Nucleus - Technology Value Matrix 2H 2014 - WFM

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THE BOTTOM LINE
Human capital management (HCM) is continuing to see increased competition as
customers expand aging solution deployments to include more functionality based in the
cloud. As a result, workforce management (WFM) is seeing new interest from customers
expanding deployments to include top-down labor management and analytics capable of
translating to payroll and financial management. The Value Matrix looks at advances in
usability and functionality by vendors in workforce management.
Workforce management has evolved along three different development strategies, giving
customers a choice in how they want to manage employees and deploy solutions.
 Payroll integrations. Payroll providers are crossing the line that kept them out of
HCM by starting to offer WFM solutions to customers seeking to expand their initial
payroll investments without changing to or integrating with a non-native solution.
 WFM-backed integrated HCM. Some vendors that began with native WFM have built
workforce analytics engines as a means to branch out into other areas of HCM. While
these vendors have continued their investment in WFM, they have diversified their
development across more HCM functionality, realizing fewer breakthroughs in WFM.
 Native WFM analytics. Some vendors that began with WFM have remained focused
on building out their initial solutions to provide the deepest base in workforce
analytics and to drive the majority of new developments in this sub-market of HCM.
WFM has also benefitted from the cloud as vendors pursue strategies that move
customers to centralize workforce data and standardize solution configurations for
consolidated solution support (Nucleus Research m108 – Cloud delivers 1.7x more ROI,
September 2012). WFM has had the longest timeline of development within HCM giving it
the deepest, most developed range of functionality and analytics compared to talent
management and core HR automation. In spite of this, much of the investment spotlight
in HCM has shifted off of workforce management and onto other areas of HCM such as
talent management that deliver a smaller return basis when implemented as a standalone
RESEARCH NOTE
TECHNOLOGY VALUE MATRIX SECOND HALF 2014
WFM
Document o236
October 2014

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October 2014 Document o236
way to manage the workforce (Nucleus Research o199 – Talent management pays back
$5.94 for every dollar spent, September 2014).
Vendors in the Value Matrix are evaluated on their depth of functionality inclusive of
payroll provisions, tax filing, time and attendance, compliance, scheduling, absence and
leave management, and analytics. Vendors are also assessed on their usability including
but not limited to the ease with which customers access and use solution workflows, the
amount of training required to deploy the solution, customer reported rates of end-user
adoption, and the universal nature of data accessibility across mobile, static, and terminal
based access points.
Leaders are focusing their efforts on developing workforce analytics to increase the
accuracy and relevance of top-down labor management that looks at overall workforce
productivity. These vendors are providing a means to use statistical analysis to identify
areas of improvement. Leaders are also mounting their functionality on analytics engines
to extend WFM data to operations management, increasing the return on investment (ROI)
of customer deployments.
During the time period covered by this matrix, WFM vendors have focused on:
 Developing predictive analytics based on a combination of trend analysis and
recognition of data anomalies.
 Deepening WFM functionality to integrate concepts such as absence and leave with
scheduling for adaptive scheduling inclusive of skill level requirements.
 Implementing WFM analytics as a basis for broader HCM deployments either through
native functionality or vendor partnerships.
 Streamlining workforce management integrations with payroll for more productive
data processing.

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LEADERS
Leaders in this matrix include Ceridian, Workforce Software, ADP, Kronos, and Infor.
CERIDIAN
Ceridian provides a full HCM solution backed by workforce analytics. The company also
provides both automated payroll and tax filing native to the HCM solution with a separate
payroll service bureau. The company’s Dayforce HCM gives customers native, cloud-based
capabilities that bring together core HR, talent management, and workforce management
Paycom
Paychex
Epicor HCM
SumTotal
Systems
Workforce
Software
Workplace
Systems
Paylocity
Ceridian
ADP
Kronos
Paycor
Peoplematter
Infor
Usability
Functionality
Facilitator
Expert
Leader
Core Provider
Facilitator
Expert
Leader
Core Provider
This Matrix reflects Nucleus's viewofproductadvancement as well as how well vendors support
workforce managementcomplete withanalytics and payrollprocessing. Vendors are working to
centralized employeedata inonelocation while workforcedata to payroll and operations
management through analytics. As business intelligence, analytics, and content management
encroach on the relevanceofworkforcemanagement, WFMvendors are working toreinforcethe
value ofcentralizing labor and operations information behinddata analysis.
Leaders in workforcemanagement arefocused on bringing workforceanalytics to thefront ofthe
solution, enabling customers to engageand configure them with the least amount oftechnical
knowledgenecessary tocomprehend thesolutioninfrastructure. These vendors are constantly
increasing theusabilityoftheir solutions whiledeveloping new areas offunctionality andsub-
functionality within the WFMframework.
WFM VALUE MATRIX 2H2014

