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Aon Hewitt (formerly known as Hewitt Associates) was a provider of human capital and management consulting services headquartered in Lincolnshire, Illinois in the United States. From 500 offices in 120 countries, it provided consulting, outsourcing, and reinsurance brokerage services. The "Aon Hewitt" brand and legal entities have now been absorbed into the "Aon" business, leaving obsolete the names "Hewitt" and "Aon Hewitt."

Key Information

Hewitt Associates was founded in 1940 and ceased to exist as an independent entity at the completion of its purchase by Aon in October 2010. Hewitt's operations were then merged with some elements of Aon's consulting arm to become a new subsidiary of the Aon Group called Aon Hewitt. In 2017, the benefits outsourcing department of Aon Hewitt was acquired by Blackstone and rebranded as Alight Solutions.[1]

History

[edit]
Hewitt Associates
Company typePrivate
IndustryProfessional services
Founded1940; 86 years ago (1940), in Lake Forest, Illinois, United States
DefunctOctober 1, 2010 (2010-10-01)
FateAcquired by Aon
SuccessorAon
HeadquartersLincolnshire, Illinois, United States
Key people
Kristi Savacool (Co-CEO) Bal Dail (Co-CEO)
ServicesHuman capital and management consulting services
Revenue$3.2 billion in fiscal 2008
Number of employees
~29,000
ParentAon
Websitewww.aon.com

Hewitt Associates was founded in 1940 as "Edwin Shields Hewitt and Associates" and became an American provider of human capital and management consulting services. It operated 500 offices in 120 countries providing consulting, outsourcing, and insurance brokerage services.

Hewitt ceased to exist as an independent entity at the completion of its purchase by Aon in October 2010.[2] Hewitt's operations were merged at that time with some elements of Aon's consulting arm to become a new subsidiary of the Aon Group called Aon Hewitt.

1940s–1970s

[edit]

Edwin "Ted" Hewitt founded Edwin Shields Hewitt and Associates on October 1, 1940, as a brokerage house focusing on insurance and personal financial services. During and after World War II, Hewitt's expertise became 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.

Hewitt began offering its clients statements to track their employee benefits and had pioneered the use of 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 useful that the U.S. Department of Labor asked the firm to create forms for the welfare and pension programs of the 1950s.

By the 1960s the Hewitt firm continued to expand its pension and benefit plans, and Hewitt became the first company to design pension and benefit plans tied to a corporation's revenue and growth projections. Hewitt was the only company asked by the U.S. government to consult on the Federal Interagency Task Force from 1964 to 1968. The task force was responsible for the design and implementation of the new Employee Retirement Income Security Act.

In the next decade Hewitt began offering its clients its Benefit Index to track the performance of benefit programs–an industry first. Hewitt also offered its clients flexible investment strategies for employee benefit packages, which led to the formation of a new consulting firm, the Hewitt Investment Group, in 1974.

1980s and 1990s

[edit]

In the 1980s Hewitt researched numerous issues and began issuing its findings industry-wide on subjects such as computer use for automated benefit calculations, offering benefits to part-time employees, full versus partial hospital reimbursement, fluctuating profit-sharing percentages, mental health benefits, 401(k) programs, and rising health plan deductibles.

The use of computers had begun to take hold in larger businesses, as Hewitt found automated benefit programs had increased remarkably from 1986 to 1988. In a survey detailed in PC Week (November 6, 1989), Hewitt had surveyed 700 companies to find 71 percent had become either fully or partially automated in their administration of benefits plans, up from 48 percent two years before. Hewitt designed computerized benefit programs and software so companies could manage their benefit plans. Hewitt Technologies was created in 1988 to monitor and respond to industries changing technological needs.

