to make all of that accounts ongoing investment decisions. If so, that step of allowing their account to be managed for them might be one of the only active steps they ever take during their participation in their plan. Perhaps the plan also offers an employee stock ownership feature, offering automatic dividend reinvestment or cashout, with a likely default to reinvestment.

 

Its all automatic, and its all under control by the plans recordkeeper. But the auto pilots need several defense mechanisms to be in place on their behalf. At the very least, the plans overseers are obligated to communicate the plans default rules and their implications, and carry the fiduciary responsibility to monitor investment performance. Yet plan sponsors usually delegate to plan administrators much of the responsibility for helping those who have chosen not to help themselves. Lets look at these lines of defense:

 

Communications

By law, all plan participants are notified if their plan employs any of the automatics mentioned above and, if so, its default contribution rate and investment approach. Printed account statements confirm the status of the account, and Summary Plan Descriptions lay out the participants alternatives, deadlines for changes, and implications of inaction. But is the plan administrator monitoring the level of default elections taking effect, or how or how often participants override them? Are their communications personalized and targeted enough to catch the eye of the auto pilots who just let their 401(k) ride until their retirement, despite what it might be costing them?

 

Investment Selection

During the past decade, lifecycle and lifestyle fundspresetting an investment mix appropriate to the assumed age or investment time horizon of the investorhave solidified their place in the offerings of 401(k) plans. These funds help investors follow proven long-term investment strategies and diversification without requiring them to make ongoing, explicit reallocation decisions. Again, are all of these default options made clear to a generally unsophisticated and often uninvolved audience?

 

Fiduciary Responsibility

The recent growing trend towards offering the managed accounts described above expands the plans fiduciary exposure. All along, the retirement or pension committee overseeing the plan has had the responsibility of offering its participants a prudent array of investment options. The fate of the auto pilot is especially in their hands. Ironically, for the recently terminated employee who never contributed much to the plan, their final action could be just as automatican involuntary rollover of their vested account balance (if it has not exceeded $1,000) to an IRA preselected by the company they just left. Defaulters should beware. It is always a good idea to remind them to drive with their eyes open.   

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Outsourcing, Rising Healthcare Costs, and HSAs Highlight First HR Intelligence Trend Report for 2005

New Service Tracks HR Media Coverage, Top Advertisers, and Health of Human Capital Marketplace

CAPITOLA, Calif., March 24 /PRNewswire/ — HRmarketer.com, the no. 1 online marketing and PR service in the human capital industry, has introduced monthly trend reports that will track companies and topics receiving most media attention, the top advertisers, and the overall health of the human resource marketplace.

The monthly reports are emailed to HRmarketer.com members and anyone who signs up at www.HRmarketer.com to receive a free eNewsletter that summarizes the latest findings. The trend reports are based on information from the company’s new HRintelligence database, which includes detailed information on editorial placements and advertisements for every HR service provider and organization mentioned in each tracked publication. Subscribers to HRmarketer.com have full access to the data and can establish email alerts to be notified when their company, their competitors, or any selected keywords appear in the major industry trade publications.

The premiere HRintelligence Trend Report for January/February 2005 identified the top advertisers in the human capital marketplace as AARP, ADP, Aetna, Aon, Delta Dental, Great West Healthcare, Hewitt Associates, Magellan, MetLife, Performance Assessment Network, Prudential, Spectrum and United Van Lines.

According to the report, companies receiving the most media attention in the human resource industry included Accenture, Aetna, Aon, ASTD, Ceridian, CIGNA, Definity Health, Employee Benefits Research Institute, Hewitt Associates, IBM, Mellon Financial Corp, JP Morgan, Kaiser Family Foundation, Lucent, Medco Health Solutions, Mercer Human Resource Consulting, MetLife, Microsoft, Oracle, PeopleSoft, PricewaterhouseCoopers, Recruitmax, SAP, Segal, SHRM, The Conference Board, Towers Perrin, Watson Wyatt, Workstream and WorldatWork.

Editorial topics receiving the most attention during January and February included outsourcing, rising health care costs, continued coverage of employee benefit broker compensation practices, HSAs and HR’s increasingly-prominent role in educating and training boards of directors in light of compliance concerns.

Last, according to the HRintelligence Trend Report, the human capital industry’s health received a “great” rating. The unscientific measurement looks at the aggregate number of advertising placements across the major HR trade publications and analysis of other activity within the sector, including new investment money flowing into the space, IPOs, M&A, closures and more. The company then benchmarks against the previous month to come up with a 5-point rating system of Excellent / Great / Good / Average / Poor.

About Fisher Vista, LLC and HRmarketer.com

Fisher Vista, LLC is a marketing and information services firm focusing exclusively on the human capital industry. The company’s flagship product, www.HRmarketer.com, is the No. 1 online marketing and PR service in the human resources industry, helping HR service providers increase their visibility and generate sales leads.

   CONTACT:
   Elrond Lawrence, Director of Media Relations
   831-757-9100

Source: HRmarketer.com

CONTACT: Elrond Lawrence, Director of Media Relations of HRmarketer.com,
+1-831-757-9100

Web site: http://www.fishervista.com/

Web site: http://www.hrmarketer.com/

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Hewitt Associates to Provide HR Services to Marriott International

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–Feb. 14, 2005–Hewitt Associates (NYSE:HEW), a global human resources services firm, announced today it will provide human resources services to Marriott International, Inc. (NYSE:MAR). Under a seven-year agreement, Hewitt will provide human resources business process outsourcing (BPO) services, including workforce administration, benefits, compensation, recruiting, domestic relocation, and learning and development services to Marriott’s 133,000 employees

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ACS Awarded $120 Million Human Resources Outsourcing Contract With Delta Air Lines

DALLAS, Feb. 14 /PRNewswire-FirstCall/ — Affiliated Computer Services, Inc., (NYSE: ACS – News), a premier provider of business process and information technology outsourcing solutions, announced today that it has been awarded a human resources (HR) business process outsourcing (BPO) contract with Delta Air Lines, the United States’ second-largest airline. The seven-year agreement is valued at $120 million.

Under the terms of the new HR outsourcing agreement, ACS will provide a broad range of human resource functions for Delta, including compensation and benefits administration, relocation services, recruiting, learning, payroll, HR Information Services, and employee call center services for Delta’s North American employees and retirees

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