Businesses with a Robust Employment-Related Tax and Payment Compliance Program Report Greater Profitability and Employee Satisfaction
New survey by ADP and CFO Research finds companies that see compliance as a business opportunity gain broad benefits while strengthening their bottom line
ROSELAND, N.J., Feb. 10, 2014 /PRNewswire/ — ADP®, a leading global provider of Human Capital Management (HCM) solutions, today shared the results of a new survey concluding that a strong employment-related tax and payment compliance program can help lead to benefits beyond financial performance. The survey, conducted by CFO Research and sponsored by ADP, found that prioritizing compliance can also help lead to a more engaged workforce, improved corporate culture and a sharper competitive edge.
“Our data shows that compliance is growing in its importance to successful companies of all sizes,” said Mark Benjamin, President of Global Enterprise Solutions at ADP. “Unfortunately, some companies are so overwhelmed by the complexity involved in managing employment-related tax and payment compliance that they don’t know where to begin. The good news is that many organizations that are investing in a compliance program and making it a priority are seeing significant, and sometimes unexpected, payoffs for their businesses.”
Companies today are under increased pressure to ensure they’re in compliance with applicable laws, even as the volume and complexity of regulations multiply. Indeed, survey respondents say the need to conform to multiple jurisdictions (70 percent) and ensure privacy and data security (49 percent) increase the difficulty of managing employment-related tax and payment compliance.
Due to these challenges, some managers do not make compliance management a priority. Of the senior finance and HR executives surveyed, more than 33 percent consider compliance to be a low priority, and 33 percent of respondents say they would give their company a “C” grade for the way compliance is handled within their organization.
Compliance as an Opportunity
In sharp contrast, the survey shows companies that invest in robust compliance management acknowledge it can deliver business results. Fifty-nine percent of respondents say employment-related tax and payment compliance has a positive impact on employee productivity and operational efficiency, while 50 percent say it has a positive impact on their company’s overall profitability.
“The two-thirds of executives who give their companies a high grade for compliance are working for organizations that also make it a top priority,” said David W. Owens, editorial director at CFO Research. “These companies are more likely to recognize the real benefits that can be delivered by effective compliance programs.”
“Executives are noticing how effective compliance management can help build structural capital and boost the bottom line,” Benjamin added. “The benefits of effective compliance can be enterprise-wide and give leaders the competitive edge they need in today’s marketplace.”
Respondents also note how employment-related tax and payment compliance may help lead to surprising payoffs they didn’t expect, such as a boost in employee satisfaction (70 percent) and employee engagement (63 percent), as well as improved corporate brand and reputation (55 percent). Leadership teams are recognizing how these improvements can help strengthen their businesses and enable them to better respond to future regulatory changes. In fact, of the companies who responded to the survey, 63 percent view investing in compliance as a best practice rather than a burden.
Full report findings are available to download from http://bit.ly/Bottom-Line-on-Compliance. An infographic with greater detail on the compliance continuum is viewable at http://bit.ly/CompContinuum. To learn more about ADP SmartCompliance, visit http://www.adp.com/SmartCompliance.
About ADP SmartCompliance
ADP SmartCompliance(SM)( )is a cloud-based unified platform of outsourced services that helps ease the burden of key employment-related tax and payment compliance activities. This outsourced platform of services can help save time and money by consolidating processes that are disparate and largely manual, and by working with an organization’s existing enterprise resource planning (ERP), financial or human resources system of record.
With more than $11 billion in revenues and more than 60 years of experience, ADP® (NASDAQ: ADP) serves approximately 620,000 clients in more than 125 countries. As one of the world’s largest providers of business outsourcing and human capital management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). 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. For more information about ADP visit the company’s Web site at www.adp.com.
For more information, contact:
Kira Lee Lakin
ADP Public Relations
ADP and the ADP logo are registered trademarks of ADP, Inc. ADP SmartCompliance is a service mark of ADP, Inc. All other marks are the property of their respective owner(s). Copyright © 2014 ADP, Inc.