Ultimate Software and Kronos Are Now Together As UKG

UKG preps to lead the HCM apps market especially in Core HR, Payroll and Workforce Management

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The suspense is over. Almost five months after Kronos and Ultimate Software merged to create a $3 billion HCM application powerhouse, the combined company has a new name: UKG as in Ultimate Kronos Group with Our Purpose is People as its tagline.

Ultimate Software and Kronos usher in UKG with Aron Ain (top right) as CEO
Ultimate Software and Kronos usher in UKG with Aron Ain (top right) as CEO

UKG is short and sweet. The only concern is whether some may confuse it with USG, the drywall manufacturer. However, UKG is expected to invest heavily in its new branding push in order to raise the awareness of the umbrella group that unites a plethora of HR, payroll and workforce management applications purposely built for people and verticals.

UKG will start promoting the new name through its sports sponsorship programs like the scheduled appearance of tennis star Novak Djokovic, the current favorite to win the US Open by wearing the UKG logo during the September 2020 tournament.

Acronyms are rare in enterprise software. Among the more than 1,600 vendors featured in our next Cloud Top 500 report, about a dozen or so use acronyms in their names notably ADP, CDK, CGI, FIS, IBM, NCR, SAP, and SAS. Even JDA, the long-time supply chain apps vendor, has recently changed its name to Blue Yonder.

Jody Kaminsky, Chief Marketing Officer of UKG, said after the completion of the merger in April, the company spent months surveying its employees, customers, industry analysts and other key stakeholders to identify and select the new name while incorporating their input for the rebranding strategy.

What UKG aims is to excel in its core areas from Core HR, payroll, and HR Service Delivery in midmarket to workforce management for companies of all sizes, while placing equal emphasis on its global expansion plans.

This is what the UKG press release has to say about its mission:

“UKG will connect employees to their work and their colleagues, develop strong leaders and teams, provide insights that promote better business outcomes, and help organizations develop people-centered HR programs and effective operations—demonstrating that, when companies focus on caring for their people, they will see more engaged employees that yield positive long-term results.”

Our take is that the emphasis should be on the G, which could become a significant force in buying, integrating and scaling out many best-of-breed and suite products to form an expanded network of HCM, payroll, workforce management, talent acquisition and perhaps non-HR applications for the global audience.

Over the next few months, UKG will be busy harnessing its two main operations in Lowell, MA, and Weston, FL, in order to build the momentum needed to rally behind the unifying brand, not a trivial task as most of its 12,000+ employees are scattered all over the world as they continue to work remotely amid the pandemic.

Another challenge is to formulate a cohesive strategy across sales, development and customer success in order to out maneuver SAP and Workday in a tight three-horse race to become the dominant HCM applications vendors. SAP is operating under a new management structure led by Christian Klein as the recently-appointed sole CEO and Workday has been expanding heavily into procurement, enterprise performance management through the acquisitions of Scout RFP and Adaptive Insights after establishing a loyal following for its Cloud HCM applications.

Because the $22-billion merger took place in early 2020, both Ultimate Software and Kronos were still counted separately as they trailed behind SAP and Workday in the worldwide HCM applications market in 2019. Our current estimate is that all three(UKG, SAP and Workday) are on track to post more than $2 billion each  in HCM applications revenues in 2020 with SAP maintaining a slight lead because of heavy contributions from Fieldglass, which is expected to experience considerable growth for its contingent labor management applications this year. With the workplace turning virtual and workforce requirements becoming more fungible, employers are expected to rely on contractors and gig workers even more in 2020.

Still, the pandemic and economic downturn will pose significant risks to all three given their exposure to a range of customers in struggling verticals such as leisure, hospitality, retail, transportation, travel, and even healthcare that are being upended by the public health crisis.

What works to UKG’s advantage is its laser focus on HCM, something that is becoming more critical and perhaps fluid than ever given remote work will be here to stay, unemployment rates in the United States and elsewhere continue to stay elevated and shortages of skilled workers remain the top priority for many employers.

If UKG succeeds in helping its installed base of 23,000+ customers tackle any of the above knotty issues in 2020 by touting and fulfilling its mission, its ultimate win as the No. 1 HCM applications vendor may well be within reach.

