Automatic Data Processing, Inc. (ADP) cloud-based Human Capital Management (‘HCM’) solutions.
ADP continuously intends to solve complex business challenges for the company’s clients and their workers. The company’s Human Capital Management (‘HCM’) solutions, which include both software and outsourcing services, are designed to help its clients manage their workforce through a dynamic business and regulatory landscape and the changing world of work.
The company launched ADP Lyric HCM, an all-in...
Automatic Data Processing, Inc. (ADP) cloud-based Human Capital Management (‘HCM’) solutions.
ADP continuously intends to solve complex business challenges for the company’s clients and their workers. The company’s Human Capital Management (‘HCM’) solutions, which include both software and outsourcing services, are designed to help its clients manage their workforce through a dynamic business and regulatory landscape and the changing world of work.
The company launched ADP Lyric HCM, an all-in-one solution designed to address workplace challenges with personalized experiences that meet client needs. It acquired WorkForce Software, a premier workforce management solutions provider, and began to integrate it into its global HCM ecosystem to better serve large, global enterprises. The company enhanced its distribution network by launching an integrated payroll solution for small businesses. It augmented its global payroll capabilities by continuing to expand its offerings in markets with exciting growth opportunities, such as Japan and Saudi Arabia, and by acquiring payroll businesses, including PEI (Procesamiento Externo de Información, S.C.) in Mexico.
Strategy
The key elements of the company’s strategy include leading with best-in-class HCM technology, providing unmatched expertise and outsourcing solutions, and leveraging its global scale for the benefit of its clients.
Segments
The company operates through Employer Services and Professional Employer Organization (‘PEO’) segments.
Employer Services: Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a comprehensive range of technology-based HCM solutions, including its strategic, cloud-based platforms, and HRO (other than PEO) solutions. These solutions address critical client needs and include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services.
Professional Employer Organization: The company’s PEO business, called ADP TotalSource, is its full-service PEO that offers expert guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers’ compensation program as part of a co-employment arrangement in which employees who work for a client (referred to as ‘worksite employees’) are co-employed by the company and the client.
Products and Solutions
To serve the unique needs of its clients and their diverse types of businesses and workforce models, the company provides a range of solutions that businesses of all types and sizes, across geographies, can use to recruit, onboard, pay, manage, and retain their workforce. The company addresses these broad market needs with its cloud-based strategic platforms: RUN Powered by ADP, serving over 940,000 small businesses; ADP Workforce Now, serving over 90,000 mid-sized and large businesses; and ADP Lyric HCM, serving large enterprise businesses. All these solutions can be combined with ADP Smart Compliance to address the increasingly broad and complex needs of employers. Outside the United States, the company addresses the needs of over 70,000 clients with premier global solutions consisting of in-country solutions and multinational offerings, including Lyric, ADP Global Payroll, and ADP iHCM.
HCM Solutions
Integrated HCM Solutions: The company’s premier suite of HCM products offers complete solutions that assist employers of all types and sizes in all stages of the employment cycle, from recruitment to retirement.
The company’s suite of HCM solutions is powered by its strategic, cloud-based, award-winning platforms, including:
RUN Powered by ADP is an all-in-one platform designed specifically for small businesses to simplify payroll, HR, and compliance. It combines easy-to-use technology with 24/7 real-person support from ADP’s team of payroll professionals. RUN also integrates with other ADP solutions, including workforce management, workers’ compensation, benefits, and retirement services.
ADP Workforce Now is a flexible HCM solution used across mid-sized and large businesses in North America to manage their employees. More businesses use ADP Workforce Now in North America than any other HCM solution designed for both mid-sized and large businesses.
ADP Lyric HCM is a global HCM for large enterprises, unifying HR management, payroll, workforce management, talent, and data analytics into a flexible, intelligent, and human-centric solution. Businesses using Lyric also benefit from comprehensive end-to-end service support, with an emphasis on global compliance and expertise. Lyric is built for the way people actually work together, mirroring practically any structure of work groups, such as divisions, regions, or dynamic teams. Lyric integrates generative AI technology with ADP’s unmatched dataset, helping to support decision-making, drive efficiency and personalize employee experiences based on attributes of role, geographic location, typical behaviors, and anticipated need.
Global Payroll: The company pays over 26 million (approximately 1 out of every 6) workers in the United States. The company offers flexible payroll services to employers of all sizes, including the preparation of employee paychecks, pay statements, supporting journals, summaries, and management reports.
The company provides employers with a wide range of payroll options, including the use of mobile technology, connecting their major enterprise resource planning (ERP) applications with ADP’s payroll services, or outsourcing their entire payroll process to it. Employers can choose from a variety of payroll payment options, including ADP’s electronic wage payment and, in the United States, payroll card solutions and digital accounts. On behalf of its clients in the United States, the company prepares and files federal, state, and local payroll tax returns, as well as quarterly and annual Social Security, Medicare, and federal, state, and local income tax withholding reports.
