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Workforce News Minute: How will innovation shape the world of work in 2023?
Innovation, What We Do, Future of Work
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Workforce News Minute: How will innovation shape the world of work in 2023?
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More and more, what we will see
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going forward is, you know, personalization
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becoming more and more ubiquitous across all the disciplines of the world of work.
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And we use data.
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We use machine learning.
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We use A.I.
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to create these models that can be tailored
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to you, that individual worker.
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And with that, we’re going to move from
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sort of this world that HR is, you know,
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a world of rules into a world of exceptions.
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Managing each associate as its own person with its own set of,
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you know, personalization aspects to the world of work.
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That’s the way I see it.
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More and more, we will have this diversity of behaviors
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on the relationship between the employer and the employee.
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Innovation remains in the spotlight as businesses prepare for the future of work. How will new ideas and new tools meet emerging expectations of workers?
In this Workforce News Minute, Roberto Masiero, Senior Vice President of ADP Innovation Labs, talks about how data-driven tech will make work more personal in 2023.
For more insights, subscribe to the tech blog and receive monthly newsletters from us.
Data’s Power to Inform Decisions in Business and Work
When faced with decisions to make — no matter the topic or implication — it’s human nature to seek data. We all want information to help us make the right choice, to prove our assumptions, to validate the courses of action we’re about to take. In business, data is driving important decisions in marketing, operations, logistics and other essential business functions. We’ve seen that the insights drawn from data can provide a reliable path to better outcomes.
But data about people has perhaps never been valued like it is today. People data is propelling better assessments about the workforce and the global economy. From hiring to compensation to promotion and everything in between, each data point reveals a truth that can help business leaders and human capital management (HCM) professionals make better choices when it comes to their workforce. Collectively, such data-driven decisioning can unlock the doors to a more diverse, equitable and inclusive world of work.
How Data Can Inform People Decisions
With the technological tools we have today, we can mine and use real-time data to track important HR metrics, but more importantly, we can proactively help solve HR issues like turnover and retention. Through aggregated and anonymized real-time data, we can start to see trends emerge and even predict the likelihood. Data detailing how long people stay at a job, how much they earn and how often they get promoted can help businesses get a clearer picture of where they stand against the backdrop of the global economy. For example, analyzing their people data enabled one company to discover the reasons for involuntary turnover in their organization. Using these insights, they changed processes, procedures, and policies, which resulted in a 20% reduction in turnover.
Benchmarking data – knowing what other businesses in your industry or geography are paying – can also mean the difference between attracting talent to your organization or losing them to a competitor. Today’s labor marketplace has more jobs than candidates and is in constant flux. Companies need to know how they compare to others on compensation, benefits, and other key employment factors. In this environment, having up-to-date HR intelligence is crucial.
Data as a Flashlight
There’s no question that having access to this level of detail in your people data can help make your organization more competitive in the talent marketplace. But perhaps more importantly, this transparency into your people analytics can help you identify gaps in representation and equity and take meaningful steps to close them. There’s a need in society to continue to push forward with creating an inclusive environment for everybody, and the first way to advance that goal is by measuring progress. If you can’t measure progress, then you can’t adequately assess whether you’re making improvements to people’s situations.
Examining a critical DEI challenge, let’s consider pay equity. At the end of the day, there’s nothing more important than making sure that people are paid correctly and fairly for their contributions. In the past, it’s been difficult to accurately assess differences in compensation. We’ve known for some time about gender pay inequities but they’re often too high-level for companies to tangibly action against. The resulting discussions around the root of the issue and how to fix it also become too high-level in response. This doesn’t help leaders and HR professionals who want to reduce pay inequity in their organizations. By analyzing internal HR data and then comparing it to benchmarks across industry, demographic, geography, function and job titles, companies can now pinpoint where their organization is missing the mark.
One misconception is that hiring people at a better rate of pay will help close the gap. If you bring people in, you’re not actually creating upward mobility inside of the organization. By examining compensation across a wide range of job titles and companies and evaluating what it really means for somebody to move up, organizations can better understand where they might need to adjust course.
Pay transparency is another important and often forgotten element to closing pay gaps. Data can empower and giving employees more information about the pay of their colleagues and for similar roles in their industries can help workers across underrepresented groups gain negotiating leverage.
Data can help organizations resolve these inequities proactively, resulting in higher employee retention and better talent acquisition. Data helps you see around corners and acts as a flashlight into dark places on your path forward. We can use data to identify when people aren’t paid to the level that they should be paid. We can create tools to plan and budget to adjust for those pay gaps. Ultimately, the goal is to turn real-time data into actionable insights and workplace solutions that help businesses and people thrive. By February 2022, 75% of clients using the solution have shown improvement in pay equity, making a $1.1B impact on communities in the US.
Driving Change through Data
It’s important for organizations to reflect on what’s visible within their people analytics, looking for the context and connections that create uneven effects. When patterns emerge, examine what happened earlier to understand potential causes and tailor proposed solutions. When it comes to creating a better, more equitable world of work, focus on removing barriers to progress and building programs and policies into your workplace culture that allow your employees to show up as their best selves. By using data to channel your efforts, you can effect meaningful change and become part of the benchmark that challenges others to follow suit.
How Technology Is Evolving to Bridge the Gaps of the Dynamic Shifts in the Talent Landscape
JOBS & UNEMPLOYMENT
Bridging the Talent Gap With Data-Driven Technology
CONTRIBUTOR
ADP
PUBLISHED
OCT 20, 2022 1:53PM EDT
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By Don Weinstein, Corporate Vice President of Global Product and Technology at ADP
With their priorities shifted by the pandemic, today’s workforce wants more from their employers, including greater flexibility, better work-life integration and a heightened focus on diversity, equity and inclusion – and they are willing to make a change to get what they want. We’ve seen more workers re-evaluating their place of employment, with seven in 10 workers saying they’ve considered a career move in the past year. Despite anecdotes to the contrary, we remain in a tight labor market, and the best way to get in front of the ongoing hiring challenge is to start by holding onto your experienced workers. By leveraging new data-driven technologies to create engaging work environments, today’s business leaders can confidently bridge the talent gap and create a more engaged workforce.
