The compatibility of new

business models & HR

outsourcing development

25 August 2022 I GEM Center, Ho Chi Minh City, Vietnam

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Unparalleled global
experience in terms of
countries supported, Payroll, HR, HCM Across all industries &
size, industry sectors, technology and services company sizes
footprint and meeting
growth needs

990K+ 35
Clients worldwide Languages
supported

142 18
# of countries Service centers

38M
Delivers payroll for 23M (1 in 6) U.S.
and 15M international workers

Powering payroll for 70+ years

Copyright © 2022
2021 ADP, Inc..
Inc. Proprietary and Confidential.
High growth is ideal for HR outsourcing

Vietnam economy Global HR outsourcing trends HR outsourcing factors

• Holistic HR
6.6% GDP 5%-7% growth • Economic growth
• Digital tool access
• Scalable HR
51 M workers • Manufacturing • Regulatory Compliance
• Financial Services • Quality of hire
US$ 2B BPO • Technology HR outsourcing considerations

• Retail & Services • Business case

• Perception of loss of control

Copyright © 2022 ADP, Inc.. Source: IMA Asia August 2022 Economic forecast, Oxford Economics, Everest Group, HR Outsourcing in Asia Pacific, ADP Comprehensive Outsourcing Services 2021
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Trends – why companies outsource HR activities?

• Companies going through organizational change, significant growth, merger or acquisitions

• Decentralized companies – and is looking to centralize reporting and/or cut costs

• Multinational companies with a regional/local HR or payroll strategy

• Companies having a difficult time hiring and/or retaining skilled in-house payroll / HR / benefits staff

• Companies that would like to focus on their business yet not reduce HR quality or employee services

• Companies looking to access digital HR benefits and want to minimize initial technology investment

• Companies with an ERP who want to add local service levels with local regulatory skills

Copyright © 2022 ADP, Inc.. Source: ADP Comprehensive Outsourcing Services 2021
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HR outsourcing value impacts the business
Copyright © 2022 ADP, Inc..
Financial • Cost reduction
• Improve HR processes
Operations • Better digital data use
• Increased productivity
• Agility for regulatory or structural changes
Business • Speed and expertise of specific tasks
Growth
• Digital tools
• Resiliency and scalability (e.g. COVID)
Source: ADP Comprehensive Outsourcing Services; Everest Group, HR Outsourcing in Asia Pacific 5
Outsourcing can mean more HR – not less HR

Examine HR tasks to understand what is

“strategic” and what is “transactional” 75%
Strategic Transactional

Payroll • Wage differential analysis • Generate standard reports

• Pay equity analysis • Run monthly payroll

Employee Engagement • Analyze engagment data • Engagement survey admin

• Culture to meet business goals • Employee offboarding admin

Talent • Staffing needs analysis • Compile talent metrics reports

• Flexible working models • Employee onboarding admin

Copyright © 2022 ADP, Inc..

Source: ADP Comprehensive Outsourcing Services; Gartner leadership surveys in HR 2021 6
Focus your HR energy: benefits

Reducing staff turnover • Reducing repetitive transactional work reduces turnover

• Investing in skills, employee engagement, flexibility in work

• Fully understand Vietnam legal regulations

• Hiring, minimum wage, new OT rules, insurance contributions,
Mitigating risks and improving
diversity and laws on gender equity in workplace, employment
regulatory compliance contracts

• Many workers but fewer have specific skills

Skills & proficient employees
• Hire specific skills or nurture / build those skills

• 50% HR leaders list cost reduction a top priority

Reduce costs / save time – reuse time
• Not less HR … in fact HR is doing more
to invest in your HR team skills
• Scale HR easily via outsource partner as you grow

Copyright © 2022 ADP, Inc..

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Focus your HR energy: efficient HR

Copyright © 2022 ADP, Inc.. Source: ADP Research Institute, The HRXPS: How to Measure the Performance and Impact of HR 2022
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Focus your HR energy: employee connections

Copyright © 2022 ADP, Inc.. Source: ADP Research Institute, The HRXPS: How to Measure the Performance and Impact of HR 2022
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Focus your HR energy: employee talent retention

100%
90% Vietnam top 2
Top most important factors
80%
71%
70% 63%
66%

57% 58% x-factor

60% 53%
55%
52%
49% 49%
50% 43% 42%
38% 39%
40% 33% 32% 31% 31%31%
28%
30% 22%
24% 25%24%
22%
18% 18%19%17% 19% 19%19% 20%
17%18%18%16%
20% 13% 15%
12%
10%
0%
Salary Job security Enjoyment of day Flexibility of Career Flexibility of Job title Training and
of work hours progression location development

APAC Australia India China Singapore

Copyright © 2022 ADP, Inc.. Source: ADP Research Institute, People at Work 2022; YouGov salary research 2021
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Focus your HR energy: employee skill building

Employee skill building Mechanisms used by age group Top 4 mechanisms used by gender
5% 7% 11%
18% 18%

72% CEOs
22%

29%
30%

23%
30%

24%
27%
38%
53% 44%
YouTube/Internet
self- learning
17%

70% Employees
35%

38%
40%
37%
29%
14%

25%
45% 42%
Government
training program
40%
49%
Skills impact in last 3 years 25% 25%
45%
44%
21%
11% Formal
34% Future skills emerge 4%
38% 33% certification
56% 60%
45% 35% 34%

39% Current skills evolve

18-24 25-34 35-44 45-54 55+
Company L&D
32% 27%
19% Old skills expire courses
Internet/self learn Formal certification
Other Mentorship Men Women
Govt training Company L&D
program
Copyright © 2022 ADP, Inc..
Source: ADP Research Institute, People at Work 2022; Gartner leadership survey 2021 11
 HR is central to success for growing companies.
Build efficiency, scale, resilency.
Focus HR energy on strategic areas which create value.

Copyright © 2022 ADP, Inc..

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People At Work 2022 – APAC report

Copyright © 2022 ADP, Inc..

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Thank you
Connect with us: sg.adp.com

john.k.antos@adp.com

LinkedIn

25 August 2022 I GEM Center, Ho Chi Minh City, Vietnam

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