The HR, Benefits and Payroll Technology. Survey results PRESENTED BY. Proudly Sponsored by ProSential Group

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1 results The HR, Benefits and Payroll Technology Survey PRESENTED BY Proudly Sponsored by ProSential Group

2 Introduction and Methodology This report presents the results of the 2014 HR, Benefits and Payroll Technology Survey. This survey was designed to capture information for the small to mid-sized business market, though firms larger in size did respond. The purpose of the survey was to gain an understanding as to the types of technologies employers are using in the HR, benefits, and payroll areas by employer size, identify the market leading vendors, capture satisfaction levels by vendor, and find out what employer plans are over the next 12 months. Respondents were invited to take the survey by more than 30 employee benefits brokerage firms across the United States. Therefore, the employers surveyed are more than likely providing health insurance benefits to their employees. Firms providing health insurance, on average, fit the profile of having at least 10 employees with most defined as mid-sized ( employees). For example, in the United States, approximately 79% of employers have fewer than 10 employees (Source: US Census Bureau). In our survey, only 8.3% of respondents had 10 or fewer employees. On the highend, 4.1% of our respondents had over 1,000 employees, while only 0.2% of employers in the U.S. have more than 1,000 employees. The majority of the survey respondents (60.1%) had between 50 and 1,000 employees. Survey data was collected from more than 700 employers throughout the United States. In the survey results, we show satisfaction levels by technology type. However, we are purposely not providing satisfaction levels by vendor. Having been consultants in this space for many years, we realize opinions are subjective, and it is our experience that the vendors are not always completely at fault. In addition, this is an emerging market with rapid change occurring. Vendors are now adding more robust functionality and moving their applications to the web and mobile. Some employers are deploying solutions to the web and mobile for the first time. Because this is new to many, we consider this market to be somewhat in its infancy stages. Therefore, there is a learning curve and some growing pains that may lead to short-term dissatisfaction. The frequencies or response distributions listed in the report show the number of times or percentage of times a value appears in a data set. Due to rounding, frequencies of data responses provided in this survey may not always total exactly 100%. About HR Technology Advisors HR Technology Advisors, LLC (HRT), is a premier national, independent benefits and HR technology consulting firm focused entirely on serving the needs of employee benefit firms and their clients. HRT deploys technology solutions for employers that streamline human resources & benefits delivery processes. HRT has assisted over 1,000 employers in the HR, Benefits and Payroll technology selection process HR Technology Advisors, LLC. All rights reserved. All other trademarks and trade names are the property of their respective holders. All data presented in this publication are, to the best of the publisher s knowledge, accurate and current as of this report s publishing date. No portion of this publication may be reproduced in any form without express written permission from HR Technology Advisors or the sponsoring employee benefits broker. 2

3 Table of Contents Introduction and Methodology... 2 Table of Contents... 3 Survey Demographics... 4 Technology Platform Questions HRIS Payroll Time & Attendance Benefits Enrollment or Benefits Management Performance Management Recruiting Internal Social Collaboration Company Intranet Current Capabilities Employee Self Service Communicating with Employees Summary HRIS Vendors Payroll Vendors Time and Attendance Vendors Benefits Enrollment Vendors Performance Management Vendors Recruiting Vendors Social Collaboration Vendors Company Intranet Vendors

4 Survey Demographics Who responded to the survey? Other 28.1% IT Department Finance Department Office Manager/Administrator HR Generalist 7.2% 8.7% 10.4% HR Manager/Director 32.3% Senior/Executive Level HR President/CEO 7.2% 6.0% 5.0% 15.0% 25.0% 35.0% The majority of respondents to this survey were HR Manager/Directors followed by HR Generalists and Office Managers. Others responding to the survey included CFO s, COO s, Compliance Directors, Controllers, and various personnel from finance departments. 4

5 In which state is your corporate headquarters located? 28.0% 22.0% 21.2% 14.4% 6.4% 8.0% Northeast Mid-Atlantic Southeast Midwest Southwest West Survey respondents came from all regions of the United States. While not all states were represented in the survey, there was a broad section of the country where employers responded. Based on our analysis, there were no glaring trends to adoption rates based on location. A company in Texas was just as likely to be using a system as one in Michigan or California. As far as what systems employers are using by location, there were slight differences in which vendors were used in a given market, though the market leaders nationwide were also the market leaders in each geographical region. As expected, some local vendors had a more prominent share in select regions, but not significant when looking at those vendors nationally. 5

6 Does your company employ people in multiple states? No 57.2% Yes 42.8% Respondents to the survey included employees in multiple states as well as employees in just the state in which the company was headquartered. Companies with employees in multiple states are more likely to have systems. For example, 45.6% of employers with employees in a single state use an HRIS System, while 60.2% of those with employees in multiple states have a system. This type of utilization is consistent across the spectrum of systems used in this survey. 6

7 Which of the following best describes the principal industry of your organization? % 34.3% 25.0% 15.0% 12.9% 5.0% 0.5% Advertising & Marketing 0.2% Agriculture 0.7% Airlines & Aerospace (including Defense) 0.5% Automotive 0.7% Business Support & Logistics 4.1% Computer/IT Services 4.8% Construction, Machinery, and Homes 4.9% Education 1.2% Entertainment & Leisure 5.1% Finance & Financial Services 1.4% Food & Beverages 4.4% Government 8.1% Healthcare & Pharmaceuticals 0.4% Hotels/Lodging 3.5% Insurance 4.4% Legal Services Manufacturing 2.3% Retail & Consumer Durables 1.2% Real Estate 0.2% Security/Surveillance 0.7% Staffing/Employment Agency 2.7% Telecommunications, Technology, Internet & 0.5% Utilities, Energy, and Extraction 0.2% Waste Management Other This survey is not dominated by any specific industry. The lead industry type identified was manufacturing followed by healthcare & pharmaceuticals. Other industries include accounting, wholesale distribution, construction, plumbing, packaging, and social services none of which have a substantial share of the respondents. 7

