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Total Economic Impact
Cost Savings And Business Benefits Enabled By Lyric
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY ADP, January 2026
Total Economic Impact
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY ADP, January 2026
Today’s organizations, especially those operating in high-turnover, hourly workforces, face mounting pressure to improve hiring speed, reduce administrative overhead, and retain talent in a competitive labor market. Many are burdened by fragmented systems, manual processes, and outdated tools that slow down payroll, onboarding, and performance management — especially as they scale or acquire new business units. Additionally, increasing compliance complexity, demand for a better experience for frontline deskless workers, the desire to capitalize on the promise of AI, and the need to support rapid growth with lean HR teams all create an urgent need for integrated, automated, and flexible workforce management solutions.
ADP Lyric is a modern, human capital management (HCM) platform designed for large enterprises to administer HR, payroll, talent, benefits, workforce management, and analytics in a unified, cloud-native system. Lyric is powered by AI and machine learning, most notably through ADP Assist, an integrated intelligent assistant that provides natural-language interactions and personalized insights for employees, practitioners, and leaders.
ADP commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying .1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Lyric on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four decision-makers with experience using Lyric. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization, which is a $600 million diversified company with 5,000 employees working in corporate, production, distribution, and retail business units across North America
Interviewees said that prior to using Lyric, their HCM teams and frontline managers were overwhelmed trying to effectively manage employees using manual, often paper-based systems and integrate disparate point solutions to support different HCM functions. This approach led to frequent payroll errors, distracted people managers, and burned-out HCM teams.
After the investment in Lyric, the interviewees agreed that their HCM functions operated more smoothly and effectively, providing a vastly improved working environment for both employees and managers and resulting in higher employee satisfaction coupled with reduced organizational HCM costs.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Reduced cost of payroll errors, saving the composite organization $7.5 million. Lyric significantly reduces payroll errors by automating manual, paper-based processes, leading to streamlined personnel actions like pay rate changes and resulting in a 75% to 90% drop in payroll errors.
Increased business manager productivity, providing $3.0 million in time savings. Lyric boosts manager productivity by automating routine tasks and simplifying workflows, freeing up time for strategic activities like customer engagement and leadership development.
Improved HCM team productivity, freeing up $2.4 million in HCM practitioner time for higher-value activities. Lyric drives notable productivity gains across HCM teams by automating workflows, reducing manual effort, and enabling scalability. These efficiencies are further supported by Lyric’s responsive support model and reliable system performance, which reduce burnout and improve strategic focus among HCM team members.
Reduced legacy software spending, returning $1.2 million to the bottom line. Interviewees reported direct cost savings from retiring legacy systems and third-party tools after implementing Lyric, including software and hardware expenses related to separate HRIS, benchmarking, and applicant tracking systems. These savings highlight Lyric’s ability to consolidate functionality and reduce overhead.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Enhanced employee experience for frontline and management personnel. Lyric improves employee experience by streamlining HR operations, enhancing data accuracy, and enabling self-service tools that reduce administrative burdens and provide transparency. The composite organization sees measurable outcomes like reduced turnover, improved retention, and higher employee sentiment scores, fostering a more engaging workplace environment.
Decreased risk of compliance issues. Lyric reduces compliance risks by automating workflows, improving data accuracy, and providing real-time alerts for compliance issues. The organization replaces manual tracking with robust controls, leading to consistent audit-free filings and secure data handling across diverse jurisdictions.
Increased reliance on the HR team and its data for decision-making. Lyric increases the reliability of HR data by centralizing and integrating workforce information. It replaces manual tracking with accurate, automated reporting, making HR a trusted source for finance and operations. These improvements strengthen HR’s credibility and support better strategic decision-making.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
Total Lyric fees over three years of $2.8 million. These fees represent the PV cost for the composite organization to access the full Lyric suite, which also includes upfront implementation fees.
Deployment and training time at $1.0 million. The composite organization dedicates internal employee time to planning and preparing for Lyric’s deployment, with strong support from ADP’s teams and no need for external consultants. The time investment is driven more by internal transformation goals than by product complexity.
Ongoing maintenance internal time of $67,000. The organization dedicates one-tenth of an FTE’s time to ongoing tasks associated with maintaining Lyric.
