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Human Capital Advantage for Business What is the Value of ADP® iHCM for CEOs?

ADP® iHCM: Rethink Human Capital Management The need for HR to be a true business partner has never been more compelling than it is in today’s ever-changing business environment. Globalization, changing business models, increased use of technology and social media, the explosion of available data, and the emphasis on productivity, efficiency and engagement, all have an impact on how HR should support business. The role of HR is at a crossroads: moving away from the administrative approach of managing human resources towards a data-based, strategic approach to talent management in support of your business objectives. To do this, there are some clear actions you can take including talent development, creating corporate centres of excellence, developing the right metrics and analytics. However, all too often these are disparate components that do not work together. The goal is clear: implementing a true strategic human capital management service to support your business goals.

In a tight economic environment, HR leaders are feeling the pressure from all quarters. The need to execute talent strategies with fewer resources makes productivity improvements and efficiencies all the more important. While ever changing and demanding employment legislation and payroll compliance obligations require more attention than ever before.

ADP iHCM is a comprehensive cloud-based Human Capital Management (HCM) solution for national and international companies across all industries, available in multiple languages.

HR is responding to these challenges by searching for new solutions which place self-service in the hands of line managers and employees, with the added benefit of improving productivity. At the same time they want clear, accurate data, which is easily accessible throughout your organization via one HR portal. This develops an engaging and collaborative culture which empowers individuals and teams, providing clear career paths, developing employees’ skills, creating a flexible working environment – all impacting positively on engagement.

This is where ADP iHCM comes in. ADP iHCM is a full employee lifecycle cloud-based solution that enables you to manage talent, payroll, and HR administration anywhere, anytime, with relevant data at the centre to measure, compare, and predict.

INTRODUCING ADP iHCM

ADP iHCM offers the very first complete, comprehensive approach to HCM – not just technology in the cloud, but the ability to have support from ADP’s customer service team and getting the answers you need, when you need them. As an easy to use, cloud-based system, ADP iHCM provides a global solution which can be locally adapted to enable your company to manage HR,

payroll and talent management processes and practices across international organizations while ensuring local expertise, adaptability and compliance through:

• Recruitment: A transparent and trackable hiring process to manage vacancies, candidates and recruitment agencies.

• Learning Management: One central place for configuring, requesting, managing, and viewing competencies, knowledge, and training, for current and for holistic views. Learning is no longer static and periodic: the system proposes learning activities based on areas of improvement for competencies or on objectives.

• Performance Management: Align corporate strategy and individual goals, solicit 360° feedback, track year-round performance of teams and individuals.

• Succession Planning: Pro-actively manage succession plans for specific jobs, relative to flight risks, mobility preferences and career aspirations, with summary views in a 9-box grid.

• HR Administration: One database for managing, securing and validating all employees, and organizational structure data for efficient management of HR administrative tasks.

WITH ADP iHCM YOU HAVE WHAT YOU NEED TO RETHINK YOUR HUMAN CAPITAL MANAGEMENT

More strategic for executives

More empowering for managers

More engaging for employees

More efficient for HR

HUMAN CAPITAL MANAGEMENT FOR CEOs

The 17th annual PwC CEO Survey found that 93% of CEOs recognize the need to change, or are changing their strategies for attracting and retaining talent. Human capital was also found to be the number one challenge facing CEOs in The CEO Challenge 2014 report. The survey of CEOs, presidents, and chairs from more than 1,000 employers around the world by The Conference Board and the Chartered Management Institute (CMI) found that in addition to being the top-ranked challenge globally, Human Capital is closely linked to the other three in the top four—Customer Relationships, Innovation, and Organizational Excellence, saying “a talented, engaged, and properly motivated workforce is critical to success”.

ADP iHCM is an easy-to-use, fully-integrated solution giving CEOs a true overview of their organization. Historically, it has been very difficult to get an accurate picture of talent data with regards to performance and KPIs – ADP iHCM gives your CEO the ability to have consistent, easily-accessible, automated data at hand whenever they need it. That gives them the ability to make quick decisions based on true and accurate data.

