Market Perspectives

We are happy to share some insights about ADP drawn from our latest Value Index research, Ventana Research Value Index: Total Compensation Management, which assesses how well vendors’ offerings meet buyers’ requirements.

In all of our Value Indexes we utilize a structured research methodology that includes evaluation categories designed to reflect real-world criteria incorporated in a request for proposal (RFP) and vendor selection process for total compensation management. We evaluated ADP and 13 other vendors in seven categories, five relevant to the product (adaptability, capability, manageability, reliability and usability) and two related to the vendor (TCO/ROI and vendor validation). To arrive at the Value Index rating for a given vendor, we weighted each category to reflect its relative importance in an RFP process, with the weightings based on our experience and on data derived from our benchmark research on total compensation management.

ADP’s total compensation management software also offers data and insights from its benchmarks from its payroll processing that can be used for assessment and planning. ADP was categorized as an Exemplary Vendor, ranking second overall in this Value Index evaluation. It ranked third in Product Experience and was designated a Value Index Leader in Usability, Reliability, and Capability. It ranked second in Customer Experience and was a Value Index Leader in Validation. ADP’s overall performance was impacted by its lower rankings in both TCO/ROI where it placed fifth, and in Adaptability where it placed ninth. These two categories represent 20% of the weighting in the overall Value Index.

Our assessment finds that ADP could improve its performance in Adaptability, where it ranked eighth, by advancing its software further for configuring and customizing its offering to meet customers’ needs. In Manageability, where it ranked ninth, ADP could increase the depth of administration and insight into the usage of the application across the organization.

This assessment was based on ADP Compensation Management 2 and was available in February of 2023.

ADP, like all compensation management vendors, should ensure they continue to focus on capabilities beyond the core that will only continue to increase in their importance to buyers, like prescriptive analytics, proactive pay equity management, and creative and personalized compensation plans that are becoming increasingly more complex.

This research-based index is the most comprehensive assessment of the value of Total Compensation Management software in the industry. Technology buyers can learn more about how to use our Value Index by clicking here and included vendors that wish to learn more can click here. Read the report here.