In this age of the employee, it is critical HR leaders continually assess their employment brand to find ways to improve the worker experience. Is your workplace environment truly inclusive? Are you giving employees challenging work that leverages their strengths? Are you taking care of their health and welfare needs? Leaders need to ask themselves these questions, while deploying data-driven HR technologies that can help identify the right solutions. For example, personalized worker surveys can help employers better understand their workplace culture and predict potential retention challenges. Another important tool is skills mapping, which breaks down jobs into a set of inter-related skills, enabling employers to mine internal applicants for potential fits as well as career development opportunities. The same technology can also assist your external recruiting function, by broadening potential talent pools to look at all relevant candidates, including those from non-traditional backgrounds.
The evolution of HR tech accelerated when our ways of working were upended a couple years ago. But these changes have kept the industry dynamic and ignited new innovations. As we look to the future, we see a lot of promise in these areas of HR tech:
AI and machine learning for sourcing talent in hard-to-fill jobs: Algorithms are being deployed to find novel talent pools to source candidates through skills matching and retargeting. These algorithms also play a bigger role in upskilling tomorrow’s workforce, providing insights on skills-based learning and career pathing that can help guide and advance employees’ careers.
Technology-driven advancements for building more diverse and inclusive workforces: Skills matching can help uncover capable candidates from non-traditional backgrounds. Sentiment analysis can be used to assess employee perceptions on the overall level of inclusiveness in the workplace. And machine learning can help identify and correct workplace equity gaps.
Of course, these approaches will be effective only if companies remain agile during times of change. Leaders need to ensure that the right systems are in place to optimize their teams’ ability to deliver good work and to adapt as the environment shifts. Essentially, businesses need technology designed for how work gets done, so they can more easily adjust at the pace of change.
You can hear more about these emerging HR technology trends, what’s to come and how to stay agile in my Nasdaq TradeTalks interview below:
Tech & Innovation Blog
Humanization and Digital Disruption Trends in the Workplace with Don Weinstein
Senior Leaders, Future of Work, What We Do
A podcast episode for those interested in the importance of data, humanization, and digital disruption trends in the workplace.
Humanization and Digital Disruption Trends in the Workplace with Don Weinstein
Don Weinstein, Corporate Vice President of Global Product & Technology, spoke on Now of Work, a weekly podcast hosted by Jason Averbook and Jess Von Bank.
The episode is excellent for anyone interested in the importance of data, humanization, and digital disruption trends in the workplace.
“We hire data journalists who took all the pay equity data that were hard to unpack and put them in infographic style,” Don said. “We didn’t advertise; instead, we stepped back and watched what happened. We had over 1,000 clients discover it.”
Imagine seeing two employees with the same job, skills, and experiences but different pay. Don’s team found more than 75% of the clients, meaning over 1,000 organizations, acted, and made pay adjustments for over 210,000 individuals.
The power of data collection and engaging apps are changing the workplace across generations. “We’d like to do our part and give back to the community,” Don said.
When it comes to conversations on current challenges, Don shared with hosts Jason and Jess his insights on hybrid work. The key elements to consider include getting the taxes and pay right when employees work in different cities and states.
On top of hiring remote workers, Don emphasized the importance of onboarding and engagement.
“We’ve been studying engagement for over 20 years,” Don said. “Last year was the first we’ve seen the honeymoon effect, meaning employees tend to have the highest engagements during their first-year arrival at the company, went away.”
As ADP continues to hire globally, Don encouraged the teams to be focused. The responsibilities include training managers, engaging, and providing for hybrid workers.
Listen here for more insights on designing and leveraging technology to enhance the HR function!
Podcast: Using Data to Advance Diversity
Podcast: Using Data to Advance Diversity
Transcript
Mark:
Welcome to PeopleTech, the podcast of the HCM Technology Report. I’m Mark Feffer.
My guest today is Bob Lockett, chief diversity and talent officer at ADP. He’s responsible for the company’s diversity and talent strategy and oversees performance management, leadership development, engagement and culture, among other things.
We’re going to talk a lot about data and its relationship with DEI, from helping determine where a company’s at, to initiating new programs. That’s on this edition of PeopleTech. Bob, welcome. It’s great to meet you.
How does one attack the task of leading on diversity for a company the size of ADP?
Bob:
Well, Mark, the first thing I’ll tell you, it’s a very challenging task, because you have so many different constituents and everybody wants their own piece of the pie. What about us? What about us? What about us?
As you can imagine, DEI is a very emotional topic, for that reason. So, the approach that I’ve taken, that we’ve taken at ADP, is really tied to doing a couple of things.
Number one is using the scientific method. You know that thing, Mark, that we learned about back in middle school, that many of us did those experiments?
You would say, develop your hypothesis. Then from the hypothesis, you allow data to prove or disprove your beliefs. And then once you do that, then you really define the problem.
After you define that problem, then start to put plans in place to achieve the outcomes. You tweak as you go, as needed, based on feedback.
So what we’ve done is taking that exact approach and say, let’s take the emotion out of it as best we can. Let’s focus on the data. Let the data be our guiding light, to help us understand where we need to focus and what we need to do.
Now, this doesn’t just apply from a US standpoint. Think about it. This is a global opportunity that we’ve embarked upon. The way I view it is, there are needs everywhere, for people to feel like they are seen, valued and heard for all that they are.
