ADP Clients Save Time and Money Integrating Retirement and Payroll Services
Monday January 24, 11:00 am ET
Study reveals 'ease of administration' as No. 1 benefit to combining services
[Jake, Thanks for Forbes article. Shawn]
ROSELAND, N.J.--(BUSINESS WIRE)--Jan. 24, 2005--ADP® Retirement Services, part of the Employer Services division, a leading provider of integrated outsourced payroll and human resources services, today announced the findings of an independent study that helps to qualify and quantify the benefits of integrating ADP's 401(k) plan and payroll services. This study signifies ADP's continued commitment to demonstrating the bottom-line value of its outsourced services and represents the second of its kind this year* - illustrating that companies save both time and money when integrating ADP offerings. According to the study by Spring Consulting Group, LLC, and Mathew Greenwald & Associates, Inc., companies that use ADP for both their retirement plan services and payroll processing spend less than half as much time on 401(k) administrative tasks as ADP payroll clients that use a separate retirement plan provider.
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While 70 percent of ADP clients surveyed cited cost savings as an advantage of combining payroll and 401(k) plan services with a single provider, the most common advantage HR managers receive from this integration is ease of administration. Managing administrative tasks such as updating deferral percentages, processing loans and hardship withdrawals, and calculating matching or profit sharing contributions take twice as much time for ADP retirement plan clients who have not taken advantage of ADP's payroll integration as the same tasks take for those who have. For companies who leverage both offerings, the biggest time saver occurs with supplying year-end compliance data.
"We're committed to helping our clients make their 401(k) administration process as effective and efficient as possible," said Kendall Kay, Vice President, Marketing, Strategic Planning & Business Development, ADP Retirement Services. "ADP does this through integrating our payroll systems directly with our 401(k) platform. This eliminates redundant work while improving quality control. Payroll-related data needs to feed 401(k) systems." Kay adds, "While other 401(k) providers claim to offer hassle-free integration to ADP's payroll system, only ADP can provide truly seamless connectivity. This study proves that the way ADP integrates these functions saves plan administrators and HR managers time, which results in cost savings for their company."
While cost savings may have been an obvious driver to combine the two services with a single vendor, companies who have done so also realized other tangible benefits. A large majority of plan administrators reported that, as a result of ADP payroll and retirement planning integration, their productivity, stress, job satisfaction and job performance has improved. They reported a reduction in the number of data errors and enjoy the convenience of having the ability to simultaneously update information for both their payroll and retirement plans. ADP also scored high marks from clients in the areas of plan and participant services and a number commented on the superior technology that ADP offers.
"The integration of the payroll system with the 401(k) (system) has helped a great deal because basically any changes that are made to the 401(k) are made to payroll," said Teresa Hale, Human Resources Manager, Commercial Properties Management Corporation, who recently moved to an integrated ADP payroll and 401(k) offering. "Prior to ADP, I had to physically call these changes in and make adjustments via phone, which not only took time, but meant there was a margin of error in terms of data accuracy."
Providing retirement services to organizations since 1989, ADP provides employers of all sizes with a highly automated and flexible service model that enables organizations to focus more time on their core business. For more information about the study or ADP Retirement Services' portfolio of 401(k) and defined contribution solutions, call 1-800-432-401K extension 440 or visit www.adp401k.com.
About the Study
ADP commissioned Spring Consulting Group, LLC to identify the benefits of ADP's payroll and 401(k) plan services for its clients. Three hundred telephone interviews were conducted by Mathew Greenwald & Associates, Inc. in August and September 2004.
Spring Consulting Group provides a full range of strategy consulting to financial institutions, focusing on employee benefits services across the full spectrum of health and wealth. Spring also consults with large employers in the utilization of captive insurance facilities to fund benefit programs. www.springgroup.com
Mathew Greenwald & Associates is a full service market research firm recognized for its expertise in financial services and employee benefits. www.greenwaldresearch.com
Study on "The Total Cost of Ownership: Impact of Time & Labor Management Systems on Payroll Outsourcing with ADP"; released January 18, 2005.
About ADP
Automatic Data Processing, Inc. (NYSE:ADP - News), with approximately $8 billion in revenues and 550,000 clients, is one of the largest providers of a broad range of premier mission-critical, cost effective transaction processing and information-based business solutions in selected markets on a global basis. ADP Employer Services (ES), a division of ADP, Inc., is a leading provider of integrated business administrative solutions that help its over 475,000 clients efficiently manage their internal processes, allowing them to focus on core competencies. ADP Employer Services' offerings include both traditional and Web-based outsourcing products and services, giving clients the ability to select from ADP's comprehensive range of World Class Service solutions. Services include: payroll, tax regulatory management, HRMS, benefit administration, time and labor management, retirement plan services, online recruiting, PEO services, and employment screening and selection. For more information about ADP Employer Services, 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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Contact:
ADP
Terry Corallo, 973-974-7612
terrym_corallo@adp.com
or
Cohn & Wolfe for ADP
Jeff Sexton, 212-798-9702
jeff_sexton@nyc.cohnwolfe.com
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Source: Automatic Data Processing, Inc.
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