By the beginning of the 1990s Hewitt had ventured abroad and offered benefit programs to corporations in the United Kingdom. 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, according to Business Insurance magazine. Yet many of Hewitt's clients were feeling the pinch of a struggling economy and inflation. As companies began looking for ways to bolster the bottom line, benefits were often the first place executives looked for a quick fix. In a time when few received raises and those who did received only cost-of-living increases, Hewitt started retooling retirement packages and healthcare benefits to keep its customers from making drastic changes. Of particular interest were retirement programs to help seniors withstand the effects of inflation. Hewitt also researched other benefit additions such as flextime scheduling, child- and elder-care benefits, and it compared HMOs (health management organizations) versus PPOs (preferred provider organizations).

By 1997 more than 100 large companies outsourced their benefit programs to Hewitt, covering about nine million worldwide employees. The company ran into controversy, however, when it secured incentives to open a new benefits management center in Orlando, Florida. Public officials decried the incentives, believing that Hewitt was favored over other firms that could have offered more jobs and revenue for the city. Despite the furore, the new office opened in Orlando in 1997, during a fiscal year (ending in September) in which Hewitt's revenues reached close to $700 million.

In 1998 Hewitt partnered with the California-based Financial Engines, an online investment firm, to offer its clients financial advice over the Internet. Hewitt clients could seek online investment advice and make changes in real-time. Such advancements, along with being the first HR industry firm to launch a corporate web site, landed Hewitt among PC Week's Top Ten Most Technologically Innovative Companies. Hewitt also continued its surveys, developing the Health Value Initiative in 1999 to measure the effectiveness and quality of more than 2,000 healthcare programs worldwide.

2000–2010

[edit]

By early 2000 Hewitt expanded with new offices near Houston, Texas, and a new office in Kuala Lumpur, Malaysia. The company also announced the merger of its British and Irish operations with the United Kingdom's Bacon & Woodrow, a retirement and HR management consulting firm.

Hewitt briefly offered Sageo, an online service where participants could compare, choose, and enroll in benefit programs. Sageo was designed for retirees and companies with older employees, to offer this growing population the same benefits provided to Hewitt's 150 corporate clients and their 15 million worldwide employees. Hewitt hoped that Sageo's online format would not only simplify the benefits process but lower employer costs as well. Within a few months of its debut, Sageo had enrolled nearly a dozen companies representing 500,000 individuals. However, Sageo never made money and was dismantled shortly thereafter.

In 2001 Hewitt announced its intention to become a publicly traded company after nearly six decades as a private firm. Under the ticker symbol HEW on the New York Stock Exchange, Hewitt went public on June 27, 2002, with an initial offering of 11 million shares (at $19 per share). Share prices rose to $23 the following day. Hewitt put its new funds to work, paying off debt, purchasing France's Finance Arbitage, an investment consultancy firm, and spearheading expansion plans for the United Kingdom and China.

In 2003 Hewitt took over the Cork, Ireland-based Becketts, a benefits consultancy, and bought the software programs and payroll services of Cyborg Worldwide Inc. These moves, along with several others, prompted the Chicago-based Crain's Chicago Business to name Hewitt one of the area's fastest growing public firms, with fiscal revenues topping $1.9 billion for the year. In 2004 Hewitt announced the purchase/merger of Irvine, California's Exult Inc., another HR and consulting firm. 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.

For 2004 Hewitt reached revenues of $2.2 billion and the firm sustained its 43rd consecutive year of growth. Employees numbered more than 22,000 in nearly three dozen countries (including Brazil, China, France, India, Ireland, The Netherlands, Puerto Rico, Singapore, and Switzerland) serving more than 18 million employees for its corporate clients. In addition, the company was named one of America's Most Admired Companies in 2004 by Fortune magazine, ranked as one of the 100 Best Places to Work for the fourth consecutive year by Computer World, and had become the United States' largest and the world's second largest benefits outsourcing company, according to Business Insurance magazine.

By early 2005 Hewitt had won business processing outsourcing contracts, signing publisher Thomson Corporation, Sun Microsystems, hospitality leader Marriott International, beverage giant PepsiCo Inc., Wachovia Corporation, and others to a roster of more than 2,500 international clients. As the year came to a close, Hewitt had fallen a bit short of its $3 billion goal, bringing in revenues of $2.8 billion. Analysts believed the business outsourcing market would top $33 billion or more in 2006.

