Jennifer Morgan, the new chief executive of UKG since July 2024, is undaunted by the challenge of leading one of the world’s biggest software companies that has just weathered a major reorganization.
In fact, with her zeal for software sales, Morgan relishes her return to the driver’s seat once again. Following her 16-year run at SAP in key posts including co-CEO and a three-year stint at Blackstone (a major investor in UKG) where she oversaw portfolio operations, Morgan was in the spotlight speaking recently before thousands of HR, payroll and workforce management executives and partners at the UKG Aspire user conference in Las Vegas.
By putting her imprint on a company dating back to 1977, Morgan could extend and redefine its legacy as she strives to ignite growth, boost employee morale and above all pledge an all-in commitment to take good care of customers.
With an almost clean slate, Morgan has the inside track of parlaying her experiences in running a multinational software giant and replicating best practices from PE-owned companies under her purview to chart a new course for UKG by seizing global opportunities while making inroads into the enterprise space that she knows well, and most importantly positioning it to help HR executives and their frontline workers take full advantage of the modern intersection between people and data.
When asked how she would address the repercussions after UKG reduced its workforce by 14% just before she became CEO, Morgan was emphatic about involving its current total of 14,000 employees even to the point of overcommunicating in order to ensure they understood the rationale behind the restructuring and what more actions would be needed to pick up momentum. By promising utmost transparency, Morgan, who hosted her own podcast on leadership while at SAP, expects UKG employees to aim high in working toward a common goal of winning the confidence of its 80,000+ customers.
Aron Ain, former CEO and now executive chair of UKG, said Morgan’s strength lies in her ability to communicate effectively.
Morgan is under considerable pressure to boost UKG’s topline. ARTW expects Morgan’s agenda is to herald the arrival of a $10 billion UKG in the near future. ARTW expects the end game could mean the investor group made up of Blackstone, Hellman & Friedman and others pursuing an IPO that could value UKG in excess of $50 billion. By comparison, its rival Workday’s annual run rate approaches $7 billion with about $69 billion in market cap.
Despite the travails, Morgan points out that the upshot is that she is not acting as a “turnaround CEO because there is nothing broken here.’’ Vowing to drive double-digit growth, her mission statement is simple – UKG must boost customer satisfaction by rapidly bringing its product, support and go-to-market operations closely together after years of melding them in fits and starts following the 2020 merger between Ultimate Software and Kronos that formed UKG.
Morgan emphasizes the intrinsic value of UKG, which runs through its products around the world, lies in its differentiated data, the lifeblood of any organization that wants to harness the latest Generative AI technology to help automate critical functions from hiring employees to recording their time, and finally treating them right so that it can be recognized as a Great Place To Work®, a certification program that is also being offered by UKG. In 2025, UKG is scaling out by certifying small and midsized customers with Great Place To Work, earning them a distinction that could result in a morale booster and reduced employee turnover.
The differentiated data are derived from its customers that rely on all of its products including Core HR, payroll, workforce management, Great Place to Work, etc. UKG now hosts a staggering number of transactions from tens of millions of frontline workers standardizing on its different solutions and processing $300 billion payroll annually.
Quite a bit of the heavy lifting is being assumed by a leadership team consisting of Rachel Barger, Bob DelPonte, Hugo Sarrazin and Arlen Shenkman, who will join as its new CFO in early 2025.
At the event, Barger, a former executive with Cisco and SAP who has been named president of go-to-market at UKG since May, announced a slew of initiatives to sharpen its branding and digital presence, while raising the ceiling to entities with up to 1,500 employees for UKG Ready to better compete with the likes of ADP, Paycom, Paylocity, and other focusing on the smaller and midsized businesses.
Barger also plans to strengthen its relationships with global systems integrators, PE-owned organizations as well as the broker community that could serve as an expanded channel, all in the hopes of cross-selling and upselling more products like global payroll, talent marketplace for internal mobility and add-ons like incentive benefits (extra compensation for those willing to work hard-to-fill shifts), project costing and expense management offerings that will take UKG to the realms beyond HR.
These add-ons are expected to not just become a catalyst to increase its addressable space, but also a preemptive strike against rivals that have been bulking up their product portfolios in a similar trajectory to capture market adjacency.