8 Are you a non-profit organization? No 73.1% Yes 26.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% According to the Center for Civil Studies at John Hopkins University, non-profit employment represents 10.1% of the U.S. total employment. In our study, 26.9% of the firms were non-profits. From a size standpoint the nonprofits and for-profit companies had a fairly equal spread of companies represented in each size group. For example, non-profits had 51.2% of the respondents with less than 100 employees while the for-profits had 54.6%. Utilization of technology by Organizational Type 100% Profit Non-Profit 80% 87.4% 93.2% 60% 40% 20% 51.8% 56.2% % 35.0% 38.9% 0% HRIS Payroll Time & Attendance Benefits Enrollment Our study showed no significant difference in systems utilization between non-profit and for-profit companies in the four major technology categories. In fact, to our surprise, non-profits had slightly higher utilization in each category. Over half of the respondents are using HRIS/Payroll/Time and Attendance today, and slightly more than one-third are using a benefits enrollment solution. 8

9 How many TOTAL employees currently work for your organization? (Including full-time and part-time employees) 1,001 to 5,000, 3.5% More than 5,000, 0.5% 501 to 1,000, 4.4% 1 to 10, 7.4% 11 to 25, 12.0% 201 to 500, 16.4% 26 to 50, 14.7% 101 to 200, 21.6% 51 to 100, 19.4% Nearly seven out of ten survey respondents have between 26 and 500 employees. Interestingly, there was no dominant sub-group within this segment. These statistics were right in line with our expectations given that the survey was delivered through employee benefit brokers, who for the most part, focus heavily on this segment. 9

10 Technology Platform Questions Is payroll processed in-house? No 51.9% Yes 48.1% For those responding to this survey, a nearly equal amount of employers process payroll in-house compared with those who outsource payroll. Who is responsible for the HR technologies at your company? 45.0% % 25.0% 15.0% 5.0% 41.1% 19.5% 18.8% 10.7% 9.9% HR IT Finance CEO/President Other HR professionals are primarily responsible for administering HR technologies at responding companies. Other professional areas responsible for HR technologies include Accounting, CFO, COO, Office Manager, Company Administrator, Technology Committee, and Operations Manager. 10

11 HRIS Which vendor do you use for General HR Management (HRIS)? ADP Paychex Sage Software Ceridian Ultimate Software Paylocity Paycom PayData Paycor FlexPay Stratex Partners Kronos Ascentis HR Lawson Other Do Not Use 6.0% 2.8% 2.2% 2.1% 1.7% 1.1% 0.9% 0.7% 0.7% 0.6% 0.6% 0.6% 0.6% 12.7% 16.2% 50.6% Fifty percent of responding firms currently have an HR System. Of those firms that have systems, ADP has the leading HRIS share with 30.2%, followed by Paychex with 11.2%, Sage with 5.8%, Ceridian with 4.7%, and Ultimate Software 3.7%. Other HRIS vendors mentioned, but lacking substantial share, include Club Systems, Electronic Commerce, Inc., Exponent Technologies, People-Trak, QuickBooks, and Time Force. When looking at HR System utilization by employer size, ADP is the dominant player in every segment. However, the 2 nd and 3 rd place vendors change based on market segment. For example, Paychex is clearly next in the under 50 segment, Paylocity and Ascentis HR are 2 nd and 3 rd in the segment, and Ceridian and Ultimate are next in the 100 to 500 segment. ECI is the 2 nd vendor in the segment with Lawson and Workday in the 1,000 to 5,000 and 5,000+ segments respectively. Companies who operate in the healthcare and pharmaceuticals industry most use Paychex and Lawson, while manufacturing companies most use ADP. As you ll recall, these were the most dominant industries participating in this survey. ADP is most used in the Southeast and Midwest, while Paychex is used in the Northeast and Paylocity is used in the West. 11

12 How long have you been using your current HRIS vendor? 12.7% Less than 1 year 44.2% 15.3% 1 to 2 years 3 to 5 years More than 5 years 27.9% Looking at this chart you can conclude that nearly a majority of respondents have been using their current HRIS vendor for more than 5 years. With that said, there is a greater % of those using their payroll vendor for more than 5 years (greater than 50%) compared with HRIS. Additionally, there is a greater number of new HRIS users compared with payroll users. 12

13 How would you rate your user experience with this HRIS technology? % 25.0% 15.0% 5.0% 35.7% 26.9% 20.1% 14.0% 3.2% Poor Fair Good Very good Excellent What is your overall level of satisfaction with this HRIS vendor? 45.0% % 25.0% 15.0% 5.0% 4.5% Extremely Unsatisfied 13.3% Slightly Unsatisfied 39.0% Moderately Satisfied 32.8% Very Satisfied 10.4% Extremely Satisfied Satisfaction levels are skewed favorably for HRIS vendors. However, when comparing satisfaction levels of HRIS to payroll, payroll satisfaction tends to be superior. For example, for HRIS, almost 18% were either slightly or extremely unsatisfied. Whereas for payroll it was only 11.8% unsatisfied. 13

