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The strategic value of Human Resources is only gaining significance, and HRIS/HRMS must support this trend or lose out on this market of multiple needs. SaaS products provide the high functionality and usability required. VISIT HR BLOG -> cake.hr/blog
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McLean & Company 1
Vendor Landscape: SaaS HRIS/HRMS
Automating and integrating HR for heightened strategic capabilities.
McLean & Company 2
The strategic value of Human Resources is only gaining significance, and
HRIS/HRMS must support this trend or lose out on this market of multiple
needs. SaaS products provide the high functionality and usability required.
Introduction
Enterprises seeking to select a SaaS solution for HRIS/HRMS.
Enterprises with a SaaS HRIS/HRMS use case that may include:
• Creating a central database of employee information for reporting and strategic planning.
• Integrating talent management or payroll with the employee information database.
• Centralizing all talent management modules including performance management into one system.
This Research Is Designed For: This Research Will Help You:
Understand what’s new in the SaaS HRIS/HRMS market.
Evaluate SaaS HRIS/HRMS vendors and products for your enterprise needs.
Determine which SaaS products are most appropriate for particular use cases and scenarios.
McLean & Company 3
Executive Summary
McLean & Company evaluated seven competitors
in the SaaS HRIS/HRMS market, including the
following notable performers:
Champions:
• Kronos – Partners high functionality and intuitive usability, without the cost of a full ERP solution investment, for mid-market and large organizations.
• SuccessFactors – Employee self-service that allows for high social collaboration through the system, along with strong predicative business analytics for strategic decision making.
• Ultimate Software – An award winning SaaS solution with excellent strategic reporting capabilities and
different solutions for the mid-market and large organizations.
Innovation Award:
• Workday – Intuitive usability with robust mobile functionality that focuses on managing international talent from hire-to-retire.
1. Insight One:
• SaaS HRIS/HRMS solutions are a less costly
way to gain advanced functionality without
hosting in-house.
• SaaS vendors are continuously innovating,
increasing functionality through frequent
updates for end users, which are easier to
integrate than full-blown ERP solutions that
treat HRIS/HRMS as add-ons.
2. Insight Two:
Strategic HR departments should consider
SaaS HRIS/HRMS solutions in order to remain
competitive as talent managers and strategists
since proper implementations yield favourable
ROIs.
3. Insight Three:
Not all SaaS providers are the same – some
focus on performance management, while
others are payroll champions. Choose the one
that fits your organization’s needs and talent
management strategy.
McLean & Co. Insight
McLean & Company 4
Market Overview
• HRIS products were originally the “record keepers”
of employee data. They were essentially databases
that collected demographic information, salary data,
benefits administration, and performance appraisal
results. The main objective of the systems was to
maintain employee data integrity and centralization as
opposed to the traditional model of using single-user
spreadsheets and paper employee files.
• The HRIS was administered by the HR department
with IT assistance. Reporting functionalities were basic
and limited to employee lists, organizational charts, and
historical salary information.
• HRIS began to integrate into ERP systems as HR
became more complex, strategic, and less
administratively focused in order to inform payroll and
gain increased reporting capabilities.
• Large ERP vendors like Lawson, Oracle, and SAP
capitalized by offering HRIS as part of their overall ERP
offerings.
• The highly strategic nature of HR has created a
demand for more multi-functional products.
• “Integrated talent management” are the new buzz
words. Vendors are now offering modules and
partnerships that are easily integrated and configurable.
o Integration dominates, giving HR the flexibility to
choose the best fit for the organization.
• Enter SaaS HRIS/HRMS products, which are
independent of ERP systems and offer functionality
beyond mere data repository:
o Configurable workflows, manager and employee self-
service, payroll integration, and compliance reporting
are key to making HR more efficient.
o Recruiting, performance management, succession
planning, learning management, benchmarking, and
analytics reporting are now high demand functions to
assist HR in becoming more strategic.
• Mobile and predictive analytics are the new wave of
functionality that will increase convenience and data-
driven strategic decision-making.
How it got here Where it’s going
As the market evolves, capabilities that were once cutting edge become standard and new functionality
becomes differentiating. Manager and employee self-service and payroll integration have become Table
Stakes capabilities and should no longer be used to differentiate solutions. Instead, focus on talent
management modules, integration capabilities, and usability to get the best fit for your requirements.
McLean & Company 5
SaaS HRIS/HRMS Vendor Landscape selection/knock-out criteria: Market share, mind share, and market consolidation
• For this Vendor Landscape, McLean & Company focused on those vendors that have SaaS offerings and are not
competing in the ERP market.
• “Pure play” vendors – those with many functionalities in addition to basic HRIS functionalities – were included to
compare the integrated talent management system landscape.
• However, talent management vendors without basic HRIS functionality were not considered.