2010–2020

[edit]

On July 12, 2010, Chicago-based insurance broker, Aon, announced that it had agreed to buy Hewitt Associates for $4.9 billion in cash and stock.[3] The purchase was complete as of October 1, 2010, and Hewitt's stock ticker (HEW) was removed from the NYSE. As of October 2012, there was little mention of the Hewitt name in the Aon web sites, although most of its services continued. The AON symbol on the New York Stock Exchange belonged to Aon plc, headquartered in London rather than Chicago since January.[4]

On October 14, 2010, Aon said 1500 to 1800 jobs would be cut.[5]

In 2017, part of Aon Hewitt was acquired by Blackstone and rebranded as Alight Solutions.[1]

In March 2020, Aon had agreed to buy Willis Towers Watson months after the breakdown of negotiations between the two professional services firms. The merged business would have had a gross equity valuation of $80bn at the completion of the transaction which was initially expected in the first half of 2021.[6] In July 2021, the deal was ultimately called off after the United States Justice Department issued a lawsuit, which would have delayed the deal until November 2022.[7]

Growth strategy

[edit]

Prior to 2000, acquisitions and joint ventures were with very small boutique firms. The firms were primarily defined as benefit plan actuaries and human resources consultancies.

In 2000, Hewitt began growing through larger mergers and acquisitions. The first of these was the announcement, in late 2000, of a plan to integrate its UK and Ireland business with Bacon & Woodrow, a retirement and financial management consultancy in the UK.

In June 2003, Hewitt announced the completion of the acquisition of Northern Trust Retirement Consulting, L.L.C., expanding its portfolio of outsourcing clients. Later in 2003, Hewitt acquired Cyborg Worldwide, Inc., expanding outsourcing capabilities to include payroll services.

On October 1, 2004, Hewitt completed the acquisition of Irvine, California-based Exult Inc., a company specializing in Human Resources Business Process Outsourcing or HR BPO. This move was to ensure Hewitt would remain competitive within the HR consulting and outsourcing space, in which HRBPO was a rapidly growing area.

As of early 2010, Hewitt had approximately 2,600 clients, making it the world's largest provider of multi-service HR business process outsourcing, and it claimed to be the only firm fully integrated HR outsourcing and HR consulting. Hewitt's clients included over half the Fortune 500 and a third of the Fortune Global 500. Hewitt had 86 offices in 37 countries and employed over 27,000 employees. In 2012, the company also acquired Omnipoint, a major player in the Workday implementation space, and continues to be a key implementation partner for Workday.

Leadership changes

[edit]

On Thursday, June 15, 2006, it was announced that CEO and Chairman Dale L. Gifford would be stepping down. The announcement was made in the face of Hewitt's declining stock performance and market worries about the entire BPO sector, but Gifford, who has served as chief executive officer since 1992, indicated the decision was his own, and that he planned to retire.

Just after the closing of the stock market on Thursday, August 10, 2006, the company announced the appointment of the fourth CEO of Hewitt Associates, Russell P. Fradin, whose tenure commenced on September 5, 2006. On December 12, 2009, Hewitt announced that Robert A. Schriesheim would be joining the company effective January 4, 2010, as SVP and CFO from Lawson Software, where he had been serving as CFO and a board member.[8]

Russ Fradin continued on as the CEO of the Aon Hewitt subsidiary after Aon Corporation's purchase of Hewitt was completed in November 2010.[9] Fradin stepped down in May of 2011.[10] In the same month, Aon announced Kristi Savacool and Baljit Bail as the new co-CEOs of the company.[11]

Ari Jacobs, the firm's Senior Partner of Global Retirement Solutions Leader, was named 2012's number 1 Knowledge Broker by aiCIO magazine.[12]

