White collar workforce, especially tech companies
Quickly-growing
Average EE demographics skew millennial (ages 28 – 35)
Located in major cities/tech hubs: SF, LA, Chicago, NY, Boston, Austin
Majority of EEs are US-based (OK if some are international)
WFH or distributed team
Employer already has some employee experience programs in place (rewards/recognition, mental health, EAP, etc.) but is looking for expansion and higher engagement
How is the pilot being rolled out?
Fringe is being offered to select clients in the East region of Majors Upmarket (NY/NJ) and Nationals*.
*First, only the 186 WorkforceNow clients will be included (360k users)
How will we measure success of the pilot?
ADP wants to see if they call sell Fringe to their clients. We will measure number of clients in different stages of the pipeline, number of clients that buy.
We will also measure utilization, engagement, and other employee stats.
Are Fringe benefits taxable?
Fringe is, generally speaking, a taxable benefit. They are treated by the IRS as a “Fringe Benefit” similar to an employer-given gift card.
Employers decide during company onboarding if they want to report on payroll or W2. Either way, Fringe provides detailed and streamlined reporting. Please see our ADP Tax Reporting One Pager for more information.
On average, how long does it take to close a deal and what is the conversion rate?
Overall, we’d expect an 8%-12% close rate with a 90 day sales cycle. See more info.
Could someone phase out a standalone EAP program because there’s counseling providers on Fringe?
Yes! A lot of our clients find value in putting all of their employee experience programs in one platform. Employers have 2 options here:
Retire the EAP program and use that funding towards Fringe, OR
Keep the EAP and add it as a custom “company” tile in Fringe to increase its visibility/utilization (we can turn off our mental health vendors in this case if desired). Please allow an additional 2 – 3 weeks for implementation of additional and customized tiles on the platform.
How do clients typically find the budget for Fringe?
Our target clients are already doing great stuff for their people, so they are typically pulling from existing budgets to fund Fringe:
In-office perks, like company lunches, snacks, and in-person events
Commuter stipend
Wellness stipend or gym reimbursements
Caregiver reimbursements/stipends
Gift cards, employee anniversaries, milestone programs, employee birthdays
How is Fringe being rolled out to ADP customers?
Existing customers will be marketed to via ADP marketing communications
A dedicated client DM from ADP will also help to identify target clients, working with ERMs
Existing customers will be offered Fringe in addition to their ADP software suite
What is the execution strategy – what does Fringe do vs. ADP do?
Fringe Responsibilities
Training ADP teams
Provide ongoing support to ADP’s Sales team and all users
Onboarding and all post-sales support
ADP Responsibilities
Market Fringe to 1,800 target clients in NY/NJ
Identify leads and run sales process with Fringe sales team
What Sales team and Ops support will Fringe provide to ADP?
How do you determine which vendors are on the site?
Fringe focus on services, not products
You won’t find gift cards or marked up vacuum cleaners on Fringe
Our vendor team hand selects vendors that reduce stress, give back time, impact the family, or spark joy.
Are services on Fringe marked up?
No, and in many cases they’re discounted.
What is the average cost of a service in Fringe?
Services range from $15 for food delivery to over a hundred of dollars for virtual therapy. Users can top off purchases with their credit card if they don’t have enough points.
How often do vendors change?
New vendors are added to the platform regularly, and showcased in the New to Fringe category
Can employers edit or customize the marketplace to include standalone services they offer?
Yes. They can remove services (such as competitors) or add services through a simple process.
Adding a benefit the company already has to Fringe, like an EAP, is a great way to increase utilization. Please keep in mind that any marketplace additions do push out company launch times 2 – 3 weeks and may require emails and meetings between Fringe, your client, and the vendor..
Official Fringe partners get preferred pricing below our standard $5 PEPM. ADP clients are offered the exclusive pricing of $1.50 PEPM.
What programs can clients accomplish with Fringe?
Most of our customers use Fringe to offer their employees a lifestyle benefits stipend. Additional programs can be added for no additional cost:
Monthly point stipend for a flexible lifestyle (recommended for highest utilization & engagement)
Rewards or recognition
Manager spot bonuses and incentives
Birthdays/Celebrations/baby shower/wedding
Work anniversary & milestone gifts
Free lunches & snacks/drinks for employees not in the office
Which programs are recommended for my client?
We recommend scheduling a meeting between you, your client, and Fringe to come up with a strategy
Fringe invoices the employer directly on a monthly basis for any points allocated to employees as well as the PEPM user fee for all employees at the company in the program.
Student Loan Repayment and charitable giving selections are tax-deductible to the employee. In both situations, the employee will receive receipts at the beginning of the next calendar year directly from Fringe’s vendors that facilitate these services. Those can be used when filling out their taxes.
At the beginning of the year, Fringe sends employers a report detailing total taxable income broken out by employee. This can then be added to a w2 as compensation.
We do not handle pre-tax benefits — we leave that up to FSAs/HSAs
Tax Information for Employers:
Taxable fringe benefit (treated by the IRS like a gift card; taxable income to the employee)
Fringe provides employers with reporting of taxable income per employee (customized reporting may be available upon request)
Customers typically add taxable income to W‑2s at the end of the year.