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in a single solution with a central employee record and rules engine. Customers using
Dayforce HCM’s WFM capabilities (Dayforce WFM) can optimize their workforce using
Ceridian’s analytics and reporting to understand the efficiency of current labor allocations
relative to potential returns on labor investments. The solution’s analytics let customers
achieve reduced costs and realize increase productivity (Nucleus Research o116 – Ceridian
Dayforce Workforce Management ROI Case Study: Guitar Center, June 2014).
Ceridian’s origins in workforce management and top-down reporting have allowed it to
branch out into full HCM based on WFM analytics. Dayforce HCM integrates WFM with
core HR automation and, as of July 2014, document management increasing compliance
levels and data visibility for understanding the dynamics of the workforce. As
development of Dayforce HCM has expanded following its acquisition, Ceridian has
invested in building a big data analytics engine to underscore use of its solution
components for HRIS, talent management, and payroll. The solution’s workflows are
based on the original WFM framework and are consistent across the different modules,
reducing confusion and enabling customers to easily deploy the entire platform at once.
Nucleus expects Ceridian to develop its analytics base as it continues to promote Dayforce
HCM as a one-stop-shop for all HCM functionality needs inclusive of WFM. Ceridian
already connects WFM data to operations through business intelligence, connecting labor
to the processes and business environments it impacts. As the company builds out its
HCM functionality from its WFM base, Nucleus expects that it will continue to deepen its
workforce management functionality and extend the HCM data further into operations
management. Ceridian’s singular architecture will provide an opportunity to consolidate
operations management into a single solution platform for customers to consolidate
legacy solutions into a single platform.
WORKFORCE SOFTWARE
Workforce Software’s EmpCenter provides time and attendance, staff scheduling, absence
and leave, labor analytics, and fatigue management. The solution is geared toward
reducing the risk of compliance costs for labor regulations but goes beyond to determine
benefits spend due to labor scheduling and to perform labor analytics for scheduling
optimization around leave data and employee shift management. The company’s analytics
engine extends to all core functions engaging the individual solution modules to facilitate
labor reporting built into the manager outcomes such as when a manger is trying to
determine the best staff arrangement to fill scheduling gaps without overworking
employees or running into cost risks such as overtime.
Workforce Software has been developing the usability of its solution based on the needs
and technical knowledge of the end user. While WFM solutions tend to be technical in
nature with drag-and-drop configurations for specific dashboard views, Workforce
Software has been more focused on developing a usable mobile UI that extends to all
technology types and that requires little effort on the part of the user to configure and

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engage. As a result, the solution requires relatively little training in deployment compared
to some competitors while delivering the same level of analytical competency in
scheduling, labor management, and reporting.
Nucleus expects that Workforce Software will invest in further development of the
capabilities of its WFM analytics engine as it seeks to gain more of a foothold relative to
competitors such as Kronos and ADP. While the company’s capabilities are deep, it will
likely shift its focus away from its UI to build up its functionality around more predictive
management capabilities, cost forecasting, and skills assessments for resolving labor
problems spotted as labor data anomalies.
ADP
ADP’s software, services, and outsourcing provide customers deep workforce management
functionality developed off of ADP’s extensive payroll provisions. The company’s origins
are in payroll provisions and it has created a model that other payroll providers have used
to expand beyond their original service offerings beginning with workforce management.
ADP provides its solution packages in configurations for small, medium, and large
organizations centered on workforce analytics and compliance.
ADP’s solutions include:
 RUN. Payroll, tax filing, and basic workforce management for small companies.
 Workforce Now. Payroll, tax filing, and workforce management centered on partner
integrations between ADP Payroll Services and Kronos Workforce Ready, and ADP
Payroll Services and Kronos Workforce Central for mid-sized companies.
 Vantage HCM. Payroll, tax filing, and enterprise workforce management for large
companies.
 GlobalView. Integrated payroll, international compliance, and SAP services as a back-
end environment for large, global companies.
ADP is continuing its push to deliver compliance-based support through payroll and
workforce management both domestically and internationally. In May of 2014, the
company’s global delivery extended to more than 100 countries amidst a greater
corporate shift to focus on the mid-market and to provide higher levels of solution
integration. While ADP remains focused on compliance risks in payroll, the company has
also maneuvered to extend analytics and application-based support to mobile devices,
increasing end-user adoption and facilitating deployment for cost management. ADP’s
compliance capabilities also extend to recruiting with features for screening and selection
that include background checks, drug testing records, and I-9 compliance management.
ADP’s commitment to compliance is catching up to competitors who have expanded out
of payroll and tax compliance to focus on other areas of risk including documentation in
key areas of talent management. ADP is investing in providing customers with expanded
capabilities to minimize future risks based on real-time data and analytics in addition to

