SaaS Work Management Software Market Comparison

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SaaS Work Management Software Market Comparison

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an overview of the emerging market for work management software which blends HR technology (HCM) with Corporate Performance Management

an overview of the emerging market for work management software which blends HR technology (HCM) with Corporate Performance Management

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  • 1. Market Landscape for Work Management SoftwareSoftware is going to the cloud which has given rise to the emergence of SaaS replacing licensedsoftware.And with SaaS democratizing software for the masses, new software applications areincreasingly worker-centric as opposed to departmental or functional administration oriented.“Work management software," a term popularized by Bill Kutik in 2011, combines ‘socialperformance management’ with collaboration tools into existing finance, revenue, servicesdelivery, HR, and industry solutions. Work management software commonly blends the line andintegrates across functions including HR, Sales, and Finance. Common application focuses are:  Revenue Management: Management across partner/marketing/sales/CRM stage to sales performance management to client work management.  Talent Management: From recruiting to employee management including the full employee work cycle from hire to retire/fire as well as career development and management.  Workforce Management: Empowers the worker to perform better.While every company today requires technology to effectively manage, grow, and outperformthe completion; growth and adoption of SaaS Work Management software is being driven byconsumer oriented employees.The Future of Work: Adapt to Today’s WorkforceWork and the workforce are different today.  Today’s workforce is comprised of free agents, supertemps, Millenials, and the virtual workforce. For these groups work management is about leveraging the latest technology that fits into normal routines and behaviors to better perform.  To employers work management is about management engagement. The days of paying for wasted hours is dwindling as the ability to measure, monitor, and recognize individual and team contributions near real-time is prevalent.The future of the work management software is being widely influenced by consumerism,globalism, and community centrism. The rise of consumerism and its impact on workmanagement is everywhere from social to mobile to self-service. Technology today enablescustomers and employees to be much more engaged with their products and companies.We live in exciting times because the consumerization of technology has completely shifted theway to build a brand, acquire customers and grow a company. Every day companies around theworld reinvent themselves to adapt to today’s work. Regardless of industry, customers andemployees are online.Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 2. Contact us for the complete report for any of these areas: I. Technology Applications a. Human Capital Management (HCM): Talent Management HRMS / HRIS b. Talent Acquisition Recruiting & Staffing Technology c. Workforce Management: HR Social Corporate Performance Management d. Career Management e. FAO (Finance and administration back-office) f. Industry Solutions for Healthcare, Professionals, Hospitality II. Outsourcing a. RPO b. FAO c. MSP / ITO d. Healthcare Finance Services / Healthcare IT e. HRO, PEO, ASOIII. Global Landscape a. Payroll + HRMS / HRIS b. Talent Acquisition c. Workforce ManagementIV. Work Management Buyers Guide V. Industry Resources for Work ManagementSaaS Market AdoptionWhile SaaS is increasingly replacing licensed software, SaaS is also being adopted by small and mediumorganizations bringing enterprise capabilities to a much larger audience. In fact, the global marketpotential1 for SaaS extends to every function and facet of business. SaaS is not always the best solutionfit, but its high user adoption is far-reaching across organizational size, industry, and location.While the market for large companies2 is saturated with executives debating the merits ofadopting/upgrading to SaaS, the biggest market opportunity in the USA for SaaS is small business withmore than a million registered businesses and the mid-market with 100,000 companies. It isunderstandable that the majority of businesses will opt for a SaaS model that they can pay on-demand forwhat they actually use.Top SaaS adoption drivers cited by buyers in 2012 include:  “Outgrowing our current system” + “The need to move to a SaaS model”  “Need better reporting and data capture” + “Centralize data”The limit to SaaS growth is based on business growth as deciding to implement new software still requiresmeaningful ROI because if the software solution does not directly tie to dramatic improvement inemployee engagement, customer satisfaction, profitability or a major growth driver then it is not going tobe a priority.SaaS adoption is increasing as the current growth rates of market leaders is outpacing licensed software,and the recent investment funding and M&A deal activity highlights more growth to come in the future.1 $21B global market in 2012 (Gartner). 