5 Trends that Will Redefine

Human Capital
Steve Hardy
Vice-President, Multinational Marketing

Five Critical Trends for Todays Business

Pressure
to be more
Strategic

Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Trend #1 - Globalization

Expanding Global Workforce

Nearly 40% of employees work
outside the home country

Pressure
to be more
Strategic

* ADP Research Institute MNC Market Study 2011

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Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Integrated human capital

management is key*
Compensation Planning,
Performance, Learning, Self
service, mobile are also highly
desired

Trend #2 - Demographics

Evolving Workforce
Demographics
Demographic

Pressure
to be more
Strategic

47% of all employees will have

been born after 1977 by 2013
Mobile*

70% of employees will be mobile

Social**

52% of Executives now view

social networking as an effective
collaboration tool
* Frost and Sullivan, 2010
** SHRM Research Spotlight: Social Networking Websites and Staffing, August 2011
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Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Trend #3 - Integration

Need to Integrate and Simplify

Pressure
to be more
Strategic

* ADP MNC Market Study, May 2011

** ADP Research Institute Achieving Strategic HR
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Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

On average companies have to

manage over 8 HR and Payroll
systems and/or vendors*
58% of HR staff time spent on
administrative tasks**
19% of time spent on feeding
data into multiple systems

Trend #4 - Compliance

Intensifying Compliance
Burden

Pressure
to be more
Strategic

~20K new pieces of legislation

worldwide affects employers
Less time to implement state /
federal employment tax
regulations

Days vs. months

Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Trend #5 - Talent

Attracting / Growing and

Retaining People

Pressure
to be more
Strategic

83% of CEOs list talent

management as their #1 priority*
Managing skills shortage
Driving engagement and
productivity

Retaining your people

Managing the entire employee life
cycle is critical

* Price Waterhouse Coopers 14th Annual CEO Survey, June 2011

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Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Talent Management Drives Business Results

26%

109%

higher revenue
per employee
more capable of retaining
high performers

87%

more capable of
hiring the best

92%

better at responding to
economic conditions

144%

better at planning for

future talent needs

17%

lower voluntary
turnover

41%

lower turnover among

high-performers

28%

less likely to have had

a major layoff in 2009

ADP Helps Make Human Capital More Manageable

Recognition,
Merit , Pay
Bonus, Incentive
Programs

On-Boarding

Career and Individual

Development

Performance
Management
Engagement,
Goal Alignment
Learning

Sourcing,
Screening,
Selection

End to End, Human Capital Lifecycle Management

Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Career
Development

Complete End-to-End, Global Human Capital Management

Cloud based Software

Performance Compensation Succession

HR System of Record
Time and Labor Management

Analytics

Portal

Learning

Reporting

Mobile

Recruiting

Payroll
Processing

Managed

Comprehensive

Delivered as a Service

Seamless integration. Complete End to End Suite. Innovative Cloud Based Delivery

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Our Track Record In Meeting the Challenges

Globalization

Talent

Serve ~7.5M employees outside US

Over 9,000 Talent clients

Operate in 81 countries

More than 95M total job seekers

Deep in country compliance expertise

Over 2M pay adjustments and

$125 billion in total comp managed

Provide service and support in

26 languages

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More than 2M completed performance

reviews on file

Demographics

Compliance

Over 250K clients and 13M users

accessing ADP through the cloud

1,500+ associates interpret, manage

legislative updates

Single mobile solution available for

16+ ADP services, available in 12
languages

2,000+ tax agency relationships

Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Last 12 months processed:

~1.5M liens
~810K unemployment claims

Our Track Record

Total Cost of Ownership

(Per Employee per Year)*
15%

24%

Improved HR Service
Delivery and Employee
Satisfaction

$1,202
$1,020

In-House
Solution Multiple
Platforms

In-House
Common
Platform

* HCM, Payroll, TLM

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Increased Accuracy

Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

$910

Outsourcing
Common
Platform

Achieve Overall Cost

Advantages With HCM
Outsourcing

ADPs Global Reach Helps Address Different

Needs of the Business

Attract and retain talent

HR

Maintain headcount / increase productivity

Increase employee engagement

Meet agility needs of the business

Technology

Reduce number of systems, vendors

Optimize spend, return on investment

Reduce costs

Finance

Balance capital, operating expense

Increase margins

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Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Summary

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Significant Business
Trends Impact HR

Managing Talent
Becomes Critical

ADP is Positioned To
Help Drive Your
Success

Copyright 2012 ADP, Inc. Proprietary and Confidential Information.

Globalization and Shifting Demographics

Integration and Compliance
Talent

CEOs #1 Priority

Measurable impact on business

Integrated cloud-based HCM suite

Lower total cost of ownership
Measurable impact to business

One cohesive delivery and service model

Thank you.

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Copyright 2012 ADP, Inc. Proprietary and Confidential Information.