14 Are you presently evaluating, or in the next 12 months plan to evaluate, technology solutions for HRIS? % Yes 73.1% No Nearly 30% of those surveyed are evaluating or plan to evaluate a new HRIS solution within the next 12 months. The majority of those seeking a new solution are in the segment. The percentage of firms looking for a new solution does not vary by geography or employer segment still roughly one-third. 14

15 Payroll Which vendor do you use for Payroll? ADP Paychex Sage Software QuickBooks Flex-Pay Ceridian Paylocity Ultimate Software Paycor PayData Intuit Payroll PayCom MUNIS Fidelity Lawson Other Do Not Use 4.0% 3.4% 2.9% 2.7% 2.7% 2.5% 1.9% 1.7% 1.5% 1.3% 1.0% 0.8% 0.6% 12.4% 12.2% 19.4% 29.3% 5.0% 15.0% 25.0% 35.0% As expected, close to 90% of respondents are using some system for Payroll. There were 107 vendors represented in the survey with only 8 vendors having more than 2% market share. ADP (32%) and Paychex (14.5%) combine for nearly 50% of the respondent s market share (for those using a payroll system). Other payroll vendors mentioned by respondents in this survey with less than 1% share include PrimePay, Paytime, Oracle, Deltek, Mangrove, ECI, Sure Payroll and Pro Data. Companies with employees most use ADP, while companies with less than 100 employees most use ADP and QuickBooks. Companies who operate in the retail and manufacturing industry most use ADP, while companies in the government sector most use Munis. ADP is most used in the Southeast and Midwest; Ultimate Software is most used in the Atlantic Coast region, while Paychex is most used in the Northeast. Paylocity is the most used Payroll solution by West respondents. 15

16 How long have you been using your current payroll vendor? 8.6% 14.3% Less than 1 year 1 to 2 years 53.6% 3 to 5 years 23.5% More than 5 years More than 50% of those surveyed responded that they have used their current payroll vendor for more than 5 years. While nearly all respondents are using a payroll vendor today, there is still roughly 9% who have switched vendors in the past year. ADP is the dominant system for those with a vendor for more than 5 years. Paychex is the dominant vendor for those using their current vendor for less than 2 years. 16

17 How would you rate your user experience with this payroll technology? % 25.0% 33.2% 36.1% 15.0% 12.6% 15.5% 5.0% 2.5% Poor Fair Good Very good Excellent What is your overall level of satisfaction with this payroll vendor? 45.0% % 34.2% 39.7% 25.0% 15.0% 9.2% 14.1% 5.0% 2.7% Extremely Unsatisfied Slightly Unsatisfied Moderately Satisfied Very Satisfied Extremely Satisfied 17

18 Are you presently evaluating, or in the next 12 months plan to evaluate, technology solutions for payroll? % Yes 77.5% No While less than 10% purchased a new payroll solution during the past year, an additional 22.5% are currently evaluating or plan on evaluating a new payroll solution within the next year. As a point of reference, 30% are evaluating a new HRIS solution. The majority of those evaluating a new payroll solution are in the segment. 18

19 Time & Attendance Which vendor do you use for time & attendance? ADP Paychex Kronos Deltek Ultimate Software TimeClock Plus Paycor Attendance on Demand TimeForce Paylocity Microsoft Dynamics Stratex Partners Sage Software Replicon Pay-Data Paycom iemployee FlexPay Other Do Not Use 4.4% 3.4% 2.7% 1.7% 1.5% 1.3% 1.1% 1.0% 1.0% 1.0% 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% 12.8% 22.2% 40.5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Roughly 60% of those surveyed are using a time & attendance solution. Of those using time and attendance systems, ADP has 21.5% market share followed by Paychex 7.4% and Kronos 5.8%. There were 113 vendors represented in the survey with only 7 firms having more than 2% market share. This number would indicate that time and attendance is a very fragmented business. Employers may have very specific needs often based on the nature of their industry that would drive their purchasing decision. Deltek for example, with 4.5% market share, is often used by companies that do governmental work. Other time & attendance vendors not represented in this chart but with approximately 1% market share include PayData, ConnectWise, Ascentis HR, ECI, Epicor HCM, PeopleSoft, SwipeClock, Unicorn HRO, and Workday, Inc. Companies with employees most use ADP and Kronos, while the majority of companies with fewer than 100 employees mostly do not use a time and attendance vendor. Companies who operate in the healthcare & pharmaceuticals industry mostly use Kronos, while companies in manufacturing most use ADP and Paychex. ADP is most used in the Southeast and Midwest. Kronos is used most in the Southeast and Midwest, while Paychex is used most in the Northeast and Paylocity is used most in the West. 19

20 How long have you been using your current time & attendance vendor? 11.8% 43.9% 14.6% Less than 1 year 1 to 2 years 3 to 5 years More than 5 years 29.6% Slightly more than 25% of those who responded indicated they have been using their current time & attendance vendor for less than 2 years. Most companies have been using ADP for more than 5 years and Kronos for more than 5 years, while most have been using Paychex under 2 years. 20

21 How would you rate your user experience with this time & attendance technology? 45.0% % 25.0% 15.0% 5.0% 42.4% 27.4% 15.3% 11.5% 3.4% Poor Fair Good Very good Excellent What is your overall level of satisfaction with this time & attendance vendor? % % 25.0% 15.0% 5.0% 3.1% Extremely Unsatisfied 9.3% Slightly Unsatisfied 46.4% Moderately Satisfied 30.5% Very Satisfied 10.6% Extremely Satisfied The bulk of those responding Very Satisfied (or better) or Very Good (or better) have been using their time & attendance vendor for more than three years. 21