So, not only do we think about diversity… You can measure diversity very easily. You can look at demographic data. How many of these do you have? How many of those do you have?
You can measure equity by looking at pay, but the key is also to measure inclusion. So, we take this holistic approach, all data driven.
The inclusion piece is all sentiment driven, but it’s really leveraging the scientific method and leveraging data, to help tell our story.
Mark:
Can you expand a bit on how data is used in DEI work? I mean, you mentioned that this is a pretty emotional subject. It always strikes me as interesting when you apply data to an emotional subject. How do they work together? So can you talk about that?
Bob:
Sure. I could tell you the stories of how we landed where we are, with some of our things.
The first thing that we did as an organization, when I took over the role, I wanted to understand how we looked, because I have a vision that our associate population in our company is reflective of the communities in which we operate and the clients that we serve. That’s very specific and very clear.
How do you test that, your hypothesis about that? How do you make it a realistic vision?
We looked at about three or four different datasets. One dataset was a census data. And as you know, the census data doesn’t mean that everybody’s working.
So, we looked at the census data and we say, “What’s the representation for African Americans, Hispanics, Asians, white women, everybody in our organization?” Let’s lay that out to understand it.
Then we looked at the Bureau of Labor statistics data. Of the people in the workforce, let’s take a look at how that compares and then let’s compare that against our information.
So, we compared it against our information, I’m talking specifically in the US and said, “Huh? Where do we have gaps?”
My hypothesis was that we didn’t look like the communities in America, but the reality of it was, we did. So, I was really impressed. I was like, wow, this is great news.
But as you look at the data, we also found that when you look up in the organization, you don’t have parity in representation for two populations in particular, which were African Americans and Hispanics.
We said, they represent 15% of the overall workforce in the US, for Hispanics. Let’s say it was 11% for African Americans.
Well, we noticed a gap in our company of about four percentage points each way, for African Americans and Hispanics.
We said, well, we should close that gap, because as you come to an organization, you also want to be able to see if there are opportunities for you to advance.
If you don’t see anyone that looks like you, in management level positions, then you start to wonder if you have a real future there. So, that was our quest.
This is how we use data to really understand and tell our story and to put plans in place to do it.
Now, notice the nuance here. Because again, if you go back to my original hypothesis, that we didn’t look like that, we did, but then we pivoted very quickly, because the data told us a different story. We said, that’s where we’re going to focus our efforts.
Now, some people use, Mark, data to try and boil the ocean. You can’t do everything. You can’t be all things to all people. That is a recipe for failure, particularly in DEI.
So, that’s why we have a very narrow focused approach. We have multiple initiatives that we work on, but suffice it to say, that was our main effort, for us to be able to say, we’re moving the needle when it comes to leadership representation in our company.
Mark:
Now, do you think your company is an outlier in that, or do you think that more corporations are starting to get on board with the idea of using data in this regard?
Bob:
Yeah. I think it’s a mixed bag, Mark, is probably the best way to describe it. Most organizations will take a look at their data. They’ll focus on where they think their opportunities are.
But it depends on where they are in their journey, their DEI journey, which I always talk about, that not everybody’s at the same place.
For us, I believe we’re an outlier. We’re an outlier because if you think about DEI, it’s one of our values. The things that really resonate in our organization, is that each person counts. In order for each person counts, by default, you have to have a DEI strategy.
Some organizations don’t put as much interest or effort into it, so there at varying stages.
It became a great corporate buzzword two years ago. Prior to that, many organizations weren’t making headway, with respect to that. So, my belief is, we’re certainly an outlier with our use of data.
Of course, Mark, that is our middle name. So, we use data to make sure that we can tell our story, to solve the problem, to understand all of those things. We’re all about measuring success. How do you measure the effectiveness of what you’re doing?
Having said that, I think we’re a bit of an outlier. I think there are other organizations that are doing great things, but I think there are some that are not doing anything because they don’t know where to start.
If that’s the challenge for them, then a great place to start is, understand your data at least. Then, think about where you want to have an impact.
Mark:
Can you think of any particularly surprising things that you’ve learned from data?
Bob:
I can give you a couple of examples of things that I think we’ve learned. Number one is that it’s never enough. Here’s what I mean. We had to put plans in place to do this.
I’ll just give you this example, Mark. We launched our talent task force. It was a specific focus on the African American and Hispanics/Latino community.
Well, as soon as we put that out, the first question that came was, hey, what about the Asian community? I said, “Huh? I’ve got a story for you. Asians represent 5% of our population, but yet they represent 8% of leadership.” So, there’s no problem there.
Then the next call came from the LGBTQ+ community. I said, “Huh? Tell me what the data says.”
The reason we couldn’t make a decision and put a plan in place to improve representation for that community, is because we didn’t have any data. So, that’s one of the things that will surprise you about that.
And when you don’t have enough of it, everyone wants to do these things, which is back to my point about, people get involved in this. They want to represent their constituents.
But at the same time, without the data, you can’t get involved and create corporate programs to improve something.
The second piece still ties to self-ID. If you take this to a global scale, so typically in numerous countries, they don’t collect the same data that we do in the US. They don’t collect it because their philosophies are different. It could vary, country to country.
However, there’s renewed emphasis on understanding your workforce and being inclusive. So, just imagine, you’re a multinational corporation and you don’t understand the dynamics that exist in operating in Tunisia or the dynamics that exist in operating in France or Italy and who the underrepresented groups are. So, we’re trying to capture new data.
That’s one of the surprising things, is that we’re beginning a journey globally, to do a self-ID approach.
It’s not just us, by the way. There are multiple companies now showing renewed interest in this, to say, how do we understand our workforce? How do we become more inclusive, so we can appeal to the needs of various communities where we operate?