• Only vendors that were at least SAS 70 II compliant were considered.
• Ascentis. Strong payroll functionality for the mid-market.
• Kronos. The market leader, with major workforce management capabilities.
• NuView Systems Inc. A dedicated international player with multiple language capabilities.
• SilkRoad. The user-friendly suite with various module offerings.
• SuccessFactors. Performance management expert with strong HRIS collaboration and reporting capabilities.
• Ultimate. An award-winning system with high scalability capabilities.
• Workday. Innovative newcomer with a quickly growing presence.
Included in the Vendor Landscape:
McLean & Company 6
SaaS HRIS/HRMS Criteria & Weighting Factors
25%
40%
10%
25%Features Usability
AffordabilityArchitecture
50%
50%
Product
Vendor
Vendor Evaluation
Vendor is committed to the space and has a
future product and portfolio roadmap.Strategy
Vendor offers global coverage and is able to
sell and provide post-sales support. Reach
Vendor is profitable, knowledgeable, and will
be around for the long-term.Viability
Vendor channel strategy is appropriate and the
channels themselves are strong. Channel
Product Evaluation
The solution’s dashboard and reporting tools
are intuitive and easy to use.Usability
The delivery method of the solution aligns with
what is expected within the space.Architecture
The five year TCO of the solution is
economical.Affordability
The solution provides basic
and advanced feature/functionality.Features
30%
30%
15%
25%Viability Strategy
ReachChannel
McLean & Company 7
The McLean & Company HRIS/HRMS Vendor Landscape
Champions receive high scores for most
evaluation criteria and offer excellent value.
They have a strong market presence and
are usually the trend setters for the industry.
Innovators have demonstrated innovative
product strengths that act as their
competitive advantage in appealing to niche
segments of the market.
Market Pillars are established players with
very strong vendor credentials, but with
more average product scores.
Emerging Players are newer vendors who
are starting to gain a foothold in the
marketplace. They balance product and
vendor attributes, though score lower
relative to market Champions.
For an explanation of how the McLean & Company Vendor Landscape is created, see the “Vendor Evaluation Methodology” slide in the appendix.
McLean & Company 8
Every vendor has its strengths and weaknesses – pick the one that works best for you
Product Vendor
Features UsabilityAfford-
ability*Viability Strategy ChannelReach
Architec-
tureOverall Overall
For an explanation of how the McLean & Company Harvey Balls are calculated, see the “Vendor Evaluation Methodology” slide in the appendix.
Legend =Exemplary = Good = Adequate =Inadequate = Inferior
*Sample pricing was only provided by one vendor, so Affordability was not evaluated.
Ascentis
Kronos
NuView
SilkRoad
SuccessFactors
Ultimate
Workday
McLean & Company 9
What is a Value Score?
The McLean & Company SaaS HRIS/HRMS Value Index
50 50 50 50 50 50 50
WorkdayUltimateSuccess
-Factors
SilkRoadNuViewKronosAscentis
The Value Score indexes each vendor’s product
offering and business strength relative to its price
point. It does not indicate vendor ranking.
Vendors that score high offer more bang for the
buck (e.g. features, usability, stability, etc.) than
the average vendor, while the inverse is true for
those that score lower.
Price-conscious enterprises may wish to give the
Value Score more consideration than those who
are more focused on specific vendor/product
attributes.
For an explanation of how the McLean & Company Value Index is calculated, see the “Value Index Ranking Methodology” slide in the appendix.
For an explanation of how normalized pricing is determined, see the “Product Pricing Scenario & Methodology” slide in the appendix.
Champion
SaaS HRIS/HRMS Software
Due to the unique nature of
these services, sample pricing
could not be provided by
vendors, so a Value Index could
not be calculated.
McLean & Company 10
Table Stakes represent the minimum standard – without these, a product doesn’t even get reviewed
If Table Stakes are all you need from your SaaS HRIS/HRMS solution, all the vendors evaluated here will
meet your functionality needs. However, usability, configurability, international capabilities, and future use
cases should still be considered.
The products assessed in this
Vendor LandscapeTM meet, at the
very least, the requirements
outlined as Table Stakes.
Many of the vendors go above
and beyond the outlined Table
Stakes, and some even do so in
multiple categories. This section
aims to highlight each product’s
capabilities in excess of the
criteria listed here.
The Table Stakes What Does This Mean?
Feature Description
Employee Data
Capture
Records demographic information about employees, including
name, address, salary, department, etc.
Payroll
Administration
Hours worked, commissions, vacation, leaves of absence,
overtime, deductions, bonuses, taxes, and contributions are
properly documented and distributed in a timely manner.
Reporting
Capabilities
Provides standard templates and custom options to pull data
into meaningful reports (e.g. turnover, absenteeism, diversity)
for both HR and business use.
