Vendor Landscape: SaaS HRIS/HRMS Automating and integrating HR for heightened strategic capabilities.

Introduction The strategic value of Human Resources is only gaining significance, and HRIS/HRMS must support this trend or lose out on this market of multiple needs. SaaS products provide the high functionality and usability required. This Research Is Designed For: This Research Will Help You: Enterprises seeking to select a SaaS solution for HRIS/HRMS. Enterprises with a SaaS HRIS/HRMS use case that may include: Creating a central database of employee information for reporting and strategic planning. Integrating talent management or payroll with the employee information database. Centralizing all talent management modules including performance management into one system. Understand what’s new in the SaaS HRIS/HRMS market. Evaluate SaaS HRIS/HRMS vendors and products for your enterprise needs. Determine which SaaS products are most appropriate for particular use cases and scenarios.

Market Overview How it got here Where it’s going HRIS products were originally the “record keepers” of employee data. They were essentially databases that collected demographic information, salary data, benefits administration, and performance appraisal results. The main objective of the systems was to maintain employee data integrity and centralization as opposed to the traditional model of using single-user spreadsheets and paper employee files. The HRIS was administered by the HR department with IT assistance. Reporting functionalities were basic and limited to employee lists, organizational charts, and historical salary information. HRIS began to integrate into ERP systems as HR became more complex, strategic, and less administratively focused in order to inform payroll and gain increased reporting capabilities. Large ERP vendors like Lawson, Oracle, and SAP capitalized by offering HRIS as part of their overall ERP offerings. The highly strategic nature of HR has created a demand for more multi-functional products. “Integrated talent management” are the new buzz words. Vendors are now offering modules and partnerships that are easily integrated and configurable. Integration dominates, giving HR the flexibility to choose the best fit for the organization. Enter SaaS HRIS/HRMS products, which are independent of ERP systems and offer functionality beyond mere data repository: Configurable workflows, manager and employee self-service, payroll integration, and compliance reporting are key to making HR more efficient. Recruiting, performance management, succession planning, learning management, benchmarking, and analytics reporting are now high demand functions to assist HR in becoming more strategic. Mobile and predictive analytics are the new wave of functionality that will increase convenience and data-driven strategic decision-making. As the market evolves, capabilities that were once cutting edge become standard and new functionality becomes differentiating. Manager and employee self-service and payroll integration have become Table Stakes capabilities and should no longer be used to differentiate solutions. Instead, focus on talent management modules, integration capabilities, and usability to get the best fit for your requirements.

Included in the Vendor Landscape: SaaS HRIS/HRMS Vendor Landscape selection/knock-out criteria: Market share, mind share, and market consolidation For this Vendor Landscape, McLean & Company focused on those vendors that have SaaS offerings and are not competing in the ERP market. “Pure play” vendors – those with many functionalities in addition to basic HRIS functionalities – were included to compare the integrated talent management system landscape. However, talent management vendors without basic HRIS functionality were not considered. Only vendors that were at least SAS 70 II compliant were considered. Ascentis. Strong payroll functionality for the mid-market. Kronos. The market leader, with major workforce management capabilities. NuView Systems Inc. A dedicated international player with multiple language capabilities. SilkRoad. The user-friendly suite with various module offerings. SuccessFactors. Performance management expert with strong HRIS collaboration and reporting capabilities. Ultimate. An award-winning system with high scalability capabilities. Workday. Innovative newcomer with a quickly growing presence. Included in the Vendor Landscape:

SaaS HRIS/HRMS Criteria & Weighting Factors Features Usability Affordability Architecture Product Evaluation The solution provides basic and advanced feature/functionality. Features The five year TCO of the solution is economical. Affordability The solution’s dashboard and reporting tools are intuitive and easy to use. Usability Product Vendor The delivery method of the solution aligns with what is expected within the space. Architecture Vendor Evaluation Vendor is profitable, knowledgeable, and will be around for the long-term. Viability Viability Strategy Reach Channel Vendor is committed to the space and has a future product and portfolio roadmap. Strategy Vendor offers global coverage and is able to sell and provide post-sales support. Reach Vendor channel strategy is appropriate and the channels themselves are strong. Channel