83% of all companies expect to adopt SaaS (IDC). HR systems growing at CAGR 8% to 22% depending upon module (Forrester).2 In the United States, half of all employees work for large companies or government. There are only 25,000 large organizations with more than 10,000 employeesheadquartered in the United States.Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 3. Payroll Landscape Payroll Market Landscape Summary There are approximately 100 niche players with significant, meaningful revenues ($2M+ in annual recurring non “pass-through / non-reseller revenues) plus four (4) major big players in payroll. While the payroll market for small businesses with less than 50 employees is highly competitive (“red ocean”) between the following vendor types:  Internal “Do it Yourself” Software  Big Four Payroll Providers  Professional Employer Organizations (PEO’s)  Accountants, Bookkeepers and FAO3 Outsourcers  Banks (Wels Fargo) & Insurance (Fidelity)  HR Outsourcers (HROs and ASOs)  500 service bureaus (mostly single location specific) The middle market is wide open as no nationwide dominant player exists. Regional payroll services and regional industry specific payroll and beyond service providers do exist in niches. Payroll Mid-Market Landscape 4:Regional Payroll + Regional Payroll + HR National Providers: Payroll Software Benefits Providers l Sources: American Payroll Association, IPPA, Ephor Payroll Software Providers5.database, LinkedIn. Payroll service bureaus are adding additional products/services. These “Beyond payroll services” include HR and other BPO services such as: a) HRMS features and functionality. B) FAO and other BPO services. C) Workforce management features such as Time and Attendance, Expense Management, work management, and social features. 3 Both FAO & F&A is abbreviated for “Finance and Administration” outsourcing solution providers. Scope of services vary widely among these providers. 4 Payroll Landscape does not include PEOs such as: TriNet, Insperity, EmpowerHR, AMCheck 5 For Payroll: Evolution, Millenium, ExecuPay For PEOs: Thinkware Inc’ Darwin, ISystems’ Evolution, Davison HR Pyramid, ExecuPay. For Time: NetTime Legiant, Cybershift, InfoTronics, WorkforceSoftware, AttendanceonDemand, NovaTime Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 4. Mid-Market FAO Outsourcing Service Providers & Software Implementation VARsFAO USA Market Landscape Non-Healthcare regional providers:The Future of 21st Century Online Accounting. The Leader in Back Office Services.Payroll, HRO, Accounting, FAO, Global. AR, AP, GL, Payroll, HROCloud Finance and Accounting Solutions Information is Power.FAO, Global Payroll + GL THE PREMIER U.S. BASED FINANCE AND ACCOUNTINGYour Total Financial Solution. OUTSOURCING FIRM™AP, AR, Payroll, GL, VBO, Project FAO, Technology, Compliance Certified Public Accountants & AdvisorsAccounting Outsourcing Solutions. Payroll, Consulting, AP, AR, FL, FAOOutsourced F&A Accounting advisory plus outsourced bookkeeping*There are numerous other regional providers and point specific solutions. Email us at ephor[at]ephorgroup.com for a complete list.SaaS FAO Software Options: SaaS ERP Platform for Cloud Financials Intacct NetSuite Epicor Workday Company Description Intacct is the award winning cloud fin NetSuite is the industrys first and on ERP software provides a single Enterprise SaaS ERPSWOT Strengths: Customer Focus SMEs + Financial Services, Organizations with 10k+ Construction, Manufacturing, Retail SMEs Mid-market employees only as of 2012 Strengths: Customer Base # of clients 8,000 10,000 20,000 300 Key Features/Values PHP/Oracle technology Java/Oracle technology Multiple products by industry and Complete Suite of Business Small business solution Small business solution function, C#, VB .NET. Real-time Management Services. CPA and OEM channels VAR channel in flux flow and single UI between CRM Java/Oracle technology Strong financials, weak distribution, Newest SaaS public company and ERP and back Enterprise Solution Overview no CRM Good market share Unclear channel Good professional services edition High growth; no profits New kid on the block New CEO for new life High price; add-on charges Very few clients Moderately priced Deep venture funding Priced at the high end URL www.intacct.com www.netsuite.com