A Brief History of Automatic Data Processing, Inc. (ADP)

Automatic Data Processing, Inc. (ADP) is a renowned American provider of human resources management software and services. The company has a long and rich history that dates back to the mid-20th century.

ADP was founded in 1949 by Henry Taub as a manual payroll processing business. It started as Automatic Payrolls, Inc., a small operation in Paterson, New Jersey, aimed at helping companies manage their payroll processes more efficiently.

• 1949: Henry Taub founded the company in Paterson, New Jersey.
• 1957: The company rebranded itself as Automatic Data Processing, Inc. (ADP), transitioning from manual to automated processes.
• 1961: ADP went public, offering shares on the NASDAQ stock exchange, which helped raise capital for expansion.
• 1974: ADP ventured into the brokerage industry by acquiring GCA Computer Systems, which provided data processing services to brokerage firms.
• 1985: ADP began expanding globally by acquiring European payroll service companies, starting with the purchase of a French payroll processor.
• 1998: The company launched its internet-based service, ADP GlobalView, designed for multinational companies.
• 2006: ADP acquired Employease, a provider of Employee Relationship Management solutions, to enhance its service offerings.
• 2014: ADP completed the spinoff of its Dealer Services business into a separate publicly traded company, CDK Global.
• 2018: ADP introduced ADP Workforce Now, a cloud-based human capital management solution for midsize companies.
• 2020: Carlos Rodriguez stepped down as CEO, and Maria Black, previously the President, took over the leadership.

Over the decades, ADP has grown from a small payroll processing service into a global leader in human resources management software and services, continually adapting to technological advancements and market demands.

Who Owns Automatic Data Processing, Inc. (ADP)

Automatic Data Processing, Inc. (ADP) is a publicly traded company, which means it does not have a single owner. Instead, its ownership is distributed among numerous shareholders who hold shares of the company's stock. These shareholders can include institutional investors, mutual funds, and individual investors. Below are some key points about the ownership of ADP:

• Institutional Investors: A significant portion of ADP's shares are held by institutional investors such as Vanguard Group, BlackRock, and State Street Corporation. These institutions manage large portfolios of assets and often hold substantial stakes in public companies like ADP.
• Mutual Funds: Various mutual funds also own shares in ADP. These funds pool money from multiple individual investors to purchase a diversified portfolio of stocks, including those of ADP.
• Individual Investors: Individual or retail investors also own shares in ADP. These investors buy stocks through brokerage accounts and can range from small, individual investors to large, wealthy individuals.
• Company Executives and Employees: Some shares of ADP are held by the company's executives and employees. This can include stock options, restricted stock units (RSUs), and other forms of equity compensation.

Ownership percentages can fluctuate due to buying and selling activities in the stock market. Shareholders have voting rights and can participate in corporate governance through activities such as voting on board members and other significant corporate decisions.

Automatic Data Processing, Inc. (ADP) Mission Statement

Automatic Data Processing, Inc. (ADP) is dedicated to providing comprehensive and innovative solutions that empower businesses to manage their most valuable resource: their people. At the core of ADP’s mission is a commitment to excellence and unwavering dedication to the success of its clients. By leveraging cutting-edge technology and a deep understanding of the evolving business landscape, ADP aims to deliver unmatched service and value.

Key elements of ADP’s mission statement include:

• Empowerment: ADP strives to empower businesses of all sizes with tools and solutions that enhance productivity and foster growth.
• Innovation: The company is committed to continuous innovation, ensuring that its offerings remain at the forefront of industry advancements.
• Client Success: ADP places a strong emphasis on the success of its clients, tailoring services to meet their unique needs and drive their success.
• Excellence: A focus on excellence in every aspect of its operations is a fundamental part of ADP’s mission, ensuring high-quality service and reliable support.
• Integrity: Upholding the highest standards of integrity, ADP fosters trust and builds lasting relationships with its clients.

Through these core principles, ADP aims to provide a robust and supportive framework for businesses to manage their human capital effectively, allowing them to focus on what they do best.

