Vendor Analysis
published on Jul 13, 2022
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 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 locations.
Key Findings & Highlights:
NelsonHall’s vendor assessment analyzes ADP’s offerings and capabilities in Workforce Management services. ADP, founded in 1949 and headquartered in Roseland, New Jersey, is a provider of HR management software and services.
ADP’s business has two main divisions:
- 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 ~660k worksite employees in the U.S.
- Employer Services (70% of revenues): provides HR management/workforce management services, payroll services, time and attendance management, benefits administration, recruiting, and talent management, including RPO, insurance services, retirement services, and payment and compliance solutions to ~920k clients worldwide.
This profile focuses specifically on ADP’s Workforce Management capability. NelsonHall estimates that ADP has ~110k clients. The bundling of Workforce Management is very common with payroll. The vast majority of ADP’s clients adopt its payroll services.
ADP has offered workforce management since its inception in 1949 and has grown business organically. It offers three cloud-based platforms to support these services:
- ADP RUN Time and Attendance: for small businesses with <50 employees. Offerings include basic schedules, accruals tracking, unified HCM, and time & attendance. The average client size is ~15 employees; RUN supports more than 750k clients
- ADP Workforce Now Essential Time: for small and mid-market organizations with up to 5k employees. Offerings include time & attendance, Scheduling, and Analytics. The average client size is ~200 employees; ADP Workforce Now supports ~75k clients
- ADP Workforce Manager: full-featured solution for more complex and multinational clients with 1K+ employees, but also services smaller clients with complex needs. Offerings include time & attendance, Absence and Leave Management, Scheduling, Forecasting, Activity Tracking, and Analytics, leveraging its UKG technology partnership.
- ADP has ~58k employees within its Employer Services business. NelsonHall estimates ~3k employees are dedicated to supporting its workforce management business, the majority based in the U.S. ADP’s workforce management service locations.