ADP and HR software gain from benefits automation
Most companies are spending heavily on employee benefits without being able to show they work, a new survey says, underscoring how fragmented administration is eroding returns at a time when retention costs remain high.
The Multibenefit Report 2026 from Probonio and Statista found that 88% of companies cannot prove the impact of their employee benefits, while 43% cannot say what return on investment they are getting at all. Only 12% can demonstrate the effect of all benefits offered, leaving a major blind spot for employers trying to turn perks into a retention tool rather than a line-item expense.
That matters economically because benefits have become part of the fight for labor in tight hiring markets, but the study suggests much of the spending is being absorbed by administration. Half of respondents spend at least 11 hours a month managing benefits, and one in six spends more than 21 hours, equal to at least 250 hours a year. For companies with 50 to 1,000 employees, that is time and money tied up in payroll, compliance and vendor management instead of productivity.
The report points to a structural problem: 90% of firms manage benefits through at least two tools, portals or manual lists, and 57% say the process is extremely time-consuming. Abrechnungen and legal checks are cited as the biggest time sinks, which helps explain why benefits often look generous on paper but fail to reach workers in practice.
Usage is part of the issue. While three in four companies offer between three and 10 benefits, roughly one in six estimates that no more than 30% of employees use them regularly. By contrast, firms with a central benefits platform report materially better uptake, with 48% saying more than 70% of employees use the offering regularly, versus 33% without a central system.
For investors, the story is less about perks than execution. Benefit-administration vendors, payroll processors and HR software firms stand to gain if companies move to consolidated, automated platforms, while employers that cannot measure usage or ROI risk higher compensation costs without corresponding retention gains. ADP, whose employer-services business sells technology-based HCM tools and benefit-related services, is one of the companies exposed to that shift.
The findings also fit a broader labor-market backdrop where employers are still under pressure to differentiate themselves, even as job-market and consumer-confidence gauges remain cautious. The report says only 15% of companies make benefit decisions based on data, suggesting the next phase of the market will reward automation and analytics rather than bigger perk budgets alone.
If that trend holds, the companies that can consolidate benefits onto one platform and prove usage may be the ones best able to defend margins and workforce stability as compensation costs keep climbing.
| Entity | Gains | Losses |
|---|---|---|
| HR software and benefits platforms | ▲More demand for automation | ▼Manual, fragmented workflows |
| Employers with central platforms | ▲Higher uptake, clearer ROI | ▼Companies using multiple tools |
| Employees | ▲Easier access to benefits | ▼Perks lost in admin friction |
| Benefit vendors with data tools | ▲Stronger sales pitch | ▼Providers selling isolated portals |