www.epicor.com www.workday.comEphor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 5. HRMS Landscape for the Mid-MarketHRMS6 Landscape Mid-Market 7Landscape 8 Exhibit9:*There are numerous other regional providers and point specific solutions. Email us at ephor[at]ephorgroup.com for a complete list.Does not include HRO10 providers:6 Driving HR SaaS Work Management is the demand for bundled (multi-process, multi-function) outsourced solutions such as Workforce Management(WFM) and Human Capital Management (HCM). These outsourcing solutions represent a large market due to limited overall penetration in the small &medium sized businesses (~50% of all business). In secondary and tertiary markets, enterprise providers with their “bundled” outsource serviceofferings are not present. With this unsatisfied demand, there is an opportunity for accelerated organic revenue growth (18%-22% per year).7 The Business Case for SaaS HRMS…  Automation of manual processes and administration. Bring the efficiency of transactional processing from an average of $15 per transaction to a few dollars. Leap into 3rd generation HR compliance, governance and risk management practices.  Tools that drive engagement, productivity, and performance against corporate goals. Social, mobile, and global features that work for today’s workforce including embedded language, user preferences, regulatory compliance and more.Primary Benefits…  Replaces “people dependent” and paper-driven forms with HR technology and HR services model (shared services, single or multi-process HRO).  Creates a unified platform; while replacing a “fixed-cost” model with a flexible cost model.  Reduction in human error, manual errors.  Improvement in labor costs and return on labor.8 The market potential for SaaS HR solutions including human capital management and talent management is estimated to be $10B and growing at18% CAGR8 worldwide8. The demand for SaaS HR solutions, may actually be greater as the use of mobile devices and tablets is accelerating the marketappetite for adoption of SaaS applications and SaaS HR solutions are also being integrated with ERP and other work management applications.9 HRMS Landscape Top Ten is focused on SaaS. Does not include upmarket products such as Oracle, SAP, Workday, or Lawson/Infor. HRMS does notinclude ERP vendors. HRMS vendors not including payroll directly with excluded.10 HRO: UnicornHRO, ACS, Northgate, ExcellerateHRO. HRO SMB = CorbanOneSource, ZeroChaos, Infosynch, Tag, AccessPointHR, Sheakley, Qqest, IES, UnicornHRO, CPEhr,Northgate.Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 6. HR Social Corporate Performance Management Landscape Connected to HREnabling technology requires an engaged and empowered team. CPM is the intersection of EPM11(employee performance management), BI (business intelligence), and Management Science (ManagementBest Practices).The 2012 consolidation in the HR talent management space has disrupted the market and created many opportunities.HR vendors now must choose to be an application that interfaces with ERP or payroll HRMS systems or other appdelivery platform or be swept under the wave moving towards the Corporate Performance Management Landscape:Social software for teams.SalesForce.com company. Creator of Social Goals. Employee Engagement w/ KPI The Social Performance Platform that Dashboard Management. works the way we do! A better way to get work done. Teamwork Reimagined. Productivity Tools to focus on whatCloud HR Company. matters, collaborate with your colleaguesFully integrated talent management and be recognized for your achievements.system based on Force.com. Real Time 360 Feedback and Recognition Performance Reviews. Software for the People.Recognition Done Right!SaaS Employee Recognition Leader. Inspiring Talent ManagementThe new face of workforce analytics. Integrated Talent Management SaaS Platform. 12Source for CPM is the Ephor database.Business drivers of CPM include:  Seamlessly integrate employee management with operations management.  Employee Performance Management tools that drive engagement, productivity, and performance against corporate goals.  Social, mobile, and global features that work for today’s workforce including embedded language, user preferences, regulatory compliance and more.11 EPM (Employee Performance Management), which is greater than a $1B worldwide market11, as an example to show that the HR technology market continues to grow,consolidate and evolve, consider that EPM started as a stand-alone application and is now readily available as part of an ERP, part of an HRMS, or as a single application. In2005, Gartner recognized 27 Performance Management Vendors. In 2009, by Ephor’s count, there were 60 vendors with specialized industry solutions with active clients, but in2011 there were only 17 remaining that had a significant number of clients.12 PeopleMatter for the service industry.Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 7. Recruitment Technology Landscape for Talent AcquisitionRecruiting Technology Landscape including eRecruitment Software:One world. One future. One Solution.EMPact Hire Expectations. Talent Drives Performance. Hiring Made Easy Recruiting Software Social Applicant Tracking System Platform.Talent Generation Solutions Recruiting Solutions Global Leader in Talent ManagementPowered by the People! Solutions. Applicant Tracking in the Cloud. Automate Your Hiring ProcessYour source for applicant tracking,recruiting, and staffing solutions. Social Recruiting Automation Where Finance Gets Hired. Financial + Banking. Healthcare Recruiting Software. RecruitBetterInspiring Talent Management(formerly MrTed + Stepstone) Beeline from AdeccoStaffing Software + Payroll Staffing and Recruiting Software. On Target. On Demand.Sources: ERE.net, Workforece.com, The ATS Guide, Ephor database. *There are numerous other regional providers and point specific solutions. Email us atephor[at]ephorgroup.com for a complete list.Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 8. Career Management Technology LandscapeSocial13 Recruiting, Networking & Career Management Technology Landscape:World’s Largest Professional Network.161m professionals. Career Networking on Facebook.2m companies. The #1 professional network on FaceBook. 25m professionals 3 million jobs 20,000 internships World’s Largest Goal Setting Community. 3m people.Professional networking made easy. 135m members200 countries Job Matching Career Networking on Facebook.Career Management Software World’s best online marketplace for freelance talent. 350k professionals Business social network career community for top young professionals. 900k professionals.13 Top Social Media Sites =http://en.wikipedia.org/wiki/List_of_social_networking_websites http://socialmediatoday.com/node/195917http://www.focus.com/fyi/50-social-sites-every-business-needs-presence/Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 9. Global Landscape for Technology Tools, & Outsourcing Solution ProvidersCommunities continue to be built around “digital highways.”Did you know?  Nordic countries and Singapore top the global networked readiness list for infrastructure14 (Europe has 11 countries in the top 20).  There is 130%15 mobile adoption in South East Asia compared to 80% in the United States. The Networked Readiness Index measures the degree of information and communication technologies (ICT) for competitiveness. While the USA and much of Europe faces a decade forecast for slow growth, much of Asia and select regions in the Americas and Middle East are looking to match growth with demand. Regardless of the economic state, there is a gap of technically skilled and mid level workers across the globe which highlights the opportunity for both technology and HR to develop and empower employees. Research shows that a 10 percent increase in mobile phone penetration is associated with a 1 percent growth in GDP.  Opportunity to “Leap the Chasm.”Regional work attributes such as technology adoption,infrastructure readiness, regulatory requirements, and businesscustoms will largely impact investments and growth. “Leapingthe chasm” for technology and HR processes suggests that moreready communities with high degrees of technologyinfrastructure will be early adopters of Business-Centric HRSolutions and accelerate HR transformation to transition toworkforce management & talent HCM (human capitalmanagement).“Historically, there was reluctance to slaughterthe sacred cow, but survival will force the shift –eitheryou are integral part of the fabric or you are outsourced.” – Rolf Kleiner, Chief Innovation Officer Kelly Services.14 The Global Information Technology Report from INSEAD.15 The Global Information Technology Report from INSEAD.Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 10. Aligning HR Technology with the Business Strategy is Critical to PerformanceThe majority of implementations deployed have failed to realize their ROI business case potential because of costs andfit, but also because of poor strategy. Selecting the best fit HR technology that matches an organizations culture,requirements, and strategy is paramount to realizing the ROI benefits.Technology evaluation and implementation that starts with the business requirements and outcomes needed havehigher return on investment.Licensed software HR technology focused on transactional initiatives:compliance and risk management, and administrative automationwhich limits the ROI value-proposition to one of labor arbitrage. SaaSHR and work management software is being driven by and for end-users.