Steve Goldberg's Analyst Perspectives

ADP Provides a Reliable Total Compensation Management Offering

Posted by Steve Goldberg on Apr 16, 2020 3:00:00 AM

Here are some insights on ADP drawn from our latest Value Index research, which provides an analytic 1-11assessment of how well total compensation management vendors’ offerings address buyers’ requirements. The Ventana Research Value Index on Total Compensation Management 2020 is the distillation of a year of market and product research efforts by Ventana Research. We evaluated ADP and six other vendors in seven categories, five product-related (adaptability, capability, manageability, reliability and usability) and two concerning the vendor (TCO/ROI and vendor validation). To arrive at the Value Index rating for a given vendor, we weighted each of the seven categories to reflect its relative importance in an RFP process, with the weightings based on data derived from our benchmark research on total compensation.

ADP ranks fifth overall in thisVentana_Research_Value_Index_Total_Compensation_Management_2020_ADP_200127 Value Index evaluation and is a Value Index Leader in TCO/ROI due to its sophisticated ROI calculator and business case materials. The vendor’s Vantage HCM is a flexible platform for supporting annual and ongoing compensation reviews. It includes a significant amount of compensation benchmark data stratified by job families and regions, performance indicators and core HR data for use in making informed total compensation decisions. Valuable product capabilities include an engaging and actionable visualization of budgets and spending and a pay equity exploration tool.

ADP excels in the Reliability category due to excellent product performance and scalability. The vendor’s second-best score is in Capability, reflecting functionality such as real-time market data integration with smart job matching.

We see opportunities for improvement in Validation, where the vendor could provide more information on product investment priorities and additional case studies related to total compensation. Additionally, Usability scores would be higher if ADP made it easier to collaborate around compensation decision inputs and if the product included more variable compensation data along with associated targets.

This research-based index is the most comprehensive assessment of the value of total compensation management software in the industry. You can learn more about our Value Index as an effective vendor selection and RFI/RFP tool here. Participating vendors can learn more about how to use the Value Index here.

Regards,
Steve Goldberg

Topics: Human Capital Management, Workforce Management, Continuous Payroll

Steve Goldberg

Written by Steve Goldberg

Steve is responsible for the Human Capital Management (HCM) research and advisory services practice. He guides HR and business leaders in leveraging their workforce for competitive advantage. He guides HCM technology vendors on the market of buyers and where their applications and technology can have maximum impact. Steve's uniquely diverse HCM experience spans over 30 years, including HR process and HCM systems practitioner leadership roles, heading up product strategy for one of the most respected HCM application vendors, and operating his own global advisory practice. His expertise areas of coverage include HRMS, Talent Management and Workforce Management, with specialized focus on recruiting, learning, performance, compensation and payroll. Prior to joining Ventana Research, Steve worked as a corporate VP in HR at UBS/Swiss Bank Corporation and Huizenga Holdings, product strategy leader at PeopleSoft and Unicru, and was also VP and Research Director at Bersin & Associates. Over 35,000 HR professionals and business executives have been informed by one of Steve's presentations on HCM, or have read his published work. Steve holds an MBA in Human Resource Management from University of Buffalo School of Management and a BBA in Industrial Psychology from The City University of New York.