Partial List of UKG Customers

CustomerIndustryEmpl.RevenueCountryVendorNew Product
AdventHealth OcalaHealthcare2500$384.0MUnited StatesUltimate SoftwareUltiPro HCM
Air Canada JazzTransportation4400$1.67BCanadaUltimate SoftwareUltiPro HCM
Air Methods CorpAerospace and Defense4554$10.85BUnited StatesUltimate SoftwareUltiPro HCM
AMN HealthcareProfessional Services2920$213.6MUnited StatesUltimate SoftwareUltiPro HCM
Crescent Hotels and ResortsLeisure and Hospitality6435$720.0MUnited StatesUltimate SoftwareUltiPro HCM
CRISTA MinistriesNon Profit1001$112.0MUnited StatesUltimate SoftwareUltiPro HCM
DeVry Education GroupEducation10136$1.85BUnited StatesUltimate SoftwareUltiPro HCM
Dex MediaProfessional Services3000$1.19BUnited StatesUltimate SoftwareUltiPro HCM
Earls RestaurantsRetail7000$300.0MCanadaUltimate SoftwareUltiPro HCM
Federated Co-operatives LimitedManufacturing23000$8.15BCanadaUltimate SoftwareUltiPro HCM
Festival FoodsRetail7500$700.0MUnited StatesUltimate SoftwareUltiPro HCM
Hot Topic, Inc.Retail10000$230.0MUnited StatesUltimate SoftwareUltiPro HCM
Islands RestaurantsRetail4100$90.0MUnited StatesUltimate SoftwareUltiPro HCM
Mediacom Communications CorporationMedia5000$1.62BUnited StatesUltimate SoftwareUltiPro HCM
MISTRAS Group, Inc.Professional Services5600$719.0MUnited StatesUltimate SoftwareUltiPro HCM
MKS Instruments IncManufacturing5500$1.90BUnited StatesUltimate SoftwareUltiPro HCM
Movement Mortgage, LLCBanking and Financial Services4000$580.0MUnited StatesUltimate SoftwareUltiPro HCM
Peet’s CoffeeRetail5000$800.0MUnited StatesUltimate SoftwareUltiPro HCM
Pernod Ricard USAConsumer Packaged Goods19000$10.00BUnited StatesUltimate SoftwareUltiPro HCM
Praxair, Inc.Utilities26461$11.70BUnited StatesUltimate SoftwareUltiPro HCM
SchlumbergerOil, Gas and Chemicals103000$32.92BUnited StatesUltimate SoftwareUltiPro HCM
AdventHealth OcalaHealthcare25172$384.0MUnited StatesUltimate SoftwareUltiPro HCM
YMCA of San Diego CountyNon Profit6094$15.5MUnited StatesUltimate SoftwareUltiPro HCM
ItochuDistribution119796$106.46BJapanUltimate SoftwareUltiPro Recruiting
Plains GP Holdings, L.P.Oil, Gas and Chemicals4900$34.06BUnited StatesUltimate SoftwareUltiPro Recruiting
Core-Mark Holding Company, Inc.Distribution8087$16.40BUnited StatesUltimate SoftwareUltiPro Recruiting
ALDI USARetail30000$13.50BUnited StatesUltimate SoftwareUltiPro Recruiting
Community Health Systems, Inc.Healthcare63000$13.21BUnited StatesUltimate SoftwareUltiPro Recruiting
Bunzl UK and IrelandDistribution19000$11.49BUnited KingdomUltimate SoftwareUltiPro Recruiting
SubwayRetail65178$10.41BUnited StatesUltimate SoftwareUltiPro Recruiting
Thor Industries, Inc.Manufacturing17500$8.30BUnited StatesUltimate SoftwareUltiPro Recruiting
EMCOR Group, Inc.Construction and Real Estate33000$8.13BUnited StatesUltimate SoftwareUltiPro Recruiting
Roper Technologies, Inc. (Deltek)Manufacturing15611$5.19BUnited StatesUltimate SoftwareUltiPro Recruiting
Avon Products, Inc.Consumer Packaged Goods25000$5.00BUnited StatesUltimate SoftwareUltiPro Recruiting
Bloomin’ Brands, Inc.Retail93000$4.13BUnited StatesUltimate SoftwareUltiPro Recruiting
Amgen Inc.Life Sciences23400$2.34BUnited StatesUltimate SoftwareUltiPro Recruiting
NFI IndustriesDistribution12600$2.00BUnited StatesUltimate SoftwareUltiPro Recruiting
Rollins, Inc.Professional Services13000$1.82BUnited StatesUltimate SoftwareUltiPro Recruiting
Walmart Inc.Retail2200000$523.96BUnited StatesKronosKronos Workforce Central
Amazon.com, Inc.Retail840400$280.52BUnited StatesKronosKronos Workforce Central
G4S plcProfessional Services558000$9.86BUnited KingdomKronosKronos Workforce Central
TescoRetail454419$81.91BUnited KingdomKronosKronos Workforce Central
The Kroger CompanyRetail435000$122.29BUnited StatesKronosKronos Workforce Central
The Home Depot, Inc.Professional Services415700$110.23BUnited StatesKronosKronos Workforce Central
Steward Health CareHealthcare400000$8.00BUnited StatesKronosKronos Workforce Central
SiemensManufacturing385000$99.33BGermanyKronosKronos Workforce Central
DHLTransportation380000$10.00BGermanyKronosKronos Workforce Central
Royal Ahold Delhaize N.V.Retail372000$70.35BNetherlandsKronosKronos Workforce Central
Securitas Security Services USA, Inc.Professional Services370000$6.30BUnited StatesKronosKronos Workforce Central
Target CorporationRetail360000$75.36BUnited StatesKronosKronos Workforce Central
