ROSELAND,
N.J., Aug. 9, 2012
/PRNewswire/ -- In today's challenging economic and
increasingly regulated business environment, midsized companies
must tightly manage employee costs to help improve their bottom
line and support business growth – driving many to outsource
complex payroll processing to trusted partners such as ADP®, a
leading provider of payroll services and tax compliance
services.
Helping to ensure compliance with evolving state and
federal tax regulations is a key driver of the outsourcing trend.
According to a May
2012 study among midsized business owners and senior
executives conducted by the ADP Research
Institute (ADP RI), a specialized group within ADP,
33% of U.S.-based midsized companies incurred unintended expenses
related to noncompliance with government regulations in the past
year. Of those who were fined or penalized, each
received an average of 6.4 fines or penalties.
Moreover, the study also found that organizations who process
payroll in-house received nearly three times as many fines or
penalties as organizations that outsource their payroll (an average
of 5.7 fines or penalties for businesses that process payroll
in-house, versus 2 fines or penalties for companies that outsource
their payroll).
(Photo: http://photos.prnewswire.com/prnh/20120809/NY54803-INFO
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"A growing number of midsized companies are
outsourcing their payroll processing to help mitigate risk in
an increasingly complex regulatory environment," said
Regina Lee, President of ADP
Major Account Services, National Account Services, GlobalView® and
ADP Canada. "As more mid-market
organizations realize the value that outsourcing can offer, we're
also seeing increased demand for our ADP Workforce Now®
solution, which helps midsized companies simplify the regulatory
compliance process, reduce their administrative burdens and focus
more squarely on growing their business. In
fact, more than a quarter of our new midmarket sales come to ADP
from companies previously performing payroll in-house."
According to an ADP RI study on how companies do payroll
conducted in 2011, over the last seven years, the percentage of
companies processing payroll in-house versus through an outside
vendor has declined. In 2005, 54% of midsized
U.S. companies managed payroll internally, while 46% outsourced the
function. By 2011, just 48% of those companies
processed payroll in-house, while 52% strategically outsourced this
function to a trusted partner.
The same ADP RI study also showed a decline in
satisfaction among companies that manage their payroll in-house and
increased satisfaction among organizations that outsource payroll.
In 2007, 72% of midsized U.S. companies
processing payroll internally were satisfied with their payroll
function compared to 61% in 2011. Meanwhile,
satisfaction with payroll processing grew 10% among companies that
outsource the function – from 52% in 2007 to 62% in
2011.
"We currently manage nearly 900 employees across the
Eastern half of the country," said Ron
Thomas, Vice President of Human Resources at Eagle Transport
Corp., a petroleum transport company. "By
replacing our in-house payroll system with ADP Workforce Now, we've
simplified tax law compliance and reporting, while also integrating
our payroll and HR systems for the first time. I
felt at times our old disconnected solution was out of
control. ADP has added a level of control that
enables our HR department to place even greater focus on our core
mission of managing our people."
To date, more than 30,000 clients have embraced ADP
Workforce Now. This flexible, cloud-based
platform is designed to help midsized companies maximize employee
productivity while driving their business forward.
The platform provides HR managers with the
information they need to more effectively manage their workforce
via a single point of access. This platform
provides a true integrated human capital management (HCM) system
that can scale to support an organization's evolving payroll, HR,
benefits, talent management and time and attendance
needs.
Realizing that some businesses may prefer a simple
payroll-only solution, ADP also offers ADP Workforce Now Essential
Payroll which can be implemented in 10 days or less for
organizations with 50 to 150 employees and provides clients with a
dedicated support team.
"This market shift to outsourcing payroll, combined with
ADP's reputation for outstanding service and support, continues to
drive positive referrals for our ADP Workforce Now platform among
midsized companies. We continue to invest in and
enhance the platform's capabilities and user experience in order to
further empower midsized organizations to more effectively manage
their workforces and drive business success," added Lee.
For more information about ADP Workforce Now, visit
www.adp.com/workforcenow.
About the ADP Research InstituteSM
The ADP Research Institute is a
specialized group within ADP that provides insights to leaders in
both the private and public sectors around issues of human capital
management, employment trends and workforce
strategy. For more
information about the ADP Research Institute, visit:
http://www.adp.com/research.
About ADP
Automatic Data Processing, Inc.
(Nasdaq: ADP), with more than $10
billion in revenues and approximately 600,000 clients, is
one of the world's largest providers of business outsourcing
solutions. Leveraging over 60 years of experience, ADP offers a
wide range of human
resource, payroll, tax
and benefits administration
solutions from a single source. ADP's easy-to-use
solutions for employers provide superior value to companies of all
types and sizes. ADP is also a leading provider of integrated
computing solutions to auto, truck, motorcycle,
marine, recreational vehicle, and heavy equipment
dealers throughout the world. For more
information about ADP or to contact a local ADP sales office, reach
us at 1.800.225.5237 or visit the company's website
at www.ADP.com.
Contact
Michael
Schneider, ADP
(973) 404-4241
Michael.Schneider@adp.com
SOURCE ADP