ADP TotalSource Review: HR Outsourcing and PEO

Why We Chose ADP for Benefits Administration

ADP provides some of the most comprehensive benefits administration products on the market. The platform’s offerings include a wealth of Fortune 500-level benefits for employers to choose from and connects you with nationally recognized carriers with affordable rates. Since the ADP platform and mobile apps are intuitive, employees can manage their benefits from any location easily. This flexibility has become critical as more companies employ a distributed workforce. 

Staying updated on federal, state and local employment laws can be challenging for any employer. ADP gives employers the tools to stay on top of essential laws and regulations pertaining to employee benefits. For example, ADP can help you comply with leave laws, the Affordable Care Act (ACA) and the Consolidated Omnibus Budget Reconciliation Act (COBRA).

For these reasons and more, ADP is our top recommendation for businesses seeking a PEO or HRO service that excels as a benefits administrator.

Ease of Use

We found ADP’s Workforce Now technology suite to be intuitive and user-friendly for bosses and team members alike. The platform is highly customizable, from admin dashboards to personalized employee portals.  If you want to extend the platform’s functionality even further, the ADP Marketplace is a source of numerous third-party integration options.

As an administrator, you can connect with ADP’s team of HR specialists and experts on payroll, workers’ compensation and other HR topics. Their support is part of what makes ADP so easy to use. While the platform is well designed, it’s great to know that if you get stuck, the vendor provides advisors dedicated to walking you through any issues, including technological ones. 

The extensive employee self-service features and mobile app also make it simple for employees to access information about their benefits from anywhere. Plus, employees can expect the same top-tier customer support that administrators get. If one of your team members has an urgent question about benefits after hours, they won’t have to wait until the next day for answers. They can call ADP’s customer service line exclusively for employees, open from 8:00 a.m. until 10:00 p.m. EST.

ADP Features

ADP offers various HR and PEO services and features, including payroll processing, payroll tax administration, HR policy development, recruitment, onboarding and employee benefits administration. Here’s more about what your business gets when you sign up with ADP.

Employee Benefits Administration

As one of the largest HR support providers in the nation, ADP offers comprehensive benefits packages for teams of any size, including health, dental, vision and life insurance; paid time off (PTO); retirement savings plans; paid family and medical leave; flexible work scheduling; tuition reimbursement; and financial wellness services. It also offers workers’ compensation insurance, an employee assistance program and a compliance and learning curriculum. 

Employees can easily view these benefits through simple dashboards, and make adjustments as needed. When it’s time to enroll, whether they’re a new hire or longstanding employee renewing benefits during Open Enrollment, ADP streamlines the process as much as possible. Self-guided enrollment is available, along with support for any employees that need a little extra help. 

ADP also offers MyLife Advisors, a service that guides employees through the process of selecting suitable benefits with the help of an ADP team member. Employees can compare plans available to their company and get personalized recommendations. ADP administrators will ask questions about the factors that might impact their benefit needs. Are they planning to expand their family? Do they ride their bike to work? Do they have any special financial considerations? ADP will guide them through every scenario for a plan tailored perfectly to their needs, while saving your HR team valuable time. 

This ADP TotalSource demo reveals how seamless the benefits enrollment process is. Source: ADP

HR Services

ADP’s numerous HR services include recruiting tools that help you streamline the process while attracting, hiring and onboarding the best candidates, ensuring new hires fit your company culture. During our review, we liked that ADP TotalSource’s applicant tracking system made it easy to post open roles to job boards and keep track of all applications you receive in one location. You’ll also be able to categorize every applicant’s status, such as who’s moving on to the next interview and who will receive an offer letter. 

The platform’s AI-powered hiring features also drastically cut down on workload for internal HR departments. For instance, you can generate detailed job descriptions based on the role title, skill set needed and any other industry-based requirements you want to include. 

ADP also offers numerous resources to help you retain top talent, including professional development opportunities, and access to the platform’s Turnover Probability Explorer. We found this tool especially useful, as it helps you predict turnover risk based on benchmark data in your industry, covering every factor from commute time to date of last pay raise. 

Data and Reporting 

We found ADP’s reporting module indispensable for understanding where your organization stands in comparison to others in your industry. ADP’s DataCloud Analytics leverages AI so companies can organize all of their PEO data — from payroll to recruiting — in one easily accessible location. 

You’ll have the data needed to analyze trends both within your organization and industry at large, and take actionable steps to fuel growth. And ADP’s team will work with you to create a custom dashboard, accessible by desktop or mobile, to fit all of your organization’s needs. Monitor your turnover rate, see which roles are taking longer than average to fill and come up with a retention strategy that makes a difference. 

