ADP Associates

Performance
Management
and Pay for
Performance
Guide
Associate’s Guide to
Performance Management
and Linkage to Pay for
Performance at ADP
 At ADP, we believe in rewarding
associates based on their
contribution to our mutual success.
Guided by our Pay for Performance
philosophy, we focus on attracting,
rewarding, and retaining the
right talent and maintaining
overall associate engagement
across ADP. This is supported by
our fundamental philosophy of
differentiation using a consistent
framework, which is simple and
aligned across the globe.

2 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

Performance
Management and Pay
for Performance at ADP
ADP’s Pay for Performance approach helps us:
• Drive business outcomes
• Ensure different levels of contribution receive differentiated rewards
• Establish and retain visibility and transparency between you and your manager
• Align compensation based on differentiated performance
• Develop plans to support achievement of Focus Areas and priorities
As an associate, you can strive to understand how your contributions and behaviors
impact business results with ADP’s Pay for Performance philosophy.

A Note about Eligibility

Associates are eligible to receive annual rewards if hired on or before April 1.
Note: In certain countries and/or under approved circumstances, there may be
variations due to regulatory or business requirements.
This guide provides an overview about our approach to Performance Management
and our Pay for Performance philosophy. It also provides important information
about your role and responsibilities as an associate. There are more tools and
resources available to help you in your role, as follows:
• StandOut on ADPworks
• Talent and Performance Acceleration on ADPworks
• Global Job Architecture

3 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

 Table of Contents

Performance Acceleration

Check-Ins

Focus Areas

Performance Pulse

Ongoing Coaching and Development

Focal Point Review

Performance Management Tasks

Questions

4 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

 Performance Acceleration
ADP is on an exciting journey
to become a strengths-based
organization. This means
leveraging what is unique about
each associate to accelerate
performance and in turn, ADP’s
overall performance. Deploying
StandOut at ADP was our first
step.
There are two sides to Standout:
accelerating performance
(how do we get more of it) and
measurement (how do we reliably
measure it). To accelerate your
performance, StandOut offers
a variety of resources including
the assessment, and weekly
Check-Ins and coaching tips.
Your manager can also launch an
Engagement Pulse at any time
to see how the team is feeling
on a few critical topics. These
combined resources together
will help you identify when you
and your team are at your best.
When it comes to measurement,
StandOut’s Performance Pulse
reliably measures how your
manager is reacting to your
performance. Together, these
resources provide ADP with the
unique opportunity to get the
best from you every day, provide
a great work experience, and
enable a Pay for Performance
culture.

To understand Pay for Performance, let’s start with

understanding how ADP approaches performance
management. Click here to watch a quick video that
will describe ADP’s revolutionary approach to talent
and performance.

5 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

 Check-Ins
Check-Ins are frequent 1:1
strengths-based conversations
about near-term future work. The
StandOut platform enables both
you and your manager to prepare
for these 1:1 conversations by
automating the weekly process
so it is easier for the approach
to become habit. Check-Ins
help you and your manager stay
aligned about near term priorities
and how to leverage strengths
in your work. Research on the
impact of Check-Ins is clear:
There is a direct correlation with
the frequency of Check-Ins and
the engagement level of team
members.
On a weekly basis, you are asked
to respond to questions about
whether you’ve added value and
leveraged your strengths so you
and your manager can reflect on
how you felt about the week.
They are helpful input for the
Check-In conversation and for
analyzing patterns over time. You
are encouraged to be open and
candid because the more open
you can be, the more impactful
the conversations with your
manager will be.
The real importance of the Check-
In is the conversation between
you and your manager. To prepare
for a Check-In conversation, take
a few moments to review what
you submitted in the StandOut
platform. The strengths/values
pulse ratings, details about what
you loved and loathed, and your
weekly priorities will help you
identify what you need to focus
on during the conversation.
These conversations don’t have
to be laborious but rather take
about 15 – 20 minutes

Click here to learn more about Check-Ins.

Still curious on why they are important to you?
Click here to learn more.