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managing real-time problems through trend analyses. As a result, ADP is on its way to
providing a comparable range of functionality to other leaders such as Ceridian while
staying true to its knowledge base in workforce management and payroll.
Nucleus expects that ADP will continue to reshuffle its solution modules to promote
greater levels of native integration between its compliance-based HRIS functionality and
its payroll provisions. While ADP continues to be one of the payroll providers of choice, its
commitment to respond to the needs of the mid-market, shifting away from putting the
enterprise market first, shows promise toward greater competition in the SaaS WFM
market.
KRONOS
Kronos provides Workforce Central (WFC), targeting enterprise customers, and Workforce
Ready (WFR), targeting small to mid-sized businesses (SMB’s). Both solutions have deep
functionality in time and attendance, absence management, workforce analytics, and
scheduling, and Workforce Ready provides basic core HR processes including payroll and
benefits administration through the integration of SaaSHR. Both solutions have access to
the cloud with Workforce Ready being deployed as a cloud application suite and
Workforce Central being deployed in a hosted environment.
Workforce Central can be implemented as a standalone WFM solution or integrated with
partner solutions such as SuccessFactors or ADP to achieve an integrated suite that spans
WFM, talent management, core HR, and payroll. WFC delivers a powerful and capable
analytics engine and the solution comes packaged for different industry verticals with a
rigid but intuitive user interface (UI) that extends to mobile devices and can be
implemented in the cloud. WFC engages Kronos’s analytics engine to automate complex
administrative tasks and to provide workforce analytics embedded throughout user
dashboards to guide decisions.
Workforce Ready provides SMB’s with a cloud-based solution that uses data-driven
analytics to automate back-office tasks for HR and management. The solution includes
workforce management, integrations for payroll, benefits, training administration, and
performance and compensation management. The integration of SaaSHR’s functionality
consolidates labor analytics onto a single employee record for each employee so HR can
manage compliance risks, identify areas of productivity improvement, and control labor
costs. Workforce Ready extends to mobile devices as well increasing the flexibility and
configurability of the solution and driving end-user adoption. In June 2014, Kronos also
announced the release of travel and expense compensation management for WFR, adding
to the cost management and payroll compliance capabilities already offered by the
platform. Kronos’s analytics are accessible and easy to use with analytical reports focused
on workforce management as a means to reduce costs of operations and manage
productivity.