22 Are you presently evaluating, or in the next 12 months plan to evaluate, technology solutions for time & attendance? % % Yes No Approximately one-quarter of respondents indicated that they are either currently evaluating or will plan on evaluating a new time & attendance vendor within the next year. The majority of those seeking a new solution are in the segment. 22

23 Benefits Enrollment or Benefits Management Which vendor do you use for benefits enrollment or benefits management? ADP Ultimate Software Bswift Ascentis HR Paychex Ceridian Employee Navigator Workday, Inc. Valiant Stratex Partners SilkRoad Technology Kronos Other Do Not Use 1.5% 1.5% 1.5% 1.2% 1.0% 0.6% 0.4% 0.4% 0.4% 0.4% 0.4% 7.5% 12.9% 70.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Only three out of ten respondents indicated they currently use a benefits enrollment system. Of those firms with a benefits enrollment system, ADP has the greatest market share with 25.7% followed by Ultimate, bswift and Ascentis HR, each with 5% share. Paychex and Ceridian both have over 3% share. Other benefits enrollment or benefits administration vendors noted by respondents include Employee Navigator, Workday, Valiant, Stratex, Silkroad, Kronos, Oracle, Infinisource, Paycor, Lawson and QuickBooks. When it comes to utilization by size, more than 50% of the firms with more than 100 employees are using a system for benefits enrollment. Conversely, less than one-quarter of the firms with less than 100 employees use a system for benefits enrollment. ADP is the dominant player in all market segments. Companies who operate in the telecommunications, technology, Internet and electronics industry most use internal systems, while manufacturing and retail companies most use ADP. ADP is most used in the Southeast and Midwest. Ascentis is most used in the Midwest. Ultimate Software is most used in the Mid-Atlantic State. Paychex is most used in the Northeast and Paylocity is most used for Benefits Enrollment in the West. Of the top 10 vendors only bswift and Employee Navigator are considered benefits enrollment only solutions. All other vendors provide either Payroll or HRIS functionality with their benefits enrollment platform. A total of 51 vendors were represented in the survey. Of those vendors, 80% offer solution that included more than just benefits enrollment. These statistics are consistent with the trends HR Technology Advisors has seen as employers appear very interested in wanting to use fewer platforms. The majority of the vendors represented in the survey provide multi-function capability and employers are implementing such systems. 23

24 How long have you been using your current benefits enrollment or benefits management vendor? 32.3% 17.4% Less than 1 year 1 to 2 years 19.9% 3 to 5 years More than 5 years 30.4% Although benefits enrollment Systems have been around for more than a decade, many Payroll and HRIS vendors have recently brought this capability to the marketplace. Perhaps this is what s driving the relatively large amount of employers who have a solution that is less than 2 years in place. For those with a benefits enrollment solution that is more than 5 years old, ADP is the dominant solution. Conversely, for those purchasing systems within the last two years Ultimate Software and Ascents HR are the dominant solutions. 24

25 How would you rate your user experience with this benefits enrollment or benefits management technology? 45.0% % 25.0% 15.0% 5.0% 38.5% 28.0% 16.8% 12.4% 4.3% Poor Fair Good Very good Excellent What is your overall level of satisfaction with this benefits enrollment or benefits management vendor? % 45.3% % 32.3% 25.0% 15.0% 5.0% 4.3% 8.7% 9.3% Extremely Unsatisfied Slightly Unsatisfied Moderately Satisfied Very Satisfied Extremely Satisfied 25

26 Are you presently evaluating, or in the next 12 months plan to evaluate, technology solutions for benefits enrollment or benefits management? % Yes 79.5% No Compared with HRIS and Payroll solutions, fewer employers appear to be looking for a benefits enrollment solution within the next 12 months. However, there still remains a large amount of employers currently or about to shop for a benefits enrollment system. Those looking to switch have been moderately satisfied or less with their current vendor. 26

27 Performance Management Which vendor do you use for performance management? ADP Ultimate Software SuccessFactors Halogen Software, Inc Taleo Paychex In-House Cornerstone OnDemand, Inc. Workday, Inc. Sage Software Peoplesoft Kronos Other Do Not Use 3.1% 1.7% 1.3% 1.2% 1.0% 0.8% 0.8% 0.8% 0.4% 0.4% 0.4% 0.4% 4.6% 83.2% 0% 20% 40% 60% 80% 100% Just two out of ten respondents indicated that they use software for performance management. Of those using performance management systems, ADP has an 18.4% market share followed by Ultimate Software with 10.3%, Success Factors with 8.0%, and Halogen with 6.9%. There were 36 vendors represented in the survey with 7 firms having more than 2% market share. Nearly half (44.8%) of those with performance management Systems are using the same system as their Payroll or HRIS system. ADP, Paychex, Ultimate Software, Sage, Paylocity, Kronos, and Workday were the top multi-function systems selected. When comparing only the stand-alone performance management Systems, SuccessFactors had 26% of the share, followed by Halogen at 24% and Taleo at 23% and Cornerstone on Demand at 18.6%. Companies with employees most use Ultimate Software. Companies with 501-1,000 employees most use ADP, while companies with fewer than 50 employees generally do not use a performance management system. Companies who operate in the financial services industry most use Halogen, while advertising and marketing companies most use ADP. ADP is most used in the Southeast and Midwest, Halogen is used in the South, and Ultimate Software is used in the Mid-Atlantic States, while Cornerstone is used in the Midwest. 27