Role-based
Interfaces
Both employee and manager self-service options available to
change or modify information and generate reports.
Workflow Tasks can be configured to an authorization process that
notifies individuals of outstanding authorization requirements.
SaaS Compliance Meets SAS 70 Type II certification or higher for data security.
Employment
Compliance
Preset or configurable options to track, monitor, and alert
administrators on common workplace compliance
requirements like OSHA, COBRA, etc.
McLean & Company 11
Advanced features are the market differentiators that make or break a product
Feature What We Looked For
Time &
Attendance
Documents employee labor hours (including lunches and breaks,
overtime, etc.), and tracks attendance data for payroll purposes.
Benefits
Administration
Monitors programs and plans, including pension, insurance, and
healthcare, and ensures payments and deductions are made correctly.
Position
Management
Employees can be assigned a position grade, promoted, and moved
into different departments, allowing for workforce planning.
Performance
Management
Evaluates and documents performance so that each employee
effectively meets business goals.
Expense
Management
Reports and tracks that employee expense claims are processed,
paid, and documented in compliance with the organization’s policies.
Succession
Planning
Identifies and tracks development of personnel who demonstrate
potential for increased responsibility and key leadership roles.
Absence
Management
Measures and monitors employee absences to ensure maximum
workforce productivity as well as employee support.
Learning &
DevelopmentFacilitates training to improve employee performance.
Predictive
Analytics
Examines statistically relevant data for significant relationships and
patterns to aid predictions about future trends, opportunities, and risks.
Recruiting Tracks job applicants throughout the recruiting process.
Advanced Features
McLean & Company
scored each vendor’s
offering as a summation of
its individual scores across
the listed advanced
features. Vendors were
given one point for each
feature the product
inherently provided. Some
categories were scored on
a more granular scale with
vendors receiving half
points.
Scoring Methodology
McLean & Company 12
Legend = Feature fully present = Feature partially present / pending = Feature absent
Each vendor offers a different feature set – concentrate on what you need
Time and
Attendance
Position
Mgmt.
Expense
Mgmt.
Succession
Planning
Learning
and Dev.
Absence
Mgmt.Perf. Mgmt.
Predictive
AnalyticsRecruiting
Benefits
Admin.
Ascentis
Kronos
NuView
SilkRoad
SuccessFactors
Ultimate
Workday
McLean & Company 13
$1
McLean & Company Recommends:
North American healthcare will benefit greatly from Kronos expertise; globally, Kronos’s proficiency,
service, and integration with workforce management is unprecedented in any other solution.
Product:
Employees:
Headquarters:
Website:
Founded:
Presence:
Kronos Workforce Central
3,100
Chelmsford, Massachusetts
kronos.com
1977
$740 M in revenue (2010)
Private equity owned
Kronos is a workforce titan with healthcare expertise and a strong global presence
Champion• Founded in 1977, Kronos was a publically traded company, which
became privately held again in 2007.
• Kronos boasts 30 million users a day in over 60 countries.
• Although it has an impressively large enterprise customer base, it
predominately focuses its strategy on the mid-market.
Overview
• Global scalability, with great success in India.
• Expertise in all industry verticals, with an excellent record in
healthcare.
• Training is available onsite, in person, as well as through remote
customer-guided training sessions, training materials, and customer
communities.
• “Drag and drop” usability simplifies complex reporting.
Strengths
• Despite considerable international presence, the HR and Payroll
system is only available in English.
• Kronos standard reports are written in Crystal, although any ODBC
report writer can be used in conjunction with the database.
Challenges
3 Year TCO: Based on pricing scenario
(see Appendix)
$1M+
McLean & Company 14
Product:
Employees:
Headquarters:
Website:
Founded:
Presence:
Employee Central 2.0
1400+
San Mateo, CA
successfactors.com
2001
NYSE: SFSF
FY10 Revenue: $209.4 M
SuccessFactors is an innovative solution with robust employee collaboration functionality and advanced reporting
Champion• Leveraging its deep performance management beginnings,
SuccessFactors has developed an innovative HR Business Suite
product for small, mid, and large sized organizations using a highly
usable, collaboration-friendly interface.
Overview
• SuccessCloud, a first-of-its-kind technology partner program, allows
third-party applications and data from other business systems to
connect and integrate with its BizX suite.
• Business workforce analytics and benchmarking allow for predictive
modeling reporting using 2000+ built-in metrics.
• Mobile applications support project collaboration and recruiting.
Strengths
• Although it has highly integrated payroll partnerships, it is the only
vendor in this evaluation to not offer payroll administration as a
native part of its application.
• SuccessFactors is a high energy offering; though it may be
intimidating to more traditional HRIS users. Corporate wide training
and cultural adjustments will be required to get employees,
managers, and HR professionals collaborating through the system.