Mark:
Are you satisfied with the kind of data that’s available to you today? What could be better?
Bob:
Yeah. I’m in a unique position, Mark. I tell people this all the time. At ADP, because we’re a data company… again, it’s in our middle name, I have the unique opportunity that we have our own department that does all of the analytics, pulls the data, does the comparative analysis, the sensitivity analysis to whatever we want to do.
Now, for companies that don’t have that, we do have a diversity dashboard, that gives them insights into their own information, that they may not have thought about before.
They may not have the luxury of having a large DEI department, like we do. They may not have the luxury of having the analytic capability, but we can provide them with some insights about how their organization looks, what their leadership makeup is. Oh, by the way, with pay equity too, we can take a look at that data as well.
So I think I’m in an enviable position. I’ve got all the data that I need. The key for me, is staying focused and executing, to ensure that we make a difference with our DEI efforts.
Mark:
What are your overall goals for your DEI efforts? I mean, what kind of changes are you hoping to enable or enact? What has to happen for you to be able to get there?
Bob:
Yeah, it’s a great question, Mark. I’ll go back to my vision. The vision that, we want our associate population to be reflective of the communities in which we operate and the clients that we serve.
That is the most important thing, because I believe that the efforts that we take to do that, will have a great cyclical impact on the environment.
Here’s what I mean. I’m not in the DEI business because I’m a social justice warrior. I’m in the DEI business because I believe that there are economic opportunities in a capitalistic society, that we can get everyone to participate in and grow the pie. I firmly believe that.
In many cases, it starts with employment. So, what do we do as part of our DEI, some of the work that we’re doing? Well, we want to hire in those various communities.
We have outreach efforts to every community, to make sure that we’re attracting the best and the brightest for our organization.
Then of course, once you get there, you have to walk the talk. So, culture is really important, Mark, in this space, to ensure that if you said you’re going to do it, then you have to do it.
My saying is, don’t talk about it. You have to be about it. So, if you’re about what you said you are, by bringing everybody together and giving everybody an opportunity, so they can be their true authentic selves, then that makes a tremendous difference.
So, that’s the talent piece of it. Getting them in, giving them the opportunities to grow and develop, and then seeing them get promoted and being able to contribute.
Now, I also talk about DEI from a business practice standpoint. Oftentimes in the past, organizations that I’ve worked for, DEI was all about some of the HR practices, which I just talked about briefly. It was all about talent practices,
But I also incorporate business practices. Business practices are really about, well, how do we tap into the ecosystem of businesses and communities?
Oftentimes, you have underserved communities, that don’t have the same opportunities to understand things.
Give you an example. We have a company that we partner with. What the founder shared with us, was the fact that for many minority-owned businesses, they only have one way to finance their business. That’s through loans from family members or debt.
So, they don’t get the full spectrum of how to do revenue-based financing for their business, or how to think about the debt market very differently, that others have had exposure and access to.
So, giving them exposure and access to the full gamut is really important, but that also requires some education. So, we partner with organizations, to do that, just so businesses can finance it.
Now, selfishly, because I am a capitalist, I believe that we should be able to capture some of that market.
We should be able to say, we’ll help them. There’s no guarantee that they’re going to come back and nor is there an expectation, but just imagine if we’re the ones that help them understand how to run payroll.
I said, “We want you to focus on your business. If you make pizzas or if you have a restaurant, we want you to focus on what you do best. Let us do what we do best, which is run payroll, help you do time and attendance and help you with all of those other things. That’s what we do”
So, I think it’s important for us to extend our reach into the underserved communities, such that we can help raise the tide for all boats. That’s really the impetus here.
Say, if we do this the right way, DEI becomes much more holistic, so it’s focused on the economic empowerment.
If you do that by getting people great jobs, what do they do? Well, they go spend money in their communities. If they spend money in their communities, businesses grow. And if businesses grow, for us it’s a great thing, because that means you have more people to pay from your payroll systems and the like.
So, this ecosystem approach that I think is really critical and important, when we think about DEI.
Now, the other piece, Mark, that I’ll share with you about DEI is, I’ll share two other avenues of this.
One is the environment. Our environmental practices now, have become relevant in the DEI equation.
Let me back up and give you the broader view. Most companies talk about ESG, environmental, social and governance. The environmental piece is really critical. That’s where you have, what are you going to do for greenhouse gas emission reduction?
This S is all DEI. The G is board governance or governance of whatever programs that you take a look at. So, that’s something else you have to consider as you think about DEI.
We have practices to reduce greenhouse gas emissions. The good news for us is that, we don’t manufacture anything. Probably, our facilities and employees driving to work are our largest contributors to this. But what we also focus on is, what can we do to meet target? We put together plans to do that.
The last thing I’ll mention is what we’re doing as an organization, to make a difference, as we think about DEI and the like.
We have the ADP Foundation. We make contributions to a variety of 501(c)(3)’s nonprofits, to help support them in the communities in which they operate. So, there’s this holistic view that we have about, we can do well and do good at the same time.
Mark:
Bob, thanks very much. We appreciate your time today.
Bob:
Thank you.
Mark:
My guest today has been Bob Lockett, chief diversity and talent officer at ADP. This has been PeopleTech, the podcast of the HCM Technology Report.
We’re a publication recruiting daily. We’re also a part of the Evergreen Podcasts. To see all of their programs, visit www.EvergreenPodcasts.com.
To keep up with HR technology, visit the HCM Technology Report every day. We’re the most trusted source of news in the HR tech industry. Find us at www.HCMTechnologyReport.com. I’m Mark Feffer.
