By Doug Politi, president, Compliance Solutions
ADP pays more than 26 million workers in the U.S. and more than 13 million workers elsewhere. With that responsibility our clients look to us as the market leader for solutions that help them better manage and engage with their entire workforce. Today’s announcement about the acquisition of WorkMarket, and our recent acquisition of Global Cash Card, demonstrates our commitment to help prepare our clients for new trends in the workforce and shows how we are a first-mover in the HCM marketplace.
A few months ago we announced the acquisition of Global Cash Card. With this acquisition we expanded our ability to offer digital payments, including paycards and other flexible payment offerings. We became the only human capital management provider with a proprietary digital payments processing platform, allowing us to offer digital accounts and flexible payment offerings across our base of more than 700,000 clients, while increasing the speed of implementation for new clients.
The functionality of digital accounts, including paycards, and ease of access to funds have made them particularly popular among Millennials. Also, with approximately 24.5 million U.S. households considered “underbanked” (2015 figures), these account holders enjoy many of the standard features of a checking account, such as shopping and paying bills in stores, online, and through mobile apps. These accounts are also popular with employers because they provide a less expensive, more immediate and more secure option to deliver wages than paper checks.
Today’s announcement about WorkMarket, a workforce management solution provider that allows companies to build and manage an integrated workforce across W-2 employees, 1099 contractors and vendors, further extends our human capital management solutions to include all worker classifications.
There is no denying that the workforce is changing, and will increasingly rely on contingent or gig economy workers. In fact, ADP data shows that approximately 80% of U.S. businesses already rely on independent contractors, and, according to Gartner, by 2020 nearly 60% of human resource leaders will use a unified talent strategy for employees and contractors.
By combining WorkMarket’s expertise in freelancer management with our leading payroll and human capital management solutions, companies can manage independent contractors and vendors as efficiently as they manage full-time employees. We are confident that WorkMarket’s solutions will bring great value to businesses across all of ADP’s client base, from small business to global brands, and we are thrilled to welcome our new WorkMarket colleagues to ADP.
The acquisitions of WorkMarket and Global Cash Card, coupled with our internal innovations, show that ADP is anticipating how the world of work is evolving and further extends our human capital management solutions to include offerings to find, manage and pay independent contractors as well. Stay tuned for more!