The financial analysis that is based on the interviews found that a composite organization experiences benefits of $14.1 million over three years versus costs of $3.9 million, adding up to a net present value (NPV) of $10.1 million and an ROI of 259%.
Across the organizations participating in this study, Lyric’s AI features (and particularly ADP Assist) are seen as a promising avenue for reducing administrative burden, improving data accuracy, and enabling more strategic HR contributions. The interviewees told Forrester they are currently tapping into some of Lyric’s AI capabilities and looking forward to making greater use of them in the near future.
Organizations using Lyric are beginning to explore and implement its AI capabilities, particularly ADP Assist, to streamline and enhance their HCM functions. A senior HR leader at a supply chain firm explained that AI tools within Lyric have significantly reduced the number of steps in that organization’s recruiting process — from 23 to just eight — by automatically filtering candidates based on minimum requirements. They pointed out that this has led to people leaders spending more of their valuable time focusing on employee training and engagement.
The director of HR operations at a retail organization expressed strong enthusiasm for ADP Assist, even though they are in the early stages of using it. That interviewee anticipates that, as their organization adopts the tool, it will be able to handle routine employee inquiries — such as benefits details or company policies — that currently consume up to 60% of some team members’ time.
Finally, the VP of HR at a waste management firm is leveraging Lyric’s AI in recruiting, where it helps screen resumes and schedule interviews, reducing manual effort for recruiters and managers. That organization is also preparing to roll out a new AI-powered knowledge base expected to support employees, managers, and HR practitioners alike.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
| Role | Industry | Lyric Capabilities Engaged | Employees Managed With Lyric |
|---|---|---|---|
| Senior HR leader | Supply chain | Payroll, HRIS, benefits, talent, PTO, performance management | 20,000 |
| Director of HR operations | Retail | Payroll, benefits, talent, I-9 | 11,000 |
| VP of HR | Waste management | HR, time and attendance, payroll, benefits, talent | 2,300 |
| Chief people officer | Healthcare | Payroll, HRIS, benefits, talent | 5,300 |
Interviewees reported that their organizations were using dedicated solutions for each of several different HCM functions (e.g., payroll, benefits, learning and development, and talent acquisition), requiring both HCM practitioners and field-level supervisors and managers to manually integrate the output from those solutions in order to manage the companies’ workforces. Interviewees also described how legacy systems and manual processes created inefficiencies, strained HR teams, and hindered business growth. In particular, they noted that their organizations struggled with common challenges, including:
Frequent time-consuming and costly payroll errors. Organizations struggled with high volumes of payroll errors due to outdated systems and manual workflows. A senior HR leader in the supply chain industry reported, “We were experiencing roughly 500 to 600 payroll adjustment requests every week.” Similarly, the chief people officer in healthcare noted, “We had a 12% payroll error rate before moving to Lyric.” These errors not only degraded employee satisfaction but also required significant time and resources to resolve, including frequent on-demand payments and manual corrections.
Increasingly complex pay, benefits, and reporting requirements. As organizations grew, they faced mounting complexity in managing compensation structures, benefits, and compliance reporting. They emphasized the difficulty of handling accruals, garnishments, and paid time off (PTO) without system support. The chief people officer in healthcare echoed similar concerns, explaining, “We didn’t have pay bands at the time; we built all of that when we launched Lyric so I could report correctly.” These challenges were compounded by the need to support multiple federal employer ID numbers (FEINs), complex tax setups, and diverse state-specific compliance requirements.
Burdensome HR administrative activities placed on frontline and field-level business managers. Legacy systems placed a heavy administrative burden on managers, pulling them away from core business activities. Both the director of HR operations at a retailer and the VP of HR at a waste management company described cumbersome processes for personnel actions that required them to fill out paper forms, obtain multiple approvals, and continually check the status of their requests. As a result, the director of HR operations complained that managers spent too much of their time off the sales floor and in the back room, while a senior HR leader at the supply chain company noted that field managers spent “too much time recruiting and hiring rather than building employee skills from onboarding through training and into performance.”
Difficulty recruiting and retaining high-quality payroll and other HCM practitioners. Organizations found it increasingly difficult to retain skilled HR and payroll professionals due to the stress and inefficiencies of legacy systems. A senior HR leader in supply chain highlighted the impact on management retention: “Our management turnover prior to Lyric was at its highest it had ever been. It was up almost at 40% for management turnover.” They attributed this to the overwhelming administrative workload, particularly around hiring. These challenges not only affected retention but also limited the ability of HR teams to operate as strategic partners within their organizations.