Image: iStock
Tech & Innovation Blog
Life @ ADP S2EP4: Let’s Talk #ADPTech
Life @ ADP, Voice of Our People, What We Do
A podcast episode for applicants interested in the scale ADP operates at, including the leadership teams’ strategies and their focus on data security.
Life @ ADP S2EP4: Let’s Talk #ADPTech
Our hosts, Ingrid and Kate, invited Lohit Sarma, a Senior Vice President of Product Development, to the show to chat about what’s happening in #ADPTech.
Lohit’s ADP journey began in 2014 when he helped build our Next Gen team, Lifion, in New York City and scaled up the organization to about 700 associates.
“I can’t believe it’s been eight and a half years,” Lohit said. “It’s been an incredibly humbling learning experience, and I’m super excited for what’s ahead.”
Lohit Sarma
The episode is great for associates and applicants interested in the scale ADP operates at, including the leadership teams’ strategies and their focus on data security. Lohit spoke about various areas in #ADPTech, from User Experience (UX), Security Engineering, to Site Reliability Engineering.
“Our clients trust us with some of the most sensitive information in the world,” Lohit said. “Security engineering is a huge focus for our products. Reliability DevOps is just across the board.”
You wouldn’t want to miss out on the episode, especially if you are interested in learning more about ADP’s Next Gen products and ADP’s role in the US financial system. From launching the iHCM, a cloud-based platform that simplifies Payroll and HR management in one scalable, compliant solution, to our next-generation time and payroll products, ADP has transformed into a technology company.
“We attract talents based on our adaptation of modern software engineering, product management, and UX practices,” Lohit said. “We’re able to not only hire but also retain and contribute back to the industry.”
From sponsoring the Grace Hopper Celebration to hiring female engineers and managers, ADP’s leadership team is building a culture that welcomes and nurtures tech talent. Further reading: Seramount Names ADP One of the Best Companies for Multicultural Women.
In addition, ADP is continually enhancing and evolving the way we do things. “We’ve been heavily investing across the board in pure engineering and management practices,” Lohit said. “That’s reflecting the quality of our products.”
Life @ ADP is available on iTunes, Spotify, Google, iHeartRadio, and Amazon Music. Listen to the full episode here or on your preferred podcast player!
Learn more about what it’s like working for ADP here and our current openings.
HCM Technologies, Women in STEM, User Experience, Product Management, DataCloud
Tech & Innovation Blog
AWS re:Invent 2021 – ADP Uses AWS to Enable Workforce Insights
Video, Leadership, What We Do
Accessible Video Controls
Video: AWS
[JACK] Having spent more than 30 years in the tech industry working on analytics in the cloud,
[JACK] I was drawn to ADP because of its mission.
[JACK] It’s a mission that’s aligned to my core values.
[JACK] Those values about helping people improve their lives by unlocking the power of data.
[JACK] But before I tell you how we do that, we need to start at the beginning.
[JACK] ADP started in 1949 in New Jersey, helping businesses pay their employees.
[JACK] From its early days, the company has always been focused on invention and innovation.
[JACK] We’ve had a proud history of a lot of great products and great firsts, fast forward to today, we’re the largest provider of human resource software and services.
[JACK] So, what does that mean in terms of the size and scale of our business?
[JACK] Well, those numbers are pretty impressive. We have over 920,000 clients doing business in over 140 countries.
[JACK] Our technology powers, payroll processing, tax payments, job applications, timesheets.
[JACK] That means a lot of data, and a lot of money is moving through our systems on a daily basis.
[JACK] In fact, we move over $2.3 trillion a year.
[JACK] This is the money that’s used to pay you, pay me, and to submit our taxes, and to put money into our retirement funds.
[JACK] Now, the issue with $2.3 trillion is a massive number.
[JACK] And for me, it’s a hard number to understand.
[JACK] So, I thought about it a little bit, and I said, how can I conceive of that?
[JACK] Well, what if it was GDP?
[JACK] It’s not GDP. But if it was GDP, how big would that number be?
[JACK] So, we kind of took a look at it.
[GRAPH] Comparison charts of GDPs in other countries.
[JACK] Here’s the top ten GDPs.
And if that $2.3 trillion was a GDP, ADP would land somewhere between France and Italy.
[JACK] So, all of that data, all of this information gives us a unique perspective on the world of work.
[JACK] In fact, every month we issue a report in the public interest called The National Employment Report, came out just this morning.
[JACK] And so, as you can see, we deal with all this data,
[JACK] It takes a special ability for us to be able to scale and manage it.
[JACK] We started our journey to the AWS cloud for this data in mid 2019, and we did it for three important reasons.
[JACK] One, so that we could tap the new capabilities.
[JACK] Second, so that we could get elasticity in the cloud.
[JACK] And third, it really has helped us create a data driven culture, so that we are more reactive, more understanding about what’s going on in the world.
[JACK] Today, we’re processing over two and a half petabytes of data with over 25 billion individual data points represented, and that’s boiling down to 312 trillion decisions a month being taken by our analytics and machine learning processes.
[JACK] Our team is at the very heart of that treasure trove of data.
[JACK] We build data analytics products, including the ADP DataCloud, which provides people analytics and HR benchmarking to help companies measure, compare, predict, and understand their workforce and support them.
[JACK] This allows them to see trends, allows them to see if the programs and policies that they’ve put in place are effective.
[JACK] Everything you’re seeing here is calculated on AWS using a full range of data analytics and machine learning capabilities.
[JACK] We use Amazon Sage Maker for our machine learning, Amazon EMR, Amazon DynamoDB, Amazon Redshift, and Amazon Neptune to perform aspects of our overall data processing.
[JACK] These capabilities have enabled us to keep innovating on behalf of our clients, and one way we’re doing this is to help them with some pressing needs in terms of diversity, equity and inclusion across their workforce.