28 How long have you been using your current performance management vendor? 23.3% 26.7% Less than 1 year 1 to 2 years 17.8% 3 to 5 years More than 5 years 32.2% Unlike the other product categories reviewed in this survey, the majority of users of performance management systems are relatively new. For those using their current vendor for more than 5 years, ADP is the dominant vendor. For those relatively new to the vendor (less than 1 year), Halogen is the dominant vendor. 28

29 How would you rate your user experience with this performance management technology? 45.0% % 25.0% 15.0% 5.0% 38.9% 23.3% 16.7% 12.2% 8.9% Poor Fair Good Very good Excellent What is your overall level of satisfaction with this performance management vendor? 45.0% % 25.0% 15.0% 13.3% 21.1% 5.0% 5.6% Extremely Unsatisfied Slightly Unsatisfied Moderately Satisfied Very Satisfied Extremely Satisfied Respondents to the survey tend to be more unsatisfied with their performance management vendor compared with all other vendor types. As a point of reference, only 11.9% indicated they were in any way unsatisfied with their payroll vendor (compared with 33.3% for performance management). 29

30 Are you presently evaluating, or in the next 12 months plan to evaluate, technology solutions for performance management? Yes 7 No Nearly one-third of respondents indicated that they are likely to evaluate a Performance Management vendor within the next 12 months. This is higher than any other product category in this study and may be a reflection of the current satisfaction level. 30

31 Recruiting Which vendor do you use for recruiting? ADP Taleo Ultimate Software icims (irecruiter) Applicant Pro Jobvite i-applicant ApplicantStack Paycom HR Smart CATS SilkRoad Technology Resumator Bullhorn SAP Peoplesoft PCRecruiter Paylocity Paychex MyPayrollHR icims Kenexa Other Do Not Use 4.6% 1.7% 1.2% 1.2% 1.2% 1.0% 1.0% 0.6% 0.6% 0.6% 0.6% 0.4% 0.4% 0.4% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 73.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% Over 70% of respondents currently do not use a recruiting software solution. Of those using recruiting Systems, ADP has17.3% market share followed by Taleo with 6.5%, Ultimate Software with 4.3%, ICIMS with 4.3%, and Jobvite with 3.6%.There were 61 vendors represented in the survey with only 5 firms having more than 2% market share. Only ADP and Ultimate Software are systems with any significant market share that are also being used for some other function such as HRIS or Payroll. As may be expected, 71.2% of those using recruiting systems have 100+ employees while 28.8% have less than 100 employees. Other recruitment vendors include Applicant Pro, Cyber Recruiter, and Paycor. Companies with 50-1,000 employees most use ADP, while companies with fewer than 50 employees generally do not use a recruitment system. Companies who operate in the financial services industry most use internal systems, while computer/it services companies most use HR Smart and Billhorn. ADP is most used in the Southeast and Midwest, ApplicantPro is used in the Southeast, and Ultimate Software is used in the Mid-Atlantic States, while Bullhorn is used in the East. 31

32 How long have you been using your current recruiting vendor? 25.0% 23.0% 25.9% 28.1% 23.0% 15.0% 5.0% Less than 1 year 1 to 2 years 3 to 5 years More than 5 years Nearly 50% of the respondents indicated they are relatively new to their recruitment solution (less than 2 years). For those with more than 5 years with a vendor, ADP is the dominant vendor. For those with less than 2 years, icims is the dominant player. How would you rate your user experience with this recruiting technology? 45.0% % 25.0% 15.0% 5.0% 38.8% 31.7% 18.0% 8.6% 2.9% Poor Fair Good Very good Excellent 32

33 What is your overall level of satisfaction with this recruiting vendor? 45.0% % 25.0% 15.0% 5.0% 2.9% Extremely Unsatisfied 9.4% Slightly Unsatisfied 40.3% Moderately Satisfied 38.1% Very Satisfied 9.4% Extremely Satisfied Are you presently evaluating, or in the next 12 months plan to evaluate, technology solutions for recruiting? % Yes 76.3% No Nearly one-quarter are considering a recruitment solution within the next 12 months. 33

34 Internal Social Collaboration Which vendor do you use for Internal Social Collaboration? LinkedIn Facebook Yammer Microsoft Office 365 Cisco WebEx Social Chatter ADP Socialcast Paychex Jive Huddle Other Do Not Use 2.7% 1.7% 1.4% 0.8% 0.4% 0.4% 0.4% 0.2% 0.2% 0.2% 0.2% 3.9% 87.6% Nearly nine out of ten of the respondents indicated they currently do not use an internal social collaboration solution. Of those using social collaboration systems, LinkedIn has 21.9% market share followed by Facebook 14.1%, Yammer 10.9%, Cisco 3.1%, and Chatter 3.1%. There were 24 vendors represented in the survey with only 6 firms having more than 2% market share. Other internal social collaboration vendors include Basecamp, Lync, SharePoint, and Trello. Companies with employees most use Facebook and LinkedIn. Companies with employees most use Yammer, while companies with fewer than 50 employees generally use an internal system. Companies who operate in the computers, IT, advertising, and public relations industry most use Yammer and Huddle, while retail, insurance and healthcare companies most use LinkedIn and Facebook. Yammer is the most dominant vendor in the East, Huddle is used in the Midwest, and Jive is used in the Mid- Atlantic States, while Chatter is most used in the West. 34