Each organization conducted a thorough evaluation of vendors, prioritizing those that could provide solutions to these challenges through:
A proven ability to reduce manual errors and improve payroll accuracy.
A scalable support model that could support lean internal teams.
Expertise in compliance across multiple jurisdictions.
Integrated timekeeping and payroll capabilities with mobile access.
Strong disaster recovery and cybersecurity posture.
After this evaluation, the interviewees’ firms chose ADP Lyric and began the process of converting their HCM functions to Lyric. Most implemented the full suite of Lyric capabilities (including payroll, HRIS, benefits, talent acquisition, timekeeping, and learning and development), although several chose to continue their previous approach to one or two of these functions.
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The organization is a $600 million diversified company with 5,000 employees working in corporate, production, distribution, and retail business units across North America. Before deploying Lyric, the organization employed 50 practitioners on its HCM team, including a significant number of generalists in field locations to support employee needs at the plant and/or retail level.
Deployment characteristics. The composite organization launches all acquired modules of Lyric across the organization at the beginning of Year 1 after spending six months preparing for the transition.
$600 million annual revenue
5,000 employees
50 HCM practitioners
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Reduced cost of payroll errors | $2,782,688 | $2,968,200 | $3,339,225 | $9,090,113 | $7,491,583 |
| Btr | Increased manager productivity | $1,209,975 | $1,209,975 | $1,209,975 | $3,629,925 | $3,009,029 |
| Ctr | Improved HCM team productivity | $611,021 | $992,909 | $1,298,419 | $2,902,349 | $2,351,581 |
| Dtr | Reduced legacy software fees | $297,500 | $595,000 | $595,000 | $1,487,500 | $1,209,222 |
| Total benefits (risk-adjusted) | $4,901,184 | $5,766,084 | $6,442,619 | $17,109,887 | $14,061,415 |
Evidence and data. One of the most consistently cited benefits across interviews was a significant reduction in payroll errors driven by the automation and digitization of previous manual processes.
Interviewees described how Lyric replaced cumbersome paper-based systems for managing personnel actions such as pay rate changes. The director of HR operations at a retailer explained: “There were lots of payroll errors because we used a paper-based system to change pay rates. Managers would fill out a piece of paper, print it out, have the employee sign it, then they would sign it themselves and email it to HR. Then they’d have to follow up two weeks later because the change hadn’t been made.” With Lyric, they confirmed, this process was streamlined. They shared, “Now, managers just click a button directly in the record, and it gets processed automatically.”
Several interviewees quantified the impact of this shift. A senior HR leader at a supply chain company noted: “We were experiencing roughly 500 to 600 payroll adjustment requests every week in 2021. That number’s down to 150 with Lyric.” This 70% reduction in adjustment requests reflects both improved data accuracy and fewer downstream corrections. The same senior HR leader also reported a dramatic improvement. They said, “We’ve had a 75% reduction in payroll errors at the site level.” The chief people officer at a healthcare organization added that their payroll error rate dropped from 12% to less than 1% after implementing Lyric.
These improvements not only lowered the cost of payroll errors but also improved employee trust and satisfaction by ensuring timely and accurate compensation.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Payroll errors average three per employee per year, or a total of 15,000 each year across the company.2
The cost of fixing an average payroll error is $291.3
The organization avoids 75% of payroll errors in Year 1 after deploying Lyric. Payroll errors continue to decrease, with a reduction of 80% in Year 2 and 90% in Year 3 and beyond.
Risks. The risk that another organization may experience a different financial impact in this benefit area depends on several factors:
The size of the organization.
The rate of payroll errors and the average cost of fixing them.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $7.5 million.
