As the impact of the financial crisis spreads, no organization will remain untouched.

Most of the risks inherent in the crisis are easy to recognize. In tough times, there is a natural tendency to retrench, cut costs, and wait things out. Organizations often overlook or shy away from the growth side of the equation. Companies that first manage the risks and then exploit the opportunities of this crisis in a strategic, deliberate, and speedy manner will emerge as the winners.

How should your organization respond?

HR should be the model for the organization and manage the transformation — not be managed by it. As we work through this crisis with our clients, we are guiding them through 3 priorities that cut across the Workforce, Rewards & Benefits, and HR & the organization:

• Cut costs and manage downside financial risk — Cash is king and the strongest companies have the reserves to weather the storm. Invest with strategic intent and eliminate the nice-to-haves. Find interventions that will have the greatest impact on business results.
• Identify and implement productivity improvements — Cost cutting provides relief in the short term. Next, concentrate on HR's effectiveness and its ability to efficiently deliver in ways that drive business outcomes consistent with the business strategy.
• Position for growth — Downturns provide opportunities to gain market share, acquire weaker companies, and strategically recruit and retain top talent to position for the recovery. A nimble HR organization can speed integration and the ROI of an acquisition or free up resources quickly in a divestiture. A strong talent strategy can ensure that you keep your top talent while taking advantage of your competitors'; maintain engagement; and develop stronger leaders who can lead through the recovery and future turmoil.

We also provide market data tools to help clients analyze market trends.

To learn more, see Hewitt's best thinking below.

Workforce

Hewitt Point of View: Leading in an Economic Downturn
Hewitt experts suggest effective leadership tactics for this challenging economic environment.

Hewitt Point of View: Spotlight on Strategic Workforce Planning: Taking Action Today to Meet Tomorrow's Needs
Hewitt experts present actions that companies can take now to meet tomorrow's workforce needs.

Hewitt Point of View: Recommendations for Managing Global Compensation Costs in a Changing Economy
Hewitt's experts share their recommendations based on the current economic conditions.

Hewitt Point of View: HR's Ten Point Plan in Response to the Economic Crisis
Hewitt has developed a 10-point plan for HR leaders in response to the economic crisis.

Hewitt Point of View: How You Can Manage Talent in a Cost-Cutting Economy
Hewitt's experts provide guidance on retaining the talent you need in this challenging economic environment.

Hewitt Point of View: Optimizing Your Sales Force During Economic Downturns
Hewitt experts suggest five strategies to optimize your sales force effectiveness.

Hewitt Point of View: Buy, Sell, or Restructure? What You Can Do Now to Respond to the Economic Environment
Whether you're in the market to buy, sell, or restructure, one thing is clear: The pace of transactions has increased dramatically. Read Hewitt experts' take on some guiding principles to follow.

Hewitt Point of View: Executive Compensation Guidance in Crisis
Learn the executive compensation guiding principles Hewitt experts find to be among the most useful in managing through today's uncertainty.

Hewitt Point of View: How to Manage Compensation Costs Proactively in a Changing Economy
What can you do to manage compensation costs? Hewitt outlines some steps to take.

Recorded Webcast: Economic Implications on 2009 Compensation Budgets
Hewitt experts share details of a recent Hewitt compensation survey and potential strategies for dealing with compensation issues during this difficult economic time.

Podcast: Economic Implications on 2009 Compensation Budgets
Hewitt experts Ken Abosch and Lori Wisper highlight results of a recent Hewitt survey and outline key actions companies are taking on compensations spending in light of economic turmoil.

Total Absence Management: A Solution for Managing the Cost of Absence by Investing in Employee Health
Absenteeism due to chronic and acute health conditions resulting in disability and sick leave, has a significant impact on total health care costs. A well-executed absence management program can deliver a significantly positive, measurable return in corporate performance by leveraging the power of a fully present, healthy, and committed workforce.

Ten Principles for Leadership Communication
Your words take a back seat to what you do. Make sure your leaders leverage the 10 principles every great leader should know as they manage through this volatile period.

Rewards & Benefits

Surviving and Thriving in Times of Economic and Political Change: Total Rewards—Health Care
In measuring the response to the rising costs of health care benefits, Hewitt found little to no change in enrollment patterns during open enrollment at the end of 2008.