References

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Further reading

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Aon Hewitt

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from Grokipedia
Aon Hewitt was a global provider of human resources consulting, outsourcing, and human capital solutions, specializing in areas such as talent acquisition, retirement planning, health and benefits management, compensation strategy, and risk mitigation for organizations worldwide. Formed in October 2010 following Aon plc's $4.9 billion acquisition of Hewitt Associates and its merger with Aon Consulting, the entity combined Hewitt's expertise in employee benefits and HR outsourcing—rooted in Hewitt's founding in 1940 as an insurance brokerage—with Aon's risk management capabilities to create a comprehensive HR services platform. Headquartered in Lincolnshire, Illinois, Aon Hewitt grew to employ over 30,000 professionals across more than 90 countries, serving approximately 20,000 clients with data-driven advisory and administrative services. In February 2017, Aon sold Aon Hewitt's technology-enabled benefits outsourcing and HR administration platform to affiliates of Blackstone for up to $4.8 billion in cash, allowing Aon to refocus on core consulting and brokerage operations; the acquired business was subsequently rebranded as in June 2017. The remaining consulting assets were fully integrated into Aon's Solutions division, contributing to its ongoing global leadership in HR advisory, with 2024 revenues for the segment reaching $5.2 billion. This evolution positioned Aon Hewitt's legacy as a foundational element of Aon's modern human capital offerings, emphasizing analytics, employee engagement, and strategic workforce solutions.

History

Founding and Early Years (1940s–1970s)

Hewitt Associates was founded on October 1, 1940, by Edwin "Ted" Hewitt in , initially operating as Edwin Shields Hewitt and Associates, a brokerage specializing in and personal with an early emphasis on and employee benefit plans. The firm began as a small operation providing actuarial expertise to help companies design and manage retirement and welfare benefits, capitalizing on the growing demand for structured employee compensation amid economic uncertainties. The company's early growth accelerated during and the postwar period, as federal wage controls and higher income taxes encouraged employers to offer fringe benefits like pensions and to attract and retain workers. Hewitt established itself as a leader in actuarial consulting, serving major U.S. corporations—including many from the Fortune 500—by developing customized benefit plans that complied with emerging regulations and met business needs. This era solidified the firm's reputation for rigorous financial analysis and plan design, positioning it as a pioneer in consulting during a time of rapid industrialization and labor shifts. By the 1950s, the business had evolved to encompass broader compensation and benefit consulting services, leading to its renaming as Hewitt Associates. National expansion followed, marked by the 1959 opening of its first office outside in , which broadened its client base among large employers. In the 1960s, the firm relocated its headquarters to , in the greater area, facilitating operational scaling and proximity to key industrial clients. Throughout the 1960s and 1970s, Hewitt advanced its capabilities by developing proprietary tools for benefits administration, including early systems for tracking and setting investment goals. A notable came in 1977 with the introduction of "Total Compensation Measurement," a benchmark tool for evaluating overall employee pay packages across organizations. The decade closed with the 1974 establishment of its first international office in , , signaling Hewitt's initial foray beyond U.S. borders.

Expansion and Modernization (1980s–1990s)

During the , Hewitt Associates shifted its focus from traditional consulting to broader services, including total compensation strategies and administration, under evolving leadership that emphasized innovation in HR practices. This transition built on the firm's early expertise in actuarial services while addressing emerging client needs for integrated HR solutions amid regulatory changes and workforce shifts. A pivotal development was the launch of HR outsourcing services in the early 1980s, allowing clients to delegate benefits administration and payroll processing to Hewitt, which reduced administrative burdens and improved efficiency for growing corporations. In 1988, the firm introduced Total Benefit Administration, a pioneering computerized platform that incorporated technology and call center support to streamline benefits enrollment and management. This system debuted with its first major client, , in 1993, marking a significant step in modernizing HR operations through . By the mid-1990s, Hewitt further advanced data-driven insights with the Hewitt Index in 1997, the first tool to track participant behavior and trading activity in defined contribution plans, providing benchmarks for plan sponsors. The period saw robust , with annual revenues reaching $250 million by 1990, establishing Hewitt as the world's fourth-largest HR consulting firm. Revenue continued to expand, surpassing $1 billion by the late 1990s, driven by demand for and consulting amid the rise of plans and global business complexity. Employee numbers grew to approximately 5,000 by 1999, supporting expanded service delivery. Note: Employee count sourced from historical business profiles, though exact figures vary slightly across reports. International expansion accelerated in the , with Hewitt opening offices in , including the UK market entry by 1990, and extending into to serve multinational clients. By the decade's end, the firm operated in multiple regions, serving over 3,000 clients worldwide and administering benefits for millions of employees across borders. This global footprint enhanced Hewitt's ability to deliver localized HR strategies while leveraging centralized technology platforms.