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Kronos continues to be the go-to solution for workforce management and analytics with
some customers using platforms such as Ceridian’s Dayforce HCM opting to stay with
Kronos for WFM. Kronos is well positioned to be a partner of choice for underlying
analytics and workforce management, and Nucleus expects that the company will continue
to lead innovation in the WFM arena as a means to solidify its value as an integration
partner and analytics platform.
INFOR
Infor Workforce Management provides time and attendance, scheduling, and absence
management and connects to Infor HCM and Financials for financial management and
business intelligence to connect labor analytics with operational management. Infor has
stood by a quantitative approach to HCM and has grown through acquisitions giving the
company a cloud and analytics based solution packaged for industry specific needs.
Infor Workforce Management connects to Infor’s analytics engine delivered through the
company’s ION Business Intelligence platform that also supports other Infor solutions
including ERP and CRM. ION acts as a virtual warehouse for big data that analytics can
plug into to support business decisions as they happen. Infor’s central data enables it to
share WFM data generated in Infor Workforce Management with Infor’s ERP and CRM
platforms, giving customers combined solution capabilities on one data platform
supported by one company. The integrated base presents some challenges in terms of
usability but the company is developing a common visual interface through its ‘Hook and
Loop’ strategy.
Nucleus expects that Infor will continue to deepen its analytical capabilities to generate a
platform between its single data set for all solutions, providing one database for all
activities. Infor will also likely continue to pursue deeper functionality in WFM analytics
while blurring the lines between analytical processes to conform to human versus
mechanical workflows. In spite of this, Infor will likely see its analytical value potential shift
to fall in line with the potential of its other solution platforms as the value will likely see
larger increases when combined with Infor’s other solutions.
EXPERTS
Experts in this matrix include Epicor HCM and Paycom.
EPICOR HCM
Epicor expanded into the HCM market with the acquisition of Spectrum Human Resources.
While Epicor HCM offers core HR automation and performance management, the bulk of
its functionality is in workforce management with time and attendance, absence
management, scheduling and approvals, and labor hour and regulatory compliance. The
solution is backed by workforce analytics and lets HR track, manage, and analyze

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employee data for improving staffing productivity. The solution can be deployed hosted,
on-premise, or in the cloud and connects with Epicor’s other ERP-based solutions.
Epicor’s acquisition of a WFM-backed HCM solution expands its efforts to deliver
complete operations management inclusive of labor data and reporting for financial
analytics. The HCM solution integrates with customer payroll providers, and offers
position control and budgeting to manage headcount and to track employees in multiple
positions relative to available funding sources. The platform’s focus on financial
management helps customer optimize their labor costs relative to total operational
budgets further integrating labor management and analytics into the productivity and
efficiency measures of the overall organization.
Nucleus expects that Epicor will develop Epicor HCM to provide an analytics engine
branched off from its core analytics giving customers the option of deploying Epicor HCM
standalone or integrated with Epicor’s ERP solutions. Nucleus also expects that Epicor will
bridge its ERP functionality over to the HCM solution to provide a stronger analytics base
for further development of the solution.
PAYCOM
Paycom provides time and attendance integrated with payroll processing, payment
delivery, and data packaging. The company has expanded into WFM from payroll
analytics centering labor management on financial management and optimization.
Customers using the solution can retroactively manage shifts through time approvals,
leave requests, and payroll data management.
Paycom’s foray into the WFM arena has been limited to time and attendance giving the
company a limited view into the needs of workforce analytics. As a result, HR is forced to
engage the analytics side of the solution through the payroll reporting, managing the
labor force after shifts have been tracked and time stamps have been entered. The limited
capabilities of the WFM side of the solution mean that customers need to retroactively
manage labor spend and shift data in the process of managing the labor force.
Nucleus expects that Paycom will continue to be a payroll provider of choice while
exploring the potential of further fleshing out its workforce management capabilities
rather than focusing on higher levels of usability. Being a payroll provider of choice
particularly for mid-market customers also means that Paycom will likely be considered as
an integral payroll player in the development of solution ecosystems. As the company
develops more capabilities within its core areas of payroll and workforce management, it
will likely also integrate with ERP and analytics solutions for wider operations management
capabilities. Nucleus expects that the extension of Paycom to work with other platforms
will enable it to scale and retain customers as they grow.

