Monthly Archives: February 2010

Health Care Reform Summit Stirs Talk, But No Agreement – Hewitt Associates Summary of Proposal

President Obama met with Congressional Democrats and Congressional Republicans for more than six hours on Thursday, February 25, 2010 at the much-anticipated health care reform summit across the street from the White House.
The two sides traded talking points and noted areas of broad agreement on the issue of health care reform. However, the session ended with no agreement between the two political parties on how to proceed to a bipartisan agreement on reforming the nation’s health care system.

The White House’s agenda for the summit included issues of controlling health care costs, reducing the federal deficit, reforming the health insurance industry, and expanding health insurance coverage. Attendees at the summit included Vice President Biden, Department of Health and Human Services (HHS) Secretary Kathleen Sebelius, senior White House staff members, the Senate Majority and Minority Leaders, Speaker of the House Pelosi, the House Majority and Minority leaders, and various Congressional committee chairs and ranking members.

The President used his opening remarks to make the case that reforming the nation’s health care system is crucial to economic recovery. The President, along with other Democratic leaders, repeatedly made the point that there were many areas of agreement between the Democrats and Republicans on how to address health care reform, including reform of the health care delivery system; a ban on annual limits, lifetime limits, and preexisting condition exclusions; and extending dependent coverage to a later age, such as 25 or 26. However, there was no consensus on expansion of coverage and how to pay for it.

In response, Republican leaders called on President Obama to abandon the health care bills currently in the House and Senate and to start over on a more incremental approach. Specifically, Republicans called on the President to renounce “reconciliation” and not pass the bill with just Democratic votes. Reconciliation is a parliamentary maneuver that would enable Congress to bypass a filibuster, which would typically require 60 votes to end debate. The President declined to take the reconciliation option off the table.

The President urged Republicans to revisit his administration’s health care reform proposal issued earlier this week, along with the Senate- and House-passed bills, to find common ground on certain issues. He concluded the nearly seven-hour session by stating that he would consider whether there is “enough serious movement that in a month’s time or six weeks’ time we could resolve something. The President said, “If we can’t, then we will make decisions, and then that is what elections are about.”

Hewitt’s summary of the President’s health care reform proposal, President Obama Releases Health Care Reform Proposal:

In advance of the bipartisan health care reform summit scheduled on February 25, 2010, President Obama on February 22, 2010 released a proposal that served as the basis of the discussion at the summit.
According to the White House, the President’s proposal “incorporates the work the House and the Senate have done and adds additional ideas from Republican members of Congress.” The proposal is based on the Senate-passed bill, the “Patient Protection and Affordable Care Act” (H.R. 3590), and includes a “targeted set of changes.”

According to the White House, this proposal is “the opening bid for the health meeting” and makes “some strong steps to improving the final product.” Further, the White House said that the “President is coming to the meeting with an open mind” and hopes for some “strong ideas” from both Republicans and Democrats that can be incorporated. During a press briefing, it was stressed that the proposal is the White House’s proposal and that neither chamber has signed off on it.

The Hewitt bulletin linked to at right summarizes the key provisions of the President’s proposal.


Hewitt Associates Release – Focus on Leadership and Key Talent Critical in Driving Deal Success, According to New Hewitt Survey

Analysis Shows Clear Link Between Investing in Human Capital Issues and Exceeding Deal Objectives

LINCOLNSHIRE, Ill. — Corporate transaction activity is expected to increase in 2010, yet many acquiring companies around the world say they fall short in meeting their deal objectives. One contributing factor? Failure to execute leadership and critical talent agendas, according to a new global survey by Hewitt Associates, a global human resources consulting and outsourcing company. As deal activity heats up this year, Hewitt’s survey shows that effectively addressing human capital issues can be a critical tipping point in the success of an organization’s deal.

According to Capital IQ, deal activity — including mergers and acquisitions (M&A), joint ventures, divestitures and IPOs/spin offs — totaled $2 trillion (USD) in 2009. Hewitt’s quarterly M&A pulse survey of 278 organizations around the world shows that 72 percent expect to increase their deal activity over the next two years. However, almost half (47 percent) said their past transactions did not achieve their intended financial and strategic objectives. Further, while almost two-thirds (65 percent) of companies indicate that leadership and key talent retention are critical to the success of a deal, nearly half (49 percent) of these organizations report they have lost critical employees at the same rate or at an even higher rate than non-critical employees.