Workforce Management: ADP’s Workforce Management offers a range of solutions to over 140,000 employers of all sizes, including time and attendance, absence management and scheduling tools. Time and attendance solutions include time capture via online timesheets, timeclocks with badge readers, biometrics and touchscreens, telephone/interactive voice response, and mobile smartphones and tablets. These tools automate the calculation and reporting of hours worked, helping employers prepare payroll, control costs and overtime, and manage compliance with wage and hour regulations. Absence management tools include accrued time off, attendance policy and leave case management modules. The company’s employee scheduling tools simplify visibility, offer shift-swapping capabilities and can assist managers with optimizing schedules to boost productivity and minimize under- and over-staffing. The company also offers data analytics and reporting tools that provide clients with insights, benchmarks and performance metrics so they can better manage their workforce. In addition, industry-specific modules are available for labor forecasting, budgeting, activity and task management, grant and project tracking, and tips management.
Compliance Solutions: ADP’s Compliance Solutions provides industry-leading expertise in payment compliance and employment-related tax matters that complement the payroll, HR, and ERP systems of its clients. In its fiscal year ended June 30, 2025, in the United States, the company processed and delivered more than 78 million employee year-end tax statements and moved more than $3.3 trillion in client funds to its clients’ employees, tax authorities, and other payees. The company's offerings within Compliance Solutions include employment tax services, W-2 management, business tax credits, I-9 management, employment verification, wage garnishment, and wisely by ADP, its paycard solution.
Benefits Administration: In the United States, the company provides powerful and agile solutions for employee benefits administration. These options include health and welfare administration services, leave administration services, insurance carrier enrollment services, employee communication services, and dependent verification services. In addition, ADP benefits administration solutions offer employers a simple and flexible cloud-based eligibility and enrollment system that provides their employees with tools, communications, and other resources they need to understand their benefits options and make informed choices.
Talent Management: ADP’s Talent Management solutions simplify and improve the talent acquisition, management and activation process, from recruitment to ongoing employee engagement and development. Employers can outsource their internal recruitment function to ADP through ADP’s Recruitment Process Outsourcing services. Employers can also receive employer brand activation services, management of candidate advertising, talent community building services, and recruiter training services, as well as career search support and outplacement for reductions in force. The company’s solutions provide performance, learning, succession and compensation management tools that help employers align goals to outcomes and enable managers to identify and mitigate potential retention risks. The company’s talent activation solutions include StandOut powered by ADP, which provides team leaders with data and insights to drive employee engagement and leadership development, which in turn help drive employee performance.
Human Resources Management: Commonly referred to as Human Resource Information Systems, ADP’s Human Resources Management Solutions provide employers with a single system of record to support the entry, validation, maintenance, and reporting of data required for effective HR management, including employee names, addresses, job types, salary grades, employment history, and educational background.
Insurance Services: ADP’s Insurance Services business, in conjunction with the company’s licensed insurance agency, Automatic Data Processing Insurance Agency, Inc., facilitates access in the United States to workers’ compensation and group health insurance for over 260,000 small and mid-sized clients through a variety of insurance carriers. The company’s automated Pay-by-Pay premium payment program calculates and collects workers’ compensation premium payments each pay period, simplifying this task for employers.
Retirement Services: ADP Retirement Services helps over 190,000 employers in the United States administer various types of retirement plans, such as traditional and Roth 401(k)s, profit sharing (including new comparability), SIMPLE and SEP IRAs, and executive deferred compensation plans. ADP Retirement Services offers a full service 401(k) plan program which provides recordkeeping and administrative services, combined with an investment platform offered through ADP Broker-Dealer, Inc. that gives the company’s clients’ employees access to a wide range of non-proprietary investment options and online tools to monitor the performance of their investments. In addition, ADP Retirement Services offers investment management services to retirement plans through ADP Strategic Plan Services, LLC, an SEC registered investment adviser under the Investment Advisers Act of 1940. ADP Retirement Services also offers trustee services through ADP Retirement Trust Services, LLC, a New Hampshire state-chartered affiliated trust company, as well as through a third party.
HRO Solutions
As a leader in the growing HR Outsourcing market, the company partners with clients from small, mid-sized, and large enterprise organizations, offering a full range of premium services and seamless technology for HR, benefits, payroll, and talent management. The company helps organizations streamline processes, reduce the daily workload, and mitigate compliance risk while also providing a partner to navigate HR challenges. Whether a client chooses its PEO or HRO/Managed Services, the company offers solutions tailored to a client’s specific needs and provides day-to-day expertise, guidance, and tools, all personalized to meet their unique needs. ADP’s HR Outsourcing solutions serve over three million client employees.
