UKG Strengths, Domain Expertise, and Key Differentiators
UKG achieved a significant milestone by surpassing 70,000 customers worldwide during fiscal year 2022. Notably, the company nearly doubled the number of deals with annual recurring revenue exceeding $1 million compared to fiscal year 2021. In terms of SMB bookings, primarily driven by UKG Ready solutions, the company observed impressive growth, a 56% growth year over year.
Over a year after the merger of Ultimate Software and Kronos to create UKG, the powerhouse in Human Capital Management (HCM) apps has maintained its momentum while introducing innovative solutions to address all aspects of HR, from recruitment to employee management.
For instance, UKG's AI-driven recommendations have facilitated the approval of 15 million days off by managers. Furthermore, UKG is further prioritizing employee health and safety, offering features like pre-shift health and wellness surveys and contactless time tracking through mobile apps or facial recognition technology. Additionally, UKG users can access a wide range of analytics tools to gauge employee feedback and make intelligent forecasts regarding their physical and mental well-being.
In the second quarter of the fiscal year 2021, UKG reported more than 650 successful customer implementations, up from 600 in the first quarter, spanning various industries such as retail, manufacturing, and healthcare. In the public sector, over 2,500 government agencies rely on UKG to manage their workforce. This includes more than 1,000 agencies in North America utilizing UKG TeleStaff for optimizing scheduling, labor management, and the deployment of public safety personnel and corrections officers.
In September 2021, UKG expanded its partnership with Microsoft, integrating its chatbot with Teams and providing Microsoft Viva employee experience users with updates from UKG Pro and Dimensions. This collaboration ensures interoperability between UKG apps and Microsoft products like Windows 365 virtual cloud PC and Dynamics 365.
These achievements underscore the synergistic benefits that have emerged from the merger of Kronos and Ultimate Software under the UKG umbrella. Their expanded product portfolio, driven by economies of scale, is proving invaluable for companies seeking to enhance the management of their workforce, particularly in a time when employee retention and engagement are of paramount importance.
UKG Recent Developments
In October 2023, UKG debuted One View, collaboratively created in conjunction with Immedis, a cloud-based multi-country payroll provider acquired by UKG in July 2023. This strategic partnership significantly enhanced UKG's North American payroll capabilities, allowing multinational enterprises to efficiently handle payroll for employees situated in more than 160 countries.
In 2022, the full-year revenue reached $3.26 billion, reflecting a noteworthy 10% rise compared to the prior year. Additionally, subscription revenue experienced robust year-over-year growth of 17%. This growth was accompanied by the addition of over 2,000 new employees worldwide and expansion through strategic acquisitions.
UKG Mergers and acquisitions (M&A) Activities
June 2023, UKG had acquired Immedis, a global payroll platform based in Ireland and previously owned by CluneTech, in a transaction exceeding €550 million. This platform was relaunched as UKG OneView, with a specific focus on multinational workforce management, payroll, tax, and funding.
In November 2022, UKG further enhanced its offerings with the acquisition of Quorbit, a strategic workforce planning software company headquartered in Oxford. In February 2022, UKG expanded its portfolio by acquiring SpotCues, a solution focused on employee engagement and communication, which was subsequently rebranded as UKG Talk. As of July 2023, UKG Talk boasts more than 1 million users. In the same month, the company also ventured into the Caribbean market through the acquisition of Interboro Systems Corporation, located in Puerto Rico.
In December 2021, UKG completed the acquisition of Ascentis Corporation, a provider of HCM and time management solutions tailored for midmarket enterprises, earlier, in 2021, UKG acquired EverythingBenefits, a provider of end-to-end benefits technology solutions. Based in New Jersey, EverythingBenefits helps HCM providers, including UKG, benefit brokers, and payroll service bureaus streamline data connectivity between businesses and insurance and retirement plan providers. In September 2021, UKG acquired Great Place to Work Institute, a trusted authority on workplace culture with a mission to help organizations become great workplaces for all.
UKG Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying UKG applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of UKG and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified UKG Pro, UKG Ready customers.
UKG Overview
Ownership: - Hellman & Friedman
Number of Employees: 15000
Functional Market: Absence and Leave Management, Workforce Analytics, Fatigue Management, Scheduling, Task Management, Time and Attendance, Core HR, Payroll, Pension Administration, Compliance, Onboarding, Recruiting, Applicant Tracking Systems, Performance Management, Learning and Development, Succession Planning, Compensation,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communications, Construction, Real Estate, Consumer Packaged Goods, Distribution, K12, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith-Based Nonprofit, Youth and Elderly Care, Special Cause Nonprofit, Oil and Gas, Chemicals, Professional Services, Retail, Transportation, Utilities,
UKG Key Cloud and HCM Applications
UKG Pro, UKG Ready
UKG HCM and Cloud HCM Applications Revenues, $M:
| Type/Year | 2022 | 2023 | YoY Growth, % |
|---|---|---|---|
| Total Revenues, $M | Subscribe | Subscribe | Subscribe |
| HCM Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
UKG Revenue Breakdown by Type:
UKG HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets | % of HCM Revenue in the HR Segment | 2023 HCM Revenues, By HR Segment, $M | |
UKG HCM Applications Revenues By Verticals, $M:
UKG Total and HCM Applications Revenues by Region:
| Region | % of Total Revenues | 2023 Total Revenues, $M | 2023 HCM Applications Revenues, $M |
|---|---|---|---|
| Americas | Subscribe | Subscribe | Subscribe |
| EMEA | Subscribe | Subscribe | Subscribe |
| APAC | Subscribe | Subscribe | Subscribe |
| Total | Subscribe | Subscribe | Subscribe |
UKG Direct vs Indirect sales
| Region | Direct Sales | Indirect Sales | Total |
|---|---|---|---|
| Type % | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe |
UKG Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified UKG Customers
No. of UKG Customers: 80000
No. of UKG HCM Applications Customers: 80000
No. of UKG Cloud HCM Customers: x
No. of UKG Cloud HCM Subscribers: x
Currently, UKG sells into more than 80,000 organizations around the world. Organizations spanning every major industry globally use UKG to support their people. UKG’s AI-powered recommendations have helped managers approve 15 million days off and UKG is on track to exceed 10 billion employee punches by 2023. Companies with workforces as big as half a million employees using Dimensions are utilizing the full-suite to addresses exceptionally complex business needs while helping to care for and engage their people. Customers included First PREMIER Bank and PREMIER Bankcard, HOA Brands, Dana-Farber Cancer Institute, and Red Gold Foods.
