Automatic Data Processing (ADP), a B2B payroll and human resources services industry, focuses on answering the question: How is Voice of the Customer driving your strategy? The company partners with 6,000 clients in 125 countries, and pays one out of every six workers in the U.S. Customer service and customer/employee engagement are critical areas for ADP.
Technological innovation is something ADP prides itself on, evidenced by a recent honor in the HCM (Human Capital Management) category. Ventana Research recognized the ADP Vantage platform with its Technology Innovation Award in the Business Innovation Category.
“It’s always gratifying to see the HCM community recognize the progress we have made with our platforms,” ADP CEO Carlo Rodriguez said during the company’s fiscal second-quarter conference call on Feb. 3, according to Seeking Alpha.
For fiscal 2016, ADP expects revenue to grow in the range of approximately 7% over fiscal 2015, compared with the earlier projection of 7% to 8%.
“We continued to see very strong demand for our solutions, which is evidenced by our new business bookings growth of 15%,” Rodrioguez said. “Sales of additional human capital management modules that assist with Affordable Care Act, or ACA compliance, continued to contribute meaningfully to this performance, which has exceeded our expectations on a year-to-date basis. As a result, we are now forecasting new business bookings growth of at least 12% for fiscal 2016.”
It’s been an exciting and challenging quarter for ADP, Rodriguez noted.
“Our teams have worked very hard to implement human capital management modules that were sold during calendar 2015, and I am pleased with the number of units started on our ACA platforms during the quarter,” he said. “This is performance that we should be proud of. And I want to thank our associates for all of their hard work and dedication to our clients. We now have more than 14,000 U.S. clients with over 50 full-time employees live on our ACA solutions. Let me put that achievement into perspective. By the end of March, employers with 50-plus employees will be required to send Form 1095-C to each of their employees, describing the health insurance available
to them. This is the most significant employee tax filing form that the U.S. government has introduced since the W2, and ADP is on track to deliver about 10 million of them in the first year.”
On the new product front, Rodriguez is excited about the progress made with a new analytics platform called ADP DataCloud.
“During the quarter, we fully released the benchmarking capability with more than a 1,000 job titles, which allows our clients to generate actionable insights from workforce data embedded in their ADP HCM solutions,” he explained. “The benchmarking platform available for U.S. companies draws aggregated and anonymized information from ADP’s large U.S. client base.”