Reduction in payroll errors
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Total employees | Composite | 5,000 | 5,000 | 5,000 | |
| A2 | Total frequency of payroll errors per 1,000 employees per year | Research data | 3,000 | 3,000 | 3,000 | |
| A3 | Total payroll errors per year | A2/1,000*A1 | 15,000 | 15,000 | 15,000 | |
| A4 | Average cost of fixing a payroll error | Research data | $291 | $291 | $291 | |
| A5 | Reduction in payroll errors with Lyric | Interviews | 75% | 80% | 90% | |
| At | Reduced cost of payroll errors | A3*A4*A5 | $3,273,750 | $3,492,000 | $3,928,500 | |
| Risk adjustment | ↓15% | |||||
| Atr | Reduced cost of payroll errors (risk-adjusted) | $2,782,688 | $2,968,200 | $3,339,225 | ||
| Three-year total: $9,090,113 | Three-year present value: $7,491,583 | |||||
Evidence and data. Interviewees frequently cited increased manager productivity as a key benefit of adopting Lyric, driven by streamlined workflows, automation of routine tasks, and reduced administrative overhead. They emphasized that this time savings not only cut costs but also allowed managers to spend time on work that really makes a difference to the business, whether that meant spending more time building customer relations or better engagement with employees to improve organizational and leadership skills.
Prior to Lyric, managers were burdened with complex, manual approval processes for tasks like pay changes. The VP of HR at a waste management company described the previous workflow: “We would request that you get an email approval from your direct manager, your manager’s manager, and the COO for a pay change. Then you’d open an online form, and you’d fill out the form. And then that form would route to HR shared services, who would then manually put your change in for you.” Lyric replaced this cumbersome process with a simplified, automated one, significantly reducing time spent on approvals.
The retail company felt the impact of this kind of shift directly in store operations. The director of HR operations at a retailer noted, “Before Lyric, I had complaints from senior field leaders that managers were in the back room all the time, and I haven’t had that complaint anymore.”
The participants Forrester interviewed also reported dramatic time savings in hiring workflows. A senior HR leader at a supply chain company shared, “We think we’ve cut managers’ time to hire to about one-third of what they were spending before,” highlighting how Lyric’s automation and integration helped streamline talent acquisition.
Beyond time savings, Lyric enabled organizations to invest in leadership development. The VP of HR at a waste management firm noted, “Using Lyric is really providing us an opportunity to upskill our leadership teams,” suggesting that freed-up time was being redirected toward more strategic initiatives.
Managers also benefited from improved usability and reliability of the system. The chief people officer at a healthcare company noted: “I don’t hear any complaints about ADP, but [the managers] are going in [and] they’re approving schedules. Every day, they’re in the system,” pointing to consistent engagement and ease of use.
Lyric also streamlined merit planning, a traditionally time-consuming and anxiety-producing process. The same chief people officer explained, “We’ve automated merit planning, and that’s a huge time saver,” further reinforcing how Lyric helped managers focus on higher-value activities such as people development.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The organization of 5,000 people includes 250 in a supervisory or management position.
Before the deployment of Lyric, each of supervisor spent 4 hours each week on administrative tasks related to timekeeping, payroll, sick leave/PTO, onboarding, benefits, or other HR issues.
After the deployment of Lyric, that time is reduced to 1 hour or less per week.
The average fully burdened hourly wage of the organization’s supervisors is $73.4
The organization recaptures 50% of the time supervisors and managers save as a result of using Lyric.
Risks. The risk that another organization may experience a different financial impact in this benefit area depends on several factors:
The number of supervisors and people managers relative to the total workforce.
The amount of time people managers spend managing human resource tasks.
The average rate of pay of the organization’s people managers.
The productivity recapture rate applicable to those time savings.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $3.0 million.
Reduction in manager time spent on hiring
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Total supervisors | Composite | 250 | 250 | 250 | |
| B2 | Annual hours per supervisor spent on HR manual processes before Lyric | Interviews | 208 | 208 | 208 | |
| B3 | Annual hours per supervisor spent on HR with Lyric automation | Interviews | 52 | 52 | 52 | |
| B4 | Average fully burdened hourly wage for a supervisor | Research data | $73 | $73 | $73 | |
| B5 | Productivity recapture | TEI methodology | 50% | 50% | 50% | |
| Bt | Increased manager productivity | B1*(B2-B3)*B4*B5 | $1,423,500 | $1,423,500 | $1,423,500 | |
| Risk adjustment | ↓15% | |||||
| Btr | Increased manager productivity (risk-adjusted) | $1,209,975 | $1,209,975 | $1,209,975 | ||
| Three-year total: $3,629,925 | Three-year present value: $3,009,029 | |||||
Evidence and data. Interviewees consistently highlighted improved productivity across their HCM teams, citing streamlined workflows, reduced manual effort, and better scalability as key drivers.