How Automatic Data Processing, Inc. (ADP) Works

Automatic Data Processing, Inc. (ADP) is a comprehensive provider of human resources management software and services. The company's primary aim is to assist businesses of all sizes in managing payroll, talent, time, tax, and benefits administration. ADP leverages advanced technology to streamline and automate these critical business processes, improving operational efficiency and compliance for their clients.

• Payroll Services: ADP's payroll solutions cater to businesses of all sizes, automating and simplifying payroll processing to ensure accurate and timely payments. The system also integrates with various accounting and HR systems.
• Human Resources Management: ADP provides a suite of HR tools, including talent management, performance tracking, and employee benefits administration. These tools help businesses attract, retain, and develop talent while ensuring compliance with labor laws.
• Tax Compliance: ADP offers tax filing and management services, which ensure that companies comply with local, state, and federal tax regulations. The system automatically calculates taxes, files them, and manages any inquiries from tax authorities.
• Time and Attendance: ADP's time and attendance solutions help businesses manage employee hours, schedules, and attendance records, making it easier to monitor productivity and control labor costs.
• Benefits Administration: ADP assists companies in managing employee benefits such as health insurance, retirement plans, and other perks, facilitating seamless enrollment and ongoing management.
• Workforce Analytics: ADP’s analytics tools provide valuable insights into workforce trends, helping businesses make data-driven decisions to optimize their human capital management strategies.

Technological Infrastructure

ADP's services are built on a robust technological infrastructure that ensures data security, integrity, and availability. They employ cloud-based solutions which allow for scalability and flexibility, enabling businesses to access their services from anywhere at any time. The company's platforms also incorporate advanced features such as artificial intelligence and machine learning to provide predictive analytics and enhance user experience.

Customer Support and Consulting

ADP offers extensive customer support and consulting services to help businesses fully leverage their solutions. They provide dedicated account managers, 24/7 customer service, and a wealth of online resources, including webinars, tutorials, and FAQs. Additionally, ADP's consulting services assist businesses in optimizing their HR and payroll processes and navigating complex compliance issues.

How Automatic Data Processing, Inc. (ADP) Makes Money

Automatic Data Processing, Inc. (ADP) is a well-established company that primarily generates revenue by offering a wide range of human capital management (HCM) solutions to businesses of all sizes. ADP’s revenue streams can be categorized into several key areas:

• Payroll Processing Services

ADP’s core business revolves around payroll processing. Companies outsource their payroll activities to ADP, which manages everything from calculating employee wages and deducting taxes to ensuring compliance with government regulations. This service is offered on a recurring subscription model, providing a consistent revenue stream for ADP.

• Human Resources (HR) Services

ADP provides a variety of HR services including employee benefits administration, talent management, and compliance. These services often come bundled with payroll processing or as a standalone offering, generating additional revenue streams.

• Time and Attendance Management

Through automated time tracking systems, ADP helps businesses manage employee attendance and scheduling. These systems reduce errors and save time for HR departments, making them a valuable service that companies are willing to pay for.

• Workforce Management Solutions

ADP also offers comprehensive workforce management solutions, which include workforce analytics, scheduling, and labor cost management. These tools help businesses optimize their workforce, leading to increased efficiency and reduced costs.

• Talent Acquisition and Development

ADP provides services aimed at talent acquisition and development, including recruitment, onboarding, training, and performance management solutions. These services help businesses attract and retain top talent, adding another layer to ADP’s revenue model.

• Insurance Services

Through its affiliate companies, ADP offers insurance products such as workers' compensation and business insurance. These services complement their payroll and HR offerings, providing a more integrated solution for clients.

• Cloud-Based Solutions

Many of ADP’s services are offered through cloud-based platforms, allowing for easy integration and updates. This model not only modernizes their service delivery but also creates a recurring revenue stream through subscription fees.

By diversifying its offerings and focusing on recurring revenue models, ADP is able to maintain a robust and consistent financial performance. This multi-faceted approach helps the company mitigate risks associated with reliance on a single revenue source.