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UKG - Next Generation HCM Technology 2023

Vendor Analysis

by DeeAnna Warrington

published on Jun 30, 2023

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Report Overview:

This vendor assessment analyzes UKG's offerings and capabilities in next generation HCM technology.

Who is this Report for:

NelsonHall’s Next Generation HCM Technology Vendor Assessment for UKG is a comprehensive profile of UKG’s HCM platform offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of HCM Technology and identifying vendor suitability for HCM Technology RFPs
  • Vendor marketing, sales, and business managers looking to develop strategies to target service opportunities and benchmark themselves against their peers
  • Financial analysts and investors specializing in the HR Technology sector
  • HR and Payroll decision makers.

Scope of this Report:

The report provides a comprehensive and objective analysis of UKG’s Next Generation HCM Technology services, offerings and capabilities, and market and financial strengths, including:

  • Identification of the company’s strategy, emphasis, and new developments
  • Analysis of the company’s strengths, weaknesses, and outlook
  • Revenue estimates
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
  • Analysis of the company’s offerings and key service components
  • Analysis of the company’s delivery organization, including delivery locations.

Key Findings & Highlights:

UKG provides full-suite solutions, as well as stand-alone products focused on workforce management (WFM) and human capital management (HCM) technology and services. UKG has a workforce of ~15k employees globally, supporting its HCM and WFM technology and extended managed services offering. Its delivery organization supports ~75k clients and 45m users in 165 countries and maintains a physical presence in all major geographies, including North America, EMEA, APAC, and LATAM.

Since its inception in 2020, UKG has been actively making acquisitions, including Ascentis Corporation, Interboro Systems Corporation, SpotCues, Great Place to Work Institute, Inc., and EverythingBenefits, Inc. In 2023, UKG reached an agreement to acquire Ireland-based Immedis, a global payroll provider with technology and services supporting over 160 countries and 20+ languages and has expanded its partnership with Google Cloud to integrate Google Cloud’s enterprise-grade generative AI (GenAI) and large language models (LLMs) capabilities into the UKG HCM suites to build applications for unified search and conversational AI.

UKG generally targets firms with 100+ employees for its HCM technology and can support a range of industry sectors with unique needs. Its core HCM technology and managed services offerings include:

  • UKG Pro - services 6.2k clients with 10m+ employees and has a 94% client retention rate. The HCM technology platform is targeted to midsize to large firms with 500–100k employees. Its Core HR module features a global HR system of record supporting >170 countries and 13 languages, with 115+ country-specific localizations. Its top sectors are travel, transport & logistics, manufacturing, and healthcare
  • UKG Ready - targeted to North American businesses with <500 employees, European and ANZ-based small businesses with <2,500 employees, and is localized to support the U.S., Canada, the U.K., Belgium, the Netherlands, France, Australia, and New Zealand markets. Currently, UKG Ready has ~40k clients (including resellers). The platform is fully integrated across modules and offers a mobile-first design supported by native applications available on iOS and Android. Its top sectors are manufacturing, healthcare, and retail & CPG
  • UKG HR Service Delivery (~5k clients): employee file and case management, including a knowledge base, targeted to midsized to large organizations
  • UKG Employee Voice (~1.5k clients): employee feedback and sentiment analysis solutions using language processing, targeted at organizations of any size
  • Managed services (U.S. only).

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