Starbucks CorporationRetail346000$26.51BUnited StatesKronosKronos Workforce Central
WalgreensRetail342000$136.90BUnited StatesKronosKronos Workforce Central
UnitedHealth Group IncorporatedHealthcare325000$240.27BUnited StatesKronosKronos Workforce Central
FedEx CorporationTransportation309000$69.69BUnited StatesKronosKronos Workforce Central
Kaiser PermanenteHealthcare304874$79.70BUnited StatesKronosKronos Workforce Central
NestléConsumer Packaged Goods291000$98.26BSwitzerlandKronosKronos Workforce Central
CVS Health CorporationLife Sciences290000$256.78BUnited StatesKronosKronos Workforce Central
The TJX Companies, Inc.Retail286000$41.72BUnited StatesKronosKronos Workforce Central
PepsiCo, Inc.Manufacturing267000$67.16BUnited StatesKronosKronos Workforce Central
Wells Fargo & CompanyBanking and Financial Services266000$85.06BUnited StatesKronosKronos Workforce Central
JPMorgan Chase & Co.Banking and Financial Services256710$115.63BUnited StatesKronosKronos Workforce Central
AT&T Inc.Communications244000$181.19BUnited StatesKronosKronos Workforce Central
U.S. Department of Homeland SecurityGovernment240000$51.67BUnited StatesKronosKronos Workforce Central
HSBC HoldingsBanking and Financial Services235047$68.07BUnited KingdomKronosKronos Workforce Central
Delta Air Lines, Inc.Transportation91000$47.01BUnited StatesKronosKronos Workforce Dimensions
Emerson Electric Co.Manufacturing88000$18.37BUnited StatesKronosKronos Workforce Dimensions
Chipotle Mexican Grill, Inc.Consumer Packaged Goods85000$558.6MUnited StatesKronosKronos Workforce Dimensions
Australia PostProfessional Services80000$4.79BAustraliaKronosKronos Workforce Dimensions
Meijer Inc.Retail80000$17.80BUnited StatesKronosKronos Workforce Dimensions
Delaware NorthLeisure and Hospitality55000$3.20BUnited StatesKronosKronos Workforce Dimensions
TeleTechProfessional Services50000$1.51BUnited StatesKronosKronos Workforce Dimensions
Cardinal Health, Inc.Healthcare49500$145.53BUnited StatesKronosKronos Workforce Dimensions
Tesla, Inc.Automotive48016$24.58BUnited StatesKronosKronos Workforce Dimensions
The Allstate CorporationInsurance45780$44.68BUnited StatesKronosKronos Workforce Dimensions
CHRISTUS HealthHealthcare45000$5.40BUnited StatesKronosKronos Workforce Dimensions
Brookdale Senior Living Inc.Healthcare43200$4.53BUnited StatesKronosKronos Workforce Dimensions
CarnivalLeisure and Hospitality40000$10.00BUnited StatesKronosKronos Workforce Dimensions
Menzies AviationTransportation36000$1.54BUnited KingdomKronosKronos Workforce Dimensions
Praxair, Inc.Utilities26461$11.70BUnited StatesKronosKronos Workforce Dimensions
L Brands, Inc.Retail25500$13.24BUnited StatesKronosKronos Workforce Dimensions
Alaska Air Group, Inc.Aerospace and Defense23376$6.55BUnited StatesKronosKronos Workforce Dimensions
Rona, Inc.Retail22000$3.31BCanadaKronosKronos Workforce Dimensions
DAL Global ServicesProfessional Services22000$5.00BUnited StatesKronosKronos Workforce Dimensions
The University of Texas MD Anderson Cancer CenterHealthcare21700$5.90BUnited StatesKronosKronos Workforce Dimensions
AlconLife Sciences20000$7.40BSwitzerlandKronosKronos Workforce Dimensions
Alsco Inc.Professional Services20000$7.00BUnited StatesKronosKronos Workforce Dimensions
Healius LimitedHealthcare13000$1.80BAustraliaKronosKronos Workforce Dimensions
Dairy Farm GroupRetail230000$11.19BHong KongKronosKronos Workforce Central
AmeriQual Group, LLCConsumer Packaged Goods900$313.0MUnited StatesKronosKronos Workforce Ready
Armour Eckrich Meats LlcConsumer Packaged Goods250$30.0MUnited StatesKronosKronos Workforce Ready
Borg ManufacturingManufacturing1800$220.0MAustraliaKronosKronos Workforce Ready
City of ManitowocGovernment373$126.0MUnited StatesKronosKronos Workforce Ready
Farmer BrothersConsumer Packaged Goods1521$595.0MUnited StatesKronosKronos Workforce Ready
University of California IrvineEducation25827$510.0MUnited StatesKronosKronos Workforce TeleStaff
City of BostonGovernment22000$3.15BUnited StatesKronosKronos Workforce TeleStaff
City of EdmontonGovernment15115$3.11BCanadaKronosKronos Workforce TeleStaff
City of San DiegoGovernment11579$160.0MUnited StatesKronosKronos Workforce TeleStaff
Chesterfield County, VAGovernment11155$720.0MUnited StatesKronosKronos Workforce TeleStaff
Fresno CountyGovernment8105$155.0MUnited StatesKronosKronos Workforce TeleStaff

Source: Apps Run The World, August 2020

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