35 How long have you been using your current social collaboration vendor? 12.1% 21.2% Less than 1 year 1 to 2 years 33.3% 3 to 5 years 33.3% More than 5 years Adoption of social collaboration tools is relatively new for respondents as only 12% have been using these for more than 5 years. How would you rate your user experience with this social collaboration technology? % % 19.7% 6.1% 6.1% Poor Fair Good Very good Excellent Interestingly, 25% have had a very good or better experience whereas 25% have had less than a good experience. 35

36 What is your overall level of satisfaction with this social collaboration vendor? % % 10.6% 18.2% 6.1% Extremely Unsatisfied Slightly Unsatisfied Moderately Satisfied Very Satisfied Extremely Satisfied The majority are moderately satisfied thus far with their social collaboration vendor. Are you presently evaluating, or in the next 12 months plan to evaluate, technology solutions for social collaboration? % Yes 89.4% No Although adoption of social collaboration tools are not as advanced as other vendor types in this survey, only 10% of respondents indicate they are evaluating or plan on evaluating vendors over the next 12 months. 36

37 Company Intranet Which vendor do you use for your company intranet? Sharepoint Internal/In-House ADP Google Use HR/Payroll System Lotus Notes Intranet Connections Joomla Intranet Dashboard IBM Websphere Drupal SAP Sage Software Plone Peoplesoft Paychex Jive Interact Intranet Other Do Not Use 10.7% 5.1% 2.1% 1.6% 1.2% 0.6% 0.6% 0.4% 0.4% 0.4% 0.4% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 12.5% 62.7% Surprisingly, nearly two-thirds of respondents do not use a vendor for their company intranet. Of those companies with an Intranet, Microsoft s SharePoint has 26.6% market share followed by ADP at 5.8%. Those who say they use their HR System represented 6.1% of the market. There were 52 vendors represented in the survey with only 3 firms having more than 2% market share. Other company intranet vendors include Confluence, Symquest, and internally developed platforms. Companies with employees indicated that they most use their HR/Payroll system, while companies with fewer than 50 employees generally do not use a company intranet. Companies who operate in the energy, retail and healthcare industries most use SharePoint, while construction, human services and manufacturing companies most use their HR/Payroll system. SharePoint is most used in the East and Midwest, while ADP is used in the East. 37

38 How long have you been using your current company intranet vendor? 11.1% Less than 1 year 14.3% 1 to 2 years 50.3% 3 to 5 years 24.3% More than 5 years Half of those responding that they use an intranet vendor indicate they ve used that vendor for more than 5 years. Among this group, ADP is the dominant solution. How would you rate your user experience with this company intranet technology? % % 25.0% 15.0% 5.0% 43.4% 27.5% 18.0% 7.4% 3.7% Poor Fair Good Very good Excellent 38

39 What is your overall level of satisfaction with this company intranet vendor? % % 3.2% 6.9% 7.4% Extremely Unsatisfied Slightly Unsatisfied Moderately Satisfied Very Satisfied Extremely Satisfied Are you presently evaluating, or in the next 12 months plan to evaluate, technology solutions for company intranet? % Yes 84.1% No Although 20% indicate that the user experience is less than good, less than that number (15.9%) plan on shopping within the next year for a new company intranet vendor. 39

40 Current Capabilities Employee Self Service Do you currently provide employee self-service for any of the following? No Yes - Internet w/ Mobile Yes - Internet Only View Performance Information 85% 2% 13% Enroll In Benefits 75% 3% 22% View Benefits Information 55% 9% 37% Request Time Off 65% 8% 27% View Vacation/Sick Time/PTO Balance 49% 14% 37% Punch In/Out 65% 8% 27% View Paystub 41% 21% 38% Update Personal Records 72% 5% 23% When it comes to self-service, we looked at payroll first. Of the vendors most commonly used, Ultimate Software had the highest percentage of internet availability with 92.3% of their clients giving employees access to payrelated information via the web and 30.8% of their customers providing mobile access. For those using ADP, 69.6% provided internet access and 37.9% mobile. Respondents using Paychex had 62.7% with internet access and 10.5% mobile. Paylocity users had 58.3% with internet access and 25.0% mobile. Of those services listed above, the top 3 services provided via self-service all relate to view-only capabilities (view paystub, view vacation, view benefits information). The top employee self-service transaction is requesting Time-off or Punching In/Out. This is followed by providing the ability to update personal records, and then enrolling in benefits. Only 35% of firms allow employees to perform some transaction via the web or mobile, which means there is plenty of room for growth in this area. For other employee self-service we did not look at utilization by vendor. Some firms use payroll for things like PTO tracking, others track this in a Time and Attendance system while others in HRIS. Therefore we could not draw a one-to-one relationship between a vendor and the type of employee self-service function. 40

41 In evaluating your HR technology solution, would you prefer to integrate multiple systems or have a single solution for HR-benefits-payroll? % 37.2% 16.8% Integrate Multiple Best-of-Class Solutions Single Solution Not sure Nearly half of the survey s respondents indicate they would prefer a single solution for HR-Benefits-Payroll. According to the survey, 28.4% of employers have the same vendor for Payroll and HR while 7.5% have the same vendor for HR, Benefits, and Payroll. Of those employers with single platform systems, the following charts represent the market share. HR and Payroll HR, Benefits, and Payroll 5.3% 4.7% ADP 4.50% 2.30% 6.80% ADP 6.5% 6.5% 18.8% 48.2% Paychex Ceridian Ultimate Software Sage 9.00% 11.40% 61.40% Paychex Ultimate Software Kronos Ceridian Paylocity ECI 41

