ADP is adding more artificial intelligence and machine learning features to its DataCloud human capital management platform as it aims to compete with established HR software players.
The updates add a series of tools to enhance workforce analytics. ADP DataCloud leverages anonymized and aggregated data from more than 740,000 companies for headcount, compensation and retention benchmarks.
ADP, best known as a payroll service provider, has been expanding into HCM software. During a Dec. 2 investor conference, ADP CFO Kathleen Winters outlined the strategic importance of HCM software:
We really serve all segments of the market, small business, mid-market, large enterprise space. The HCM industry is an attractive space. It’s a growing space. It’s been incredibly competitive.
Indeed, the HCM feature rollouts are continuing at a rapid pace:
- Oracle Analytics revamp continues with Analytics for Cloud HCM
- Workday Talent Marketplace aims to quickly match projects, skills
- Workday launches VIBE Central, VIBE Index to measure diversity and inclusion efforts
- Major HCM vendors Kronos and Ultimate Software enter merger agreement
- Microsoft outlines its updated Dynamics 365 Human Resources roadmap
Winters said ADP’s HCM portfolio has performed well in small business with its RUN product as well as midmarket with Workforce Now. In upmarket, Winters said ADP is focused on its next-gen HCM. “We’re focused right now on our investment in our Next Gen HCM product, which will help solidify our position in the upmarket space. That will be a kind of a multiyear journey for us as we scale that up,” she said.
ADP’s new features for DataCloud include:
- Pay Equity Storyboard, which breaks down company data by jobs filtered by gender, race and pay gaps. ADP DataCloud will calculate effective distribution models.
- Organizational Benchmarks to compare headcount, labor costs and turnover relative to the industry
- Turnover Storyboard, a predictive analytics tool to find employees at risk and in need of more attention and engagement
- Enhanced Recruitment Experience, which offers a profile relevancy tool to score, assess and match candidates to job offerings
- Benchmarks for Canada via ADP Canada
Here are two screenshots of ADP DataCloud: