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Consulting for people With more than 5,500 associates in 87 offices worldwide, Watson Wyatt is one of the world's leading consulting firms focused on human resources consulting. Traditionally, the firm's core businesses have been based in the fields of actuarial, benefits, and pensions. Watson Wyatt has built a business around global research and information services in the areas of employee benefits, human resources technologies, and human capital management as well as other various consulting services. For more than 50 years, Watson Wyatt has worked with companies of every scope, from the largest multinationals, to public employers, to nonprofits. The firm traces its origins to an actuarial firm founded in 1946 called The Wyatt Company. In 1995, Wyatt formed an alliance with British benefits firm R. Watson & Sons, becoming Watson Wyatt Worldwide. The American arm, based in Maryland, is known as Watson Wyatt & Company, while the Watson Wyatt Partners is the leading U.K. consulting partnership based in Reigate, England. The firm counts clients in a wide array of industries, such as high tech (America Online, IBM), aerospace and defense (Lockheed Martin), and pharmaceuticals (Glaxo Wellcome). In the last decade, the firm has expanded internationally. As such, Watson Wyatt has employees stationed around the world. "We first went global because we thought it might be practical," a company representative told The Washington Post "But we didn't start becoming profitable globally until we started concentrating on clients and clients' needs globally." While the Johannesburg, South Africa office closed in May 1999, Watson Wyatt will be expanding services in Ireland and northern England throughout 2000. In January 2000, Watson Wyatt Worldwide implemented a new structure for its international investment practice that will facilitate better coordination across the firm's global operations. Talking about an IPO Currently, Watson Wyatt is wholly owned by its active staff. However, in November 1999 the Board of Directors voted in favor of an initial public offering, the first ever launched by a benefits consultancy. The IPO would offer 25 percent of the firm's shares to the public while the firm would retain 75 percent of the total shares. In January 2000, the registration statements were filed with SEC in preparation for the offering. The shares for Watson Wyatt & Company Holdings, a new parent company, do not include the U.K. arm, Watson Wyatt Partners, which will remain a private partnership. Recent problems With its rapid international expansion, Watson Wyatt has hopes to become the world's leading workplace consulting firm. In recent years, however, the firm has seen stagnant revenues and falling profits. In 1996, it launched a failed benefit outsourcing project called Wellspring. Although Wellspring counted major American companies like AT&T and Sears, Roebuck & Co. among its clients, Watson Wyatt backed out of the capital- and systems-intensive business in 1998, taking a $59 million write-off to abandon ownership of Wellspring. Largely because of this fiasco, Watson Wyatt took a $126 million loss in 1998. The firm has since said it wants to concentrate on its core HR businesses. In 1999, a Wall Street Journal survey of senior executives in Management Consulting ranked Watson Wyatt Worldwide as the number one firm for both value of services and reputation. However, the 1999 Consultant League Tables, released in April 2000, reveal that Watson Wyatt has fallen to number two, behind William M. Mercer. This marks the end of Watson Wyatt's reign since the inaugural year of the League Tables in 1992. The tables rank international consultants by total number of mandates on which the firm acted as advisor. Integrated initiatives People Management Resources (PMR), a division of Watson Wyatt Worldwide, is a consulting firm that helps companies use a collection of methods known as "best practices" to improve their people management. PMR develops plans and tools and helps companies implement these methods for enhancing employee satisfaction, customer satisfaction, and performance. A subsidiary of Watson Wyatt Worldwide, Watson Wyatt Data Services (WWDS), is another information sharing service. WWDS is a searchable database containing national and international reports and surveys concerning global compensation, benefits, and employment practices information. These references are targeted to the human resource professional.
Watson Wyatt's hiring standards are tough. Associates must have top grades and be prepared to demonstrate their academic performance by providing test scores, papers, and honors from rigorous programs. Those who are not recent university graduates are experience professionals who are experts in their chosen career fields. According to the company, "a degree or background in computer science, communications, mathematics, economics, health care, or business will provide a foundation for success with Watson Wyatt," though "many of our associates have degrees in the sciences, humanities, or the law." All employees are welcome to take advantage of an extensive amount of ongoing training at Watson Wyatt. Associates in the Americas and the Asia-Pacific region complete a week-long orientation program within the first six months of hire. This "bootcamp," The Business of Consulting, serves as an introduction to Watson Wyatt. The ClientFirst? program uses case studies to teach associates the Watson Wyatt approach to servicing clients. Michael H. Davis Fellowships, named in honor of a past president, give consultants the opportunity to transfer to a two-year posting in a country in another major region. Finally, incoming associates from non-business education backgrounds are invited to participate in a three-day mini-MBA program that gives new employees an introduction to business terms, concepts, and models. The total compensation program includes a base salary, bonus opportunities, an array of health benefits, paid time off, and pension and savings plans. The "pay for performance" approach elicits commitment, as demonstrated in Watson Wyatt's high rate of employee retention.
A flexible workplace Watson Wyatt is recognized by its employees as "one of the leading benefits consulting firms in the world," with a "broad range" of careers within the company. There is a "definite growth track" for consultants with Watson Wyatt, as well. A "recent perk" to the job is that the firm has implemented "year-round business casual dress." There are many "financial incentives" within the company. In addition to "more than generous base salary," employees receive "periodic bonuses." Another bonus - a "two-day training seminar each fall, with ample time devoted to fun." While there are "few set holidays," the firm offers "adequate paid time off (PTO) which, if not used, can be moved forward, within limits." One employee says that the "co-workers and pay are what keep me here." Another insider, a late sleeper, is happy that "Watson Wyatt offers flex time - we can start any time between 7:30 and 10:00." Ever on the road Consultants "travel constantly" and, for that reason, "it is not your typical 9 to 5 job." "Billable hours are important here," says one consultant, "the more, the merrier everyone is." However, "the company is willing to transfer employees, and has been known to create openings in offices where there aren't any, just to accommodate an employee who needs to relocate." Employees report no "overt, or covert" attempt to "keep women or minorities out of career growth goals," and several employees report having female supervisors. According to insiders, Watson Wyatt "is a company that cares as much about keeping its employees happy as it does about making a profit."
Rick Seid Personnel
Group Benefits and Health Care Consulting;Organization Effectivementss Consulting;Communications Consulting;Investment Consulting;Human Resource Technology Consulting;International Consulting;Compensation Consulting
Andersen Consulting;Buck Consultants;Hay Group;Hewitt Associates;PricewaterhouseCoopers; Towers Perrin;William M. Mercer More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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