Acquisitions and Global Growth (2000–2010)

During the early 2000s, Hewitt Associates transitioned to public ownership to support its expansion strategy, completing an on the in June 2002, which raised approximately $212 million through the sale of 11.15 million shares at $19 each. This listing provided capital for investing in technology platforms and services, positioning the firm for accelerated growth in consulting and amid rising demand from multinational corporations. A key driver of Hewitt's growth was its strategic acquisitions, particularly the 2004 merger with Exult Inc., a leading business process outsourcing provider, in an all-stock transaction valued at about $691 million. This deal integrated Exult's expertise in managing HR functions for major clients, bolstering Hewitt's outsourcing segment and enabling it to offer end-to-end solutions for and benefits administration. The acquisition exemplified Hewitt's focus on scaling capabilities to meet the evolving needs of global enterprises, with Exult's operations merged into Hewitt's existing structure under continued leadership in HR outsourcing. In 2003, Hewitt also acquired Worldwide, a firm specializing in HR management software and services, further enhancing its technology-driven offerings. These moves contributed to robust financial performance, with operating revenues reaching $2.89 billion in 2005, reflecting a more than 35% increase from the prior year driven largely by growth post-Exult. By , Hewitt had established itself as a dominant player, serving more than two-thirds of companies and supporting over 3,000 clients worldwide with comprehensive HR solutions. Hewitt's global expansion during this period emphasized building a presence in over 30 countries, growing its workforce to approximately 23,000 employees by to deliver localized services amid increasing internationalization of client operations. The firm prioritized emerging markets, establishing operations in regions like and to capitalize on rapid and support multinational clients expanding there, including through tailored consulting. This footprint enabled Hewitt to address diverse regulatory and cultural challenges in HR management, solidifying its role as a key partner for global talent strategies ahead of its integration with Aon.

Merger with Aon and Peak Operations (2010–2017)

In October 2010, Aon Corporation completed its acquisition of Hewitt Associates for $4.9 billion in a cash-and-stock transaction, formally establishing Aon Hewitt as the combined entity's consulting and division. The merger created a global leader in solutions, with Aon Hewitt generating $4.3 billion in annual revenue and employing approximately 29,000 professionals across more than 100 countries. This integration positioned Aon Hewitt to leverage Aon's expertise alongside Hewitt's HR capabilities, enabling expanded offerings in areas such as , benefits administration, and workforce analytics. Following the merger, Aon Hewitt underwent significant operational integration, including the formation of a dedicated consulting division that unified consulting, , and technology services. The company broadened its portfolio to incorporate risk and insurance-linked HR solutions, such as health and retirement , by Aon's industry-leading risk products to Hewitt's client base of over 20,000 organizations. This synergy enhanced service delivery, allowing clients to address interconnected challenges in , compensation, and organizational strategy more holistically. By 2011, Aon Hewitt had streamlined its leadership structure, appointing Kristi Savacool and Baljit Dail as co-CEOs to drive unified growth in consulting and . During its peak operations from to , Aon Hewitt achieved strong performance, maintaining its $4.3 billion revenue base from 2010 while expanding globally and innovating in cloud-based HR technologies. Key milestones included enhanced client recognition for its integrated solutions, with the firm serving multinational corporations through tailored programs in talent acquisition and . In , Aon divested its benefits outsourcing and HR business process operations to Blackstone for $4.8 billion, resulting in the spin-off of as an independent entity focused on technology-enabled HR services. This transaction marked the culmination of Aon Hewitt's operational evolution, allowing Aon to refocus on core consulting while preserving the legacy of its expertise.