Payroll and Taxes

ADP is a major payroll and tax service provider, so its offerings in this area are especially strong. It offers essential pay services like payroll administration and processing, multiple payment options (direct deposit and direct deposit alternatives like payroll cards and checks), W-2s and 1099s, payroll tax filing, new-hire reporting, state unemployment insurance (SUI) management, wage garnishments, PTO accrual, pay adjustments (proactive and retroactive), and payroll reporting. Employees and managers can access pertinent, real-time pay information from the online dashboard or mobile app.

ADP offers extensive support so that employers remain compliant with pay laws. For example, it offers quarter- and year-end coordination and administration, periodic reviews of pay-related action items, error detection alerts, and payroll compliance validations. It can also audit each payroll run before submission and notify employers about federal and state tax and regulatory changes. 

Users can add compensation management capabilities to their ADP plan if needed, including valuable features to help them comply with pay laws and budget guidelines. Although not all competitors offer this functionality, it can be a valuable resource for attracting and retaining top talent.

Risk and Compliance

The depth of ADP’s risk and compliance support is vast, from cybersecurity to ensuring compliance with workplace safety best practices. Its platform security measures include  multi-factor authentication, single sign-on (SSO) options, encryption protocols, and adherence to SOC 1 and SOC 2 standards. These features protect sensitive payroll and HR data. 

We found ADP’s compliance support to be critical, especially for small business owners that don’t have the time or expertise to navigate the regulatory landscape. In addition to helping you comply with payroll and benefits laws, ADP can help ensure you comply with other HR requirements. For example, ADP can provide you with a workers’ compensation claims specialist, help you build safety programs, and provide safety awareness training and workplace safety evaluations.

Additionally, by monitoring your HR policies, ADP can help you comply with wage and hour laws, leave laws, and OSHA, ACA and COBRA regulations. For example, ADP TotalSource utilizes automation to proactively identify missing information and flag outstanding action items. You will then receive a notification within the platform to prompt quick action, helping you maintain compliance. Regardless of your company’s stage, ADP can help you adhere to HR rules and regulations in all 50 states. You can quickly connect with risk and HR compliance experts for federal, state and local compliance guidance. 

Employee Training and Development

ADP can help manage your employee engagement and performance, while giving you extra support in rebuilding their knowledge and skill sets. Adding ADP’s performance management capabilities allows you to align employee performance with company and team goals, provide continuous feedback, conduct regular check-ins and reviews, and view employee strengths and weaknesses. 

We particularly liked the add-on StandOut Employee Engagement and Leadership Training, which offers professional development designed to create strong leaders and a path for growth among your team. Access to a valuable employee development program can increase employee engagement, reduce employee turnover and minimize organizational risk.

Pricing

Here’s a look at pricing for ADP TotalSource, as well as its HR software platform Workforce Now.

ADP TotalSource PEO Pricing and Terms

ADP TotalSource runs on the same ADP Workforce Now technology suite listed above but incorporates the co-employment model of a PEO with a more personalized experience. TotalSource is a comprehensive PEO that offers bundled HR features, including: 

• Employee onboarding
• Running payroll
• Payroll tax administration
• Employee benefits administration
• Legal compliance assistance
• Workplace safety consulting
• Workers’ compensation
• Employee learning and development
• Document management 

Businesses can also pay for additional services, including the following:

• Third-party integrations
• An enhanced talent suite (recruitment, performance and compensation management; succession planning; talent strategic support)
• Time tracking

Like the Workforce Now offering, ADP TotalSource doesn’t list its pricing online. Instead, you must contact a company representative for a quote based on your business’s specific PEO needs. 

ADP TotalSource has a two-employee minimum. While the vendor serves employers with up to 5,000 employees, ADP’s average client size is 50 to 75 employees. The vendor doesn’t require a long-term contract, either. You can cancel at any time with 30 days’ notice. 

ADP Workforce Now Pricing and Terms

ADP offers a powerful technology-only HR solution, Workforce Now, which ranges in cost from $19 to $28 per employee, per month, depending on your business’s circumstances and needs. Workforce Now is available in three primary HR plans: Select, Plus and Premium. These plans are ideal for employers looking for ADP’s signature HR software without the co-employment model of a PEO. 

There are a few key differences between each Workforce Now plan.

