The 60-year-old company is building a human resources software marketplace akin to the Salesforce AppExchange.
If you automatically associate the name ADP with payroll services, you are to be forgiven. After all, more than 610,000 businesses rely on the 60-year-old company to pay 24 million employees in the U.S. alone. Put another way, ADP touches the paychecks of one in six U.S. workers.
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More than half of ADP’s national accounts use both its payroll services and other HR apps—something many people don’t realize. The company already ranks No. 7 among the top 10 cloud HR software vendors, with a 4% share of the market, according to researcher Apps Run the World. That might seem small, but for perspective, SAP and Workday rank No. 1 and No. 2 on this list, with 11% share and 9% share, respectively.
ADP’s strategy for claiming more of that share centers on a year-old initiative to ally with other software companies—its newly expanded relationship with sometime rival Workday is one example—that drive more business for its core human resources software. So far, ADP has signed more than 100 software developers—creators of everything from recruiting tools to timesheet apps to talent management systems—and it has another 300 to 400 potential partners in the pipeline.
When asked what sorts of apps ADP will prioritize, Sackman said one fast-growing areas centers on employee wellness. In addition, ADP is investing heavily in analytics technologies that help businesses anticipate recruiting needs or identify employees that might make management candidates.