With ADP iHCM your CEO has oversight of all your talent strategy and is able to make comparisons between different business units and benchmark internal divisions or teams with regards to anything that relates to HCM, such as recruitment, training or performance.

Talent management can be precisely aligned to your business strategy. If your CEO has communicated a particular business objective, they can use ADP iHCM to monitor the areas most closely correlated with that strategy – which groups in the company are showing the relevant competencies, or which group within the company has formalized the relevant manager and employee objectives. If your CEO looks at the system having communicated a new strategy for example and only 5% of individual objectives are related to that strategy, then they can identify a problem with execution which could have a considerable impact further down the line.

COMPREHENSIVE SOLUTIONHaving the right people, in the right positions, implementing the same strategy

Because ADP iHCM data is integrated across all HR administration, payroll and talent acquisition and management areas (recruitment, performance management, learning and development, and succession planning), your CEO has a truly comprehensive over-view of your organization.

Together with HR, your CEO can decide the recruitment or learning and development strategies needed to provide the necessary talent capabilities to achieve the business strategy. ADP iHCM provides visibility for your CEO and the confidence to know that they have the right people, in the right positions, implementing the same strategy. For example, succession planning for crucial positions is made easier – the system can show who is in-line to succeed a particular position, or what groups of people have the right profiles and experiences to promote in the future.

ADP iHCM and the CEO

ADP iHCM is delivered from the cloud providing the advantages of a system and infrastructure which is always reliable, secure, and maintained by ADP experts.

CLOUD TECHNOLOGY WITH FUTURE-PROOFED INNOVATIONAvailable and secure

Security is one of the most important technology concerns for CEOs. You have significant reassurance in the size of the ADP family: it has the structural capacity to invest in a protected cloud-based environment, delivering highly available solutions in a secure manner.

ADP iHCM and the CEO

SERVICE EXCELLENCE DELIVEREDInternational reach and local expertise

ADP iHCM facilitates the deployment of consistent processes and practices across your organization, aligning talent management and business strategies. You don’t have to rely on internal skills to implement the system or update it. Being an ADP solution, it is backed up by 65 years of ADP service excellence, international reach and local expertise. The business processes, systems and data are fully integrated, predictive, accessible anywhere, any time and offer immediate interactivity. Your CEO always has access to the most up-to-date information, and the support of ADP.

ADP iHCM brings together all key components

of Human Capital Management. Designed

to manage your entire employee life cycle - from recruitment

to performance management, learning and development,

payroll management and HR administration, HR reporting

and analysis, all delivered on an innovative technology platform which empowers and engages

employees.

ADP iHCM and the CEO

GLOBAL SOLUTION WITH LOCAL ADAPTABILITYDesigned and developed to adapt to local needs and market requirements

ADP can leverage its entire global footprint to service your local markets. A ‘Glocal’ model combines local ADP support teams that know your market, know the products, and service you directly, with global service centers that support multinational corporations and services across multiple countries. ADP iHCM is a multi-language solution that caters to local needs relative to compliance and market specificities. Each version, whether English, Dutch or Chinese, is not simply a translation of the solution. For instance, France does not withhold employee income tax at the source. In the UK, employees can be paid on a monthly, bi-weekly, weekly, or even lunar basis (every 4 weeks). In Germany, a solidarity tax created in 1991 to fund the country’s reunification efforts remains on the payslip. But regulations that impact payroll are not only set at the national level. They can be defined at state, region, city, and branch and company levels. Brazil counts 10,000 union agreements across the country. There are 297 established minimum wages in Japan, 47 of which are regional (prefectural) and 250 of which are industry-specific. The impact of your market regulation will affect the way in which you manage your talent. ADP iHCM functionality has been specifically designed and developed to adapt to local needs and market requirements, for payroll and HR administration as well as talent acquisition and management.