Professional Employer Organization: ADP TotalSource is enabled by ADP Workforce Now and offers small and mid-sized businesses a comprehensive HR outsourcing solution through a co-employment model. With a PEO, both ADP and the client has a co-employment relationship with the client’s employees. The company assumes certain employer responsibilities, such as payroll processing and tax filings, while the client maintains control of its business and all management responsibilities. ADP TotalSource clients are able to offer their employees services and benefits on par with those of much larger enterprises, without the need to staff a full HR department. With its cloud-based HCM software at the core, the company serves more than 18,000 clients and over 750,000 worksite employees in all 50 U.S. states. ADP TotalSource is the largest PEO certified by the Internal Revenue Service as meeting the requirements to operate as a Certified Professional Employer Organization under the Internal Revenue Code. ADP TotalSource is also an Employer Services Assurance Corporation accredited PEO, which demonstrates that the company meets the industry’s high standards and has the experience and financial stability to fulfill the needs of the businesses it serves. As a full-service PEO, ADP TotalSource provides a broad range of HR administrative services, including payroll and payroll tax, employer compliance, HR guidance, employee benefits and benefit administration, talent strategies, and workers’ compensation insurance, including risk and claims management.
ADP Comprehensive Services: ADP Comprehensive Services combines personalized, high-touch support with the company’s market-leading ADP Workforce Now platform to offer a one-stop suite of managed services solutions that are tailored to the specific needs of businesses of all sizes. The company’s committed team of professionals provides expertise, guidance, and tools across HR, talent management, payroll, and benefits administration through a combination of proven expertise, deep experience, and best practices. The company takes the time to understand its clients’ businesses to offer the right strategic support, enabling a flexible partnership that can cover one, some, or all areas of their HR and payroll processes. The scalable solution is designed to act as an extension of its clients’ in-house resources, providing outsourced execution that effectively combines expertise, processes, and technology.
ADP Comprehensive Outsourcing Services (ADP COS): ADP COS is designed for large enterprises to outsource their payroll. With ADP COS, the day-to-day payroll process becomes the company's responsibility, freeing up clients to address critical issues like employee engagement and retention. The combination of technology, deep expertise, and data-driven insights that ADP COS offers is powerful, allowing clients to focus on strategy and results.
Global Solutions
The company’s premier global solutions consist of multi-country and local in-country solutions for employers of any type or size. The company partners with clients to help them navigate the most complex HR and payroll scenarios using tailored and scalable technology supported by its deep compliance expertise.
ADP Global Payroll is a solution for multinational organizations of all sizes, empowering them to harmonize HCM strategies in over 140 countries and territories globally. This improves visibility, control and operational efficiency, giving organizations the insight and confidence to adapt to changing local needs, while helping to drive overall organizational agility and engagement.
The company also offers comprehensive, country-specific HCM solutions that combine innovative technology with deep local expertise. By operating a flexible service model, the company helps clients manage various combinations of payroll services, HR management, time and attendance management, talent management, and benefits management, depending on the country in which the solution is provided.
The company pays over 16 million workers outside the United States with its in-country and multi-country solutions, such as ADP iHCM and ADP Global Payroll. As part of its global payroll services, the company supplies year-end regulatory and legislative tax statements and other forms to its clients’ employees. Its global talent management solutions elevate the employee experience, from recruitment to ongoing employee engagement and development. The company’s comprehensive HR solutions, combined with its deep expertise, make its clients’ global HR management strategies a reality. Its configurable, automated time and attendance tools help global clients understand the work being performed and the resources being used and help ensure that the right people are in the right place at the right time.
Markets and Sales
The company's HCM solutions are offered in over 140 countries and territories across North America, Latin America, Europe, Asia, and Africa. The most material markets for HCM Solutions, Global Solutions, and HRO Solutions (other than PEO) are the United States, Canada, and Europe. In each market, the company has both country-specific solutions and multi-country solutions for employers of all sizes and complexities. The major components of its offerings throughout these geographies are payroll, HR outsourcing, and workforce management. In addition, the company offers wage and tax collection and/or remittance services in the United States, Canada, the United Kingdom, Australia, India, China, Hong Kong, Macau, Malaysia, and Taiwan. Its PEO business offers services exclusively in the United States.
The company markets its solutions primarily through its direct sales force. The company also markets HCM Solutions, Global Solutions, and HRO Solutions through indirect sales channels, such as marketing relationships with certified public accountants and banks, among others. The company is a leader in each of its major service offerings.
Acquisition
In October 2024, the company acquired WorkForce Software, a premier workforce management solutions provider that specializes in supporting large, global enterprises.
Clients and Client Contracts
The company provides services to more than 1.1 million clients. The company is continuously in the process of performing implementation services for new clients. Depending on the service agreement and/or the size of the client, the installation or conversion period for new clients can vary from a short period of time for a small Employer Services client (as little as 24 hours) to a longer period for a large Employer Services client with multiple deliverables (generally six to nine months).
Research and Development
During the fiscal years ended June 30, 2025, the company invested $1.388 billion in research and development.
History
Automatic Data Processing, Inc. was founded in 1949. The company was incorporated in 1961.
