Vendor Analysis
published on Jan 18, 2021
Report Overview:
This NelsonHall assessment analyzes Ultimate Kronos Group's offerings and capabilities in Payroll Services
Who is this Report for:
NelsonHall’s Payroll Services profile on Ultimate Kronos Group (UKG) is a comprehensive assessment of its offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of managed payroll services and identifying vendor suitability for security services RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the HR and payroll technology and services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Ultimate Kronos Group (UKG) payroll services offering, 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 the location of delivery locations.
Key Findings & Highlights:
Ultimate Kronos Group (UKG), dual-headquartered in Weston, Florida and Lowell, Massachusetts, is a provider of workforce management (WFM) and human capital management (HCM) technology and services.
UKG formed in 2020 through the merger of Ultimate Software and Kronos (both owned by private equity firm Hellman & Friedman), forming one of the largest global cloud technology providers with a combined ~70 years of experience and an enterprise value of $22bn. The combined firm has offered payroll technology and services for >30 years, dating back to its forming in 1990.
In 1998, Ultimate Software began launching web-based solutions through Ultipro Web and began offering subscription-based solutions over the internet in 2000. In 2002, it launched UltiPro, the first multi-tenant SaaS HCM solution.
UKG provides the following technology and managed services, which collectively support over 50k client organizations across 165 countries, including:
- WFM technology:
- UKG Dimensions
- HCM Technology:
- UKG Pro (>5k client adopters): HCM technology platform targeted to midsized firms with >500 employees
- UKG Ready (>33k client adopters): HCM technology platform targeted to SMB firms with <500 employees
- UKG HR Service Delivery (>5K client adopters): HRSD technology platform targeted to midsized and large enterprise firms
- Managed services:
- HR Transformation consulting and change management
- Benefits Administration Services, including ACA
- Partial and fully managed payroll services.
UKG targets its payroll services offering primarily to its client base of HCM platform technology adopters as an extended compliance service. Its payroll targeting aligns to its HCM technology targeting by platform:
- UKG Pro (>5k client adopters): targeted to midsized firms with >500 employees
- UKG Ready (>33k client adopters): targeted to SMB firms with <500 employees.
It has recently opened up its targeting to enable and support standalone payroll product and services adoption and has quickly added several North American enterprise-sized clients through this offering. UKG's largest client for payroll services has ~150K employees.