Hewitt Point of View: Managing Chronic Health Conditions: Reducing Cost ...Improving Results
The number of companies taking action to combat the chronic health conditions of employees and their families jumped almost 30 percentage points over the past year.

Hewitt Point of View: The Moving Retirement Target: Helping Your Employees Save During the Financial Downturn
Even though budgets are tight in today's economy, employers should encourage their employees to take simple steps to maximize their retirement plan's earning potential.

Survey Findings: Challenges for Health Care in Uncertain Times 2009
Hewitt's 2009 health care survey examines broad health care benefit trends, as well as employers' responses to the economic downturn.

Impact of the Economic Downturn on Employer-Sponsored Health Care Plans
The state of the U.S. economy has affected employers' health care strategies and planning, as well as the ability of some employees to pay for rising health care costs.

Hewitt Data Shows Americans Continue To Save in 401(k) Plans Despite Economic Woes
Employees are responding to market declines by choosing safer investments, according to analysis by Hewitt.

Hewitt Data Shows Americans Continue To Save in 401(k) Plans Despite Economic Woes
Employees are responding to market declines by choosing safer investments, according to analysis by Hewitt.

Hewitt Point of View: Retirement Plan Sponsor Actions in Today's Chaotic Market Environment
Calendar year 2008 has proved to be a challenging one thus far for pension plans.

Recorded Webcast: Financial Turmoil is Wreaking Havoc on Retirement and Investment Plans — How Should You React?
Global Risk Services leaders Joe McDonald and Kevin Wesbroom, along with Matt Clink and Colin Robertson from Hewitt Investment Group, address of market turmoil and its global impact. (You can access both U.S. and UK versions of this Webcast.)

Recorded Webcast: Financial Turmoil and the Impact on Defined Contribution Plans
Hewitt's Pamela Hess, John Allen, and Valerie Kupferschmidt, along with Kristi Mitchem, Managing Director, Head of U.S. Defined Contribution, Barclays Global Investors, discuss the issues causing the most concern in defined contribution in the recent market volatility, how participants are responding, and best practices for employers.

Does Your DC Plan Have a Multimillion-Dollar Leak?
With investment returns plummeting, excessive plan expenses can drain employees' retirement accounts even further. Learn how you can manage your plan expenses more effectively.

Ask Our Expert: How Market Volatility Impacts Pension Plans
Hewitt's risk expert, Joe McDonald, discusses the impact of capital market volatility on pension plans and tactics for addressing the risks to help you minimize downside financial risk.

Recorded Webcast: Riding the Pension Rollercoaster — Tracking Surplus Volatility
Joe McDonald, Hewitt's Global Risk Services Leader for North America, and David Zion, Managing Director at Credit Suisse, discussing how recent volatility in capital markets has affected pension plan funding.

RFM Newsletter: In Today's Markets You Can Be Rewarded
At the start of the year, S&P pension plans had a cumulative deficit of $49 billion. By mid-October, that deficit had ballooned to $340 billion. Learn the steps you can take in these volatile times to avoid risk or reward it.

Survey Results: The Road Ahead: Driving Productivity by Investing in Health 2008
Learn what health and productivity strategies employers are putting in place to tackle rising health care costs while improving employees' overall health and productivity.

HR and the Organization

Podcast: Economic Turmoil — M&A Implications within the Financial Sector
Piotr Bednarczuk, Global Leader of Hewitt's Corporate Transactions and Transformation practice, and David Kompare, Hewitt Principal, discuss the current transaction environment, and provide "critical success factors" for maximizing deal value.

The Need for Speed: Characteristics of Efficient Organizations
Institutions must adapt and respond quickly to shifts in market conditions. Learn the five characteristics that fast, agile organizations share.

Divest and Conquer: How to Make Your Company a More Attractive Acquisition Target
Smart companies understand that divestitures are part of the corporate lifecycle. We explain how sell-side HR and finance teams can help maximize the chances of a lucrative sale.

Market Data Tools

Hewitt 401(k) Index
A summary of monthly 401(k) transfer activity as well as monthly stock market activity.

Pension Risk Tracker
An interactive series of indices which shows the aggregate funding level of the pension funds of companies in the FTSE100, FORTUNE 500® and other indices.

Pension Risk Benchmark
Provides an overall picture of the significance of your pension risks.