Table Stakes represent the minimum standard – without these, a product doesn’t even get reviewed The Table Stakes What Does This Mean? Feature Description Employee Data Capture Records demographic information about employees, including name, address, salary, department, etc. Payroll Administration Hours worked, commissions, vacation, leaves of absence, overtime, deductions, bonuses, taxes, and contributions are properly documented and distributed in a timely manner. Reporting Capabilities Provides standard templates and custom options to pull data into meaningful reports (e.g. turnover, absenteeism, diversity) for both HR and business use. Role-based Interfaces Both employee and manager self-service options available to change or modify information and generate reports. Workflow Tasks can be configured to an authorization process that notifies individuals of outstanding authorization requirements. SaaS Compliance Meets SAS 70 Type II certification or higher for data security. Employment Compliance Preset or configurable options to track, monitor, and alert administrators on common workplace compliance requirements like OSHA, COBRA, etc. The products assessed in this Vendor LandscapeTM meet, at the very least, the requirements outlined as Table Stakes. Many of the vendors go above and beyond the outlined Table Stakes, and some even do so in multiple categories. This section aims to highlight each product’s capabilities in excess of the criteria listed here. If Table Stakes are all you need from your SaaS HRIS/HRMS solution, all the vendors evaluated here will meet your functionality needs. However, usability, configurability, international capabilities, and future use cases should still be considered.

Advanced features are the market differentiators that make or break a product Scoring Methodology Advanced Features Feature What We Looked For Time & Attendance Documents employee labor hours (including lunches and breaks, overtime, etc.), and tracks attendance data for payroll purposes. Benefits Administration Monitors programs and plans, including pension, insurance, and healthcare, and ensures payments and deductions are made correctly. Position Management Employees can be assigned a position grade, promoted, and moved into different departments, allowing for workforce planning. Performance Management Evaluates and documents performance so that each employee effectively meets business goals. Expense Management Reports and tracks that employee expense claims are processed, paid, and documented in compliance with the organization’s policies. Succession Planning Identifies and tracks development of personnel who demonstrate potential for increased responsibility and key leadership roles. Absence Management Measures and monitors employee absences to ensure maximum workforce productivity as well as employee support. Learning & Development Facilitates training to improve employee performance. Predictive Analytics Examines statistically relevant data for significant relationships and patterns to aid predictions about future trends, opportunities, and risks. Recruiting Tracks job applicants throughout the recruiting process. McLean & Company scored each vendor’s offering as a summation of its individual scores across the listed advanced features. Vendors were given one point for each feature the product inherently provided. Some categories were scored on a more granular scale with vendors receiving half points.

Global organizations require scalability, international experience, language and compliance capabilities Exemplary performers offer multiple languages, international reporting, and have a strong global client portfolio. Exemplary Performers 1 Global Scalability 2 Features and Usability Viable Performers 3 Mobile Functionality Poor Performers 4

Integrated talent management requires a variety of features and slick usability to encourage use Exemplary performers have strong scores in both functionality and usability, with viable performers excelling more at one or the other. Exemplary Performers 1 Global Scalability 2 Features and Usability Viable Performers 3 Mobile Functionality Adequate Performers 4

Mobile functionality is an emerging trend with high demand from busy HR professionals and managers Robust mobile functionality on various mobile devices rather than just selected devices gets top points. Exemplary Performers 1 Global Scalability 2 Features and Usability Viable Performers 3 Mobile Functionality Poor Performers 4

Appendix Vendor Evaluation Methodology Value Index Ranking Methodology Product Pricing Scenario & Methodology

McLean & Company Helps HR Professionals To: Empower management to apply HR best practices Develop effective talent acquisition & retention strategies Build a high performance culture Maintain a progressive set of HR policies & procedures Demonstrate the business impact of HR Stay abreast of HR trends & technologies Sign up for free trial membership to get practical solutions for your HR challenges "McLean & Company provides practical research, tools and advice covering the entire spectrum of HR & Leadership issues to ensure you experience measurable, positive results." - Rob Garmaise, VP of Customer Experience Toll Free: 1-877-281-0480 hr.mcleanco.com