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CORE PROVIDER
Core providers in this matrix include Paylocity, Paychex and Paycor.
PAYLOCITY
Paylocity’s workforce management serves as a bridge from the company’s payroll system
to human capital management. The solution has considerable strength in tax filing and
payroll provisions with workforce management capabilities for time and labor consisting of
web time management, and enterprise time and expense tracking including scheduling,
job costing, and approvals. The solution engages WFM functionality from the standpoint
of payroll cost management. It channels time and attendance directly into the employee
pay and pay management capabilities, eliminating the need to toggle between payroll and
workforce management data sets for scheduling and cost optimization.
Paylocity bridges the gap between payroll and workforce management by centralizing
workforce data on payroll outcomes. While the solution does not provide as deep
functionality as other WFM vendors, it provides an entry platform for customers to branch
out from their initial payroll deployments into WFM and entry level human capital
management. Nucleus expects that Paylocity will continue to deepen its WFM capabilities
while largely maintaining its current level of usability. The existing demand in WFM and
HCM for integration with operations management will likely begin to extend to smaller
businesses, increasing pressure on companies like Paylocity to integrate or develop new
capabilities. While demands for new development will likely be slower in coming from
small to mid-sized companies, Nucleus expects that it will drive Paylocity to a faster rate of
functionality development than usability development evidenced by this payroll provider’s
expansion into other areas of HCM beyond WFM.
PAYCHEX
Paychex provides payroll and taxes, HR management, employee benefits management,
and accounting and financial resources. The company is primarily a payroll provider but it
also gives customers automated expense management, applicant tracking, and payment
disbursement reducing financial liabilities associated with payment tracking and increasing
productivity in the transition between HRIS data and payroll. Unlike other WFM vendors
considered, Paychex does not actually engage in direct WFM functionality from the
standpoint of employee time punching and schedule optimization, but the company’s
automated accounting and financial management can take HRIS data and optimize labor
spend from a financial analytics standpoint.
As one of the vendors bridging the gap between payroll and WFM from the payroll side,
Paychex provides entry-level value to customers looking to automate payroll compliance
and provisions but not yet ready to engage a fully automated WFM solution. As a result,
customers can get their feet wet with WFM functionality and understand the basis and
benefits of WFM functionality without committing to a full solution complete with training

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requirements and per-employee-per-month additional costs. As other payroll providers
such as Paycom and ADP are continuing their advance on direct WFM provisions, Nucleus
expects that Paychex will likely stay on the payroll optimization side as an entry point to
WFM functionality and a future integration partner for customers who will start with
automated payroll and branch out to an HRIS as they grow.
PAYCOR
Paycor provides automated payroll processing, HR management, time and attendance,
reporting, and workers’ compensation management. Like Paychex, Paylocity, and Paycom,
Paycor comes at WFM from the payroll side having automated payroll data processing and
payment distribution and bridging it to labor data collection. Most WFM providers that
began in workforce management partner with payroll providers and Paycor took
advantage of the opportunity to learn from the available WFM functionality developments
provided by vendors such as Kronos to provide customers with WFM and payroll
capabilities provided by one vendor.
Paycor’s WFM capabilities are provided through a partnership with Infotronics’s
Attendance on Demand solution, and provide customers with time and attendance,
compliance reporting, and scheduling. The company largely caters to larger small sized
business and the mid-market providing initial levels of functionality for workforce
optimization. The companies served by Paycor are on the precipice of being ready for a
full HRIS or integrated HCM solution, but are looking to enter into automated labor
management while maintaining native, automated payroll provisions. Paycor provides an
easy entry point to the market by serving as a payroll provider of choice that customers
can stay with while leveling up to integrated labor management. When a customer
becomes big enough to outgrow Paycor’s functionality, they can move to implement an
HRIS while remaining with Paycor as an integrated payroll provider, or implement
additional, external HRIS capabilities while retaining Paycor for payroll and WFM.
Nucleus expects that Paycor will continue to develop its WFM capabilities for as it
capitalizing on a market share not currently well-served by WFM vendors. As a result, the
company will likely make smaller inroads into the market segment such as developing
more dynamic scheduling capabilities, without being a direct leader of new functionality
affecting the entire WFM market.
FACILITATOR
Facilitators in this matrix include SumTotal Systems, Workplace Systems, and
Peoplematter.
SUMTOTAL SYSTEMS
In August 2014, Skillsoft announced the acquisition of SumTotal Systems. The acquisition
combines Skillsoft’s learning management capabilities with SumTotal’s Talent Expansion