ADP iHCM and the CEO

These top 5 priorities underline how HR must support the company strategy and adapt activities to business transformation, while developing workforce engagement and balancing costs. HR needs to identify new ways of developing and engaging employees and controlling their costs while ensuring that they remain compliant with ever-changing legal and governmental regulations. However, another study, ‘HR Outsourcing Redefined: Options for Workforce Management’, found that HR teams of mid-sized companies spent nearly half their time (45%) on a combination of payroll-related activities (18%), HR administration (14%) and benefits administration (13%).

HR teams that devote so much time to administrative tasks are clearly not going to play a strategic role in leading their organization forward and need to focus on the strategic elements of talent management that will achieve business objectives. Instead, effective HR leaders not only work with their business leaders to draft strategies, they also ensure that the strategies are implemented and are successful. With business leaders increasingly seeing the importance of talent on business success, HR needs to become strategic and remove the administrative burden through standardization, automation and outsourcing of transactional and administrative tasks.

Top Priorities The need for ADP iHCM is now clear and urgent. A recent global survey conducted by ADP Employer Services International across companies highlights the following HR priorities:

•Ensure That Talent Strategy Aligns With Business Needs

•Employee Learning & Development

•Employee Engagement

•Retention of Top Talent

•Balancing Employee Expectations Relative to Budget Constraints

ADP iHCM offers world class HR best practices implemented by its experts in planning, implementation and services.

Crucially too, this is no longer just an HR issue. A new generation of HCM can take HR administration and put it into the hands of employees and managers, engaging them with organizational processes and empowering them to take charge of their own career development along the way. For the Finance Director, there are obvious cost-savings or cost optimization

ADP: DELIVERING YOUR HUMAN CAPITAL ADVANTAGE

ADP is one of the largest global providers of business processing and cloud-based solutions – including payroll, talent management, human resource management, benefits administration and time and attendance. It serves over 620,000 organizations in more than 130 countries, including 425,000 small-business clients and over 80 percent of FORTUNE 500® companies.

Partnering with ADP provides solutions with the latest technology – so you can focus your limited time and resources on your business, not back-office administration. Its latest technological offering - ADP iHCM – however is more than just another new product. It is a revolution in how businesses, employees, managers and directors relate with HCM. It provides a global solution which can be locally adapted to enable companies to manage their HR, payroll and talent management processes and practices across international organizations while ensuring local expertise, adaptability and compliance. Individuals can input and access their own data, at work or at home via mobile devices. While in the boardroom, directors can access talent management metrics and dashboards, showing them accurate employee data at a click of a button.

opportunities both in terms of efficiencies and removing duplication but also in ADP’s innovative pay-per-month model. The IT Director too is freed from maintaining in-house programs or attempting to integrate multiple HR systems, as ADP iHCM brings these all together into one solution, serviced by ADP. For the CEO, linking business strategy and key performance objectives to talent management strategy is no longer guess work: all HR systems and processes are integrated on a single platform by leveraging an end-to-end cloud-based Human Capital Management (HCM) suite.

Automatic Data Processing, Inc. (NASDAQ: ADP), with more than $10 billion in revenues and approximately 600,000 clients, is one of the world’s largest providers of business outsourcing solutions. Leveraging over 60 years of experience, ADP offers a wide range of human resource, payroll, tax and benefits administration solutions from a single source. ADP’s easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world.

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Disclaimer: Please note to the extent possible ADP’s technology solutions will assist clients in complying with legislation by supporting their strategy however, on their own, they may not meet all of clients’ legally-required obligations as an employer.

CONFIDENTIALITY NOTICE

This document is intended solely for ADP’s clients and/or prospective clients. It is being made available to communicate ADP’s business plans. All information in this document concerning ADP’s business affairs, plans and product strategy is confidential and proprietary to ADP and may not be disclosed without ADP’s prior written consent. No rights in this confidential information are granted. ADP reserves the right to modify its business plans and product strategy mentioned in this document and while this information has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by ADP or by any of its respective officers or employees in relation to the accuracy or completeness of this information. In particular, no representation or warranty is given as to the achievement or reasonableness of any future projections, management estimates or prospects contained in this information.

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