Rebranding and Dissolution (2018–Present)

In 2017, Aon retired the Aon Hewitt brand as part of a broader simplification of its , integrating Hewitt's consulting and advisory operations into Aon's core units focused on talent and solutions. This phase-out marked the end of Aon Hewitt as a distinct entity, with its services absorbed into Aon's global platform to streamline client offerings and enhance cross-functional collaboration. Concurrently, Aon sold its benefits business—previously part of Aon Hewitt—to Blackstone for $4.8 billion, which was rebranded as and operated independently thereafter. By 2018, the full dissolution of the Aon Hewitt brand was complete, with remaining sub-brands like Aon Risk Solutions and Aon Benfield also retired to unify operations under the single Aon plc banner. Hewitt's legacy expertise in consulting, , and compensation strategies was fully embedded into Aon's Solutions, particularly the Talent and Rewards line, which now leverages data from over 9,000 organizations for advisory services on optimization, pay equity, and . As of 2025, no independent Aon Hewitt entity exists; instead, its integrated capabilities support AI-enhanced HR advisory, including for and turnover, as highlighted in Aon's Q3 2024 AI study where 23% of HR leaders reported adopting AI features for . Aon continues to utilize Hewitt-derived tools, such as compensation databases, in its consulting practices to deliver data-driven insights across global clients. Post-dissolution, has experienced significant growth as an independent provider of HR technology and outsourcing, going public in 2021 via a $7.3 billion merger with a and completing a $1.2 billion divestiture of its and unit in to focus on cloud-based benefits administration. Meanwhile, Aon's Solutions has expanded its use of legacy Hewitt methodologies in areas like consulting for plans, serving over 480 North American clients with independent advisory on complex workforce challenges. In recent developments as of 2025, Aon has emphasized its talent solutions leadership by appointing Amanda Scott as head of Talent Solutions for on July 2, building on Hewitt's foundational HR knowledge to advance client strategies in talent attraction, retention, and reskilling amid AI-driven workforce transformations. This aligns with Aon's 2025 announcements, including the Future of Total Rewards Study surveying over 620 organizations on AI's role in equity design and workforce strategy, and the Employee Sentiment Study addressing adaptable talent pipelines in a changing labor market. These initiatives underscore Aon's ongoing commitment to innovative advisory without reviving the Hewitt brand.

Services and Business Model

Human Capital Consulting

Aon Hewitt's consulting services encompassed strategic advisory in , focusing on aligning workforce strategies with business objectives to enhance organizational performance. The firm provided expertise in design, which included developing compensation philosophies, benchmarking pay structures, and creating incentive plans tied to performance metrics, often tailored for board compensation committees. Benefits strategy consulting involved optimizing , , and total rewards programs to control costs while supporting talent attraction and retention, with services extending to global benefits management for multinational clients. Additionally, diversity and inclusion advisory helped organizations build inclusive cultures through data-driven assessments and policy recommendations, addressing equity in benefits and workplace practices. A key proprietary tool was the Hewitt Total Compensation Measurement (TCM) database, which benchmarked base salaries, bonuses, long-term incentives, and benefits across 180 countries and over 550 positions, enabling clients to compare total rewards against market standards. The consulting practice served a broad client base, including many companies, delivering customized solutions such as pension de-risking strategies to mitigate liabilities through investment adjustments and risk transfer mechanisms like buy-ins or annuitizations. Workforce offerings utilized to predict talent behaviors, evaluate HR investments, and inform decisions on and , exemplified by the launch of the Talent Insight and Analytics platform. These services emphasized conceptual frameworks over rote metrics, prioritizing high-impact areas like and engagement models to drive sustainable business outcomes. In the 2000s and , Aon Hewitt innovated HR benchmarking tools, including annual surveys like the Universe Benchmarks report starting in , which tracked global trends in compensation and engagement to provide actionable insights for strategic HR planning. Following the 2010 merger with Aon Corporation, these tools integrated with Aon's expertise, allowing for holistic advisory that combined strategies with enterprise . The consulting arm's significance was evident in its contribution to revenues, accounting for 49% of the combined entity's 2009 revenues prior to full integration.

