ADP TotalSource(sm) Study Finds Fewer Than 50 Percent of Small and Mid-size Companies are Confident in Their Ability to Keep Pace With U.S. Labor Regulations

White Paper Reveals How Human Resource Outsourcing Can Help Stabilize Business Costs, Improve Productivity and Compliance

Sep 21, 2011, 14:08 ET from Automatic Data Processing, Inc.

ROSELAND, N.J., Sept. 21, 2011 /PRNewswire/ -- ADP ®, a leading provider of human resource outsourcing, payroll services, benefits administration and integrated computing solutions for vehicle dealers, today announced the findings of new research published by ADP TotalSource(sm) and conducted by the ADP Research Institute entitled "Relieving the Pressure: The PEO Approach to Navigating Compliance and Gaining a Competitive Advantage."  The findings show that more than half of today's companies surveyed lack confidence in their ability to keep pace with complex, ever-changing HR regulations, and the majority believe that the HR compliance burden will only grow more difficult with time.  

As part of the study, more than 250 small (1-49 employees) and mid-size (50-999 employees) businesses were surveyed on their most pressing business concerns, key competitive strategies and confidence levels in terms of HR compliance. Respondents consistently pointed to the following three strategies as being critical to maintaining a competitive edge in today's marketplace:

  • Hiring top talent
  • Maximizing employee productivity
  • Keeping overhead low

Respondents also identified their greatest business concerns, which included:

  • The rising cost of benefits
  • Finding and retaining good people
  • The rising costs of fuel and other materials

"Our study findings suggest that the strategies companies feel they need to maintain a competitive edge are closely correlated to the most formidable challenges threatening their ability to succeed," said Maria Black, West Central Region General Manager with ADP TotalSource.  "In an ideal world, businesses could focus more squarely on growing their business and developing their people, rather than having to worry about the increasing complexities of human resource management and compliance."

As a comparison to the market data, clients of ADP TotalSource, a Professional Employer Organization (PEO), were interviewed to determine how their partnership with a PEO had influenced their concerns and compliance confidence. A professional employer organization (PEO) provides integrated services that enable business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation. PEOs deliver these services through a co-employment model.

As the largest U.S. PEO with more than 8,600 clients, representing 230,000 worksite employees across all 50 states, ADP TotalSource provides a comprehensive human resources outsourcing solution that helps businesses reduce the costs and complexities related to employment and human resources management.

The study, conducted by the ADP Research Institute, a specialized group within ADP that conducts studies on topics of current interest to human resources and payroll professionals, found that PEO clients were more confident than the all-market group in many HR function areas, such as:

  • Providing safety training
  • Performing drug tests
  • Maintaining OSHA logs
  • Conducting background checks

To download and obtain a complimentary copy of the full white paper, "Relieving the Pressure: The PEO Approach to Navigating Compliance and Gaining a Competitive Advantage," please click here.

About the ADP Research Institute

The ADP All-Market Compliance Survey was published by the ADP Research Institute, a specialized group within ADP that conducts studies on topics of current interest to human resources and payroll professionals.

About ADP

Automatic Data Processing, Inc. (Nasdaq: ADP), with about $10 billion in revenues and approximately 570,000 clients, is one of the world's largest providers of business outsourcing solutions.  Leveraging over 60 years of experience, ADP offers a wide range of human resource, payroll services, tax and benefits administration solutions from a single source.  ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes.  ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world.   For more information about ADP or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at

REMINDER: Upcoming Free Webinar for Small Business Owners on Labor Regulations and Compliance

In addition to its new "Relieving the Pressure" white paper, and to further underscore its commitment to small and mid-size businesses, ADP TotalSource will host an upcoming free webinar on Thursday, September 22 from 1 - 2 p.m. EDT. The webcast will provide practical information on how businesses can plan and prepare for new regulations that are either in place, or being considered by federal agencies such as the Department of Labor, Department of Homeland Security, U.S. Immigration and Customs, Occupational Safety and Health Administration and Equal Employment Opportunity Commission (EEOC). For more information and to register, please visit  

For more information, contact:

James Duffy
ADP, Inc.
(973) 974 - 7880

SOURCE Automatic Data Processing, Inc.