Vendor Analysis
published on Jun 04, 2015
Report Overview:
Ceridian HCM has ~55k customers, servicing ~12m client employees, and primarily operates in the U.S., Canada and the U.K.
Who is this Report for:
NelsonHall's Payroll Services Vendor Assessment for Ceridian is a comprehensive assessment of Ceridian's payroll services offering and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of payroll outsourcing and identifying vendor suitability for payroll process outsourcing RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector
- HR and payroll decision makers.
Scope of this Report:
The report provides a comprehensive and objective analysis of Ceridian's payroll services offering, capabilities, and market and financial strength, 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, size and scale of delivery locations and their activities.
Key Findings & Highlights:
A U.K. payroll business was established in 1995 through the acquisition of the payroll company, Centerfile. Today Ceridian HCM has ~55k clients, servicing ~12m client employees, and primarily operates in the U.S., Canada and the U.K. It also has an international payroll offering, servicing an additional ~60 countries. Ceridian services multi-country payroll clients from North America and the U.K., using its proprietary aggregation technology.
Since the company's 2012 acquisition of Dayforce, it has focused on enhancing its HCM offerings. Ceridian HCM includes HR outsourcing services built around its core capability of payroll processing, with the following services:
- Payroll services (~75%): payroll processing, tax filing, workforce management processing and compliance services, including:
- SaaS, bureau and managed payroll services for the U.S., U.K. and Canada
- Payroll tax services (U.S. and Canada) embedded with other payroll services
- International managed payroll services using a payroll partner model
- Payroll tax filing services (~8%), standalone services
- HR only cloud software (<1%): typically this is for workforce management, time and attendance, scheduling, and benefits
- Benefits administration services (~12%): health and welfare (H&W) administration, reimbursement services, benefits continuation services, and employee assistance programs (EAP is branded under LifeWorks and was formerly known as health and productivity services). LifeWorks has ~14m members using web, phone and mobile applications. Benefits services are not offered as a standalone service, but are always bundled with payroll and/or HR software
- Multi-process HR outsourcing, also known as MPRHO (~5%).
By NelsonHall rankings of payroll vendors, Ceridian is the third largest globally.