Automatic Data Processing
Encyclopedia
Automatic Data Processing, Inc. Automatic Data Processing, Inc. with about $10 billion in revenues and approximately 545,000 clients, is a provider of business outsourcing solutions. ADP offers a range of human resource, payroll, tax and benefits administration solutions. It is a provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. ADP is one of four U.S. companies to get a AAA credit rating from Standard & Poor's
(S&P) and Moody's
.
founded Automatic Payrolls, Inc. in 1949 as a manual payroll processing business. In 1957, the company now known as Automatic Data Processing, Inc. (ADP), began using punched card machines, check printing machines, and mainframe computers, with the capability of increasing efficiency and capacity for payroll processing. ADP went public in 1961 with 300 clients, 125 employees and revenues of approximately $400,000.
In the next year, the Brokerage Services division was developed to serve the high volume transaction needs of major stock brokerages on Wall Street
. The company proceeded to offer dealer services to automotive dealers to handle inventory and accounting transactions.
Throughout the 1980s, ADP’s annual revenues exceeded the $1 billion mark, with paychecks processed for about 10% of the U.S. workforce. The 1990s proceeded to be a growing decade for human resource
outsourcing, prompting ADP to become a Professional Employer Organization (PEO). The company in turn went international when ADP Dealer Services acquired Autonom, a German company, Kerridge Computer Co. Ltd., a dealer management systems (DMS) provider to auto dealers in the UK, and the payroll and human resource services company, GSI, headquartered in Paris
. In the early twenty-first century, ADP introduced GlobalView, a comprehensive global service solution for payroll processing and human resources administration.
In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions
, Inc. , removing about $2 billion from ADP's total yearly revenue. ADP was distributing one share of Broadridge common stock for every four shares of ADP common stock held by shareholders of record as of the close of business on March 23, 2007. ADP is sponsor of the ADP National Employment Report
as well as the ADP Small Business Report.
ADP serves the marketplace through two strategic groups – Employer Services and Dealer Services.
Employer Services serves the marketplace through the following business units:
In 2010, ADP acquired the automotive marketing company Cobalt
.
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
(S&P) and Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
.
History
Henry TaubHenry Taub
Henry Taub was an American-born businessman and philanthropist of Hungarian-Jewish descent.Taub was educated at San Jacinto High School, the University of Houston and New York University. He graduated from NYU in 1947 with a degree in accounting.In 1949, he founded Automatic Payrolls Inc...
founded Automatic Payrolls, Inc. in 1949 as a manual payroll processing business. In 1957, the company now known as Automatic Data Processing, Inc. (ADP), began using punched card machines, check printing machines, and mainframe computers, with the capability of increasing efficiency and capacity for payroll processing. ADP went public in 1961 with 300 clients, 125 employees and revenues of approximately $400,000.
In the next year, the Brokerage Services division was developed to serve the high volume transaction needs of major stock brokerages on Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
. The company proceeded to offer dealer services to automotive dealers to handle inventory and accounting transactions.
Throughout the 1980s, ADP’s annual revenues exceeded the $1 billion mark, with paychecks processed for about 10% of the U.S. workforce. The 1990s proceeded to be a growing decade for human resource
Human resource
human resource may stand for:* another name for an employee* human resources, another name for labor* Human resource management, the strategic approach to management of human resources* Human Resources , a Doctor Who audio drama...
outsourcing, prompting ADP to become a Professional Employer Organization (PEO). The company in turn went international when ADP Dealer Services acquired Autonom, a German company, Kerridge Computer Co. Ltd., a dealer management systems (DMS) provider to auto dealers in the UK, and the payroll and human resource services company, GSI, headquartered in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
. In the early twenty-first century, ADP introduced GlobalView, a comprehensive global service solution for payroll processing and human resources administration.
In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions
Broadridge Financial Solutions
Broadridge Financial Solutions, Inc. is a US servicing company for the financial industry founded in 2007 as a spin-off from Automatic Data Processing...
, Inc. , removing about $2 billion from ADP's total yearly revenue. ADP was distributing one share of Broadridge common stock for every four shares of ADP common stock held by shareholders of record as of the close of business on March 23, 2007. ADP is sponsor of the ADP National Employment Report
ADP National Employment Report
The ADP National Employment Report is sponsored by ADP, and was developed and presently maintained by Macroeconomic Advisers, LLC. The report is a measure of non-farm private sector employment which measurement is obtained by utilizing an anonymous subset of roughly 500,000 U.S...
as well as the ADP Small Business Report.
ADP serves the marketplace through two strategic groups – Employer Services and Dealer Services.