A separate Hewitt analysis shows that the loss of critical employees can have a devastating impact on corporate transactions. Based on a sample of 96 companies representing more than $568 billion (USD) in total deal value over a two-year period, Hewitt’s analysis found that more than $54 billion (USD) — or 10 percent — of a deal’s value depends on the rate at which critical employees separate during or immediately after corporate transactions.

“As we unravel the reasons why companies aren’t achieving their M&A goals, it’s not surprising that leadership and critical talent issues are a major piece of the puzzle,” said Elizabeth Fealy, global leader of Hewitt’s Corporate Transaction and Transformation practice. “Often, the loss of critical employees may be enough to erase much of the synergy value companies sought in the deal. In other words, having your most valued talent leave during a merger or acquisition can be a true ‘deal-breaker.’”

To explore this point further, Hewitt compared the survey responses of companies that exceeded deal objectives (Overachievers) versus those organizations that did not achieve their deal objectives (Underachievers). In its analysis, Hewitt found a clear link between deal success and investment in leadership and key talent issues. Overachievers and Underachievers both say leadership and talent strategies are important to the success of a deal (69 percent versus 62 percent, respectively). However, less than a third (32 percent) of Underachievers report their leadership and key talent strategy in transactions as being effective, compared with 70 percent of Overachievers. Overachievers are also twice as likely to effectively identify and retain leaders (81 percent versus 42 percent) and assess critical talent (73 percent versus 35 percent).

“Human capital is one of the top three intangible assets of any organization, yet many companies fail to execute a rigorous and sustained leadership and key talent approach, permitting key leaders and talent to walk out the door,” adds Fealy. “As companies prepare for 2010 and beyond, there is a real opportunity to shift the dial. Having a formal strategy and game plan for leadership and key talent and effectively executing on it is critical for achieving better deal success.”

About Hewitt Associates

Hewitt Associates (NYSE: HEW) provides leading organizations around the world with expert human resources consulting and outsourcing solutions to help them anticipate and solve their most complex benefits, talent, and related financial challenges. Hewitt works with companies to design, implement, communicate, and administer a wide range of human resources, retirement, investment management, health care, compensation, and talent management strategies. With a history of exceptional client service since 1940, Hewitt has offices in more than 30 countries and employs approximately 23,000 associates who are helping make the world a better place to work. For more information, please visit


Hewitt Associates Top Companies for Leaders 2009 Study Results Reveal Leadership Is More Important Than Ever

Go to direct URL to choose individual country lists:

http://www.hewittassociates.com/Intl/NA/en-US/KnowledgeCenter/ArticlesReports/ArticleDetail.aspx?cid=4336&WT.ac=popart_L02_022210

Choose a location/language:

Argentina (Spanish) Latin America (Spanish)
Austria (German) Mexico (Spanish)
Canada (French) Puerto Rico (Spanish)
China (Chinese) Switzerland (French)
Germany (German) Switzerland (German)
Hungary (Hungarian)

On behalf of Hewitt Associates, FORTUNE Magazine, and The RBL Group, we would like to thank each of the companies who participated in the 2009 Top Companies for Leaders study. Thanks to their support, our efforts to identify companies who successfully attract, develop, and retain leaders resulted in the most comprehensive longitudinal study of talent and leadership around the globe. The 2009 findings not only shed light on the specific programs and practices that drive the success of Top Companies in developing leaders, they also uncover how these companies are wrestling with leadership challenges amid the current economic environment.

Out of 537 global participants, we identified 217 finalists who were ultimately considered for the Top Companies for Leaders regional and global lists. Our most competitive field to date, an independent panel of judges in each region had the difficult task of making the final selections. This year’s winners were announced in the December 7, 2009 issue of FORTUNE Magazine.

View the FORTUNE articles.

View our 2009 Research Highlights. (PDF format)

Hewitt’s Top Companies for Leaders Benchmark Report: Find out where you are. Learn where you need to go. Plot a course to get there.

Our research has found that the Top Companies for Leaders are never satisfied and use a number of tools in their leadership and talent planning efforts. In short, they bring a “measurement mind-set” to the often inexact process of developing the next generation of leaders. The 2009 Top Companies for Leader Benchmark Report can help your organization bring a “measurement mind-set” to the evaluation of its leadership and talent programs and practices; identifying strengths, diagnosing gaps, and providing valuable insight to inform strategy, planning, and budgeting efforts.