A senior HR leader at a supply chain company reported a measurable efficiency gain in operations following their implementation of Lyric. They said, “We have grown over 25% since we went live with Lyric, and we have 20% less cost in our supported HR organization.” The interviewee attributed this productivity improvement to both automation and better support infrastructure associated with the switch to Lyric.
The same interviewee emphasized the quality of support provided by Lyric’s team: “The support and service we get with the Lyric team have significantly changed compared to other products [we use]. All of our team members have an ADP person who is backed by a team to help support us on the product.” This dedicated support model helped reduce time spent troubleshooting and allowed HR staff to focus on strategic tasks.
Self-service capabilities were another major contributor to productivity. The director of HR operations at a retailer noted, “With ESS [employee self-service], employees have direct access to change their address, request time off, enroll in benefits, and the like, rather than emailing HR.” They added: “Open enrollment was done completely electronically last year, and it functioned smoothly. There was no confusion on how to do it.” These features reduced the administrative burden on HR teams and improved employee autonomy.
Scalability and system performance also played a role in enabling HCM teams to handle high volumes without additional strain. The same director of HR operations shared: “During our high season, we get 8,000 applications each week. That’s a high load to the system, and Lyric can grow with us. There has been no downtime or slowdowns with the system. Before Lyric, we could not have handled that many applications. The team was always anxious; people were working overtime and weekend hours.” With Lyric, the team was able to manage the workload associated with the needs of the business and still reduce employee burnout.
The ease of onboarding new employees was the final area of improvement the interviewees noted. The VP of HR at a waste management company claimed, “We just had an acquisition a couple of months ago, and we were able to upload the employee’s information easily ... much more easily than we would have with our prior HCM,” underscoring how Lyric simplified integration tasks that previously required significant manual effort.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
It employs 50 people working full-time on HCM, including corporate HCM team members and HR generalists in the field at plant and retail locations.
After deploying Lyric, the same HCM activities take less time, eventually saving the equivalent of 17 full-time employees’ labor, which the organization redeploys to address more strategic HCM and business issues without additional hiring.
The average fully burdened annual salary for an HCM FTE is $89,856.5
Risks. The risk that another organization may experience a different financial impact in this benefit area depends on several factors:
The number of employees on the HCM team.
Their average rate of pay.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.4 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | HCM personnel required to support business needs prior to Lyric | Composite | 50 | 50 | 50 | |
| C2 | HCM personnel required with Lyric | Interviews | 42 | 37 | 33 | |
| C3 | FTEs redeployed | C1-C2 | 8 | 13 | 17 | |
| C4 | Average fully burdened annual salary for an HR team member | Research data | $89,856 | $89,856 | $89,856 | |
| Ct | Improved HCM team productivity | C3*C4 | $718,848 | $1,168,128 | $1,527,552 | |
| Risk adjustment | ↓15% | |||||
| Ctr | Improved HCM team productivity (risk-adjusted) | $611,021 | $992,909 | $1,298,419 | ||
| Three-year total: $2,902,349 | Three-year present value: $2,351,581 | |||||
Evidence and data. All interviewees specified some level of direct savings from software (and sometimes hardware) costs they avoided after deploying Lyric. These included third-party point solutions that were supplanted by Lyric modules as well as hardware such as time clocks or servers supporting legacy on-premises HR applications.
The chief people officer at a healthcare firm observed, “I saved $1.8 million in the first couple of years simply as a result of Lyric’s cost structure versus the cost structure of our legacy solution.”
The VP of HR in waste management reported, “We retired a HRIS tool and a benchmarking service once we implemented Lyric, and that has saved us over $55,000 a year.” Similarly, the director of HR operations at a retailer pointed to “saving thousands” by retiring the organization’s applicant tracking and I-9 systems.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
One or more third-party HCM solutions are replaced when Lyric is deployed.
Annual fees for those solutions total $700,000.
The organization continues to run its legacy solutions in parallel with Lyric for six months before sunsetting the contracts.
Risks. The risk that another organization may experience a different financial impact in this benefit area depends on several factors:
The annual cost of legacy hardware and software solutions displaced by Lyric.
