News in Brief
News in Brief: Hewitt Acquires Absence Management Provider

Hewitt Acquires Absence Management Provider
Hewitt is acquiring LCG, a provider of absence management services. 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.
April 29, 2008
Hewitt Acquires Absence Management Provider
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

 









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