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AT&T: 70,000 employees, a 7-year deal
Harrah's: From paper admin to seamless technology
AT&T
History
In 2001, a team of finance and HR executives at AT&T worked together
to develop a comprehensive, intelligent and cost-effective HR outsourcing
strategy. AT&T's approach was not to determine what needed to be
outsourced but rather what needed to be stationed in-house and justify
those functions thoroughly
Scope
AT&T awarded Aon HRO a 7-year outsourcing contract,
one of the largest outsourcing deals of its kind. Aon HRO provides AT&T with
'soup-to-nuts' HR administration, transaction and payroll services -including the
oversight of existing benefit plan providers. Aon HRO oversees benefits for 70,000
U.S. based AT&T employees.
Results
From an HR department of 600, the outsourcing deal resulted in the
transfer of nearly 400 HR managers and staffers from AT&T to Aon
HRO, immediately resulting in significant hard dollar savings for
AT&T. The 200 HR pros who remained at AT&T now focus on more
strategic, mission critical functions and issues better completed
within the enterprise. AT&T HR and Aon HRO's joint governance committee
analyzed and executed a change control process - delivering via
business units. AT&T wanted the transfer of HR to proceed 'smoothly,
seamlessly and imperceptibly' from an employee perspective - and
that is exactly how it happened. AT&T and Aon Consulting HR Outsourcing
were given the award for relationship of the Year 2004: Financial
and Business Services Sector by HRO Today magazine in April of this
year.
Harrah's
History
As a result of a strategic initiatives to streamline HR cost and
processes, Harrah's Entertainment, Inc. began searching for a partner
to provide health and welfare administration in May of 2002. Harrah's
sent an RFP to Aon HRO along with six other vendors. Aon did not
have a relationship with Harrah's prior to the RFP.
Scope
Aon HRO was awarded a 5-year contract to
perform outsourcing services for all 32,000 benefits-eligible employees at
Harrah's. As Harrah's has expanded via acquisitions, Aon HRO has responded
with increasing flexibility and enhanced service offerings.
Results
Aon HRO has provided Harrah's employees with a single point of contact
via telephone using interactive voice response and a benefits call
center. Aon HRO introduced HR Portal web technology to create an
online benefits center that tied in all of Harrah's benefit vendors
into one seamless and easy interface for employees to access. Aon
HRO technology and service offerings have allowed Harrah's the flexibility
to make plan design changes that would have been impossible under
their prior paper-based administration system. Today, Harrah's enjoys
better data quality, the efficiency of effective employee self service,
significant HR cost savings and a more strategic HR management team.
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