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Ceridian - Next Generation Payroll Services

Vendor Analysis

by Pete Tiliakos

published on Nov 08, 2017

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Report Overview:

This NelsonHall vendor assessment analyzes Ceridian's offerings and capabilities in Next Generation Payroll Services.

Who is this Report for:

NelsonHall’s Payroll Services vendor assessment for Ceridian is a comprehensive assessment of Ceridian’s payroll services offerings and capabilities designed for: 

  • Sourcing managers monitoring the capabilities of existing suppliers of payroll outsourcing and identifying vendor suitability for payroll services 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 Next Generation 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 of delivery locations.   

Key Findings & Highlights:

Ceridian, founded in 1932 as Control Data Corporation (CDC) and headquartered in Minneapolis, Minnesota, is a provider of HR software and services.  

Today, Ceridian has ~55k clients servicing 20m client employees and operates in the U.S. and Canada, having sold its U.K. business to SD Worx (in 2016). It does have a small international payroll offering, which it services through partners in the Payroll Alliance using its proprietary aggregation technology, Connected Pay. Ceridian’s HR services are built around its core capabilities in payroll and time and attendance, which are estimated to make up ~80% of its total revenues. 

Ceridian provides managed payroll services on a standalone basis, and also offers managed benefits administration services to clients using Dayforce-managed or SaaS payroll services. 

Ceridian’s payroll services offering leverages its proprietary Dayforce HCM platform and primarily includes payroll services; its other payroll product is PowerPay, a cloud based solution targeted for small businesses in Canada.  

Ceridian has ~4k employees, ~3k of whom deliver payroll solutions to clients. The majority reside in the U.S. or Canada, and smaller populations of employees are based in the U.K. and Mauritius.  Ceridian originally targeted organizations with 1k-4k employees for its payroll services offering. In early 2015, it also began to target the small market through its Dayforce Go offering; and in Q3 2015, it began to target large market organizations with >10k employees for payroll and time on Dayforce.  
 

Table of contents:

Table of contents:

  • Background
  • Revenue Summary
  • Key Offerings
  • Delivery Capability and Partnerships
  • Partnerships
  • Target Markets
  • Strategy
  • Strengths and Challenges
  • Strengths
  • Challenges
  • Outlook

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