[JACK] That’s why my team developed the new Diversity Equity Inclusion dashboards that we launched earlier this year.
[JACK] It helps a company baseline and understand their diversity program and not only internally, but for the first time in the industry, to be able to compare themselves to other companies, not just other companies in their location, but also other companies in their industry, and by company size.
[JACK] And this baseline information allows them to see whether or not their programs are having a positive and beneficial impact on the diversity programs that they’ve put in place.
[JACK] We still have issues, though, to address in terms of pay equity, but before we get into that, let’s step back and take a look at what’s happened in the US employment market over the past 20 months.
[JACK] What I’m showing you here is data from ADP that shows you what happened in the total US employment over those past 20 months.
[JACK] You can see when the COVID crisis began.
[GRAPH] Total US Employment Rate Change
[JACK] Unfortunately, there were differences in terms of the types and genders of people losing work.
[JACK] In fact, what you can see is, yes, a lot of people lost their jobs. Those jobs are coming back, but men actually fared a lot better than women during the pandemic.
[JACK] Certain industries were affected a lot more as well, hospitality, manufacturing, retail; areas that have not yet made full recoveries.
[JACK] If we look at pay, you can see, though, that the gap between men’s pay and women’s pay is not where we all want it to be, but it seems to be level over time.
[JACK] However, these numbers are a little bit misleading, because if we add back in those jobs that women lost at a larger extent in those industries from hospitality, transportation, the pay gap is actually getting worse.
[JACK] In fact, my associates at the ADP Research Institute tell me that 20 years of progress for women have been lost in terms of pay equity gaps over the pandemic.
[JACK] But collectively, we have an opportunity to improve that.
[JACK] So how do we do that?
[JACK] Well, our team has also recently built and launched a new capability called The Pay Equity Storyboard.
[TEXT] Pay Equity Storyboard
[JACK] It’s a set of insights and tools and explanations and visualizations that allow companies to understand the pay equity issues that they have and to do plans and to make changes proactively, taking insights straight to action to correct pay gaps.
[JACK] Now we released this just a few months ago at the beginning of the summer.
[JACK] So, on just a few months of data, we’re starting to see some pretty incredible reactions.
[JACK] About 1000 clients have started to use the pay equity storyboard, 65% of them showing pay equity improvement.
[TEXT] Improving Pay Equity
1,000+ clients using the storyboard
65% showing improvements in pay equity
$1.1 M average impact
$728 M returned to communities
[JACK] On average, per client, they’ve made a $1.1 million impact, that’s over $720,000,000 returned to communities.
[JACK] This is about people, individual people, and for an individual person that’s equated to about three $500 for 210,000 people and for workers whose industries are hit hardest by the pandemic.
[JACK] This is meaningful money.
[JACK] This could mean making a need of car repair. It could mean enabling children to participate in extracurricular activities, or simply saving money for a rainy day.
[JACK] At ADP, we’re always designing for people and data informs how we do that.
[JACK] At the end of the day, all of our data and everything we do starts with them and you and I, and tens and hundreds and thousands of people.
[JACK] Now is the time to use data to help people, to understand what actions we can take, to create a more diverse, more equitable and a more inclusive work environment and to build the future we all want to create.
[LOGO] ADP, Always Designing for People.
[JACK] Thank you.
ADP helps more than 900,000 businesses manage their people and processes payroll for nearly 70 million workers, generating a massive amount of data in the process. Jack Berkowitz, Chief Data Officer, presents how ADP uses AWS to enable workforce insights and raises awareness of payroll equity by using data measurement, analytics, and machine learning capabilities.
“Now is the time to use data to help people,” Jack said. “Together, we create a more diverse, equitable, and inclusive work environment.” ADP continues to help companies measure, compare, predict, and apply futuristic knowledge to their workspace. Watch the full presentation now.
More from our tech blog:
Great Stories: From LEGO® Bricks to Data By Jack Berkowitz, Chief Data Officer.
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Tech & Innovation Blog
Great Stories: From LEGO® Bricks to Data
Senior Leaders, Innovation, How We Work
ADP is in the enviable position to use our data to continue to make impactful and meaningful changes across organizations.
Great Stories: From LEGO® Bricks to Data
By Jack Berkowitz, Chief Data Officer, ADP
My kids loved LEGO® bricks when they were growing up. They’d play for hours separating the pieces to get the right sizes, analyzing what they had, and then putting them together to build massive cities. I’d watch as they’d use the structures to create stories about different places and events that would happen in the cities they built. It was exciting to see. They knew that individually, each LEGO® was important. They weren’t interesting when looked at as individual pieces. It wasn’t until the pieces were all together that they shined and were able to work together to tell a great story.
As ADP’s Chief Data Officer, I lead data and analytics management in partnership with service, product, and sales operations leaders. In my role, I have a unique lens into how we manage data across our products. ADP has the most comprehensive workforce data anywhere, and we’re able to take that data and help our clients create the stories they need to make real-time and long-term decisions.
Individually, like a single LEGO® piece, each element of data by itself means almost nothing. However, when it’s constructed together, we’re able to build stories, gain insights, take action and make informed decisions. With the right data, insights, and vision, we’re accelerating the use of data as an asset to help our clients.
When we look at our data strategy, we can break it down into four areas for our clients:
- Protect My Data: With a focus on data security and governance, we think like owners and can applaud how we protect our clients’ data. Our clients respect our processes and trust us to keep their sensitive information private. With a culture rooted in integrity, we are all privacy and data evangelists.
- Answer My Questions: ADP’s unmatched data platforms and analytics help clients make better decisions about their people. The amount of data across ADP’s platforms is astronomical. We serve data in meaningful ways for immediate evaluation, understanding, and action. For clients using ADP Human Capital Management (HCM) platforms with capabilities through ADP DataCloud, analytics help our clients explore data, get insights and benchmarks against which to compare themselves in a truly differentiated way. Without insights, it’s just raw data. ADP is committed to helping businesses take reliable insights from the right workforce data in a way they can understand and take action.