Learn more about how you can benchmark your organization against the 2009 Top Companies for Leaders.

About the Research

Initiated by Hewitt Associates, the Top Companies for Leaders Study is the most comprehensive longitudinal study of talent management and leadership practices around the globe. Our first results, published in 2002, uncovered a link between financial success and great leadership practices, and identified differentiating elements found only in Top Companies. We conducted the study again in 2003, 2005, and 2007, and this research provided the foundation for our more comprehensive 2009 global study. Over 500 companies participated, each completing a detailed questionnaire. From those submissions, finalists were identified and hundreds of interviews were conducted with senior executives. From these inputs, we are able to compare the talent management practices of the best companies around the globe on literally hundreds of data points. In our analysis, we found the gaps between the Top Companies and all others are often quite dramatic. Hewitt conducted the 2007 and 2009 Top Companies for Leaders Study in partnership with Fortune and The RBL Group.

Our Study Partners

Hewitt Associates (NYSE: HEW) provides leading organizations around the world with expert human resources consulting and outsourcing solutions to help them anticipate and solve their most complex benefits, talent, and related financial challenges. Hewitt works with companies to design, implement, communicate, and administer a wide range of human resources, retirement, investment management, health care, compensation, and talent management strategies. With a history of exceptional client service since 1940, Hewitt has offices in more than 30 countries and employs approximately 23,000 associates who are helping make the world a better place to work. For more information, please visit http://www.hewitt.com.

FORTUNE is a global leader in business journalism known for its unrivaled access to industry leaders and decision makers. Founded in 1930, FORTUNE magazine has a worldwide circulation of more than 1 million and a readership of nearly 5 million and is home to some of the strongest business franchises including FORTUNE 500©, FORTUNE 100 Best Companies to Work For, the World’s Most Admired Companies, Fastest Growing Companies, and Most Powerful Women. FORTUNE Live Media extends the brand’s mission into live settings, hosting a wide range of annual conferences for top-level executives, including the FORTUNE Global Forum and the Most Powerful Women Summit. FORTUNE magazine’s online home is http://www.CNNMoney.com, the most visited and utilized business destination Web site, attracting nearly 10 million unique visitors per month, according to Nielsen/NetRatings. FORTUNE, along with MONEY and CNNMoney.com, is part of The Fortune|Money Group, a division of Time Inc., a subsidiary of Time Warner, a leading media and entertainment company.

The RBL Group is a strategic HR and leadership systems advisory firm. For over 25 years, its principals have collaborated with leading global organizations to strategically align corporate and business strategy to ensure sustainable high performance through the integration of theory, applied research, and practice. The RBL Group has trained and redesigned some of the best-managed companies in the world, helping them achieve significant improvements in bottom-line results. It is recognized internationally for innovative research and publications on leadership, intangible assets, and strategic HR, including hundreds of articles, more than 400,000 books sold, numerous industry awards, and recognition as outstanding educators and advisors by leading business publications. For additional information about The RBL Group, its principals and expertise, please visit http://www.rbl.net.


Hewitt Associates and Financial Engines January 2010 Report – Professional Help in Defined Contribution Plans: Is it Working and for Whom?

The topic of professional investment help has gained momentum in recent years amid the recent volatile markets and the importance of 401(k) plans in participants meeting their retirement goals. In the recent report, Help in Defined Contribution Plans: Is It Working and for Whom?, Hewitt Associates and Financial Engines examine the topic of employer-sponsored professional help in 401(k) plans. It focuses on three of the most prevalent and fastest-growing types of professional investment help in employer-sponsored 401(k) plans today: target-date funds, managed accounts, and online advice.

Linking participant help usage with actual results, this report looks at participant behavior and portfolio risks and returns during the volatile period between January 1, 2006 and December 31, 2008. The report is based on a data set of seven large plans representing more than 400,000 individual participants and over $20 billion in plan assets.

The main findings of the report include:

Participants using help are better off. On average, participants using help — target date funds, managed accounts or online advice — experienced higher median returns and lower variability in risk than participants going it alone. The median annual return for all participants using help was 1.86% higher than those who did not.
Age is the key driver of help usage. On average, new hires and younger participants invest in target date funds, near- and post-retirees utilize managed accounts, and younger, higher balance participants use online advice. While not as strong a predictor as age, account balance also influences the type of Help participants use.
Near retirees need more help. Of all participants in the research, retirees and near-retirees not using help show the greatest variability in risk. The biggest mistake these participants make is taking too much risk near retirement.

