This is part of a special advertising section highlighting case studies featuring successful strategies in outsourcing and consulting.
Diversey is committed to a cleaner, healthier future. Its products, systems and expertise make food, drinks and facilities safer and more hygienic for consumers and for building occupants. Diversey employs 10,500 people with offices in more than 60 locations around the world and sales in more than 175 countries.
Diversey strives to provide all of its employees with a strong, market-competitive and cost-effective benefits program. With a change in human resource structure from local to regional and global control, Diversey Vice President of Total Rewards Todd Blazei felt that the time was right to optimize the global-benefits-management process to:
* Reduce cost, taking advantage of global buying power;
* Simplify benefits delivery and reporting tools to maximize global HR efficiency;
* Maintain a governance structure to systematically ensure a competitive and consistent global benefits offering as well as legal compliance with local requirements; and
* Build consistently higher levels of service from carriers.
Todd Blazei and Senior Manager of Global Retirement Programs Kori Weber-Parker worked with Aon Consulting's global benefits team to analyze Diversey's current benefits plan and brokering structure. They wanted to develop a global-benefits-management program that would:
* Reduce the number of brokers globally, from 30 to just one;
* Use the combined buying power of Diversey and Aon Consulting to reduce benefit costs by a targeted 8 percent;
* Develop global service agreements to ensure a high level of service from brokers and carriers; and
* Implement a consistent governance strategy for benefits program design and financing.
"We are committed to offering our employees a strong, market-competitive benefits program that is consistent with our global mission and vision," says Blazei. "Such a program requires knowledge of how the many moving pieces fit together and a deep understanding of geographical differences in terms of culture and the benefits themselves.
"Aon Consulting came to us with on-the-ground experts in every country in which we have employees, a proven approach and relationships to get the job done."
Implementing an optimized benefits-financing model and global governance strategy is no easy task. Blazei and Weber-Parker knew that the plan had a better chance of success with buy-in and commitment from all regional leaders. Blazei and Weber-Parker worked with Aon Consulting to create a business case to show how the proposed changes would benefit the organization, the regions and the employees.
"When we reviewed the plan with our HR region leaders it was clear . . . the new plan would meet our business goals and benefit each region; the projected cost savings without loss of service or benefit level was very attractive," says Weber-Parker.
With buy-in secured, Diversey implemented its strategy quickly with Aon Consulting's support. Within six months of the bidding process, it was rolling out the new structure.
"We started working together late in 2009. The new benefits-financing structure is in place and we have already saved more than 10 percent in overall benefits spend," says Weber-Parker. "These are significant savings when applied across our entire organization."
A common, global database is currently being populated.
"We're now in process of migrating all benefit and employee data into one Aon Consulting database. This will streamline our processes, reduce HR's time spent on data collection, and facilitate strong, global governance," says Weber-Parker. "The new benefit model and global plan is ensuring that we are spending our benefit dollar wisely. Because of this, we can offer our employees competitive plans at a great price."
Organization: Diversey Inc.
Headquarters: Sturtevant, Wis.
Primary Business: A leading, global provider of cleaning and hygiene solutions to the institutional marketplace, serving customers in the lodging, food service, retail, healthcare, food and beverage sectors, as well as building service contractors worldwide.
Outsourcing/Consulting Challenge: With 10,500 employees worldwide, Diversey moved from local to regional and global organization and HR structures. The company needed a governance strategy and effective benefits-financing structure to ensure that all employees are offered a strong, market competitive and cost-effective benefits program.