The length of time the organization continues to use and pay for those solutions after deploying Lyric.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.2 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Annual fees for software made redundant by Lyric | Interviews | $700,000 | $700,000 | $700,000 | |
| D2 | Cancellation rate for software contracts | Composite | 50% | 100% | 100% | |
| Dt | Reduced legacy software fees | D1*D2 | $350,000 | $700,000 | $700,000 | |
| Risk adjustment | ↓15% | |||||
| Dtr | Reduced legacy software fees (risk-adjusted) | $297,500 | $595,000 | $595,000 | ||
| Three-year total: $1,487,500 | Three-year present value: $1,209,222 | |||||
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
Enhanced employee experience. Lyric significantly improved employee experience across these organizations by streamlining HR operations, improving data accuracy, and enabling scalable growth. A senior HR leader at a supply chain company reported that Lyric’s efficient recruiting and onboarding tools allowed frontline managers to shift focus from hiring to training and engagement, resulting in dramatically improved 60-day retention rates and a 50% reduction in overall turnover. The chief people officer at a healthcare firm cited a 3-percentage-point year-over-year drop in turnover, attributing part of this success to Lyric’s user-friendly mobile tools and earned wage access features. The VP of HR at a waste management company highlighted a 50% improvement in employee sentiment scores on HR systems and tools after transitioning from a legacy platform to Lyric. At all of these organizations, Lyric’s customizable, integrated platform empowered workers and managers with self-service capabilities, reduced administrative burdens, and fostered a more engaging and productive workplace.
Decreased risk of compliance issues. Lyric has helped organizations significantly reduce compliance-related risks by streamlining processes, improving data accuracy, and providing real-time alerts for missing pay, I-9s, and other compliance issues across a wide array of differing state and local regulations. The chief people officer at a healthcare firm noted that the implementation of Lyric led to “three consecutive years of on-time 401(k) filings with no audit findings,” a marked improvement from prior years of delays and errors. The platform’s robust controls and integration capabilities have replaced error-prone manual processes, such as spreadsheet-based tracking and paper forms, with automated workflows and exception-based approvals.
Increased reliance on the HR team and their data for decision-making. Lyric substantially increased the reliability of HR data and elevated HR teams’ credibility within their organizations by centralizing and integrating workforce information across departments. The chief people officer at a healthcare company related that their HR data was previously considered “dirty” and untrustworthy, leading to widespread dismissal by finance and operations teams. After implementing Lyric, the system became the “source of truth,” feeding accurate data into finance, operations, and analytics platforms. Similarly, the VP of HR at a waste management company leveraged Lyric to provide finance with reliable reporting and position management data, enabling better budgeting and strategic planning. These improvements have not only enhanced data integrity for better decision-making but also strengthened HR’s role as a trusted partner to the business teams.
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Lyric and later realize additional uses and business opportunities, including:
Improving the leadership pipeline. Lyric significantly improved the leadership pipeline at several organizations by enabling more effective performance management and fostering internal talent development. A senior HR leader at a supply chain company explained that the shift from manual, fillable PDFs to a systematized performance review process led to a 96% on-time completion rate, with reviews now feeding directly into merit decisions and enabling qualitative tracking of reviewer effectiveness. This structured approach helped identify and cultivate future leaders, reversing leadership hiring trends from outside the organization to inside. This transformation reflects how Lyric’s scalable and customizable tools have empowered organizations to build stronger, more sustainable leadership pipelines to better ensure their future health.
Enabling robust growth. Lyric enabled robust organic and acquisition-based growth by providing scalable, efficient systems that support rapid expansion without proportional increases in administrative overhead. At the supply chain company, a senior HR leader related that Lyric’s streamlined recruiting and onboarding processes allowed frontline managers to hire and train more effectively. This fueled organic growth, with 72 new site startups in one year and 22 more already approved for the following quarter. Similarly, the chief people officer at the healthcare company, which acquires 80 to 85 small businesses annually, told Forrester they leveraged Lyric’s automation and data integration to onboard new employees seamlessly on day one, ensuring a smooth transition and preserving trust during emotionally sensitive acquisitions. Lyric’s ability to support large-scale, multistate expansions — such as the company’s addition of 2,400 employees across 66 locations in 22 states — without requiring external project services further demonstrates its role in enabling both organic and acquisition-driven growth.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Etr | Lyric fees | $301,770 | $1,022,900 | $1,022,900 | $1,022,900 | $3,370,470 | $2,845,570 |
| Ftr | Deployment and training | $803,942 | $190,187 | $15,272 | $15,272 | $1,024,673 | $1,000,935 |
| Gtr | Ongoing maintenance | $0 | $26,770 | $26,770 | $26,770 | $80,310 | $66,572 |
| Total costs (risk-adjusted) | $1,105,712 | $1,239,857 | $1,064,942 | $1,064,942 | $4,475,453 | $3,913,077 |
Evidence and data. ADP offers a variety of pricing options for Lyric, based on factors such as the number of employees managed by the system and the breadth of modules the organization purchases as part of its HCM suite.
