Payroll company ADP is expanding through the acquisition of WorkMarket, the company said Monday (Jan. 22).
In a press release, ADP announced its takeover of WorkMarket, a company that helps employers manage a range of workers including full-time, part-time and freelance. ADP noted that the acquisition positions the company to help its corporate clients address the rise of contingent and freelance workers.
“At ADP, we innovate by anticipating how the world of work evolves and how dynamics — like the rise of the gig economy — impact the needs of our clients and the modern workforce,” said Carlos Rodriguez, president and CEO of ADP, in a statement. “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. WorkMarket is a proven expert in freelancer management. We are thrilled to welcome their team to ours and to leverage our global footprint and bring scale to their expertise and technology.”
ADP cited its own data that shows about 80 percent of companies in the U.S. currently employ independent contractors, and research reveals reliance on contingent workers is likely to increase.
In a November interview with PYMNTS, Doug Politi, president of added value services at ADP, explained that the rise of the gig worker population is forcing employers and payroll providers to address changing needs.
“Some of our research has shown, particular[ly] with the under-banked and millennials, that the ability to help them ‘save them from themselves,’ relative to financial management, budgeting, savings and so on is in high-demand,” Politi said. “In many cases, they’re struggling. And, as the labor market is tight, the ability to keep your workers engaged and satisfied along multiple streams, whether they’re a 1099 worker or a full-time employee, you’re going to hear a lot of the same pressures to make sure they’re satisfied — and payments is one of those ways to boost employee satisfaction, for sure.”