AOC Aon Corp.

Health and benefits costs serve as the greatest business risks CHICAGO, Nov. 19 /PRNewswire-FirstCall/ -- As employers begin showing signs of recovery, attention starts shifting from survival to success. Critical to this success will be the ability of an organization's human resource department to sort through stacks of resumes and recruit the best, while retaining those among the current workforce who are key to the organization's growth potential. Those unable to successfully balance both sides of this employment equation may be met with negative consequences, according to Aon Consulting, the global human capital consulting organization of Aon Corporation (NYSE:AOC). (Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO) Aon Consulting surveyed 1,313 employers nationwide and found that the majority cite talent retention (85 percent) and ability to meet talent/skills needs for leadership roles (84 percent) as top priorities. However, many reported that they are not effectively delivering these services. In fact, only 46 percent said they are very/extremely effective at retaining talent, while 38 percent said the same about meeting talent/skills needs for leadership roles. What's more, for 41 percent of respondents, the greatest concern of their leadership shortage is the reduced ability to meet revenue goals and profitability targets. This was followed by both a reduced ability to innovate (19 percent) and deliver desired customer service levels (16 percent). "An organization will only go as far as its leadership's ability to lead employees," said Elizebeth Varghese, Talent Solutions Practice leader with Aon Consulting. "History has shown a new genre of competitors has risen from each economic crisis, capitalizing on innovative ways to do business. Conversely, those organizations that have focused on 'just getting by' lose market share and may eventually disappear. Those employers turning their attention to building a focused workforce in 2010 and beyond will see a 'bottom-line' benefit." In addition, survey respondents believe the biggest business risks they face include health and benefits costs (62 percent), unstable financial markets (59 percent), development and retention of talent (47 percent), regulatory and compliance issues (47 percent) and weakening global economies (44 percent). "Health and benefits costs topped the list of risk concerns due to the significant amount of resources it will take to get these things under control, especially health care costs," said John Zern, Aon Consulting's U.S. Health & Benefits Practice director. "Escalating health care costs were an issue well before this recession and will continue to represent a major employer expense beyond our current economic challenges. Regardless of type or structure, health care programs will work effectively only if they include a strong education and communications component. Success relies on significant behavioral changes that will not happen simply by changing a plan or offering an incentive." This survey also found that while most organizations have communications plans in place for programs such as health and benefits (67 percent), corporate communications (66 percent) and human resource policies and procedures (64 percent), 46 percent do not have a formal employee communications strategy in delivering these messages. "One of the biggest downfalls for employers in implementing benefits programs comes from inconsistent message delivery," said Varghese. "Retirement, health care and even work/life benefits are all part of an employee's total rewards and need to be treated as such. This is especially important in letting candidates know all the elements of compensation, as employers compete for talent." About the Study Aon Consulting surveyed more than 1,300 employers nationwide for its 2009 Benefits and Talent Survey. This annual survey provides a glimpse into the strategies and tactics companies are using to ensure that they continue to improve talent, reward success and prepare for economic recovery. It includes findings in the areas of Retirement, Health Care and Workforce Management. To learn more about this survey, please click on the following link http://insight.aon.com/?elqPURLPage=4552. About Aon Consulting Aon Consulting is among the top global human capital consulting firms, with 2008 revenues of $1.358 billion and more than 6,300 professionals in 229 offices worldwide. Aon Consulting works with organizations to improve business performance and shape the workplace of the future through employee benefits, talent management and rewards strategies and solutions. Aon Consulting was named the best employee benefit consulting firm by the readers of Business Insurance magazine in 2006, 2007, 2008 and 2009. For more information on Aon, please visit http://www.aon.mediaroom.com/. About Aon Aon Corporation (NYSE:AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its more than 37,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and technical expertise are delivered locally through more than 500 offices in more than 120 countries. Named the world's best broker by Euromoney magazine's 2008 and 2009 Insurance Survey, Aon also ranked highest on Business Insurance's listing of the world's largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008. A.M. Best deemed Aon the number one insurance broker based on brokerage revenues in 2007 and 2008, and Aon was voted best insurance intermediary, best reinsurance intermediary and best employee benefits consulting firm in 2007, 2008 and 2009 by the readers of Business Insurance. For more information on Aon, log onto http://www.aon.com/. Follow Aon Consulting on Twitter: http://twitter.com/AonConsulting Sign up for News Alerts: http://aon.mediaroom.com/index.php?s=58 Media Contact Joe Micucci 312-381-4786 http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO http://photoarchive.ap.org/ DATASOURCE: Aon Corporation CONTACT: Joe Micucci of Aon Corporation, +1-312-381-4786, Web Site: http://www.aon.com/

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