Modeling and assumptions. Forrester assumes the following about the composite organization:
The organization pays ADP a one-time implementation fee of $287,400 in the period prior to Year 1 as it works with ADP to prepare for and deploy Lyric.
It then pays licensing fees of $974,190 annually for the full suite of Lyric capabilities (payroll, HR, talent, workforce management, analytics and benchmarking, and benefits).
Pricing may vary. Contact ADP to determine the pricing for your organization.
Risks. The risk that another organization may experience a different financial impact in this cost area depends on several factors:
The extent of ADP implementation services required before the organization is ready to launch Lyric.
The selection of modules the organization chooses to deploy.
The potential for future price increases or other price modifications during the period of the analysis.
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.8 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | E1 | Lyric fees | ADP | $287,400 | $974,190 | $974,190 | $974,190 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Et | Lyric fees | E1 | $287,400 | $974,190 | $974,190 | $974,190 | |||||||
| Risk adjustment | ↑5% | ||||||||||||
| Etr | Lyric fees (risk-adjusted) | $301,770 | $1,022,900 | $1,022,900 | $1,022,900 | ||||||||
| Three-year total: $3,370,470 | Three-year present value: $2,845,570 | ||||||||||||
Evidence and data. The initial implementation of ADP Lyric varied across organizations but was generally described as intensive yet manageable, with strong support from ADP’s implementation teams (at no additional cost). The chief people officer at the healthcare company noted that their rollout occurred during the height of the COVID-19 pandemic, yet the organization successfully went live in July 2020 after a fast-paced implementation. The interviewee reported that the process involved reimagining every HR procedure and building foundational elements such as job architecture and enterprise units. While the implementation was demanding, the CPO emphasized that ADP’s team worked side by side with internal HRIS and payroll leaders.
At the waste management company, the VP of HR described a nine-month implementation period. During the first six months, about 10 HR team members each contributed 5 to 10 additional hours per week, followed by three months of testing and configuration requiring 5 to 7 hours weekly. Despite the rigorous process, the organization did not require external consultants.
The retailer’s deployment involved six HR department leaders and several supporting roles who balanced their regular duties with implementation responsibilities. The build phase lasted less than a year, with a six- to eight-week rollout period. The organization appreciated ADP’s flexibility in allowing a phased module deployment, starting with benefits and later expanding to other functions.
While the upfront time investment was significant across these organizations, the implementation was supported by ADP’s client service teams and resulted in scalable, integrated systems that enabled long-term operational efficiencies and growth. Importantly, interviewees reported that the length and intensity of these projects was driven by their own internal needs to reorganize and improve their HCM processes and systems rather than by any complexity in the Lyric product.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
A total of 10 employees, including department heads from HCM and finance, spend approximately 50% of their time over the course of six months planning for the transformation of the organization’s HCM operation.
Each of the 50 HCM team members receives approximately 40 hours of formal and on-the-job training in Lyric before it is deployed.
Five turnover-related new hires each year receive the same 40 hours of training.
The average fully burdened hourly wage for HCM employees is $43.6
One HCM supervisor spends 40 hours each year facilitating the training with ADP.
The average fully burdened hourly wage for HCM supervisors is $117.7
Risks. The risk that another organization may experience a different financial impact in this cost area depends on several factors:
The number of employees involved in preparing the organization for Lyric and the percentage of their time they devote to that work.
The length of time it takes the organization to complete preparation for deployment.
The rate of pay for the team involved in preparing for and implementing Lyric.
