ADP is known for its massively powerful human resources (HR) software geared toward large companies. But for small and medium-sized businesses, the organization boasts a less complex option known as ADP TotalSource.

This offering, called a professional employer organization (PEO), delivers outsourced personnel support. As a result, you won’t need more in-house staff since ADP takes care of tasks on a full-service basis.

If having professionals at a globally recognized company tackle tasks for you sounds enticing, read on to explore if ADP TotalSource is right for you.

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ADP TotalSource’s pricing

As is common with ADP products, there is no transparent pricing structure. You’ll need to speak with a sales agent for a customized quote.

For reference, PEO services typically cost 2% to 10% of total wages. So, if you spend $1 million annually on payroll, expect to shell out around $20,000 to $100,000 yearly for full-service support.

If you feel sticker shock, consider the trade-off involved. You won’t need to hire as many — if any — support staff members in house like you might with payroll software, so in some cases, PEOs can actually be one of the cheaper options for smaller businesses. Essentially, these savings can help the full-service option pay for itself.

ADP TotalSource’s key features

The platform is a boon for small- to medium-sized businesses. Certainly, there are lots of nooks and crannies that make it unique. Here are some marquee features included with ADP TotalSource.

Dedicated HR professional guidance

As a PEO, ADP TotalSource pairs you with dedicated HR professionals who provide tailored support for your business’s personnel, payroll and compliance needs. This customized approach helps save time and shield you legally. Plus, it’s particularly beneficial to growing entities lacking elaborate administrative support internally.

Compliance and legal support

The team at ADP ensures TotalSource is constantly up to date on changing legal requirements. As a result, you can rest assured your operation is compliant at all times. Most competitor options also provide updates as laws change, but ADP is particularly well-funded and staffed for the task. So you can count on extra peace of mind knowing ADP is watching out for you legally.

Rich analytical tools and resources

ADP TotalSource comes with over 300 built-in reports, richly detailed analytics, a comprehensive learning management system and a library of forms and templates. These tools provide valuable insights and resources for better decision-making, leading to enhanced operational efficiency.

Ease of use and scalability

There’s something extra special about software that doesn’t need replacing as you grow. And ADP TotalSource fits that bill. The title caters to the needs of small to mid-sized businesses, making it a viable option for companies at various growth stages. And once you reach the big leagues, you can seamlessly switch to ADP’s other products built for larger entities.

Training and development

The platform’s comprehensive learning management system allows for continuous employee training and development. You can easily track every worker’s certifications and educational accomplishments. This bird’s eye view of each person’s knowledge helps you make better personnel decisions, leading to higher quality supervisors and coworkers and improved morale.

ADP TotalSource pros

ADP has earned its spot as a world-famous software developer for good reason. It produces tools that deliver lots of power and desirable perks. Here are some of the top benefits included with ADP TotalSource.

Provides leverage for growth

If you’re looking to grow, you’ll need more personnel support to keep a larger workforce paid and happy. But it’s a large investment of time and money to hire people. If you choose to acquire new in-house HR professionals, it can take a while to onboard everyone and get going.

This challenge is why ADP TotalSource is so appealing. You can pass on HR tasks so you get to focus on growing the rest of your business. This outsourcing means you’ll grow faster without getting bogged down with mundane payroll and personnel duties.

Connection to the ADP ecosystem

ADP produces software that solves business needs at every stage. If you adopt TotalSource, you can always switch to a different ADP solution down the road. Since most data is shared seamlessly between the company’s titles, you won’t have to start from scratch. So, if you’re a regional business now but plan on global domination later, ADP can help with that.

Personalized support

Good customer service lovers rejoice with ADP TotalSource. The company provides personalized support and training at all stages of use. You can get help via phone, chat, email or even in person at some ADP offices.

An extensive knowledge base chock full of videos and step-by-step instructions is available. And for ambitious folks, certifications exist to prove mastery of ADP products. Indeed, using a famous name like ADP means there is an abundance of help available at all times, even from third parties like YouTube creators.

ADP TotalSource cons

While many businesses enjoy the full-service appeal of ADP TotalSource, there are some not-so-fun sides to the offering. Here are a few cons to consider.

Expensive

As mentioned above, ADP TotalSource doesn’t publicly reveal its pricing. Still, you can expect to pay 5% or more of your total wage costs. This amount can feel steep for folks on a budget.

If money is a concern, consider self-service payroll software instead. This alternate strategy costs a fraction of the price of a PEO. Some top picks, like Gusto, start at $40 plus $6 per employee monthly.

Less autonomy

With ADP TotalSource’s full-service approach, you’ll inherently relinquish some control over administrative processes. Instead of adhering to your tried-and-true system, the company’s professionals will instead follow their own time-tested approach.

This strategy can help you avoid bad habits you’ve developed internally. But it also means you have less oversight over day-to-day personnel support tasks. So, if you enjoy having total control over the behind-the-scenes of your business, you may wish to look at other options.

If ADP TotalSource isn’t ideal for you, check out these alternatives

If you’re looking for an alternative to ADP TotalSource, here are a few options to consider.

Rippling

Rippling is a cloud-based PEO that offers a comprehensive suite of HR and IT services, including payroll, benefits, time tracking, device management and more. It’s known for its ease of use and affordability, making it a good option for small and medium-sized businesses.

Rippling’s platform is easy for employers and employees alike. Administrators can manage their HR tasks via a beautiful user interface. Meanwhile, staffers can access their pay stubs, benefits information and other HR documents through a self-service portal.

Rippling is also one of the most affordable PEOs on the market. It offers a variety of pricing plans, including a la carte options, to fit businesses of all sizes.

Paychex PEO

Paychex offers another popular PEO that solves a wide range of HR needs. It’s known for its customization options and scalability, making it a valuable option for businesses of all sizes.

Much like ADP, Paychex offers a variety of customization options to meet the specific needs of each business. Employers can choose from a range of payroll and benefits plans to suit their specific situation.

Paychex is also a viable solution for businesses that need to manage a global workforce. It offers several international HR services, including payroll, benefits and HR compliance.

Justworks

Justworks is a PEO that specializes in serving small businesses. It offers a range of HR services, including payroll, benefits, HR compliance and employee onboarding. Justworks is known for its affordability and ease of use.

This competitor is a great alternative for those weary of ADP’s complex interface. Indeed, Justworks is known for its simplicity — many people can quickly adopt the platform without special technical knowledge.

Review methodology

We carefully studied the way ADP TotalSource helps businesses in a full-service fashion. We compared it to self-service software and some competitor offerings. We also studied average pricing for PEO options, common features and customer reviews. Finally, we analyzed how ADP TotalSource addresses needs unique to small- and medium-sized businesses.