6 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

 Focus Areas
Focus Areas are ADP’s way of recommended to identify Focus
creating a meaningful connection Areas in manageable chunks, so
between ADP’s Win as One progress can be monitored, and
goals, business priorities, and modifications made as priorities
your work. Initiated by you, shift.
Focus Areas are the longer-term
Focus Areas should include
priorities that you are working
any relevant individual Key
towards over approximately the
Performance Indicators (KPIs),
next three months. They can be
as well as how you will help
deliverables, projects, personal
the organization achieve
development opportunities or
relevant team Key Performance
concentration on how work gets
Indicators (KPIs), Management
done. They provide you with
by Objectives (MBOs), Objectives
the flexibility to identify what’s
and Key Results (OKRs) etc.
taking up your time and attention
When drafting your Focus Areas
throughout the year. As things
in StandOut, you should include
change, which they will, they
any relevant individual metrics.
can and should be modified– so
Personal development can also
that you and your manager can
be included. It is a great way to
maintain alignment on what’s
ensure you and your manager
most important.
are aligned on development
On average, you should have areas and that those efforts are
approximately 3 – 5 Focus prioritized along with other work.
Areas that each last about a
Each associate should be able to
quarter. These are guidelines
say: “I know where I should be
and should be adjusted based
spending my time and how I can
on your work. While some
leverage my strengths to help
projects or deliverables may
ADP succeed.”
last longer than a quarter, it is

Click here to learn more about Focus Areas.

Still curious on why they are important to you?
Click here to learn more.
Go deeper into Focus Areas by clicking here.

7 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

 Performance Pulse
Focus Areas are not directly used
for performance measurement
– that’s where the Performance
Pulse comes in. Managers think
about an associate’s Focus Areas
and results achieved throughout
the quarter when completing a
Performance Pulse, but they are
not directly rated or reviewed.
Performance Pulse is ADP’s
differentiated and research-
based approach to gathering
reliable associate performance
data. Measuring performance
in an environment like ADP’s
has become a more abstract and
challenging task. Performance
Pulse is ADP’s groundbreaking
response to this challenge.
The Pulse is a simple, six item
survey that does not ask
your manager to rate your
performance or your potential, or
any other attribute. These sorts
of ratings reveal more about
your manager than you. Instead,
it asks your manager to respond
about their intended actions –
which research has shown we
can more reliably rate. This is
similar to our Net Promoter Score
(NPS) surveys, which don’t ask
clients to rate ADP’s service
and performance, but instead
ask them about their intended
What is Performance Pulse and why is ADP using it?
Click here to learn more.
8
actions – their likelihood to
recommend ADP to a friend or
colleague.
When managers complete a
Performance Pulse, they respond
to the following statements
about each associate for the time
period being reviewed:
1. I always go to (associate)
when I need extraordinary
results. (Strongly Disagree,
Disagree, Neutral, Agree,
Strongly Agree)
2. I choose to work with
(associate) as much as I
possibly can. (Strongly
Disagree, Disagree, Neutral,
Agree, Strongly Agree)
3. I would promote (associate)
today if I could. (Yes/No)
4. I think (associate) has
a performance problem
that I need to address
immediately. (Yes/No)
5. I believe (associate) has a
skill set that is very difficult
to replace. (Yes/No)
6. (associate) has met all of
the targets/metrics set
for their role. (Strongly
Disagree, Disagree, Neutral,
Agree, Strongly Agree or No
Targets/Metrics Assigned)
 Performance Pulse
At minimum, Performance Pulses
for each associate are completed
quarterly. However, they can be
completed as often as needed
within StandOut. Because
performance can vary throughout
the year, frequency is important.
When completing a Performance
Pulse, your manager uses
insight gained from frequent
interactions with you,
including weekly Check-Ins,
accomplishment of Focus
Areas, feedback from others,
achievement of targets (if
applicable) and any other
available talent metrics.
However, your manager will not
be directly “rating” information in
a Check-In or Focus Areas.
ADP is using Performance Pulse
because we need insight into
the differential performance
levels of our associates to guide
our talent and reward decisions.
Performance Pulse isn’t the only
data source for deciding what
to do with each associate, but
it is an important one. With
this insight, we can ensure that
we continue to differentiate
rewards and enable our Pay for
Performance approach.

What is Performance Pulse and why is ADP using it?

Click here to learn more.