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and SumTotal elixHR that provides core HR, workforce management, and talent
management on a single source platform based on WFM analytics. SumTotal’s solutions
integrate with Microsoft SharePoint for social collaboration, learning and onboarding, and
extend to mobile devices to deliver learning content. The mobile capabilities also include
features for payroll and benefits, recruiting, compensation, learning, succession planning,
and workforce management.
The acquisition by Skillsoft will likely terminate collaboration with Microsoft SharePoint for
learning an onboarding while potentially preserving the partnership for social
collaboration. SumTotal’s elixHR will also likely be expanded following its initial
consolidation of Sumtotal Systems’s functionality into a single platform with single
employee records that integrate with ERP, CRM, and other HR systems for comprehensive,
operational management. Nucleus expects that while the expansion will bring Skillsoft’s
learning management system onto the ElixHR WFM analytics base further investment will
be made in developing SumTotal’s analytics to provide a platform for further functionality
and data integration.
As a cloud-based platform, SumTotal elixHR provides a streamlined user interface and is
partnered with SnapLogic to integrate with several external partners including Workday,
Salesforce.com, and SAP. The company connects SumTotal elixHR’s analytics to data sets
provided by integrated solution platforms, translating different data sets to a common
language for analytics and reporting on a single platform that eliminates the need to
remove and replace existing solutions. The common platform reduces implementation
requirements and appeals to companies with heterogeneous solution environments.
SumTotal Systems is focused on developing solutions that challenge the notion of
employees as capital, while remaining focused on cost and performance optimization for
managing ‘the big picture’ of labor performance and cost optimization. Nucleus expects
that as SumTotal Systems settles into a new brand identity under Skillsoft, it will expand on
its value proposition that is current situated on providing integrated HCM functionality
through internal solution rewiring and external integrations that fit into existing
deployment environments.
WORKPLACE SYSTEMS
Workplace Systems provides workforce management in the cloud including schedule
management, attendance management, forecasting, advanced scheduling, and business
intelligence and dashboards. The company’s solution is centered on schedule
optimization taking into account labor costs through payroll integrations and accounting
for employee availability through direct social engagement. Customers using the solution
can manage their shift allocations relative to the needs of the workforce while optimizing
their labor spend and productivity around peak levels of demand.

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Workplace Systems is focused on providing a solution implementation that minimizes
disruptions to the work environment and that maximizes the ability for managers to
account for employee work-life balances. The company does not require change
management processes for implementation and does not require collection of historical
data for forecasting models. The solution engages the workforce from deployment using
the Schedule Management and Attendance Management modules in test locations prior
to deploying across the enterprise to generate a sample data set for analysis and
enterprise-wide forecasting.
Workplace Systems’s analytics are dependent on using key locations as a model for
enterprise-wide deployment, creating a uniform approach to labor management and
schedule optimization. As a result, customers taking advantage of the solution to date
have a limited amount of scalability they can achieve before they will have to transition to
a larger solution or apply regional hubs to their workforce management in order to
effectively manage the workforce. Consequently, large companies deploying the system
may end up with multiple systems of record based on different management and
optimization profiles on a hub-and-spoke system.
Nucleus expects that Workplace Systems will hone its optimization model to incorporate a
centralized analytics platform that recognizes the most challenged environments and that
uses the common problems from that location to map out models for the rest of the
enterprise. The analytics model differs from other WFM solutions on the market giving
Workplace Systems an environmentally optimized solution for regional operations
management. Nucleus also expects that Workplace Systems will invest in developing
higher levels of usability while continuing to develop new functionality that keeps
managers out of the back office. The company will likely continue to provide capabilities
for managers to match demand cycles to scheduling and to actively account for employee
schedule requirements both inside and outside of the solution.
PEOPLEMATTER
Peoplematter provides a mobile-optimized workforce management solution aimed at the
mass-market service sector including retail, big box retail, hotel chains, and fast food
outlets. The company’s workforce analytics are more basic compared to more established
vendors such as Kronos but the company provides the shift and hourly-based service
sector with a deep level of compliance management and reporting. Similar to Reflexis,
Peoplematter’s industry focus limits its analytics development in terms of market reach but
gives it one of the deepest understandings of the challenges facing its tried-and-true
customer base.
While Peoplematter’s value proposition may be targeted to its industry, the company
provides retail and hospitality with a means to manage labor spend, to manage legal
compliance in payroll, benefits, and employment, and to reducing the costs faced in these
areas by an industry dependent on low-skilled, highly regulated, and often unionized jobs.

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Nucleus expects that Peoplematter will engage both its WFM base and its understanding
the retail sector to develop its platform for other industries as it seeks to take on larger
customers. Peoplematter has a strong base in managing labor spend and shifts from the
standpoint of compliance and its analytics capabilities, already optimized for mobile
reporting, have high potential for expansion and extension into contextual labor
management and predictive analytics in scheduling.

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