ROSELAND, New Jersey – October 4, 2006 – ADP® National Account Services, part of the Employer Services Division of Automatic Data Processing, Inc. (ADP), a leading provider of outsourced payroll, benefits and human resources (HR) services, today announced the results of an ADP commissioned study measuring the benefits of multi-service HR outsourcing. The study found that organizations using multi-source solutions and providers can spend more than $100 per employee per year just to integrate the processes and providers, which represents close to six percent of total HR and payroll budgets.
The ADP study, independently conducted by PricewaterhouseCoopers (PwC), surveyed the experiences of organizations that have a fully integrated approach to HR and those where components of HR services are administered in-house and/or by multiple service providers.
Organizations using multiple service providers reported the need to develop system interfaces, manual workarounds or purchase additional software to address the gaps between non-integrated systems. Nearly 70 percent of respondents said they anticipated future costs for system customization and software. And more than 50 percent expected to incur costs related to employee or HR administrative time, reporting and compliance.
“Cost savings is just one advantage of integrating HR with a single solutions provider,” said Regina Lee, President, ADP National Account Services. “HR processes are naturally connected, and by outsourcing with one partner, employers can significantly reduce administrative burdens and make HR a more effective business center within the organization.”
Study participants with an integrated HR delivery strategy also reported higher overall satisfaction with HR delivery and had fewer expectations of incurring future costs. Integrated services eliminate the need for manual data entry, reducing administrative tasks and the likelihood of errors. Additionally, the study showed that companies reported a higher satisfaction with HR departments that utilize tools that allow employees and managers to directly manage and access personal information at their convenience.
Study Methodology:
141 U.S. organizations participated in the study representing a variety of industries. The respondents’ average employee base was 5,000 or more. The survey was conducted via telephone from March to May 2006. Nearly half of the respondents were managers, while 46 percent were either vice presidents or directors. The questions were customized to assess the integration between two specific HR processes, e.g., payroll or health and welfare benefits. Respondents that reported detailed knowledge of a particular HR process were asked questions customized for them.
About ADP:
Automatic Data Processing, Inc. (NYSE: ADP ), with nearly $9 billion in revenues and more than 570,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing and information-based business solutions. Employer Services (ES), a division of ADP, offers the widest range of HR, payroll, and benefits administration solutions from a single source, to meet the extensive business needs of employers worldwide. Built with more than 50 years of industry experience, ADP ES' cost-effective, easy-to-use solutions provide superior value to companies of all sizes. Approximately 540,000 companies rely on ADP ES for unparalleled service and compliance expertise, allowing them to focus on other core activities. For more information about ADP ES or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.ADP.com .
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