- Improve My Experience: Through our data transformation and initiatives, we are paving the way our data is used to proactively respond to client needs, solve problems that keep them up at night and help our clients make real-time decisions. We’re working on developing innovative products that use our workforce data to help organizations gain reliable insights to invoke action and achieve results. However, it’s beyond products. We continue to innovate and strategically centralize client data from their first through current interaction into one system, resulting in a better client experience.
- Guide My Future: We will expand our solutions to help shape business decisions and investments. We can identify new ways for businesses to tap into the massive ADP data set, including new use cases and user personas. For example, geographic income data may provide insights to help companies figure out where to build their next location, or this data could enrich valuation models for the investment community. The potential is endless, especially built with our commitment to data privacy at the foundation.
We’re continuously proving ADP is the undisputed leader in data. With solutions such as our award-winning ADP DataCloud, we can take our information and offer clients something no one else can. Recently, our ADP DataCloud Diversity, Equity and Inclusion dashboards won the Top HR Product from Human Resource Executive, marking the seventh consecutive year ADP earned this award. ADP DataCloud was additionally a recipient of the AI Breakthrough Awards, Data Breakthrough Awards, and Stratus Awards for Cloud Computing, owing to its powerful capabilities and latest enhancements.
The past 20 months have changed the world of work, and people’s data has never been as important as it is now. Businesses of all sizes across every industry are using (and asking for) people data at rates we’ve never seen before. There’s a massive global shift in hiring needs, patterns, and retention. Businesses need information about industry trends and their ability to match or exceed where the global workforce is shifting. Real-time people data is what drives clients’ decisions, product innovation, and the global economy. ADP is in the enviable position to use our data to continue to make impactful and meaningful changes across organizations.
I’ve never been more excited to work in this space than I am at this moment. I’m enthusiastic and focused on where we’re headed. It’s about taking data to tell a story, and it’s exciting. It’s not unlike the excitement my kids experienced when I brought them years ago to LEGOLAND® (both in California and the U.K.), where creations they made in their imaginations came to life in real-time.
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Tech & Innovation Blog
How ADP is Using Data to Make Our Clients—And Ourselves—More Diverse, Equitable, and Inclusive
Senior Leaders, Innovation, Future of Work
ADP has a culture where you can raise your hand and suggest something new no matter your role or background.
How ADP is Using Data to Make Our Clients—And Ourselves—More Diverse, Equitable, and Inclusive
By Giselle Mota, Principal, Future of Work
With more than 900,000 clients around the globe, we at ADP often notice shifts in the working world relatively early on—and that was certainly the case with the increase in corporate attention toward diversity, equity, and inclusion. To help our clients and internal teams track DEI, we launched the DEI Dashboard in December 2020, which offers insights and actionable recommendations to form more substantial teams.
Giselle speaking on TED Talk.
Getting Started: Data-driven insights
The ADP team tackles the DEI with a natural approach from a metrics point of view; we have always been a data-driven organization. By gathering time and attendance information, we can give clients helpful insights into things like managing overtime costs so they can make operational decisions. Our human resources platforms contain a wealth of demographics, including team members’ races, ethnicities, genders, ages, and disability statuses. What’s more is we help our clients understand the employee experience throughout their entire lifecycle, from interviewing, onboarding, leadership development to compensation and retirement.
Going Deeper: A push for accountability
Our team added filtering options that allow clients to get more granular with their newfound insights. One such resource is our new Candidate Relevancy app, which uses Artificial Intelligence (AI) and Machine Learning (ML) to help recruiters organize the thousands of résumés they receive. This tool has become critical for helping mitigate unconscious biases. We train the model to eliminate discrimination by focusing only on the skills and competencies needed for the roles. At the same time, we’ve made sure all hiring managers have access to make human decisions on pursuing candidates. The same is true with our AI-driven Chatbots that provide pre-screening functions for recruiters.
Giselle M.
Looking Inward: ADP’s journey
Our team recognized the DEI Dashboard project as transformative for both our clients and for ourselves. Like many organizations, we have long championed diversity, equity, and inclusion. But we knew there was room for a renewed and enhanced approach—and it had to begin with the people creating the DEI Dashboard.
While our Data Science team took the lead on the initial build of the platform, we brought in experts from each of our products to help us understand how we could reimagine through a DEI lens. Our goal was to expand on EEOC requirements and consider anything relevant to our clients and their employees, creating more equity across the recruiting space.
With our goals in mind, the insights we gathered from the DEI Dashboard on ADP have led to several new initiatives and processes, including surveys, mentorship, leadership development programs for underrepresented groups, and the job auditing process for discriminatory languages. Not only did we hire recruiters who specialize in finding diverse talents, but we also focused on disability inclusion, from raising standards for vendor products to rebuilding product features. ADP is committed to achieving a fully accessible user experience across our products.
What’s Next: The inclusive future of work
Giselle M.
We have continued to evolve the DEI Dashboard since it launched, and a long roadmap still lies ahead. One upcoming project is benchmarking—leveraging the unparalleled scale of ADP’s data and insights to help our clients understand how they stack up against other companies in their demographics.
My colleagues and I continue to ask questions, regularly creating new projects for ourselves. For example: Should remote and hybrid workers be paid differently apart from their in-office counterparts? How can we move beyond pay equity to true financial inclusion by giving employees the guidance they need to build wealth? We should have a lot to keep us busy!
