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Innovation is "In the Air" at ADP

Last week, ADP hosted its 6th annual analyst day at its new Innovation Lab in NYC.  The space, partly still under construction and featuring a rooftop garden, provides a very collaborative work environment.

A current focus at the Lab is creating a new user experience for HR processes. The new user experience for pre-onboarding is live in Vantage HCM, and the benefits enrollment piece will roll-out this month.

Historically, ADP sold lots of point solutions, but with Vantage sales, there is a high attachment rate for multiple modules including benefits. ACA is really the main driving force behind all of the integrated bundles. In addition, approximately 75% of discussions within ADP’s Strategic Advisory Services group are around healthcare.

One specific recent development in Vantage related to benefits is the launch of ADP’s Health Compliance offering to manage ACA requirements. The offering, launched in April, includes the following:

  • Eligibility, affordability, and regulatory management
  • Dashboard to track ACA requirements and show potential issues
  • Employee profile / baseball card that consolidates all key information
  • Analytics.

The offering provides an integrated approach for penalty management, reporting, and notices.  Health Compliance is currently an add-on option, and can be sold as SaaS or as a managed service option.  It can also be integrated across third-party platforms. 

To date, ADP’s smallest client utilizing Health Compliance has 1.2k employees and its largest has 35k employees.  

In the two years since Vantage launched, sales are strong with 168 clients, with an average employee population of 4.5k. Enhancements extend beyond benefits too and the Innovation Lab in Chelsea will play a key part in getting the user experience just right. The Chelsea Lab is taking a different direction from ADP’s lab at its headquarters in Roseland, which has under 30 employees.  The Chelsea Lab currently has 115 employees, of which 94% were external hires, and a capacity of 140.

While construction is being completed, ADP is not missing an opportunity to get the user experience right, taking a small crew on the road to clients in cities including Philadelphia and Chicago. 

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