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ADP Sales Tactics

Lydia Moskowitz's Profile

We have many companies with ADP for years but lately since they outsourced their customer service, their service has been awful. In addition, even though i have the same sales rep for years, i am constantly getting bombarded with phone calls from sales reps trying to get me to sign up to other programs they offer, IE.. Employee benefits,etc.. My rep tells me to just tell them i am with her but still.. At least 3X day phone calls. It is really impossible. Also, their prices are way overpriced. I have heard so many good things about Paychex. I am just wondering if they have the same issues. Do they constantly have sales people calling you, how is their customer service?

Answers

Randy Moore
Title: CFO
Company: SJB Bagel Makers
(CFO, SJB Bagel Makers) |

I've been a satisfied customer of Paychex for almost 25 years across several employers. I have used ADP and in-house solutions and typically end up back with Paychex. They are not perfect, but who is? The few times I have had problems they have always been able to solve them quickly and professionally.

Margaret Whitted
Title: Controller
Company: Rieke Office Interiors
(Controller, Rieke Office Interiors) |

We have had a LOT of issues with Paychex. We have to review records carefully prior to the funds being disbursed to employees. Even with that, at least 25% of the time, we have to have a correction deposit issued to an employee. As far as sales calls for added services, I don't think there are many. However, they do have an added fee for a service related to ACA that you have to specifically opt out of, or they deduct it from your bank account. We had to go through several layers of management to stop the deduction and get the funds returned.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Hi Lydia,

I used ADP years (and I mean years) ago, just didn't like them. Recently a client used Paychex. Our HR point person was very good, so was the admin person (although it could be challenging to get them if an issue was very time sensitive, but you always got them).

Pricing seem reasonable. Not sure where you are located, but also look at smaller regional/local shops. They may provide a better value.

FYI: all caps is considered yelling...

Lyle Newkirk
Title: CFO
Company: Corrigo Incorporated
(CFO, Corrigo Incorporated) |

I once worked for ADP so I am a bit biased. But that was long ago. In my current company we have used ADP for a long time. We do not get their calls although we do get the Paychex calls. When we need something, an email to our account rep is promptly returned and we get a clear answer. The fees are reasonable but of course we would always wish they were lower. I have had similar experiences in other companies.

Cindy Boyce
Title: Senior Manager, Outsourced Financial Ser..
Company: BDO USA, LLP
(Senior Manager, Outsourced Financial Services, BDO USA, LLP) |

We use both PayChex and ADP and none are perfect (are any of us). We do generally find PayChex more responsive and easier to work with. With ADP the key is to have an assigned CSR rather than just the "team". If your CSR is not meeting your needs, request another.

A word of caution on using smaller/regional payroll service providers -- ultimately the business owner and those deemed to have control over payments are responsible for payroll taxes. If you do not use a publicly traded company with the necessary internal controls/auditing processes, I highly recommend routine checks with the taxing authorities to ensure taxes withdrawn are actually deposited. About 15 years ago a regional firm in my area "stole" about $10MM in payroll taxes from their clients -- the clients were liable for the unpaid taxes even though those taxes had been "collected" by the payroll service. This put a number of small businesses out of business.

Steve Sheridan
Title: Associate
Company: Dean Lewis Associates
(Associate, Dean Lewis Associates) |

I made the switch to ADP because Paychex kept raising their prices while not giving us payroll tax services. One of my pet peeves is when companies raise prices for their loyal customers and give new customers more for less. The practice leads itself to customer disloyalty, and ADP came by at the right time and offered more for less. We also have a great ADP rep.

Now, ADP does cross-sell quite a bit. I use the sales pitches as opportunities to learn, and I've found out that many of our current vendors have our best interests at heart so I haven't added anything from ADP.

Michele King CPA
Title: Controller
Company: SaltWorks, Inc.
(Controller, SaltWorks, Inc.) |

I made the switch from ADP to Infinisource a year ago, and have been very pleased with accuracy and customer service. I switched away from ADP due to a forced upgrade, which didn't calculate our SIMPLE IRA contributions correctly. Infinisource has a great comprehensive platform for timekeeping and payroll processing.

Sara Voight
Title: Controller
Company: Critical Signal Technologies, Inc
(Controller, Critical Signal Technologies, Inc) |

No payroll processing firm is perfect and you still have a responsibility to stay on top of things regardless of who you use. At a prior company we switched from ADP to Paylocity primarily due to not having an individual to help us with our needs and being told we would have to pay extra monthly to get the package that included running a report about our employees' birthdates. We were extremely pleased with Paylocity. Funny thing is that ADP contacted us less than a year later to offer us a free/all costs covered switch back to them with no fees for a year. We declined.

At my current company we use Paychex. To refer to my comment about staying on top of things, we find that if we don't ask the right questions on certain one-off transactions things can go sideways easily. I tried to change the labor distribution on my staff twice before Paychex had to admit that there are times their system doesn't pick up the changes. After running through a few hundred people more than once I was a bit more than miffed. More recently I asked for research on a tax notice that gave us 14 days from date of notice to take care of. I received the generic response that they would get me an answer in 15 business days..... didn't go over too well in my office.

Sales calls will continue regardless of who you are using. My CPA firm has a section that handles payroll and I hear from them (the partner told me you wanted me to call....) at least once per season. I could also list off at least a half dozen local firms who mainly call, but occasionally drop by to talk to me personally. Polite but firm when I ask for their name and request that they don't call me anymore, or refer them with the name and number of the rep handling our account at the same company.

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