The acquisition of WorkMarket by ADP (NASDAQ: ADP) comes at a time when the way people work, where they work, and who does the work is changing dramatically. This purchase is going to give ADP (Automatic Data Processing) a cloud-based workforce management solution to address the many different types of workers businesses have to deal with.
ADP Acquires WorkMarket
In announcing the acquisition, ADP said it will become the first human capital management provider with tools for managing freelancers. This includes reporting insights from all of the different types of workers a company might hire, from W-2 employees to 1099 contractors.
Many organizations, including small businesses, are now hiring more freelancers. According to a survey conducted by Upwork, 55 percent planned on having more freelancers, 40 percent said they preferred hiring them, while 39 percent said freelancing makes the process of finding the talent to match their needs easier.
WorkMarket provides solutions for managing freelancers, contractors and consultants. The company was founded in 2010 by Jeffrey Leventhal and Jeffrey Wald, and it had raised $56 in funding before it was purchased.
Wald, co-founder and president of WorkMarket, said in the press release, “The WorkMarket team is thrilled to be joining ADP. We share the same vision of enabling companies and workers alike to navigate the changing labor marketplace with greater ease, and we look forward to offering our solutions to ADP’s vast client base.”
ADP provides comprehensive cloud-based Human Capital Management (HCM) solutions that bring together HR, payroll, talent, time, tax and benefits administration. It is an industry leader in business outsourcing services, analytics and compliance expertise. More than 425,000 small business owners use ADP payroll services.
“WorkMarket allows us to provide ready access to a growing contingent labor pool and the tools to manage and pay them in a secure, efficient and compliant manner. Through this acquisition, ADP continues its tradition of helping clients keep pace with change and manage increasing complexity,” said Carlos Rodriguez, president and CEO of ADP in the release.
The acquisition by ADP will address the needs of businesses with a growing contingent workforce. The company says around 80 percent of US businesses now rely on independent contractors, and this number is growing. The purchase will also make the company the only human capital management provider to offer the tools HR professionals will need to manage and gain insights into both full-time employees and contingent workers.
For ADP, the acquisition allows integration of its payroll technology along with other solutions to serve the gig economy and its workforce. The recent acquisition of Global Cash Card, a digital payment provider, will go hand in hand to deliver a comprehensive platform for employers and employees.
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