Hewitt Associates announced its acquisition of LCG, a provider of absence
management services, on Tuesday, April 29—a move that analysts say proves the
company is committed to staying in HR business process outsourcing.
Hewitt already tracks leaves of absence for its employer clients, but with
this acquisition, the Lincolnshire, Illinois-based company will be able to help
its clients better manage employee absences. LCG, which is based in nearby
Deerfield, Illinois, has 20 clinicians on staff plus an additional eight
physicians who consult on individual cases as needed.
Furthermore, Hewitt now will be able to help employers understand the main
reasons that employees go out on short-term disability, says Amy Wulfestieg, a
Hewitt spokeswoman.
“We can bring together our consulting expertise with data management and help
clients see the root causes of why employees are out and help them better
understand some of the links between employee health and productivity,” she
says.
While the acquisition isn’t a big one, it does prove that Hewitt is working
to build on its core strength—its expertise on HR issues, analysts say.
Hewitt doesn’t have the global network that some competitors have, so this
could help the company gain market share, says Michel Janssen, managing director
of the Hackett Group, a Miami-based consultant.
“Their whole focus is on HR, so it makes sense for them to use this as a
differentiator,” he says.
By offering absence management services and blending it with its health and
welfare consulting, Hewitt can provide clients a service its competitors cannot,
says Jason Corsello, vice president at HR technology consulting firm Knowledge
Infusion.
“Companies are spending a lot of money on health care today, and if a
provider can help shave off 5 to 10 percent, that’s a lot,” he says.
The terms of the deal were not disclosed. Hewitt expects to have the new
service operating within the next few months.
—Jessica Marquez