Full 46 Page Report:

http://www.hewittassociates.com/_MetaBasicCMAssetCache_/Assets/Articles/2010/DCHelpReport_Jan2010.pdf


Happy Birthday to Me…Love, The Internet

Today is my birthday. What a way to make a plug for yourself. Then again a real plug would include my email so I can get random wishes of good will and pleasant celebrations. That leads me directly into the message behind today’s posting.

The mass evolution of the channel’s of communication has allowed for a global stream of celebration and self worth initiatives on one’s annual remembrance of birth. As of early afternoon I have gotten birthday wishes from high school friends to co-workers to ex-girlfriends on Plaxo, Facebook, IM, Email, Texting, Phone and Linkedin.

How does one keep up. More importantly how can I respond to the many many people that once a year go out of their way to show they care? There is the critical question of the day.

As you watch the Olympics and Days of Our Lives think about this question and I welcome any responses that help bring this challenge to a successful result.

I want to thank each and every person and perhaps I may do that this evening but I also want to maintain my sanity level.

This will involve some thinking on my end.

To add one more mode of communication to the list: The Blog

Happy Birthday to me!!!


Are Career Fairs Worth It? – A Little Q&A Time

Q: Do you recommend job seekers attend local career fairs? What kind of prospects can you expect at a career fair?

A: Web 2.0 has redefined the perception and implementation of the modern job search process. New technology has created competition that helped some, while adversely affecting others. At the campus level career expos/fairs are still a valuable part of the portfolio of career placement activities. National and regional organizations will continue to bring awareness via conferences/seminars/career fair events (for example, http://www.shrm.org and http://www.nbmbaa.org).

The Virtual Career Fair
As we continue down to the regional level, traditional career fairs are subtly being replaced with virtual career fairs. Without the need to shower, put on your best professional suit and show off your affluent communication skills, career transition professionals can sit in their pajamas and create an avatar that is wearing a fancy suit and walk up to a virtual company booth in the privacy of their own home.

Increasingly, resumes and business cards are now exchanged using v-cards and Linkedin profiles.

What if I am not computer savvy? Can I still compete? The advantage of virtual career fairs is that the many competitors in this arena of technology have developed software that is so user friendly that all you need to do is point and click and the work is done for you. The combination of gaming technology and professional infrastructure has blended generations into a melting pot of new and exciting paths.

How beneficial are on-site career fairs?
Local/regional career fairs are tailored toward associate and non-exempt level roles, non-profit, sales/commission based, retail, hospitality and academic institutions. If one of these career paths interests you, attending local career fairs will be an effective tool in your career transition strategy. However, if you career has taken on a different path, virtual careers fairs will be an potentially very effective means of marketing your skills.


What is wrong with my resume??? – Inquiring minds want to know

Q: Is your resume sabotaging your job search? What are some resume faux pas you see often?

A: I was speaking to a candidate recently and I was asked whether it was better to have a functional resume or a chronological resume. I explained that it is personal preference, but to choose the format that will best outline your strongest attributes as they relate to a potential career opportunity. Some talent acquisition specialists swear by one method while others are versed in the other. Debate aside, a resume that is structured effectively, regardless of format will be the one on the top of the pile at the end of the day.

Your resume is your audition tape. This is your first impression to wow the producers. Like any Broadway show, you may only get thirty seconds to a minute to prove your worth. How can any of us ever compete with those odds against us?

The answer is simple. If you follow a few key recommendations, you will have a resume that will shine when that day comes.

1) Be very strategic with the career role choices you make. A common mistake is to play the rule of volume over quality. If you over apply and hope someone notices, the likelihood of mistakes may occur including cover letters with the wrong title or wrong company, generic resumes with no flow or purpose or applications to roles far above or below your skill level. Focus on only a few small companies and specific roles that are closely aligned with your background or next career progression. Tailor your resume to emphasize the skills that best meet the needs of the role. Steer away from providing an objective unless it is specific to the role and/or company.

2) Place a specific emphasis on measurable performance results. Be very clear about your successes and how it affected the bottom line fiscal performance of the company. How many staff associates did you manage? What amount of budget did you manage? If you cut costs, by what amount and what methods? If you were promoted within a company, make a separate note so your career advancement is outlined clearly. If you had a 97% customer satisfaction rating, highlight that. These achievements will set your resume apart from others.

