Why SMBs are ditching ADP

February 27, 2023 - Research X42

ADP remains the largest payroll provider by market share due to its large, enterprise customer base and global payroll capabilities. Now, with frequent mass layoffs impacting larger organizations, the vendor must work to avoid increasing rates of SMB customer churn to maintain its positioning. Nucleus interviewed former ADP customers, who cited poor support, complex functionality, and high costs as primary drivers behind their decision to switch to another vendor. For example, one organization saved $40,000 a year upon implementing a solution from a close competitor. As other SMB-focused HCM and payroll providers continue to develop their platforms with higher usability and a lower price point, ADP must invest heavily in these areas to prevent erosion of its customer base.