5 Trends To Redefine Human Capital

5 Trends that Will Redefine

Human Capital

Steve Hardy

Vice-President, Multinational Marketing

Pressure

to be more

Strategic

© Copyright 2012 ADP, Inc. Proprietary and Confidential Information. 2

Five Critical Trends for Today’s Business

Expanding Global Workforce

Nearly 40% of employees work

outside the home country

Integrated human capital

management is key*

– Compensation Planning,

Performance, Learning, Self

service, mobile are also highly

desired


Trend #1 - Globalization

* ADP Research Institute MNC Market Study 2011

Pressure

to be more

Strategic


Trend #2 - Demographics

* Frost and Sullivan, 2010

** SHRM Research Spotlight: Social Networking Websites and Staffing, August 2011

Evolving Workforce

Demographics

Demographic

– 47% of all employees will have

been born after 1977 by 2013

Mobile*

– 70% of employees will be mobile

Social**

– 52% of Executives now view

social networking as an effective

collaboration tool

Pressure

to be more

Strategic

Need to Integrate and Simplify

On average companies have to

manage over 8 HR and Payroll

systems and/or vendors*

58% of HR staff time spent on

administrative tasks**

19% of time spent on feeding

data into multiple systems


Trend #3 - Integration

* ADP MNC Market Study, May 2011

** ADP Research Institute Achieving Strategic HR

Pressure

to be more

Strategic


Trend #4 - Compliance

~20K new pieces of legislation

worldwide affects employers

Less time to implement state /

federal employment tax

regulations

– Days vs. months

Intensifying Compliance

Burden

Pressure

to be more

Strategic


Trend #5 - Talent

* Price Waterhouse Coopers 14th Annual CEO Survey, June 2011

83% of CEOs list talent

management as their #1 priority*

– Managing skills shortage

– Driving engagement and

productivity

– Retaining your people

Managing the entire employee life

cycle is critical

Attracting / Growing and

Retaining People

Pressure

to be more

Strategic

Talent Management Drives Business Results

lower voluntary

turnover

lower turnover among

high-performers

less likely to have had

a major layoff in 2009

higher revenue

per employee

more capable of retaining

high performers

more capable of

hiring the best

better at responding to

economic conditions

better at planning for

future talent needs

26%

109%

87%

92%

17%

144%

41%

28%


ADP Helps Make Human Capital More Manageable

Performance

Management

Learning

Engagement,

Goal Alignment

Sourcing,

Screening,

Selection

Recognition,

Merit , Pay

On-Boarding

Career

Development

Bonus, Incentive

Programs

Career and Individual

Development

End to End, Human Capital Lifecycle Management

HR System of Record

Complete End-to-End, Global Human Capital Management

Compensation Succession Learning Performance Recruiting

Time and Labor Management

Payroll

Delivered as a Service

Re

po

rting

An

aly

tics

Po

rta

l

Mo

bile

Processing Managed Comprehensive

10

Seamless integration. Complete End to End Suite. Innovative Cloud Based Delivery

Cloud based Software

Globalization

Demographics

Our Track Record In Meeting the Challenges


Compliance

Talent

Serve ~7.5M employees outside US

Operate in 81 countries

Deep in country compliance expertise

Provide service and support in

26 languages

Over 9,000 Talent clients

More than 95M total job seekers

Over 2M pay adjustments and

$125 billion in total comp managed

More than 2M completed performance

reviews on file

Over 250K clients and 13M users

accessing ADP through the cloud

Single mobile solution available for

16+ ADP services, available in 12

languages

1,500+ associates interpret, manage

legislative updates

2,000+ tax agency relationships

Last 12 months processed: – ~1.5M liens

– ~810K unemployment claims

Increased Accuracy

Improved HR Service

Delivery and Employee

Satisfaction

Achieve Overall Cost

Advantages With HCM

Outsourcing

12

* HCM, Payroll, TLM

Outsourcing

Common

Platform

In-House

Common

Platform

In-House

Solution Multiple

Platforms

$910

$1,202

$1,020

15% 24%

Total Cost of Ownership (Per Employee per Year)*

Our Track Record

© Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

ADP’s Global Reach Helps Address Different

Needs of the Business


HR

Attract and retain talent

Maintain headcount / increase productivity

Increase employee engagement

Technology

Meet agility needs of the business

Reduce number of systems, vendors

Optimize spend, return on investment

Finance

Reduce costs

Balance capital, operating expense

Increase margins

Summary

14 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Significant Business

Trends Impact HR

Globalization and Shifting Demographics

Integration and Compliance

Talent

Managing Talent

Becomes Critical

Integrated cloud-based HCM suite

Lower total cost of ownership

Measurable impact to business

One cohesive delivery and service model

ADP is Positioned To

Help Drive Your

Success

CEO’s #1 Priority

Measurable impact on business

1

2

3

Thank you.


5 Trends To Redefine Human Capital

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