3) Generic chronological outlines may create the perception that you have something to hide. For example if you were with company A from 1998 to 2000 and then company B from 2001 to 2002 and then company C from 2003 to 2005, that could indicate a one month or twenty-two month gap in employment from company to company. Include the month and year in your chronological listing. If there is a gap, explain why in the resume or a cover letter. We are living in unprecedented times where many of us are undergoing uncontrolled gaps in employment.

4) Be very careful to proofread grammar, spelling and formatting. With so many web based search engines and URL resumes with specific formatting structure, a resume can look sloppy with symbols or errors that may not have been on the original draft. Always proof and reformat your resume if you put it out there for the public to see. Whether it was a user error or not, your name is on the top of that document.

5) Research industry specific resumes to help educate yourself on current terminology and jargon. Each industry has specific terms, phrases and catch words that show the true level of knowledge breath in that industry. There are hundreds of resume sample sites to choose from. Review them and see how your resume matches up. (http://www.bestsampleresume.com/)

6) Length can be one of the biggest unconscious errors a candidate can make. A strongly worded and focused resume should never exceed three pages. The ideal length is two full pages for a mid to senior level professional and one page to one and a half for an entry to mid junior level professional.


Is There Value in Professional and Personal References…

Let’s find out…Shall we

Q: When a prospective employer asks you for written references, is it ok to show your LinkedIn recommendations?

A: References tend to be an addendum to the application process. Soft skills, technical skills, fit, domain knowledge and professionalism will be the tier one basis points. How much weight is put on references depends on the business alignment, detail of the reference and reputation of the individual providing it.

Over the last decade technology has allowed us to communicate much more efficiently at a global level. References on professional portals such as Linkedin are as acceptable as traditional paper references. However, if you choose to provide those references, it would serve your benefit to put them in a well structured word document or email. This will show strong initiative and commitment to the role you are seeking. If you can get a reference that outlines your background against the specific role you are applying to, that will set you above the competition.

Q: Who are the best people to ask for references?

A: The number of references is less important than the quality of the feedback. References that will be weighed the most heavily will come from individuals that are more senior than yourself. They have had first-hand knowledge of your day to day roles and your accomplishments. Teammates who have worked closely in a project setting can be a valuable source of references as well. A subordinate who views you as a leader, mentor or supervisor should be the only individuals you should chose for a reference that are at a lower level of responsibility than you.

Q: What if you left your old job on not the best of terms? Who should you approach for a reference?

A: If you left a company on poor terms, try to align a reference from a business unit or team member that had a positive interaction with you. One of the most common mistakes is waiting until the end of a role before asking for a reference. If you were part of a major project or took on a new role in the organization, do not be afraid to ask for a professional reference to outline your successes. Many look at a reference as a part of your portfolio to seek another career opportunity. It should be viewed as a personal recognition for successful and well received performance.

It is a jungle out there and we are all in pursuit of the same prize, survival and career satisfaction. We must all remember that we are in control of our destiny. Through job performance, networking, research and implementation, we have the ability to blend in with the crowd or achieve that rare pinnacle of success.


Search Engine Optimization – Can it work…You Betcha

Maximizing content and output on the web with minimal and effective cost and time limitation.

Did you appreciate my personal Dictionary.com and Wikipedia.com rendition of the latest and greatest in internet based technology. Ok, perhaps it is not the latest, but clearly not all users take advantage of the tools.

In fact, some may see this as a blog while others can see through the sheer exterior and uncover the marketing plug aligned with this posting.

I am a big fan of the Google profile application not only as a virtual business card for an individual but also as a simplified tool for corporations to funnel out information pertaining to their organization including career opportunities, financials, community service, volunteer work, positive press, location sites and network alignment.

Today a new vision arose: The utilization of Google Profiles to promote career opportunities and maximize search engine exposure

http://www.google.com/profiles/Hewittassociates2010

This page is designed specifically for career opportunities with Hewitt Associates in Charlotte, North Carolina only.

Could this be the latest and greatest in Talent Acquisition process improvement.
I cannot forecast the future. Believe me I have tried but I think we may be embarking on the start of something bigger than the ever expanding Universe of Tweet This and Tweet That.

When you are sitting in a strategy meeting thinking up new ideas to promote career opportunities, let me recommend Google Profile pages.


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