Taking from the playbook of ERP suite providers, HR vendors like Workday, Paylocity and now UKG are now diversifying their product portfolios by adding financial management solutions like procurement and expense management to entice key stakeholders not typically involved in HR processes.
Additionally, competition between UKG and ADP, a reseller for its workforce management products, is intensifying as the latter has just acquired Workforce Software for end to end time keeping, scheduling and labor forecasting applications that meet the enterprise-class requirements of an installed base of over 1,300 customers including many that have 50,000 or more employees.
Reckoning the stake is higher than ever for UKG to solidify ties with its biggest customers, EVP DelPonte, a UKG veteran now in charge of customer experience, aims to optimize customer satisfaction and go-lives, having already made significant changes to its managed services, expert assistance, and configuration design this year.
By readying more service templates and incentives for partners, DelPonte said it has been able to raise overall customer satisfaction score, especially among enterprise accounts that adopt UKG Pro. Across all go-lives and implementation outcomes, the overall customer satisfaction has also improved, he added.
At the product level, Sarrazin, president of UKG product and technology, said its innovation streak has resonated with customers. In 2024 alone, hundreds of customers have adopted its new solutions from UKG One View for global payroll to UKG Talk for employee communications and engagement.
He added that customers have seen double-digit increases in employee retention after rolling out new solutions. As for Gen AI, Sarrazin said its Bryte AI will be in general availability by the end of 2024 with the release of UKG Frontline Assist and other digital agents for employees and managers with dozens more to come in 2025. The ideal model is to provide real-time assistance that enables users to complete tasks with no more than one or two clicks through intuitive prompt, search and act, he added.
Another recipe for success will come from its vertical offerings especially those for manufacturing, retail, healthcare, government and strategic verticals like transportation, Sarrazin said, reiterating one of the key differentiators that has made UKG successful after integrating industry-specific products for each vertical into its UKG Pro and UKG Ready suites.
Though UKG’s vertical strategy has waxed and waned through the years, the timing could be exquisite given the incoming administration in Washington is keen on rebuilding the US manufacturing base.
The overall question is whether these developments will reshape UKG the way envisioned by Morgan, who for decades has been instrumental in formulating and refining sales and go-to-market strategies at Siebel, SAP and other fast movers held by Blackstone.
What works to her favor is UKG’s franchise in Workforce Management, reinforced by a tight integration into other Core HR, Payroll, and talent management apps, all of which have brought in healthy margins.
For its fiscal 2024, ARTW expects UKG to report EBITDA margins higher than those of Dayforce and Workday, 28% and 25% respectively. Under a new CEO with an urgency to grow UKG, ARTW expects Morgan to be willing to settle for a lower margin through expansive moves into new and existing markets in order to thwart any incursion from rivals and disruptors at a time when a new breed of HCM applications powered by digital agents begin to alter the competitive landscape.
Unlike her predecessors preoccupied with starting and prepping for the Grand Prix, it is now up to Morgan to finish and win the race by becoming the change agent that UKG and its customers are clamoring for.
