The measurable business impact of strategic HCM support
Today, HR teams are under pressure to do more with less. As workforce complexity grows, organizations are leveraging HCM managed services to simplify operations, reduce manual work, and drive better business alignment – turning HR into a more agile, data-driven function.
ADP HCM Managed Services offers end-to-end administration of payroll and related HCM activities. At the heart of the solution is dedicated access to talent with deep industry and practice expertise in world-class payroll administration.
To quantify the measurable business value, ADP commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study of ADP HCM Managed Services. Specific to this study, Forrester looked at ADP Managed Payroll Services and its effects on adjacent HCM functions.
The quantitative results show that organizations leveraging ADP Managed Services experienced a 251% return on investment, as well as:
- $9.1 million avoided in payroll error costs
- 95% reduction in payroll errors
- $3.9 million saved from reduced manager admin time
- $640,000 saved in retired legacy software
What Customers are Saying
“If an employee calls, they get an immediate response now instead of having to wait until a member of the HR team is back from vacation or a day off. It boosts morale all around.” — Payroll manager, Retail organization
By extending internal teams with specialized expertise, HCM managed services enabled organizations to reduce complexity, improve accuracy, and free up time for more strategic work. The result is a more efficient, data-driven HR function aligned to business priorities.
1 To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four decision-makers with experience using HCM Managed Services.
2 For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization, which is a diversified organization with 5,000 employees and $600 million annual revenue.
3 This study is commissioned by ADP and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis. Forrester makes no assumptions as to the potential ROI that other organizations will receive.
