ADP had to cut costs

ADP had to cut costs, and employee compensation is the biggest expense. There isn't a company out there that isn't always trying to find the most effective way to perform the necessary functions at the lowest possible cost. Part of that is replacing high cost workers with lower cost workers. The area ADP is gambling is that the only reason they need these high cost experienced workers is because of the complexity of their systems. They are old, outdated, non-competitive and cost way too much to support. They are in the position they are in now because of that lack of innovation that has put them miles behind the competition so they have to do two things. Reduce the cost base, and innovate and release better and simpler to support products. I fear they've jumped on the cost cutting bandwagon before they are ready to release and migrate clients to the simpler and easier to support products. If that's the case, they are in for a rough ride for a while. With the deep pockets they have though, they'll ride this out and emerge stronger at some point. They have also started with some big changes at the top. New CFO when Jan leaves, and new head of sales/marketing.

Bumped from @TVscww4-gby. Well said.

Comment! It's anonymous!

7 replies (most recent on top)

I will be gone by Oct 1st in the COBOL/CICS programming area at 1 ADP Roseland after working here for 2 decades PLUS.

NEWS FLASH.....ADP is losing over 85% of its veteran programmers because upper management does not have a clue about what it has done. There is no way ADP can compete with WORKDAY or anybody else developing any 'modern' products for the clients.......no way. Even the products it's currently has cannot and will not be maintained without the programmers it has cut away. It will be many years before the current employees catch up.....if they can at all. Most of us know they can't.

There is a big difference between complexity of the system and the functionality for the end user when the complexity is due to outdated technology. WD is killing everyone in the up-market because they've built the system on the latest technology, it's relatively simple to maintain and use by comparison, and has the functionality advantage. If ADP can get it together and release a next gen product that isn't smoke and mirrors UI on top of all that old technology, and they have the money to do it, they'll be fine. The question is whether they can get it together. History shows they can but this is a hole deeper than they've been in before.

"Large clients shutting down implementations AND suing ADP for monster bucks because of the misrepresentation."

That is bad for ADP. I mean really bad. What a nightmare for this company!

And the more simplified the systems are to maintain, the less functionality that will be provided to clients. Vantage was supposed to provide that kind of platform. Only problem is that to sell it, there has to be some creativity associated with telling clients what it can do. The result? Large clients shutting down implementations AND suing ADP for monster bucks because of the misrepresentation. Vantage is ok for small clients. If ADP wants to have that marketplace and leave the big boys to WD and the others, then they have positioned themselves well

If they want to cut costs how about they cut out all the middle managers. There are so many freaking managers and I'm still trying to figure out what exactly they all do because they don't 'manage' anything. I rarely even speak to my manager, he's always so busy in meetings, I think they have meetings about having meetings.

It is completely ridiculous to start eliminating experienced personnel without having the new systems in place, whether they are complex or not. The old systems are still there and must be maintained. It is gross negligence to get rid of the people who are supporting these systems NOW. Who is going to support these complex systems in the meantime? The new low cost employees who are unmotivated to do well or even stick it out at ADP by their unusually low wages? They are not working out and they are constantly leaving and being replaced with new workers who also leave. And this cycle goes on and on. It is an unrelenting disaster for the company.

In addition, initiating new systems is not as simple as flicking off a switch for the old ones and then flicking on a switch for the new ones. Careful preparation must be done. Parallel testing must be conducted to minimize conversion errors and other problems. Experienced and proven personnel must be available to do this and not cheaply paid people just off the street who don't know anything yet and are not motivated to really learn anything.

If ADP wanted to save on labor costs, then this is NOT the way to do this. Throwing away the company's knowledge base is never a rational approach to saving money. ADP has thrown out too much of its intellectual capital to survive. A crazy and needless disaster is in motion that was made by ADPs top management team who didn't know and does not know what it is doing.

You obviously aren't clued in to the crap systems they are moving to. It's not less complex at all... Just a different pile that the execs can pump the street on.

Thread regarding ADP layoffs

ADP had to cut costs

7 replies (most recent on top)

Post a reply