UKG Customers – Winners of the Innovation Awards at UKG Aspire 2024
Source: APPS RUN THE WORLD Technographics, November 2024
- UKG, a United States based Professional Services organization with 15000 Employees
- Hewlett Packard Enterprise, a United States based Professional Services company with 62000 Employees
- Workplace Wave, a United States based Professional Services organization with 10 Employees
| Logo | Company | Industry | Employees | Revenue | Country | Evaluated |
|---|---|---|---|---|---|---|
 | UKG | Professional Services | 15000 | $3.6B | United States | 2025-01-06 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2025-01-06 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United States | 2025-01-04 |
| Subscribe | Subscribe | Professional Services | 40 | $4M | United States | 2025-01-02 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2025-01-01 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-31 |
| Subscribe | Subscribe | Professional Services | 200 | $40M | United States | 2024-12-31 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-30 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-27 |
| Subscribe | Subscribe | Professional Services | 600 | $130M | India | 2024-12-26 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-24 |
| Subscribe | Subscribe | Communications | 10 | $1M | United States | 2024-12-24 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-23 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-19 |
| Subscribe | Subscribe | Professional Services | 155 | $45M | United Kingdom | 2024-12-19 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-18 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | Mexico | 2024-12-18 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United States | 2024-12-18 |
| Subscribe | Subscribe | Leisure and Hospitality | 350 | $40M | United States | 2024-12-17 |
| Subscribe | Subscribe | Communications | 10 | $1M | United States | 2024-12-14 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-12-13 |
| Subscribe | Subscribe | Professional Services | 3500 | $900M | United Arab Emirates | 2024-12-13 |
| Subscribe | Subscribe | Professional Services | 64000 | $19.2B | United States | 2024-12-12 |
| Subscribe | Subscribe | Professional Services | 364000 | $50.3B | United Kingdom | 2024-12-12 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United States | 2024-12-12 |
| Subscribe | Subscribe | Professional Services | 20 | $3M | United States | 2024-12-12 |
| Subscribe | Subscribe | Professional Services | 80 | $8M | United Kingdom | 2024-12-12 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-12-11 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-11 |
| Subscribe | Subscribe | Communications | 10 | $1M | United States | 2024-12-11 |
| Subscribe | Subscribe | Leisure and Hospitality | 331 | $53M | United States | 2024-12-11 |
| Subscribe | Subscribe | Professional Services | 20 | $2M | India | 2024-12-11 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-12-10 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-12-09 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-09 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United Kingdom | 2024-12-09 |
| Subscribe | Subscribe | Education | 1800 | $430M | France | 2024-12-08 |
| Subscribe | Subscribe | Distribution | 1000 | $114M | United States | 2024-12-07 |
| Subscribe | Subscribe | Retail | 12 | $2M | United States | 2024-12-07 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | Australia | 2024-12-07 |
| Subscribe | Subscribe | Professional Services | 7523 | $820M | Japan | 2024-12-06 |
| Subscribe | Subscribe | Professional Services | 2000 | $500M | United States | 2024-12-06 |
| Subscribe | Subscribe | Professional Services | 107583 | $32.5B | Germany | 2024-12-06 |
| Subscribe | Subscribe | Manufacturing | 3200 | $500M | United States | 2024-12-06 |
| Subscribe | Subscribe | Distribution | 1000 | $114M | United States | 2024-12-06 |
| Subscribe | Subscribe | Professional Services | 50 | $5M | United States | 2024-12-06 |
| Subscribe | Subscribe | Professional Services | 1200 | $530M | Colombia | 2024-12-06 |
| Subscribe | Subscribe | Professional Services | 61 | $9M | Canada | 2024-12-06 |
| Subscribe | Subscribe | Banking and Financial Services | 30 | $3M | Curaçao | 2024-12-06 |
| Subscribe | Subscribe | Professional Services | 30 | $3M | United Kingdom | 2024-12-06 |
| Subscribe | Subscribe | Oil, Gas and Chemicals | 120000 | $125.0B | United States | 2024-12-05 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-05 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | Hong Kong | 2024-12-05 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-12-04 |
| Subscribe | Subscribe | Non Profit | 5000 | $800M | France | 2024-12-04 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-04 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United States | 2024-12-04 |
| Subscribe | Subscribe | Insurance | 3430 | $2.4B | United States | 2024-12-03 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-12-03 |