9 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

 Ongoing Coaching
and Development
The core foundation of
performance management
is coaching – talking about
performance frequently
throughout the year and tying
that into the One ADP story. The
goal is for each associate to think
about One ADP globally and act
on it locally.
Ongoing conversations
throughout the year are critical.
It’s up to both you and your
manager to continue to discuss
your performance throughout
the year using weekly Check-
Ins. These conversations are
an opportunity to ensure you
are focused on the right things
at the right time. It’s also an
opportunity to tell your manager
how you are feeling about your
work, how you are leveraging
your strengths and where you
may need assistance. While
not directly sharing how they
responded to Performance Pulse,
your manager will offer their
10 Copyright © 2019 ADP, LLC. Proprietary and Confidential.
insights and share their view
of your performance. StandOut
technology helps facilitate the
dialogue, but the real power of
the Check-In comes from the
dialogue between you and your
manager. If you would like a more
in-depth discussion about your
performance or need additional
clarity, schedule additional
time with your manager to dive
deeper. Together, all of these
conversations will help to avoid
surprises during Focal Point
Review.
By having a more frequent,
real-time view of performance,
you will know how your manager
views your performance
throughout the year. This will
enable you and your manager
to have real time coaching
conversations focusing on
strengths, recognize great
performance and course correct
as needed.
 Focal Point Review
ADP’s Pay for Performance
approach culminates with a
year-end Focal Point Review.
Focal Point Review consists of
a conversation that summarizes
what you and your manager
discussed throughout the year.
Additionally, your manager will
focus on the rewards you are
receiving based on the overall
performance of both you and the
business. By checking in weekly,
each associate should be able
to say: “I know how I performed
throughout the year and how
my compensation reflects my
performance.”
Managers reward associate
performance based on the
contributions and impact made
throughout the year. Merit (i.e.,
base pay) is one of the methods
ADP uses to reward successful
job performance. The opportunity
for an annual merit increase
is based on your annual
performance and the annually
approved merit guidelines and
budget. Merit pay decisions
are made during Focal Point
Review with merit pay increases
effective in September. Please
note that this does not include
statutory/mandatory base pay
increases.  overall business performed, how
Click here to learn about ADP’s Focal Point Review.
11
The ADP Annual Bonus is
variable cash compensation that
motivates eligible associates
(e.g., leaders & other select
positions) in the achievement
of individual, business unit
and company-wide goals and
is an essential part of ADP’s
Pay for Performance program.
It provides a variable annual
incentive payment (bonus) that
rewards key associates for their
continued contribution to the
success of ADP. Similar to merit
pay, the opportunity for the
ADP Annual Bonus is based
on business performance,
an individual’s annual
performance and the annually
approved bonus guidelines. ADP
Annual Bonus decisions are made
during Focal Point Review with
payment made at the end of Q1
following the close of the fiscal
year.   
Performance Pulse data provides
guidance to managers when
determining these year-end
rewards. They also use other
factors such as competitive
pay position, business unit and
Company performance. If you
are bonus or equity eligible, your
bonus is based on how well the
you performed throughout the
year and the overall impact of
your contributions.
 Focal Point Review and
Performance Pulse Data
The data from Performance final recommendation on how
Pulse questions 1 (results) and to allocate rewards within their
2 (behaviors) from throughout team based on Performance
the fiscal year is aggregated. Pulse data, other metrics
Once the data is aggregated, gathered throughout the year,
StandOut applies a statistical performance relative to the team
model to help account for rater and feedback from others. Your
tendency. Manager responses are manager’s recommendations
not calibrated or altered.  Once are then sent to their leader for
completed, the Performance approval. 
Pulse Index (PPI) is determined
Performance Pulse data is used
for each associate. The PPI is
as a starting point. Prior to
then segmented at the highest
finalizing rewards, managers
level possible (2 levels below
come together to discuss
our CEO) and rewards guidance
associates that perform similar
is created based on which
work or are at a similar level,
segment the associate was a
and the rewards they are
part of.  These segments are
recommending. This calibration of
not a performance “curve” or
compensation decisions helps to
“rating”. They are simply used
ensure that associates who put
as guidance to differentiate
in the same level of effort and
rewards. If needed, managers
achieve the same level of success
are able to compensate within,
in similar roles/levels receive
above or below the guidance
similar total compensation.
provided. Managers make the

Click here to learn more about ADP’s Focal Point

Review.

12 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

 Performance
Management Calendar

Compensation
Planning (Managers)
July

Aug/
Sept Focal Point
Review (Rewards)
conversations
Performance
Pulse completion Quarterly
(Managers)

Ongoing

• Check-Ins (weekly)
• Deep Dive Check-Ins (as needed)
• Create/Review/Update Focus
Areas to ensure alignment and
prioritization

13 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

 If You Have Questions

If you have any

questions about
Performance
Management,
Pay for
Performance or
the information
contained in this
Guide, please
contact your
HR Business
Partner.

14 Copyright © 2019 ADP, LLC. Proprietary and Confidential.

 ADP, the ADP logo, and Always Designing for
People are trademarks of ADP, LLC. All other marks
are the property of their respective owners.
Copyright © 2019 ADP, LLC. All rights reserved.