Outsourcing and Technology Solutions

Aon Hewitt's outsourcing and technology solutions encompassed a range of operational services designed to handle administrative HR functions for large organizations. Key offerings included and benefits enrollment, facilitated through proprietary platforms such as the Total Benefits Administration (TBA) system, which integrated , welfare, , and other into a unified model. This approach allowed clients to outsource end-to-end benefits management, reducing administrative burdens and enabling scalable enrollment during open seasons. In 2009, prior to the full merger integration, benefits accounted for approximately 40% of the combined entity's revenues, underscoring its significance to the . Technological advancements under Aon Hewitt involved the deployment of cloud-based HR systems to modernize service delivery before 2017. The company implemented platforms like Workday for global payroll and HR administration, partnering with providers such as activpayroll and ADP to ensure compliance and efficiency across borders. These solutions emphasized modular, flexible architectures that supported and , positioning Aon Hewitt as a leader in cloud-enabled HR outsourcing according to industry analyses. Partnerships extended to global payroll vendors, enabling seamless multi-country operations without compromising local regulatory adherence. At its peak, Aon Hewitt's outsourcing unit managed services for approximately 19 million employees and dependents, serving around 1,400 clients across multiple countries with a focus on scalable, technology-driven administration. Operations spanned over 90 countries, leveraging a to handle complex, multinational HR needs. In 2017, Aon divested this unit to private equity funds affiliated with Blackstone for up to $4.8 billion, rebranding it as to sharpen Aon's emphasis on advisory services while transferring the capital-intensive outsourcing operations. Following the 2010 merger, Aon Hewitt enhanced its capabilities by integrating Aon's proprietary into HR platforms, enabling predictive insights for and benefits optimization. This combined Hewitt's operational data with Aon's risk and benchmarking to forecast trends and inform proactive HR strategies, as exemplified in solutions like the 2014 Talent Insight platform developed with Visier. Such integrations improved by providing clients with data-driven forecasts on dynamics and cost efficiencies.

Leadership and Strategy

Key Executives and Roles

Edwin "Ted" Hewitt founded Hewitt Associates in as an brokerage and financial planning firm, serving as its leader through the early decades as it evolved into a consulting powerhouse. Under his guidance from the 1940s to the 1960s, the company shifted focus toward and compensation services, laying the groundwork for its expansion in HR solutions. Dale L. Gifford joined Hewitt in 1972 and became its third CEO in 1992, holding the position until 2006. During his tenure, Gifford oversaw key strategic moves, including the company's in 2002, which provided capital for growth, and the 2004 acquisition of Exult, Inc., a major firm that strengthened Hewitt's position in HR outsourcing services. Russell P. Fradin served as chairman and CEO of Hewitt Associates from September 2006 until the October 2010 merger with Aon, after which he continued in the role for Aon Hewitt until May 2011, leading the integration of Hewitt with Aon Consulting to form a unified global HR services provider. Upon his departure, Kristi Savacool and Baljit Dail were appointed co-CEOs in May 2011, with Savacool overseeing benefits and Dail focusing on consulting services; Dail left in March 2012, leaving Savacool as sole CEO until the end of 2017. Savacool, who had previously led Hewitt's Benefits Administration division since 2005, emphasized growth in during her , which positioned the unit for its 2017 sale to Blackstone and subsequent rebranding as , a standalone provider of cloud-based HR and benefits services. Following the 2017 divestiture, Aon Hewitt's remaining consulting operations were integrated into Aon's Solutions division. As of October 2025, Byron Beebe serves as CEO of , overseeing the continued evolution of these HR advisory services. Aon Hewitt's board structure, integrated within Aon's post-merger, emphasized directors with deep expertise in , , and to guide strategic decisions in the HR industry.