Employer Services (ES)
ADP Employer Services assists organizations from recruitment to retirement. ADP ES serves approximately 545,000 organizations and provides HR, benefits and payroll solutions.Employer Services serves the marketplace through the following business units:
- National Account Services: For employers with more than 1,000 employees
- Major Account Services: For employers with 50 to 1,000 employees
- Small Business Services: For employers with less than 50 employees
- Added Value Services: Provides special services in tax, retirement, insurance and pre-employment for organizations of all sizes
- Retirement Services: Provides administrative services to defined contribution plans for small-, mid- and large-sized companies
- ADP TotalSourceSM: A Professional Employer Organization (PEO) for small and mid-size organizations
- ES International Services: For international employers of all sizes
- ES Canada: Canada's market leader in providing payroll, human resources and time and attendance management, occupational health & safety, and comprehensive outsourcing services
Dealer Services (DS)
Dealer Services provides integrated technology services and solutions to about 25,000 automotive dealerships of every size throughout the world, as well as vehicle manufacturers.In 2010, ADP acquired the automotive marketing company Cobalt
Cobalt
Cobalt is a chemical element with symbol Co and atomic number 27. It is found naturally only in chemically combined form. The free element, produced by reductive smelting, is a hard, lustrous, silver-gray metal....
.
Recognitions
- FORTUNE 500®: Ranked 275 (2011)
- Forbes® Magazine – 100 Most Innovative Companies - #87 (2011)
- FORTUNE® magazine World’s Most Admired Companies® – ADP ranked #1 in the Financial Data Services Industry category (2010, 2011)
- SAP® Pinnacle award in the category “Global Outsourcing Services Provider of the Year” (2011)
- HRO Today® – named the number one Multi-Process Human Resource Outsourcing (HRO) provider in HRO Today magazine’s “Baker’s Dozen for Multi-Process Enterprise HRO Providers.” (2010)
- ADP achieved a 100 percent rating in the 2011 Corporate Equality Index (CEI) report.
- In 2010, ADP continued to demonstrate its training excellence when it was awarded the #2 ranking in the Training Top 125 List by Training magazine. ADP ranked 12th in 2009 and 20th in 2008.
- 2009 Most Influential Technology Vendors : The Aberdeen Group has named ADP has one of the top 25 Most Influential Technology Vendors for 2009. Some of the other companies in the top 25 are Microsoft, IBM, Oracle Corp. and SAP.
- Fortune's 2009 - 2010 list of America’s Most Admired Companies: ADP ranked first on Fortune's 2010 list of America’s Most Admired Companies within the Financial Data Services category
- In 2009, ADP was again named to the Training Top 125 List by Training magazine. ADP ranked 12th in 2009 and 20th in 2008. These rankings reflect ADP’s strong training and development programs.
- In 2006, ADP ranked #2 on InformationWeek 500's top 250 Innovators.
- In 2003, 2004, and 2005, ADP has ranked as one of the top 10 companies in North America AAA/Aaa rated by both S&P and Moody's.
BZ Results
BZ Results (Automotive Dealer Services), winner of the 2006 “Innovative Company of the Year”, was purchased by ADP in 2006. At the time, BZ Results was valued at $125 million.Primary Competition
- CeridianCeridianCeridian Corporation is a global business services company in the human resources, transportation and retail markets, serving businesses worldwide with employees in the USA, Canada, Europe and Mauritius. It was a publicly traded company on the New York Stock Exchange until it was acquired in 2007...
- PaychexPaychexPaychex, Inc. is a payroll and human resource service company which serves approximately 572,000 businesses in the US. The company is headquartered in Penfield, New York and has more than 100 locations across the country...
- Paylocity CorporationPaylocity CorporationPaylocity Corporation is a provider of online payroll and human resource solutions. It operates primarily a software-as-a-service business model. Its competitors include ADP and Paychex.- History :...
- Payroll Guardian International, Inc.
- Paycycle (trademark of Intuit Online Payroll)
- Intuit Online Payroll
- SurePayrollSurePayrollSurePayroll is an online payroll provider for small businesses employing one to 100 employees. Founded by Scott Wald in 2000, SurePayroll introduced online Software as a Service payroll and payroll-tax filing process for small businesses interested in outsourcing their payroll. On February 9,...
External links
- Interview with Frank Lautenberg from Charles Babbage InstituteCharles Babbage InstituteThe Charles Babbage Institute is a research center at the University of Minnesota specializing in the history of information technology, particularly the history since 1935 of digital computing, programming/software, and computer networking....
, University of MinnesotaUniversity of MinnesotaThe University of Minnesota, Twin Cities is a public research university located in Minneapolis and St. Paul, Minnesota, United States. It is the oldest and largest part of the University of Minnesota system and has the fourth-largest main campus student body in the United States, with 52,557...
. Lautenberg helped co-found the early payroll services firm Automatic Data Processing Incorporated and served as both Chairman and CEO. - Automatic Data Processing home page
- ADP Dealer Services home page
- ADP Canada home page