• Select: This plan includes all the basics needed to simplify your payroll and HR, with features like employee onboarding, payroll and tax filing, document storage, the ADP Assist AI agent support tool, and employee surveys. It also includes HR tools like custom reporting, HR workflows, employee development tracking, a self-service employee portal and employee engagement resources.
• Plus: This plan includes everything in the Select plan, plus benefits administration features like plan configuration and management, mobile enrollment, invoice auditing and carrier connections, open enrollment, and personalized decision support.
• Premium: This plan includes everything in the Plus plan, plus workforce management services like mobile time tracking, time off management, employee scheduling and comprehensive analytics.

While some HR items come bundled, businesses can also select a la carte add-on services, including:

• Third-party integrations through the ADP Marketplace and custom application programming interfaces
• Talent management (talent acquisition and recruitment, performance management, compensation management)

Contracts are flexible and can range from month-to-month to multiyear terms, depending on your company’s size, location and the features you want. Since plans are customized to your business, you must speak with a representative for a price quote. ADP also allows users to launch a self-guided product demo beforehand. Not all competitors offer this, but it can be a valuable, low-risk way to see if the platform meets your needs.

Implementation and Onboarding

The first step to implementing ADP is contacting a representative to find the best HRO or PEO plan for your business. As we participated in demos with the ADP team, we found ADP’s implementation process to be on par with industry standards.

Traditional outsourced HR plans include essential features like payroll processing, benefits administration and compliance assistance. However, you can also opt for ADP’s many add-on functions, like talent acquisition and learning management.

If you want to customize the platform further, ADP offers the ADP Marketplace, a popular add-on that allows you to integrate the software easily with hundreds of third-party applications. Although integrations can add a little more time to the setup procedures on the front end, they often greatly improve and streamline your HR processes in the long run. 

Additionally, the breadth of integrations available across industries means you can tailor solutions that fit your business without the need for custom development. For instance, local businesses that manage a fleet and need to track mobile time might consider adding on the ClockShark Time Tracking App. You can browse available integrations by functional category, such as Recruiting & Onboarding or Learning Management, or by popular industries, including construction, manufacturing, finance and healthcare. 

Once you’ve identified an HRO or PEO plan that meets your needs, an ADP representative will work with you to set up your account. You can add employee data to the platform, set up employee benefits, create company policies and more. 

Customer Support

ADP offers one-on-one support to all clients, via an HR business partner. Dedicated representatives can help with day-to-day HR functions and answer any HR-related questions, from compliance management to improving workplace culture. You’ll also have the chance to participate in quarterly business check-ins. 

HR business partners can include specialists and consultants focusing on payroll, benefits, open enrollment, workplace safety, harassment and discrimination, workers’ compensation, taxes, time and attendance, technology, and service delivery. This level of support is competitive with that of other providers in the industry.

ADP also has a resource center specifically designed for small businesses, as well as one for  mid-sized and enterprise-level organizations. You can access online resources like a glossary, calculators, tax guides and forms, and webinars — similar to what competitors offer.

ADP’s Better Business Bureau accreditation and A+ rating further indicate that the vendor offers quality customer service.

Limitations

ADP provides excellent services. However, we identified some limitations: 

• Pricing isn’t listed online: One potential drawback is that ADP does not list its pricing for HRO or PEO services online. Instead, it creates customized plans for each business; you must contact ADP for a quote. Although this is becoming a trend in the industry, it can pose a limitation for business owners who want an immediate estimate of service costs. Check out our Rippling PEO review if you’re interested in an HR solution that lists its starting price online.
• ADP may be expensive for very small businesses: While ADP’s minimum employee requirement is just two employees, businesses with five or fewer employees may find it’s not the best fit for their needs. For example, if your small team’s biggest requirement is mobile time-tracking, the Premium plan or available add-ons may be too expensive. If you’re looking for a PEO that can accommodate smaller businesses with simpler needs, check out our review of Justworks.

Methodology

We researched and analyzed dozens of the best PEOs and the best HRO services to identify top HR outsourcing solutions. We looked at pricing, contract requirements, bundled versus a la carte features, minimum requirements, employee benefits administration, time-tracking tools, payroll processing and taxes, administrative HR functions, talent management features, integrations, legal risk and compliance assistance, accreditations, and customer service.

We also participated in an exclusive demo with company specialists. When looking for the best PEO and HRO solutions for benefits administration specifically, we prioritized the scope of benefits options, benefits administration, payroll processing, tax administration, usability, user interface and compliance assistance. Learn more about our methodology.

Bottom Line

We recommend ADP for …

• Companies that want competitive, comprehensive employee benefits.
• Companies that want an intuitive benefits administration process.
• Companies looking for an HRO or PEO with an easily navigable user interface.

We don’t recommend ADP for …

• Companies that want to see pricing online.
• Small companies on a budget and/or with simple needs