Growth Initiatives and Challenges

Aon Hewitt pursued acquisition-led growth to expand its human resources outsourcing and consulting capabilities, exemplified by Hewitt Associates' 2004 acquisition of Exult Inc. for $691 million, which positioned the firm as a leader in (BPO) services. This move integrated Exult's operational expertise, enhancing Hewitt's global delivery model for HR services. Following the 2010 merger with Aon Corporation, valued at $4.9 billion, the combined entity leveraged synergies between Aon's and strengths and Hewitt's HR solutions to offer integrated risk-human capital offerings, broadening service scope for multinational clients. The 2010 merger faced regulatory scrutiny, requiring approvals from U.S. antitrust authorities and the , though no significant objections were raised, leading to clearance and completion in October 2010. Amid broader market pressures, the reduced demand for as clients grappled with pension funding shortfalls and deferred HR initiatives, prompting Hewitt to advocate for policy changes to address retirement security erosion. Intense competition from rivals like Mercer in areas such as benefits consulting and investment advisory further challenged market share. In the , Aon Hewitt innovated by shifting toward data-driven HR practices, developing models like the framework that analyzed survey data from millions of workers to link organizational drivers with performance outcomes. Global expansion efforts extended operations to over 90 countries, with a focus on emerging markets through tailored HR solutions for multinational growth. These initiatives contributed to revenue growth, with Aon Hewitt generating $4.3 billion in and driving total Aon revenue to $8.5 billion that year, a 12% increase from 2009. However, strategic shifts led to divestitures, including the 2017 sale of its benefits unit to Blackstone for $4.8 billion, allowing Aon to refocus on core consulting.

References

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  25. https://www.hsgac.senate.gov/library/files/donna-mathews-mathewstestimony050808-pdf/
  26. https://www.aon.com/attachments/thought-leadership/Hewitt_Survey_Findings_TheRoadAhead_2010.pdf
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  28. https://www.nytimes.com/2010/07/13/business/13insure.html
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  31. https://www.prnewswire.com/news-releases/kristi-savacool-and-baljit-dail-to-serve-as-co-ceos-of-aon-hewitt-121881458.html
  32. https://www.reuters.com/article/markets/aon-names-new-co-ceos-for-aon-hewitt-idUSL4E7GG26E/
  33. https://www.blackstone.com/news/press/blackstone-announces-acquisition-of-aon-s-technology-enabled-benefits-hr-platform/
  34. https://www.prnewswire.com/news-releases/introducing-alight-solutions-leading-benefits-administration-and-cloud-based-hr-services-provider-re-launches-with-new-name-300469128.html
  35. https://www.reinsurancene.ws/aon-names-andersen-and-oconnor-co-presidents-retires-business-unit-brands/
  36. https://www.hrdive.com/news/alight-formerly-part-of-aon-hewitt-seeks-to-expand-its-cloud-services-por/444413/
  37. https://aon.mediaroom.com/news-releases?item=137783
  38. https://www.aon.com/en/capabilities/talent-and-rewards
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  40. https://401kspecialistmag.com/alight-going-public-after-blackstone-sells-it-in-7-3b-deal/
  41. https://www.aon.com/human-capital-consulting/retirement/investment-consulting/specialty-services/custody-securities-lending-search
  42. https://aon.mediaroom.com/2025-07-02-Aon-Appoints-New-Head-of-Talent-Solutions-in-North-America
  43. https://www.aon.com/en/insights/reports/future-of-total-rewards-study
  44. https://www.aon.com/en/insights/reports/employee-sentiment-study
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  46. https://www.aon.com/en/capabilities/health-and-benefits
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  49. https://www.aon.com/unitedkingdom/pension-risk/mid-market-survey
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  61. https://www.aonhumancapital.com.au/getmedia/929a415b-c889-4033-9578-31649cd4e0ec/2015-an-analytics-lifestyle-whitepaper.pdf
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  66. https://www.reinsurancene.ws/aon-names-byron-beebe-as-ceo-of-human-capital/
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  76. https://www.hrdive.com/news/blackstone-completes-48b-buyout-of-aon-hewitts-outsourcing-unit/435999/
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