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case study

How Northwood unified payroll and compliance across global holdings

Northwood Investors, a privately held real estate company with operations across the U.S. and Europe, used ADP Workforce Now to replace fragmented HR and payroll systems spread across four platforms and 17 company codes. By centralizing payroll, benefits, workforce management, onboarding and compliance, Northwood gained real-time visibility across holdings and sped up due diligence reporting from weeks to minutes. The company also reduced payroll errors from 48% to 2%, cut payroll processing time by more than 50%, reduced I-9 errors by 90% and lowered Affordable Care Act (ACA) filing errors by 75%, helping HR become a more strategic partner to the business.

Scalability is essential in our industry. Now that we have centralized pay codes, benefits and policies built into the system, it makes us much more agile, and we’re able to accommodate the needs of the business very quickly. HR has become more of a strategic partner. Before we were more of a cost center and the trust wasn’t quite there, but now we are an essential part of the team and the acquisitions team.

Heather Pimm-Pauzer, Senior Vice President, HR
Northwood Investors LLC

ChallengeADP CapabilityWhat We DidResult
Decentralized HR and payroll systems across four platforms and 17 company codes made it difficult to access workforce data and respond quickly to acquisition due diligence requests.ADP Workforce NowUnified payroll, benefits, workforce management, onboarding and compliance into one ADP platform to create a single source of truth across all lines of business.Executives now access real-time dashboards across holdings, and reports that once took weeks of reconciliation can now be accessed in minutes during due diligence.
Manual tip entry and payroll adjustments created frequent payroll errors across the business.ADP Workforce NowAutomated time-consuming payroll processes, including tip imports that now run in approximately 20 minutes.Payroll errors were reduced from 48% to 2%.
Manual payroll workflows and frequent corrections led to common off-cycle payments and extra overnight check costs.ADP Workforce NowAutomated payroll processes and streamlined imports to reduce manual corrections and improve payroll efficiency.Off-cycle payments were reduced by 60%.
Payroll processing took up to seven days because of decentralized, manual workflows.ADP Workforce NowAutomated time-consuming payroll processes and consolidated payroll operations into one ADP platform.Payroll processing time was cut by more than 50%.
Operating across multiple states and countries with a mobile workforce created onboarding and compliance complexity, including I-9 errors.ADP Workforce NowEnabled employee self-service in the mobile app and electronic I-9 e-verification so onboarding, timecards and pay data flow through one system.Electronic I-9 e-verification reduced I-9 errors by 90% and gave new hires a faster, smoother onboarding experience.
Disconnected carrier feeds and inconsistent ACA compliance reporting caused filing errors and significant legal expenses.ADP Workforce NowUsed ADP benefits administration, ACA tracking, carrier integrations and health compliance to centralize and monitor benefits.ACA filing errors were reduced by 75% and Northwood saved over $20,000 in legal fees.
Broken benefits carrier connections caused terminated employees to keep receiving benefits after leaving the companyADP Workforce NowCentralized benefits administration with carrier integrations plus configurable dashboards and audit tools to monitor status changes and eligibility.By centralizing benefits administration, Northwood gained clear visibility into benefit spend, uncovering and correcting $25,000 in costs tied to benefits that should have been terminated.
Recurring payroll issues reduced employee trust and contributed to turnover risk.ADP Workforce NowProvided a comprehensive payroll dashboard that puts payroll details on one screen.Improved payroll accuracy and employee trust; reduced turnover risk.
An acquisition-driven growth strategy exposed scalability gaps in the operating model, resulting in slow integration of new entities and limiting HR’s ability to act as a strong business partner.ADP Workforce NowBuilt centralized pay codes, benefits, and policies into a unified, agile HCM platform to support forecasting, budgeting, and cost analysis, with integrated analytics across holdings.Northwood increased its operational agility, enabling rapid response to evolving business needs. HR now serves as a strategic partner, supporting forecasting, budgeting and acquisitions.
After a failed prior implementation, Northwood needed change management and strategic guidance to restore confidence and adoption.ADP Workforce NowADP Strategic Advisory Services delivered change management communications, while the ADP service team provided ongoing and responsive support.Through dedicated adoption support and a strong partnership model, user confidence was rebuilt while the system continues to evolve quickly alongside Northwood’s changing operational needs.

What helps reduce payroll errors when manual adjustments, such as tip entry, are common?

Reducing payroll errors usually starts with automating the manual tasks that create rework, such as tip entry, payroll adjustments and off-cycle corrections. Northwood Investors reported that payroll errors dropped from 48% to 2%, off-cycle payments fell by 60%, and payroll processing time was cut by more than 50% when they automated time consuming, manual processes with ADP Workforce Now; processes, such as tip imports, went from taking hours to about 20 minutes. Those outcomes show how automation can improve both accuracy and efficiency at the same time. For employers managing many locations or pay scenarios, removing manual touchpoints can materially improve payroll consistency and employee trust.

How does ADP support onboarding and I-9 compliance for a mobile workforce?

ADP supports onboarding and I‑9 compliance by combining employee self‑service onboarding with electronic I‑9 verification in a single, integrated system. For organizations like Northwood Investors, which operate across multiple states and countries with a mobile hospitality workforce, this streamlined approach is especially valuable. New hires can securely complete onboarding tasks—such as entering tax withholding information and selecting benefits—directly from a mobile device. At the same time, ADP’s electronic I‑9 e‑verification helps ensure accuracy and compliance, reducing I‑9 errors by 90% and accelerating the onboarding process. By automatically flowing onboarding data into downstream HR and payroll systems, employers can minimize manual handoffs, lower documentation risk, and deliver a faster, more consistent onboarding experience for distributed teams.

How can an employer improve ACA reporting and benefits oversight?

Using ADP benefits administration, ACA tracking and carrier integrations, employers can centralize and monitor benefits through configurable dashboards and audit tools. Northwood reported a 75% reduction in ACA filing errors and more than $20,000 saved in legal fees after switching to ADP Workforce Now. This type of centralization can be valuable for employers with complex benefits environments or frequent workforce changes.

How can companies restore confidence after a failed HR system implementation?

After its failed HR implementation, Northwood Investors restored confidence by pairing its new integrated platform with change management support and ongoing service rather than treating implementation as a one-time technology project. Northwood Investors used ADP Strategic Advisory Services to provide change management communications and the ADP service team for ongoing support. As a result, Northwood Investors saw increased user adoption and restored confidence. For organizations recovering from a difficult implementation, strong communication, adoption planning and post-go-live support can be just as important as the software itself.

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