42 Communicating with Employees To the best of your knowledge, what percentage of your employees has through work? % 14.3% 9.4% 6.8% 1.2% 0-25% 26-50% 51-75% % I don't know How do you typically communicate with your employees on company-wide correspondence? (Check all that apply) Other 6.2% Text 2.2% Intranet Internal Memo 11.3% 12.4% 41.5% Verbally Through Managers/Supervisors 26.5%

43 To the best of your knowledge, what percentage of your employees has internet access at home? % % 13.5% 1.6% 4.6% 0-25% 26-50% 51-75% % I don't know To the best of your knowledge, what percentage of your employees own smartphones? % % 19.9% 8.0% 2.6% 0-25% 26-50% 51-75% % I don't know Use of smartphones to communicate is rapidly growing in our personal lives. It is estimated that up to 90% of working people have smartphones. As HR moves to the web and mobile, it will be important to understand the technology that employees use in their personal lives. The idea of using an employee s own existing technology (BYOD - bring your own device) for business purposes is a buzz in the current market and is expected to grow. Using text messaging to communicate work information to employees is also an expected trend. It will be interesting to see how the numbers in the above charts change over the next few years. 43

44 Summary Technology is impacting our personal lives with rapid adoption of smartphones, text messaging, and even video chat. According to Pew Research as of January 2014: 90% of American adults have a cell phone 58% of American adults have a smartphone 32% of American adults own an e-reader 42% of American adults own a tablet computer These same technologies will become more prevalent in our business lives, and HR is no exception. There is tremendous opportunity to improve operational efficiencies in HR by leveraging technology. By automating traditional paper processes and moving information and transactions out to the employees, HR can use valuable time to become more strategic within an organization. This survey produced some key findings. The first is that the adoption of technology in the HR/Payroll areas has exceeded 50% and will likely continue to grow based on the numbers who indicate they ll be shopping within the next twelve months. For those shopping, we see an increasing desire for employers to use a single platform for as many HR/Payroll activities as possible. Only 16.8% of those surveyed definitively said they would prefer to implement best in class solutions compared with nearly 50% wanting a single, integrated platform. The market leaders in almost every major technology category (HR, Benefits, Payroll, Time and Attendance) were those that offered a broader range of capabilities. Employee self-service will also likely expand as employers respond to employee demand for better access to information, much like their personal lives. Over 50% of employers are providing some HR/Payroll information to employees via the web (although today most of this is informational, not transactional). Providing information via Mobile, however, is still fairly low with the highest adoption rates at 21% for any category. With the rapid rise in adoption of mobile phones by the average person, we see this as a large growth opportunity in the next few years. On average between 10%-20% of employers aren t satisfied with their current vendor, and around 20 30% of firms intend to shop for a solution in the next 12 months regardless of vendor category. While HR and Payroll systems have been around for decades, we do see moving to cloud based systems with web and mobile access as an emerging market and potential differentiator, and this statistic seems in-line with expectations. From a communication standpoint, most employers are not taking advantage of technology available today to make communication easier. Few people with smartphones don t text message, yet only 2.2% of respondents today use text messaging as a form of communication to employees. We would expect that to change significantly over the next several years as HR/Payroll vendors facilitate this change. While adoption rates by size of firm were relevant (larger firms adopting technology faster), we saw no significant differences in adoption rates by location, industry, or profit/non-profit. And we expect in the year ahead, that adoption rates will continue to surge higher regardless of industry type, location or organizational size. 44

45 Vendor List The following is a list of the vendors mentioned in this survey report. HRIS Vendors Activant ADP Ahola Ascentis HR Benechex BenePay Ceridian Club Systems Creative Microsystems, Inc. Data Service Center Deltek Electronic Commerce, Inc. Employee Navigator Empower Software Solutions Epicor HCM Evolution Exact Job Boss Exponent Technologies Flex-Pay Future Vision Gen4 GNSA Heartland HR People Strategy icims InfiniSource Infinite Visions InfinityHR Integrated Payroll Services, IPS iprocess isolved Jonas Kronos Lawson Software Mangrove Software, Inc. Microsoft Dynamics MUNIS Neogov, Sungard HTE New World Systems Open4 Oracle Pat Systems Pay Data Paychex PayChoice Paycom Paycor Paylocity Payroll Data Systems Payroll Express Payroll Network PayTime People Trak Peoplesoft Pro data QuickBooks Sage Software SAP SAWIN SentricWorkforce SharedHR Sikich LLC Skyward Stratex Partners TimeForce Trupay Ultimate Software Unicorn HRO Viewpoint Workday, Inc. Your Source Management 45

46 Payroll Vendors The following is a list of the vendors mentioned in this survey report. Activant ADP Advantage Ahola Ajera Allicance benechex BenePay Ceridian Certipay Clarity CPI-HR CTR Custom Payroll Services Cyberpay Data Services Deltek EDP Electronic Commerce, Inc. Emphasys Empower Software Solutions Encore Epicor EVO ERP Evolution Exact Job Boss Exponent Technologies Fidelity Flex-Pay Foundation Harpers Payroll Services HarrisData Heartland IBM Software AS 400 Infinitepay Infinisource Infinite Visions Integrated Payroll Services, IPS iprocess isolved Jet Pay Jonas Kronos Lawson Mangrove Software, Inc. Maxwell Microsoft Dynamics MUNIS New World Systems Online Employer Oracle Pay systems Paychex PayChoice PayCom Paycor PayData Paylocity Payroll 4 Construction Payroll Data Payroll Express Payroll Mate Software Payroll Network Payroll Solutions Paytime PBS Peachtree PenSoft Peoples United Peoplesoft Pinnacle Payroll Portland Payroll Power Tools Precise Pay PRG PrimePay ProData Proliant Quickbooks Sage Software Salina Office SAWIN SentricWorkforce Skyward Stratex Partners SurePayroll The Payroll Company Trupay UCS Powertools Ultimate Software Unicorn HRO Your Source Management 46

