Automatic Data Processing Inc Stock Price, News & Analysis

According to the February ADP National Employment Report, private sector employment rose by 117,000 jobs from January to February 2021. The increase was driven primarily by medium-sized businesses, which added 57,000 jobs, while small businesses contributed 32,000 jobs and large businesses 28,000 jobs. The goods-producing sector saw a decline of 14,000 jobs, while the service-providing sector gained 131,000 jobs. January's total was revised from 174,000 to 195,000. The report emphasizes a sluggish recovery in the labor market, heavily impacted by COVID-19.

ADP has launched Roll™ by ADP, a new payroll app designed for small businesses. This app allows users to run payroll in under a minute using a simple chat interface, eliminating the need for extensive training. Roll is backed by ADP's expertise and offers built-in tax filing, compliance support, and proactive reminders. Available immediately, the app's introductory pricing is $17/month plus $5 per employee. ADP aims to simplify payroll processes, especially as small businesses recover from pandemic-related challenges.

ADP Research Institute will release key employment reports on March 3, 2021, including the ADP National Employment Report, ADP Small Business Report, and ADP National Franchise Report. These reports provide critical insights into private sector employment trends, derived from payroll data of 460,000 clients and nearly 26 million workers. The ADP Small Business Report focuses on businesses with 49 employees or fewer, while the ADP National Franchise Report analyzes changes in franchise employment, covering 15,000 franchisors and nearly one million workers.

ADP has been recognized as a Leader in Everest Group's 2021 Multi-Process Human Resources Outsourcing (MPHRO) PEAK Matrix for the tenth consecutive year. The report highlights ADP's strengths in HR domain expertise, technology capabilities, and digital transformation. ADP excels in leveraging Robotic Process Automation (RPA) and artificial intelligence (AI) for service delivery, while its ADP DataCloud analytics tool enhances global service effectiveness. The PEAK Matrix categorizes firms based on market impact and delivery capability, and ADP ranked among the top three vendors.

Visa (NYSE:V) and ADP (NASDAQ:ADP) have partnered to provide a digital payment solution for off-cycle employee payments. This integration allows employers to bypass traditional check printing, enabling faster payments directly to employees’ debit cards. Bill Sheley of Visa emphasized the importance of quick access to wages, especially during COVID-19. The partnership aims to offer a cost-effective and convenient solution for both businesses and their employees, addressing the need for rapid payment options. This integration will be implemented over the coming months.

Globalization Partners and ADP TotalSource announced a collaboration to simplify international hiring for small and midsized businesses. This partnership allows companies to employ staff globally without establishing subsidiaries, thanks to ADP TotalSource's comprehensive HR solutions. The offering includes payroll management, compliance support, and onboarding services, leveraging the expertise of in-country teams. This initiative aims to expedite market entry and support business growth, with a focus on compliance amid the complexities of international expansion.

ADP has launched StandOut coaching intelligence, a new tool designed to enhance team leader engagement. This tool provides customized talking points tailored to individual strengths, facilitating deeper conversations between leaders and team members. Research indicates that team members are 3.5 times more likely to be engaged when they receive regular attention from their leaders. The new feature aims to bridge communication gaps in remote work environments, allowing leaders to inspire and motivate their teams effectively.

ADP has been awarded the 2019-2020 U.S. President's Volunteer Service Award by Junior Achievement USA for its commitment to youth empowerment through volunteerism. Despite pandemic challenges, ADP associates contributed to programs fostering financial literacy and career readiness for over 3 million students annually. This recognition reflects ADP's dedication to corporate social responsibility and community support, as articulated by Bob Lockett, ADP's chief diversity and talent officer. The award underscores the importance of volunteer service in shaping future leaders.

In January 2021, private sector employment in the U.S. rose by 174,000 jobs, according to the ADP National Employment Report. Small businesses added 51,000 jobs, medium businesses 84,000, and large businesses 39,000. The service sector saw a notable increase of 156,000 jobs, while goods-producing sectors added 19,000. The report reflects continued recovery in the labor market despite ongoing COVID-19 challenges. Notably, the December 2020 job loss figure was revised from -123,000 to -78,000.