ADP TotalSource is a human resources service that offers employee management to businesses that do not want to hire an in-house human resources staff. ADP and its clients become "co-employers" regarding each clients' personnel for the purposes of payroll, employee benefits and other aspects of the operation.
The ADP TotalSource product provides clients with access to a dedicated human resources manager who answers questions and provides guidance. It also reduces some of the employer risk for the client because ADP takes responsibility for the decisions it makes and the actions it takes. ADP Total Source administers health insurance and other benefits and processes worker's compensation claims.
ADP TotalSource offers an outsourcing arrangement, which means that ADP operates from a separate location. This frees up office space at clients' offices. Since ADP TotalSource also includes safety and compliance services, the product benefits clients in terms of following wage and hour laws and respecting their employees' rights. ADP can also make decisions about employees based on local or federal laws.
Among professional employer organizations (PEOs), co-employment arrangements allow the PEO to take on certain aspects of employee management, according to NAPEO. The PEO signs the service contract and employees can communicate directly with them.