-----------------------------------------------------------------------------“Talent Management is a business process not a technology. Talentmanagement is not human resources, it is a business process. If youseparate HR and the business, into silos or data warehouses it’sHARD to bring them back together.” Jason Averbrook debating withGartner’s Jim Holincheck.-----------------------------------------------------------------------------SaaS Usability Driving AdoptionThe “consumer” of HR technology is no longer the human resources department. The consumer is the workforce. Withadvances in portal capabilities, self-service features, single sign-on to connect many disparate software andapplications plus embedded intelligence, the fact is that the average enterprise will plug in multiple systems plusfuture software and tools plus the latest “Apps” as they are available.If you have $1 to invest in HR technology, is it better to invest it in “Technology designed fordeveloping and improving capabilities and competencies for the the workforce and not forworkforce (i.e. the majority of the employees) or invest in streamliningadministration. the HR department; that is what defines success today. The deployment andThe Impact: usability of the technology is more important that the features and functionality.” – Garry E. Meier, HCM and BPO services investor and advisor.Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046
  • 11. Work Management Buyer’s GuideHistorically, the cost to implement, manage, and utilize Criteria Feature/Factlicensed software has inhibited the routine use of these 1. Vendor Credibilitysystems by the masses. # of Customers Added Per Year with SaaS Notable ClientsLicensed software rollouts (non-SaaS systems) Notable Partnersadditionally require mass coding customization to fit Financial Stabilityworkflow processes. End-user adoption has been limited 2. Client Fitdue to the expense of implementation and customization. VerticalsHistorically to date, HR technology capabilities have Local Officesoutpaced the adoption and use. In fact, the majority of 3. Technology Solution Fitimplementations deployed have failed to fully utilize the SaaS multitenant scalable platform with Workflow, Real-time Reporting, CRM.entire suite of features due to the complexity of both Configurabilitydeployment and the use of these systems. Scalability Ease of Interoperability (Integration)Today’s SaaS market leaders are known for: “The Best What vendors are integrated?Service Deployment.” Performance Management (see PM Feature Comparison) Business Management ReportingAdoption can be employee driven when on-demand Global Capabilitiesfeatures and apps are prevalent. On-demand means Talent Management ERP (Enterprise Resource Planning)SaaS Self-Service is provided for free or at a low-priced 4. Sizzle Features - What are the sizzle features? Compensation Planning, Baseball Cardmonthly fee with additional features, modules, and apps WOW Sizzle Feature #1able to be purchased/used as needed. WOW Sizzle Feature #2 5. Cost and Implementation Time/Resource Estimates  - What is the ROI? What are theContact a professional to put together a specific ROI Pricing Model Results? How many projects do they start but not complete? Do they publishassessment for your organization. S (S )? Methodology - What is the philosophy of the company? Does the process align ? Analytics and Reporting - What daily, weekly and monthly reports and metrics ? Cost-Benefit Analysis C ? Setup Time Implementation Time to Implement Core Training Time and Costs Monthly Average Cost Total Cost Average Per Client for 3 Years ROI Expectations SaaS Performance Management Provider A Provider B Provider C Application Providers HR Consulting Services Y - Enteprise Y - E & SMB Nothing beyond implementation support. Performance Management Y - Enteprise Y - E & SMB Y - Enteprise Goals Management Y - Enteprise Y - E & SMB Y - Enteprise Collaboration Y - Enteprise Y - E & SMB Y - Enteprise Automated Workflow Y - Enteprise Y - E & SMB Y - Enteprise Employee Self Service Y - Enteprise Y - E & SMB Y - Enteprise Manager Self Service Y - Enteprise Y - E & SMB Y - Enteprise Best Practices Templates, Competencies Y - Enteprise Y - E & SMB N Templates for Metrics/Dashboard Y - Enteprise Y - E & SMB Y - Enteprise Y - Via Partners Y - E & SMB Y - Enteprise Learning Management System Y - Via Partners Y - E & SMB N Training Content Y - Enteprise Y - E & SMB Y - Enteprise Succession Y - Enteprise Add-On Y - E & SMB Y - Enteprise Surveys Y - Enteprise Y - E & SMB Y - Enteprise Communications Y - Enteprise Y - E & SMB Y - Enteprise Org. Chart Career Management N Y - E & SMB Y - Enteprise Talent Management Y - Enteprise N Y - EntepriseEphor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046