The amount of time required to train existing and new employees on Lyric.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.0 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| F1 | Time spent planning for HCM transformation (hours) | Interviews | 5,200 | 1,300 | 0 | 0 |
| F2 | Manager time spent training HR users on Lyric | Interviews | 40 | 40 | 40 | 40 |
| F3 | Average fully burdened hourly salary for a senior HR practitioner | Research data | $117 | $117 | $117 | $117 |
| F4 | Employee time spent learning Lyric | Interviews | 2,000 | 200 | 200 | 200 |
| F5 | Average fully burdened hourly salary for HCM employees | Research data | $43 | $43 | $43 | $43 |
| Ft | Deployment and training | ((F1+F2)*F3+F4*F5) | $699,080 | $165,380 | $13,280 | $13,280 |
| Risk adjustment | ↑15% | |||||
| Ftr | Deployment and training (risk-adjusted) | $803,942 | $190,187 | $15,272 | $15,272 | |
| Three-year total: $1,024,673 | Three-year present value: $1,000,935 | |||||
Evidence and data. Ongoing maintenance of ADP Lyric required minimal additional investment beyond existing staff time, with interviewees’ organizations reporting efficient operations and reduced administrative burden. The VP of HR at the waste management company noted that they needed no dedicated system administrator to manage Lyric post-implementation — a stark contrast to his prior experience at a Fortune 50 company where more than 50 employees were required to maintain another vendor’s system.
Interviewees at the healthcare company and the retailer echoed this sentiment, indicating that they personally were the contacts for ongoing maintenance of the Lyric system and relationship, and that it required only a small portion of their time.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
A senior-level member of the HCM team devotes 10% of their time each year to administrative tasks associated with maintaining the Lyric instance.
The average fully burdened hourly rate for senior HCM practitioners is $117.8
Risks. The risk that another organization may experience a different financial impact in this cost area depends on several factors:
The seniority and rate of pay of the individual(s) maintaining Lyric.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $67,000.
Internal time required to maintain Lyric
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| G1 | Lyric platform administration (hours) | Interviews | $0 | 208 | 208 | 208 |
| G2 | Average fully burdened hourly rate for a senior HR practitioner | Research data | $0 | $117 | $117 | $117 |
| Gt | Ongoing maintenance | G1*G2 | $0 | $24,336 | $24,336 | $24,336 |
| Risk adjustment | ↑10% | |||||
| Gtr | Ongoing maintenance (risk-adjusted) | $0 | $26,770 | $26,770 | $26,770 | |
| Three-year total: $80,309 | Three-year present value: $66,572 | |||||
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($1,105,712) | ($1,239,856) | ($1,064,941) | ($1,064,941) | ($4,475,450) | ($3,913,077) |
| Total benefits | $0 | $4,901,183 | $5,766,084 | $6,442,619 | $17,109,886 | $14,061,415 |
| Net benefits | ($1,105,712) | $3,661,327 | $4,701,143 | $5,377,678 | $12,634,436 | $10,148,338 |
| ROI | 259% | |||||
| Payback | <6 months |
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Lyric.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Lyric can have on an organization.
Interviewed ADP stakeholders and Forrester analysts to gather data relative to Lyric.
Interviewed four decision-makers at organizations using Lyric to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.
Costs comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows.
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Related Forrester Research
The Forrester Wave: Human Capital Management Solutions, Q4 2025, Forrester Research, Inc., October 14, 2025.
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
2 Source: “Cost and risks due to payroll errors: Results of the 2022 HR Processing Risk and Cost Survey,” EY, December 2022.
3 Source: Ibid.
4 Source: Ibid.
5 Source: Modeled Wage Estimates, US Bureau of Labor Statistics.
6 Source: Ibid.
7 Source: Ibid.
8 Source: Ibid.
Readers should be aware of the following:
This study is commissioned by ADP and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Lyric. For any interactive functionality, the intent is for the questions to solicit inputs specific to a prospect's business. Forrester believes that this analysis is representative of what companies may achieve with Lyric based on the inputs provided and any assumptions made. Forrester does not endorse ADP or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, ADP and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The interactive tool is provided ‘AS IS,’ and Forrester and ADP make no warranties of any kind.
ADP reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
ADP provided the customer names for the interviews but did not participate in the interviews.
Kim Finnerty
January 2026
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