Industry news
ADP global strategy In an industry exclusive, Professional in Payroll, Pensions and Reward asked Jeff Phipps, managing director of ADP UK, to comment on the company’s strategy and success and its recent Celergo acquisition. The multi-country payroll outsourcing market is worth over $3 billion and is growing rapidly as companies are looking for greater visibility over their increasingly global workforce, while efficiently managing the compliance elements of multi-country payroll. In the rapidly evolving global environment, ADP continues to capitalise on growth opportunities as the market shifts. In August 2018, ADP announced the acquisition of Celergo, a leading provider of global payroll management services, enhancing its international payroll offerings with a strong platform and new solutions, including cross-currency payment and expatriate payroll-related services. The acquisition allows ADP to leverage a proven platform that will improve both client and partner experience. Celergo, which was founded in 2003 and is headquartered in Chicago, USA, offers multi-country payroll and combines a proprietary cloud-based technology platform with a local provider network. PiPPaR: The recent report Multi-Country Payroll Outsourcing (MCPO) – Service Provider Landscape with Services PEAK Matrix™ Assessment 2018 indicates ADP to be a ‘leader’ in the market. To what do you attribute this success? JP: We have consistently worked hard to develop our local skills, insight and relationships on a truly global basis. We have then built complementary software and service solutions that adapt to the client needs. Our clients recognise and value that ADP is providing an answer to an often complex but essential business requirement. PiPPaR: In what ways will the acquisition of Celergo contribute to ADP’s global market strategy, and how will availability of the acquired company’s services be extended to and affect existing and prospective clients going forward? JP: The acquisition will enhance ADP’s international payroll offerings with a strong platform and new solutions, including cross-currency and expatriate payment services. Celergo offers multi-country payroll in 150 countries and combines a proprietary cloud-based technology platform with a local provider network to enable timely, accurate and compliant payroll. With comprehensive solutions and an attractive financial profile, Celergo has steadily grown its client base, geographic coverage and partner network. The acquisition of Celergo will allow ADP to capitalise on growth opportunities as the market continues to shift toward global human capital management solutions.
For existing Celergo clients it ensures long-term investment and development of the platform that they value highly and opens access to ADP’s services, expertise, and additional solutions to support their multinational operations.
PiPPaR: What do you envisage are the
challenges (such as local country knowledge and compliance issues) facing ADP in running global payroll operations on a 24/7 basis throughout the year, and how does ADP meet these? JP: ADP celebrates its 70th birthday next year, and for half that time we’ve had an international presence, so we’ve learnt that global payroll has many moving parts. Local legislation and tax is always different, as are employment laws. Many companies choose to outsource their payroll as a result, because it allows them to focus on their core business. One element that came into force during 2018 was data privacy and protection. Something similar to the EU’s GDPR is likely to be implemented in other countries with changes for local relevance. So, dealing with these challenges, on behalf of our clients, is really at the core of what our 58,000 associates do every day. PiPPaR: How can payroll and HR data be utilised by businesses for strategic insight and to guide them when they are expanding? JP: Once you have enough quality data in usable form, it’s possible to process it in different ways to detect patterns and realise connections and relationships. It’s also important to continually update those processes and data sets so the information stays current and changes can be detected. If you’re trying to anticipate future events such as turnover, you’ll want the most updated information about what is happening within your own organisation, the local market and your industry as a whole. Once you have the data-driven insights needed to understand your situation, you can start using those insights to inform your decision-making. Then, it’s essential to track changes — whether expected or unexpected — as they occur, so you can continue to assess whether your initiatives are working and if they will need adjustment.
| Professional in Payroll, Pensions and Reward | March 2019 | Issue 48 30
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