| Subscribe | Subscribe | Education | 250 | $30M | United States | 2024-12-03 |
| Subscribe | Subscribe | Education | 2600 | $595M | United States | 2024-12-03 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-03 |
| Subscribe | Subscribe | Professional Services | 4128 | $1.2B | United States | 2024-12-03 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-12-02 |
| Subscribe | Subscribe | Retail | 1443 | $400M | United States | 2024-12-02 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-12-02 |
| Subscribe | Subscribe | Banking and Financial Services | 10 | $1M | United States | 2024-12-02 |
| Subscribe | Subscribe | Automotive | 1500 | $400M | United States | 2024-12-02 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United States | 2024-12-02 |
| Subscribe | Subscribe | Professional Services | 1000 | $100M | India | 2024-11-29 |
| Subscribe | Subscribe | Healthcare | 150 | $20M | United States | 2024-11-28 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-11-27 |
| Subscribe | Subscribe | Professional Services | 107583 | $32.5B | Germany | 2024-11-27 |
| Subscribe | Subscribe | Banking and Financial Services | 2000 | $3.3B | United States | 2024-11-27 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-11-27 |
| Subscribe | Subscribe | Manufacturing | 3461 | $700M | United States | 2024-11-27 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United States | 2024-11-27 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-11-26 |
| Subscribe | Subscribe | Professional Services | 157 | $25M | United Kingdom | 2024-11-26 |
| Subscribe | Subscribe | Banking and Financial Services | 5100 | $1.0B | India | 2024-11-26 |
| Subscribe | Subscribe | Professional Services | 152 | $10M | United States | 2024-11-26 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-11-25 |
| Subscribe | Subscribe | Professional Services | 17000 | $3.7B | United States | 2024-11-25 |
| Subscribe | Subscribe | Retail | 20 | $2M | United States | 2024-11-25 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-11-25 |
| Subscribe | Subscribe | Non Profit | 28 | $3M | United States | 2024-11-23 |
| Subscribe | Subscribe | Leisure and Hospitality | 3000 | $750M | India | 2024-11-23 |
| Subscribe | Subscribe | Insurance | 40 | $4M | United States | 2024-11-23 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-11-22 |
| Subscribe | Subscribe | Professional Services | 4900 | $900M | United States | 2024-11-22 |
| Subscribe | Subscribe | Construction and Real Estate | 1000 | $300M | United States | 2024-11-22 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-11-22 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United States | 2024-11-22 |
| Subscribe | Subscribe | Banking and Financial Services | 10 | $1M | United States | 2024-11-22 |
| Subscribe | Subscribe | Education | 924 | $100M | United States | 2024-11-22 |
| Subscribe | Subscribe | Professional Services | 1000 | $100M | India | 2024-11-22 |
| Subscribe | Subscribe | Leisure and Hospitality | 3000 | $750M | India | 2024-11-22 |
| Subscribe | Subscribe | Communications | 10 | $1M | United States | 2024-11-22 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United States | 2024-11-22 |
| Subscribe | Subscribe | Manufacturing | 10 | $1M | United Kingdom | 2024-11-22 |
| Subscribe | Subscribe | Professional Services | 10 | $1M | United States | 2024-11-22 |
| Subscribe | Subscribe | Construction and Real Estate | 10 | $1M | United States | 2024-11-22 |
| Subscribe | Subscribe | Professional Services | 15000 | $3.6B | United States | 2024-11-21 |
| Subscribe | Subscribe | Government | 115600 | $35.3B | United States | 2024-11-21 |
| Subscribe | Subscribe | Professional Services | 12000 | $3.0B | United States | 2024-11-21 |
| Subscribe | Subscribe | Distribution | 900 | $240M | Australia | 2024-11-21 |
| Subscribe | Subscribe | Retail | 30000 | $6.1B | United States | 2024-11-21 |
| Subscribe | Subscribe | Professional Services | 62000 | $29.1B | United States | 2024-11-21 |
| Subscribe | Subscribe | Professional Services | 6500 | $700M | United Kingdom | 2024-11-21 |
| Subscribe | Subscribe | Retail | 10 | $1M | United States | 2024-11-21 |
| Subscribe | Subscribe | Transportation | 175 | $20M | United States | 2024-11-21 |
| Subscribe | Subscribe | Professional Services | 100 | $10M | Canada | 2024-11-21 |
| Subscribe | Subscribe | Professional Services | 350 | $55M | Australia | 2024-11-21 |
| Subscribe | Subscribe | Professional Services | 30 | $3M | India | 2024-11-21 |
| Subscribe | Subscribe | Leisure and Hospitality | 331 | $53M | United States | 2024-11-21 |
| Subscribe | Subscribe | Leisure and Hospitality | 70 | $7M | United States | 2024-11-21 |
| Subscribe | Subscribe | Government | 167 | $18M | United States | 2024-11-21 |
| Subscribe | Subscribe | Professional Services | 4000 | $527M | United Kingdom | 2024-11-21 |
| Subscribe | Subscribe | Manufacturing | 700 | $170M | United States | 2024-11-21 |
| Subscribe | Subscribe | Manufacturing | 50 | $7M | Norway | 2024-11-21 |
