Updated: Jan 5
Who would benefit most from working with ADP TotalSource?
Startup with Founding Team
Startup to PEO: Not a popular choice for groups under 10 employees due to costs and billing model as percentage of payroll. In recent years, ADP TotalSource has bounced between being for and against writing groups under 10 and may not even quote unless you have at least 5 employees. Depending on your timeline, it could be a great solution; however, ADP TotalSource does have a minimum monthly billing that aligns to the admin fees.
Reasons to buy: You want to install HRIS payroll and benefits proactively prior to hiring on new workforce. Easy benefits admin and management.
SMB with an HR professional
PEO to PEO or Open Market to PEO or PEO to Open Market: ADP TotalSource has access to each model in-house (HRIS, payroll, ASO, 401k). ADP TotalSource has a great sales training program and if your rep has been there longer than 2 years, it should let you know they are highly competent in advising clients on their product. We do find when clients involve their broker, they tend to get more value out of the benefits administration tools available. The pricing model can be confusing if it is your first PEO evaluation.
Many of the new PEOs focus on technology and scalability for their company's shareholders, not yours! Why? Having HR or any professional services in-house gets expensive for PEOs; however, it would be even more expensive for you to hire additional HR staff to cover what ADP TotalSource is able to handle. Do you really need more than one HR person under 50 employees? Depends, who on your team has time to create and execute a strategic workforce plan, shop and administer employee benefits, maintain compliance for local, state and federal laws, recruit talent, onboard or offboard employees, run payroll... The list is endless!
Truth is, unless you know the problem it is hard to seek help with HR matters without feeling like a solution is thousands of dollars away! You don't know what you don't know, and companies that see the value in growing a profitable business will truly benefit from a PEO like ADP TotalSource that focuses on proactive HR, which is a lost art in this PEO market!
Reasons to buy: Want a flexible provider who can easily transition you from PEO to HRIS or vice versa depending on your current budget or needs. Friendly customer service and a seasoned sales force of industry experts.
Quickly Scaling company with 2+ in HR Department
PEO to PEO or Open Market to PEO or PEO to Open Market: If you have a full HR department meaning you have roles filled for different HR competencies like Payroll, benefits, Risk, Talent, Employee Experience etc… Then ADP TotalSource may be right for you if you plan to keep growing past 125+ wse. ADP pays 1 in 5 Americans, so they have the largest employers in the world's payroll hosted on their platform.
Reasons to Buy: Technology platform for scaling companies with lots of new hire activity. Partnering with the PEO to stay in compliance with multi-state and federal labor laws.
How does ADP TotalSource deliver their services?
HRIS Integrations/ APIs: ADP TotalSource HRIS platform is very user friendly with an intuitive employee interface. ADP TotalSource has an App Shop with over 500+ integrations already prebuilt. The integrations cover a variety of services from HR, Finance, and IT. This solution is perfect for companies with a remote workforce.
Admin Support: If you are an employer or account administrator, you will have access to a dedicated support team for your account. They typically assign you a main point of contact and connect you directly to a specialist if the issue requires special attention like a bonus check allocation or how to report a workers compensation claim. They are available via email, chat, or phone.
Employee Support: As an employee, you can expect assistance with locating your benefits contacts, accessing your 401k, questions on a technical issue with the platform, or even a walk through of how to select your health plans. Most employees call in because they are troubleshooting a simple problem or familiarizing themselves with the platform.
How does ADP Totalsource price their solutions?
ADP TotalSource prices their PEO and HR service platforms on a per employee on a monthly basis. ADP TotalSource is customizable and you may not need all of their products, so they have designed the billing in a way that helps you forecast cost by knowing the cost per user. Some PEO models charge a percentage of payroll; however, many customers find this confusing and ADP TotalSource prides itself on offering transparent billing.
ADP does offer benefits through their PEO and they also allow you to carve out benefits and keep your current plans with your broker if needed. ADP partners with third party providers and carriers so you can offer: health insurance, 401k(k), commuter, and more.
You can get your Workers Compensation through ADP or simply keep it with your current broker as a Workers Comp carve out. ADP allows you to have a pay-as-you-go workers compensation payment each pay period versus the traditional quarterly or annual audit most companies use.
How to get a quote for ADP TotalSource services?
Work with Broker
A good broker will manage quoting process, negotiate best terms and pricing, and assist in the collection of RFP documents. A great advisor will know which options to share with you, because they understand your business. Some brokers don’t understand PEO because It’s complicated and includes a ton of knowledge around how payroll and tax payments work so be sure to work with someone knowledgeable.
Direct to Company
Great if you know exactly what you want and understand how to financially engineer a PEO’s total offering from WC, fed + state payroll tax, retirement funds, employee benefits, HRIS software billing, and much more.
ADP TotalSource is a great option to consider and you can find out more about ADP on their website at https://www.adp.com/
If you would like us to help you compare ADP TotalSource to other providers schedule some time on our calendar here.
We typically save our clients between 50 and 70 hours while finding the best companies and services specific to their needs.