47 Time and Attendance Vendors The following is a list of the vendors mentioned in this survey report. ADP Advance Time Advantage Advantek Solutions Ajera Aloha Amicus Attorney Case Management Software API Ascentis HR AssureForce Attendance Enterprise Attendance on Demand Autotask BenePay BQE BST Bullhorn/Timesheasy Cashe CCH Practice Management Ceridian Club Systems Connectwise Custom Payroll Services Databasics Deltek EBSTime EFI Logic Electronic Commerce, Inc. Empower Software Solutions Encompix Epicor HCM EvoClock Evolution Exact Job Boss Exponent Technologies Field Work Center Flex Pay Global Shop Great Plains HarrisData Software HROffice IBM AS 400 Icon IEmployee Infotronics Inovapayroll Insperity Integrated Payroll Services, IPS I-Time JAMIS Jantek Jonas Jounyx Kronos LabelTraxx Labor Strategy Lawson Microsoft Dynamics Midwest Time, Inc. MRP System/EstiTrack National Time Systems/Attendance Enterprise Navision NovaTime Open Air Oracle Paychex Paycom Paycor PayData Paylocity Payroll 4 Construction Payroll Data Systems PayTime PenSoft Peoplesoft Power Tools pro data PROCAS Quickbooks ReadyClock Redcort Software Replicon Sage Software SAWIN Self Developed Solution Solomon SL Stratex Partners Sungard SwipeClock Syteline TCM ERP Time Clock Plus Time Force II from Infinisource Time off Manager Time Vantage TimeForce Timeslips TimeTrax timevantage uattend Ultimate Software Unanet Unicorn HRO Watson Webvantage/Advantage Workday, Inc. Workplace 47

48 Benefits Enrollment Vendors The following is a list of the vendors mentioned in this survey report. ADP Ascentis HR BDG Benefits Management Benefitsolver BenePay Bswift CBIZ NBA Ceridian Club Systems Core Documents EB Gateway E-Benetits Electronic Commerce, Inc. Employee Navigator Empower Software Solutions Exponent Technologies Flex Pay Gen4 Golden Cohen HarrisData HR People Strategy Infinisource InfinityHR iprocess Kronos Lawson Microsoft Dynamics Microsoft Great Plains MyPayrollHR New World Systems Open4 Oracle Paychex Paycom Paycor PayData Paylocity QuickBooks Sage Software Secova, Inc. SentricWorkforce Skyward SmartBen Stratex Partners Ultimate Software Universe WebBen Workday, Inc. Workterra Zywave, Inc. Performance Management Vendors The following is a list of the vendors mentioned in this survey report. ADP Allegro Appraisal Smart Autotask Cargas Club Systems Cornerstone OnDemand, Inc. Deltek Halogen Software, Inc HRN Key Survey Kronos Lawson Munis Neo Gov Neogov PE Open4 Paychex Paycom Paylocity Peoplesoft Performance Pro HRN Promantic- Trakstar Reviewsnap Sage Sentric - workforce SilkRoad Technology SuccessFactors Talent Manager Taleo TrakStar Ultimate Software Workday, Inc. 48

49 Recruiting Vendors The following is a list of the vendors mentioned in this survey report. ADP Allegro Applicant Pool ApplicantPro ApplicantStack BirdDog Bullhorn CATS Club Systems Compas Cort Craigslist CyberRecruiter DC JObs FileMaker Gecko Hirebridge HireRight HR Smart HRMDirect Hyrell iapplicant icims (irecruiter) Job Net Jobvite Kenexa Lawson Talent Management MANPOWER Myrecruitingcenter/GoHire Neo Gov Open4 Paychex Paycom Paycor Paylocity PCRecruiter Peerless Peoplefluent Position Manager Prospera - JJ Keller Resumate Resumator Salesforce SAP Sikich LLC SilkRoad Technology Smart Recruiter Talent Tap Taleo TJ & Associates Trovix Ultimate Software Union Hall Viewpoint Your Source Management Social Collaboration Vendors The following is a list of the vendors mentioned in this survey report. ADP Autotask Basecamp Broadvision Chatter Church Community Builder Cisco WebEx Social Clear Space Facebook FirstClass (Open Text) Google Huddle Jive LinkedIn Lync Macola - E-Synergy MS Sharepoint Office 360 Paychex paycom Socialcast Trello Windows Yammer 49

50 Company Intranet Vendors The following is a list of the vendors mentioned in this survey report. ACAD ADP Atlassian BungeeCraft Technologies Chaney Systems Civic Plus Clear Space Cloud Club Essentials Confluence Corporate HQ cygnus Drupal finalsite FirstClass (Open Text) Gen4 Google HarrisData Hostway IBM Websphere Intranet Connections Intranet Dashboard Jive Joomla Jostle Lotus Notes Macola-ESynergy Micronet Microsoft Frontpage Microsoft Sharepoint Mojo Active Neforma NextGen Office 360 Paychex PBHS Peoplesoft pepper Plone Rediker - Edline Sage Software SAP Superior Support Resources Surepoint Symquest TriTech Corp Web Benefit Services Wiki Windows Yammer Zen 50