With global and social changes happening during the last year and a half, I have seen our team move quickly and respond with solutions. ADP has a culture where you can raise your hand and suggest something new no matter your role or background. My Future of Work teammates and I are living proofs. With this mindset and institutional support in place, I believe we lead the way to a more inclusive future of work.
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Tech & Innovation Blog
Roll Forward: How breakthrough products are redefining ADP as a tech innovator
Senior Leaders, Innovation, Future of Work
For ADP as a tech innovator, this is just the beginning of the journey.
Roll Forward: How breakthrough products are redefining ADP as a tech innovator
Roberto Masiero, SVP Innovation Labs
From my long tenure at ADP, I’ve learned that when a company gives you the latitude to move around—either within the technology space or from technology to business or sales—you get plenty of chances to reinvent yourself. And reinvention on the individual level influences the reinvention of the company as a whole, which I think we really see now with Roll™.
Roll™ is a mobile chatbot platform that uses AI and natural language processing technologies to anticipate users’ payroll needs intelligently. It’s the first-ever DIY payroll technology, and it’s so intuitive that our clients just download it and go; a lot of them never even talk to a customer service rep. But while we designed Roll™ to seem effortless, it’s the product of years of creative work with a unified team. The idea for Roll™ was to simplify payroll and HR using a novel UX and platform. I run the Innovation Labs at ADP, where we develop new products as quickly as possible. We’re a relatively small team, around 30 people from diverse backgrounds and with no hierarchy, allowing us to pull together tightly as a group. It’s important to me to have a flat organization because the moment you create hierarchies, you create ways to point fingers. In the way we work, everyone shares responsibility.
We came up with the product idea for Roll™ about four years ago when we were finishing up ADP Marketplace and wondering what to do next. At the time, most of our lab projects were satellite projects, adjacent offerings to our existing core services. I thought, “What if we reinvented the core?” We saw an opportunity to improve multiple facets of our payroll platform—the architecture, the design, the user experience. We had a chance to envision a whole new system.
We fixated on this idea of events—that everything done as an action within the system should be recorded as an event. In fact, we initially named the product “E” for “events.” For example, if you hire someone, pay someone, or terminate someone, we record each action as an event. This way, we know who did what, where they did it, what time of day, and from what device. All that information taken together feeds a machine learning engine where the system gets better the more it gets used. Instead of a system with a bunch of menus, forms, and reports, we imagined a vector of events where events cause other events. We basically built the software as a workflow.
But we didn’t stop there. We also wanted to transform the UI into something much simpler and more direct. People tend to design user experiences with a sense of engagement in mind, but that’s not what we needed here. We didn’t want people engaged; we wanted them to get the job done and exit the software. So with Roll™, the user goes straight to chat and tells the system what they need, and the software understands. If it’s to hire someone, change someone’s W-4, change a payroll schedule, the user asks, and the software guides them through the process using conversational UI.
We also built Roll™ to function 100% on mobile. We decided the UX would use a simple chronological timeline, similar to Facebook or Twitter. Clients love having one place to go to see their activity: “Yes, I ran payroll yesterday evening,” or, “Great, that new W-4 went through.” In addition to optimizing for mobile, we also wanted a strong desktop presence. We noticed our desktop users liked to grab info from the system and transfer it to Excel spreadsheets, so we decided to give them an Excel-like UX.
We finished Roll™ in July 2019 and got a pilot client in August. That fall, we presented the software to ADP’s executive leadership team. We got the feedback that we were sitting on something big that works for small to large corporations. But they encouraged us to focus on the smaller markets, those with one to ten employees. So we spent a couple of months designing an additional layer of software to cater to small businesses. In March 2020, we piloted Roll™ with about 50 smaller companies who all liked what we were offering, and then the executive committee told us to put Roll™ on the market and sell it as soon as possible. So we went from pilot program to full rollout in under a year, and today we’re getting dozens of new clients a day signing up for Roll.
A big part of what makes Roll™ stand out is integrating natural language processing with machine learning. We designed Roll™ to understand the mental model of our user’s meaning. We wanted the chatbot AI to talk the way people talk.
We brought in ADP’s business anthropologist, Martha Bird, and copywriters to advocate for the user, helping us to shape the Roll™ voice. We didn’t simply want AI to predict what our clients needed for payroll purposes––though that ability was definitely important. We wanted the voice of Roll™ to demonstrate human understanding. For example, Roll™ learned to respond more positively when addressing a new hire or giving someone a raise in pay, whereas it is more subdued when discussing termination. It’s that empathetic understanding that gives Roll™ an edge in human interaction.
On the backend, we decided that we didn’t want to run servers, or even containers, like Docker or Kubernetes. Instead, we made every event a function. The beauty of functions is that they only exist while that function is running. So our cost of running Roll™ is extremely low. Using cloud services and this idea of functions is another way Roll™ sets itself apart.
Of course, Roll™ didn’t come without its challenges during the development process. Fraud is something we have to consider whenever we engineer or develop a new product. But this is what I love about the Lab: We think of our challenges as opportunities to make our products better. How can we improve? How can we automate? How can we reduce the amount of burden on the system from someone trying to commit fraud? And when we meet a challenge, everyone jumps in to help. We either fail as a team, or we succeed as a team.
I’d say we’re succeeding right now, and the beautiful thing about Roll™ is that it’s always running. We change our models to pick up on new ways clients ask for things, and every new question pulls into Roll’s knowledge and experience. So the more clients we have, the better the software becomes. It’s an unprecedented level of automation.
A program like Roll™ can help further ADP’s digital transformation from merely a payroll company into a competitive tech company. What makes Roll™ exciting is that it almost creates its own category; it’s a technological solution no one else has. We can dominate this market and apply some of the same breakthroughs—machine learning, using functions—with other ADP products. For ADP as a tech innovator, this is just the beginning of the journey.
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