UK - Aon Consulting is planning a major push into the wider employee benefits market.
Aon says the move has been driven by the continued closure of defined benefit schemes and an increase in the number of smaller firms entering the consulting market.
Chairman and chief executive Ron Amy (pictured) said consultants had traditionally been able to build successful businesses around work from DB pension scheme clients.
But Amy believes the combination of firms cutting their human resources spending – primarily by closing DB schemes – and smaller, more agile firms entering the consulting market means Aon must diversify its revenue stream or face operating in a shrinking market.
Amy said Aon would expand its focus to encompass the wider employee benefits market. He said the long-term plan was to offer clients “integrated solutions” where Aon would design, develop, implement and operate HR packages for clients.
Amy said: “The view, and this is quite a long-term view, is that organisations like ours which have benefited from a rich seam of pensions work, will need to diversify or shrink. That’s fundamental to our strategy.
“We also believe that we want to provide advice, implement advice, and deliver ongoing services.”
Last year the consultant absorbed its sister company, Aon Health Solutions, which reviews and assesses a client’s employee risk management profile and provides an all-encompassing strategy that addresses every area of its management.
It also launched Select, its own administration system for dealing with flexible benefits. The system is currently being tested on 10,000 Aon workers from across its consulting, insurance and risk management divisions, and it will be released in July.
Aon is also looking to strengthen its capabilities in the flexible benefits, risk benefits, healthcare consulting and health and safety consulting arenas.
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