UKG Pro is tailored for mid- to large-sized organizations headquartered in North America (the U.S. or Canada) and boasts a customer base of more than 8,250 clients. Notably, over 40% of UKG Pro customers belong to the category of large enterprises with over 1,000 employees. The company follows a dual approach, promoting UKG Pro for customers with 500 employees or more, while offering UKG Ready to cater to the small and midsize business (SMB) segment. The number of customer migrations to cloud solutions has more than doubled when compared to the previous year, overall the company achieved year-over-year (YoY) growth of 16%, acquiring over 850 new customers and facilitating 1,200 upgrades.
UKG Market Opportunities, M&A and Geo Expansions
UKG is starting to experience the advantages of its expanded product range, with a significant number of new customers embracing its comprehensive suite of HR and workforce management applications, which includes UKG Pro HCM, UKG Dimensions, HR Service Delivery, and Employee Voice.
Customers with large workforces, often numbering in the tens of thousands, express a strong preference for a unified solution to address various HR and workplace needs. Similarly, smaller businesses find it more convenient to manage HR, payroll, scheduling, and time and attendance functions within a single system, a task that previously required disparate products, resulting in fragmented insights and workflow. For some employers, the transition has meant a substantial reduction in manual punch entry efforts, sometimes equivalent to as much as 4.5 full-time employees.
Currently, UKG offers features such as a unified inbox for notifications, suite-wide business intelligence, employee well-being surveys, and near real-time payroll and accruals for customers using UKG Pro and Dimensions. The company is further committed to enhancing the integration for an even smoother user experience, incorporating augmented analytics and ensuring compliance. This reflects UKG's capacity to address some of the most intricate challenges in HR and workforce management encountered by companies of all sizes as they adapt to an ever-changing business landscape.
UKG Risks and Challenges
Ultimate Kronos Group (UKG) has reached a settlement of $6 million to address a class action lawsuit stemming from a 2021 data breach. In December 2021, this HR management solutions provider experienced a ransomware attack that affected Kronos Private Cloud clients across various sectors, including a significant number in the healthcare industry. As a result, UKG will retire the Kronos Private Cloud (KPC) as a hosting option for WFC clients. Workforce Dimensions is hosted on the Google Cloud, which is considered a more scalable, secure alternative to KPC.
Accelerating the migrating path among UKG Workforce Central customers will be the key to building on the momentum that the vendor has been able to achieve since completing the merger in April 2021.
The task is considerable given UKG needing to accommodate the needs of one of the world's largest collections of HCM, payroll, and time and attendance users with varying requirements when many of them are still struggling to operate effectively during the pandemic.
With its outsized influence and customer count, there will be less room for errors now that UKG is either the No. 1 or No. 2 HCM applications vendor in any of the verticals or countries that it sells into. As a result, the stakes are higher than ever for UKG to deliver the best possible outcomes for customers including some now relying 100% on it for added HR, payroll, compliance, time-keeping and system support requirements.
UKG Ecosystem, Partners, Resellers and SI
UKG and Google have unveiled an extended collaboration to integrate Google Cloud's generative AI (GenAI) capabilities into the UKG suites. By harnessing GenAI, UKG aims to generate deeper and more impactful business insights, enhancing decision-making processes and enabling leaders to more efficiently oversee their teams.
IIn 2021, UKG established partnerships with over 315 technology and service providers as part of its UKG Marketplace. Among the notable new partners, BookJane and CareRev offer on-demand access to qualified healthcare professionals, expediting the process of filling unexpected absences. Meanwhile, primeVIEW by primeCARE empowers healthcare facilities to optimize nurse scheduling through the Five Star views available on the UKG Dimensions dashboard.
UKG FleX stands as an exceptionally adaptable technological platform specifically crafted for UKG solutions, facilitating seamless integration with novel and emerging applications, all the while ensuring a straightforward and efficient employee technology experience. Complemented by developer portal featuring essential toolkits, documentation, sample data, and supplementary resources, UKG FleX has played a pivotal role in expediting the expansion of the UKG Marketplace.
UKG maintains direct sales teams in key markets, including North America, the UK, Europe, Australia, China, and India. To extend its presence into emerging markets like South East Asia, the Middle East, and Africa, the company is actively expanding its channel ecosystem. Notable examples include Health Matrix, a provider of healthcare technology solutions in the Middle East, and Bytes Technology Group, with a presence across various industries in Africa and the Middle East. Additional reseller partners, like Valueteam in Brazil, Hyperlink in the Middle East, NGA in Europe, and Group Seidor in Spain and Portugal, are tapping into untapped opportunities in their respective regions.
Furthermore, UKG forged a partnership with Qimpro to drive workforce transformation in India and expanded its presence in the Chinese market through a reseller agreement with Capgemini. In addition to these reseller-based collaborations, UKG's direct sales teams are working closely with global consulting firms, including Accenture, Deloitte, Cap Gemini, PWC, E&Y, IBM, and Cognizant.
UKG Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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