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ADP is one of the largest HR software companies in the world. It offers services that range from payroll to benefits administration to recruitment and everything in between. ADP's history dates back more than 65 years, when it began offering payroll processing services through its Automatic Data Processing . Today, ADP has more than 200,000 clients across multiple industries worldwide. However, not all business owners choose to go with ADP. This article will help you determine whether an HRIS provider like ADP is right for your company by answering these questions:
What Is HRIS Software?
HRIS software is a suite of software applications that help HR professionals manage human resources. An HRIS allows you to automate tasks, streamline processes, and improve employee satisfaction.
One of the most important functions of an HRIS is tracking employee data. It will allow you to collect records like employment history and performance reviews as well as keep tabs on any legal obligations (such as FMLA) you may have for your workers. This information can then be accessed by managers or supervisors who need it to make decisions about hiring or firing employees based on their performance history within your company.
Another function of an HRIS is providing information directly to employees through dashboards where they can view things like payroll details or vacation balances without having access any other sensitive data like salary histories or personal schedules which could be used against them by other people at work who do not have permission access such information under privacy laws outside corporate policy guidelines (which vary by country).
Blog: The 8 Best Modern HRIS Systems for Small Businesses
What Modules Are in an HRIS System?
High-quality HRIS systems have a full range of features, including Core HR and Talent Management modules.
- Core HR: The basic functions of an HRIS system include benefits enrollment, payroll processing and tax filing. For example, employees can enroll in benefits such as health insurance or dental insurance through the system. Some companies customize their core HR modules to include more specific information about employee benefits packages (e.g., whether employees can select between two different medical insurance plans).
- Talent Management: A good Talent Management module will make it easy for managers to review employee performance and provide feedback at regular intervals throughout the year – helping both parties understand how they’re doing together and how they can improve going forward. It should also help managers identify top performers who may need additional training or coaching so that they keep growing professionally.
Free Tool: HRIS Requirements Builder
How to Choose the Right HRIS for My Business
The first step in choosing the right HRIS for your business is to get clear on your core business needs. Are your employees scattered across multiple locations? Do you have a high volume of seasonal workers? Do you need to integrate with other enterprise systems? Is there a desire to consolidate data from multiple sources into one system for reporting purposes.
Once you understand what’s most important to you, it’s time to do a gap analysis that looks at what systems and processes are currently being used in order to understand where improvements can be made by implementing an HRIS. Once this assessment has been completed, determine the project team who will be responsible for implementing the new system and talk with internal stakeholders such as managers and executives so they can help define success criteria prior to beginning vendor selection.
It's very important at this stage of the process that vendors meet key criteria so narrowing down options quickly is essential! Shortlist only the top 2-4 vendors who meet these criteria - this will save valuable time later when evaluating each vendor's solution against yours during demos/proofs or any other type of proofing process (including pilots). It also helps avoid wasting money by doing discovery sessions with every vendor on your shortlist rather than just spending time talking with those who have potential solutions that align well with yours."
Is ADP the Right HRIS for My Business?
ADP is considered a Mid-Market HRIS, which means the system works best for companies with between 50 and 500 employees. Mid-Market solutions are designed to be an all-in-one HRIS for companies with fairly standard HR requirements. Mid-Market solutions typically take about 3 months to implement and do not require external consultants to successfully implement and manage the solutions. Mid-Market solutions can be limited in how scalable they are, due to a lack of custom workflow tools and limited rules engines.
Want more info on ADP? Talk to an advisor about firsthand ADP experience
ADP Pros & Cons
Strengths
- ADP is the market leader when it comes to payroll processing and tax filing services. They pay 1 in every 6 Americans and have deep in-house expertise on all things payroll-related
- ADP also has a very strong global payroll offering due to their acquisition of Celergo, a leading global payroll aggregator
- ADP has increased their integration capabilities in the past few years, building out open APIs and a marketplace of pre-built integration connectors
- ADP has a unique outsourced service offering called Comp Services, which can free up an HR team to focus on more strategic initiatives
Blog: Rippling vs ADP vs Paylocity
Weaknesses
- Customer support has historically been a challenge for ADP customers, as their large customer base necessitates large scale support systems that include ticketing queues, 1-800 lines and speaking with offshore support teams
- ADP Workforce Now has developed through a combination of internal development and external acquisitions, leading to a less-than-unified experience for admins and employees
- This multiple database architecture can lead to manual re-entry issues for admins and to challenges with getting real-time data for reporting
Free Tool: Input your team's HRIS requirements and see precise cost estimates for every HRIS vendor
ADP Background & Overview
ADP is a global technology company that provides cloud-based HR, payroll, and talent management solutions for businesses of all sizes. ADP was founded in 1955.
ADP's mission is to help customers achieve greatness by providing them with the right people at the right time through innovative technologies that help businesses manage their workforce better than ever before.
ADP User Reviews & Ratings
ADP has a 4.0 star rating on Capterra, which is one of the highest ratings for an HRIS vendor.
On TrustRadius, ADP has received an average 4.3 star rating out of 5 from a total of 28 reviewers. The company also earned an average 4.6 stars out of 5 from 13 reviews on G2 Crowd and 4.6 stars.
On Glassdoor, ADP currently has 2,622 user reviews with an overall score of 3/5 stars based on 66% positive reviews written by current employees and 33% negative reviews written by former employees who left within the past year. Overall almost half (48%) would recommend working at ADP to others while 52% said they wouldn't or weren't sure yet!
How Much Does ADP Cost?
ADP charges companies on a per employee per month basis. A typical ADP Workforce Now subscription can cost anywhere from $19-26 PEPM, depending on the size of your company and the modules included in your scope. When ADP's Comp Services are included, those costs can range from $30-42 PEPM.
In addition to the software fees, ADP will typically charge a one-time implementation fee. ADP's implementation fees are typically about 10-20% of the annual software fees (i.e., $10-20K implementation fee on a $100K annual purchase)
Blog: How to Negotiate an HRIS Agreement
Competitors to ADP, Alternatives to ADP
If you're considering an HRIS, it's a good idea to get familiar with your competitors. Here are some of the top contenders for your business:
- Paylocity
- Paycom
- UKG
- Workday
- Ceridian
- Paychex
Conclusion
As you can see, ADP is not the only option out there for HRIS software. There are a number of different HRIS systems that could be perfect for your business, and it’s important to consider all of them before making any decisions. We hope this article has helped you learn more about ADP and whether or not it would be right for your company!
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