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ADP - New World Workforce Management

Vendor Analysis

by DeeAnna Warrington

published on Jul 18, 2024

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Report Overview:

NelsonHall’s vendor assessment analyzes ADP's offerings and capabilities in Workforce Management services

Who is this Report for:

NelsonHall’s New World Workforce Management profile on ADP is a comprehensive assessment of ADP’s offerings and capabilities, designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of Workforce Management and identifying vendor suitability for Workforce Management RFPs
  • Vendor marketing, sales, and business managers looking to managers developing strategies to target service opportunities and benchmark themselves against their peers
  • Financial analysts and investors specializing in the Workforce Management sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of ADP’s Workforce Management services offerings and capabilities, and market and financial strengths, including:

  • Identification of the company’s strategy, emphasis, and new developments
  • Analysis of the company’s strengths, weaknesses, and outlook
  • Revenue estimates
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
  • Analysis of the company’s offerings and key service components
  • Analysis of the company’s delivery organization including the location of delivery centers.

Key Findings & Highlights:

ADP provides payroll and HCM management software and services. ADP’s business is organized into the following two business segments:

  • Employer Services (70% of revenues): provides HR Business Process Outsourcing (BPO) and HCM solutions. Offerings include payroll services, benefits administration, talent management, HR management, time and attendance management, insurance services, retirement services, tax and compliance services, and people analytics and benchmarking to ~1m clients worldwide
  • PEO Services (30% of revenues): ADP TotalSource, provides employment administration outsourcing services for small and mid-sized businesses, including payroll, benefits admin, and compliance services through a co-employment relationship; servicing ~15.5k clients and ~700k employees in the U.S.

This profile focuses specifically on ADP’s Workforce Management (WFM) capability. NelsonHall estimates that ADP has ~125k WFM clients in 125+ countries being managed on the platform. Bundling WFM with payroll is very common and most of ADP’s clients adopt its payroll services.

ADP has offered WFM since its inception in 1949 and has grown its business organically. It offers multiple cloud-based platforms to support these services: 

  • ADP RUN Timekeeping plus Scheduling: for small businesses with <50 employees (average client size is ~15 employees); supports 750k+ clients
  • ADP Next Gen WFM: for mid-market customers with 50-150 employees
  • ADP Workforce Now Essential Time: for mid-market organizations with up to 5k employees (average client size is ~200 employees); supports ~75k clients
  • ADP Workforce Manager: full-featured solution that leverages ADP’s technology partnership with UKG;  for more complex and multi-national/multi-lingual clients with 1k+ employees, but also services smaller clients (250+ employees) with complex needs.

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