—Full Payback in as Little as Three Months—
Date: March 7, 2017 2:00 PM EDT
Ultimate Software (Nasdaq: ULTI), a leading provider of human capital management (HCM) solutions in the cloud, announced today the summary results of a series of return on investment (ROI) studies conducted by third-party analyst firm Nucleus Research from Q4 2015 to Q4 2016. The Ultimate customers analyzed during the studies achieved a significant ROI ranging from 158% to 475% through HR, payroll, time management, and talent management process efficiencies; increased productivity; enhanced reporting; reduced administrative costs; improved payroll accuracy; and other direct and indirect cost savings. With UltiPro, several employers experienced well over four times the return on their initial investment. Additionally, the average payback period for these customers was 4.7 months.
The Ultimate customers, ranging from mid-sized organizations to large global enterprises, represented a wide range of industries including manufacturing, law, financial services, and hospitality.
“We found several factors that consistently contributed to the ROI of UltiPro deployments,” said Brent Skinner, principal analyst at Nucleus Research. “Companies experienced timely, predictable implementations, which shortened the time to payback, a factor in ROI. In addition, the cost to activate UltiPro was often significantly less than the cost a company faced to keep its incumbent solution in place. By deploying UltiPro, some companies avoided paying for costly, required upgrades to the systems they replaced.”
Nucleus Research identified indirect and direct benefits from UltiPro that contributed to ROI. Indirect productivity gains averaged 32% of all benefits contributing to ROI, and were achieved by eliminating inefficiencies and simplifying workflow across a wide breadth of HCM. These indirect benefits included:
• More efficient onboarding of new hires
• Faster and better-structured talent acquisition
• Expedited workflow related to performance reviews
• Improvement in staff productivity during annual benefits open enrollment
Direct benefits from UltiPro, which accounted for 68% of customers’ ROI, included eliminated or avoided costs such as UltiPro’s ability to lower payroll error rates, and the elimination of recurring expenses related to printing and mailing hard copy checks or paystubs, as well as quarterly or year-end tax forms.
“We deployed UltiPro to replace a legacy system and centralize payroll activities for all locations,” said Debra Punke, senior vice president of human capital for Concord Hospitality. “By reducing technology costs, standardizing processes and reporting, and significantly increasing staff productivity, we were able to achieve an average annual benefit of over $1.3 million.”
“UltiPro is designed to increase business efficiencies, increase productivity, reduce time spent on manual tasks, and provide executives with the important business-management tools they need to make strategic decisions that result in better business outcomes,” said Greg Swick, enterprise chief sales officer at Ultimate. “These results from Nucleus demonstrate that UltiPro can help companies achieve exceptional savings, boosting bottom-line results.”
To learn more about HRchitect and how we can help your organization and your Human Capital Management (HCM) technology needs, please request a consultation. As the leader in HCM Systems strategic consulting, we offer end-to-end HR technology consulting services focused around strategic planning, evaluation and selection, change management, implementation, project management and ongoing support of HCM systems of all types including Talent Acquisition, Talent Management, Learning Management, Workforce Management, Benefits, Core HR/Payroll, and more. Over the past two decades, working on thousands of successful engagements for clients of all sizes and industries across the globe, our knowledge of best practices continues to expand and our experience is vast and unsurpassed. We have expertise around all major HCM systems including Benefitfocus, WorkForce Software, Ultimate Software, Oracle, Taleo, SAP, SuccessFactors, Saba, IBM Kenexa, and more. HRchitect is a name you can trust for all of your organization’s HCM technology-related consulting needs.
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