Challenges
$1 $1M+
Vendor declined to provide product pricing
McLean & Company Recommends:
Avant garde, data-driven HR strategists will find SuccessFactors predictive modeling and reporting
useful, but more conservative organizations may find the system overwhelming.
McLean & Company 15
McLean & Company Recommends:
Larger mid-sized organizations and large organizations will find Ultimate’s functionality and reporting
capabilities to be very robust, scalable, and advanced.
Product:
Employees:
Headquarters:
Website:
Founded:
Presence:
UltiPro
1200+
Weston, Florida
ultimatesoftware.com
1990
NASDAQ: ULTI
FY09 Revenue: $196.6 M
Ultimate is a SaaS leader, with exceptional security and functionality
Champion• Ultimate Software has a broad target market, but also provides
solutions specific to the mid-market, making it the most widely used
solution in North America.
• It boasts 2,200+ customers in diverse industry verticals and globally.
Overview
• Ultimate Software was the first SaaS provider to achieve ISO/IEC
7001 Certification.
• Free, unlimited training with a variety of options. Classroom training
and on-demand online courses, partnered with 24x7 access to HR
subject-matter experts, provide excellent support.
• A 96% customer retention rate indicates high customer satisfaction.
Strengths
• Although it has a specific mid-sized offering (200-999 employees),
smaller organizations have no options.
• Cognos reporting for analytics requires staff training in order to fully
benefit from its robust functionality.
• The dated user interface is less appealing and intuitive.
• Mobile functionality is limited to an iPhone application.
Challenges
$1 $1M+
Vendor declined to provide product pricing
McLean & Company 16
McLean & Company Recommends:
Workday’s forward-thinking mobile functionality and future-oriented career and succession planning for
employees can serve a user’s long-term HR needs starting today.
Product:
Employees:
Headquarters:
Website:
Founded:
Presence:
Global Human Resource
Management
676
Pleasanton, CA
workday.com
2007
Private
Workday is an innovative solution with a focus on developing the leadership pipeline globally
Innovator• Workday was created by former PeopleSoft leaders, backing its
innovative stance with a history of HR system leadership.
• With 177 customers in 123 countries, Workday has grown
considerably since its inception.
Overview
• Strong international capabilities include support for multi-entity,
multi-language, multi-currency, and multi-book needs.
• Robust mobile capabilities, including real-time business intelligence
right to the user’s device.
• Succession planning includes global leadership pipeline planning,
which is unique and aligned with future HR challenges.
Strengths
• Payroll functionality has limited reporting and admission levels
compared to Champion vendors, which decreases usability by
preventing key stakeholders from accessing pay data.
• High growth has resulted in some support quality issues, which can
adversely affect implementation.
• Workday does not specifically target the mid-market.
Challenges
Vendor declined to provide product pricing
$1 $1M+
McLean & Company 17
Product:
Employees:
Headquarters:
Website:
Founded:
Presence:
HeartBeat
375
Chicago, IL
silkroad.com
2003
Privately held
SilkRoad presents sleek user interfaces and easy to use talent management modules
Market Pillar• SilkRoad’s HeartBeat and integrated suite is a slick, appealing
product with 2,000 customers in 20 locations globally.
• SilkRoad provides a cross-industry solution for mid-sized to large
enterprises.
Overview
• Powerful, flexible role-based security allows customers to restrict
access to sensitive data. Role-based security extends to reports as
well.
• A well developed learning management module is used to train
clients to maintain consistency and showcase key features.
• Reporting does not require an external plug-in, so custom reports
can be created throughout the suite.
Strengths
• Mobile device use and support for the solution is still evolving.
• Reporting dashboards are useful, but not configurable (planned for
next year).
• SilkRoad’s integrated talent management suite is led by other
modules (i.e. onboarding); the core HR solution is young and more
of an ideal fit for the mid market currently.
Challenges
$1 $1M+
3 Year TCO: Based on pricing scenario
(see Appendix)
McLean & Company Recommends:
Users looking for strong talent modules without the more traditional aspects of HRIS (time and
attendance, absence management, etc.) will find SilkRoad very user friendly and accessible.
McLean & Company 18
McLean & Company Recommends:
Forward-thinking international companies can leverage NuView’s commitment to global organizations
and the ability to add modules as the HR function grows without the hassle of integration.
Product:
Employees:
Headquarters:
Website:
Founded:
Presence:
NuViewHR
92 employees (2009)
Andover, MA
nuviewinc.com
1994
Private, $11.3 M in revenue
(2009)
NuView Systems is a strong emerging player, especially in the international arena
• NuView Systems released its most recent Global and Payroll
Software in May of 2011, which incorporated client feedback through
focus groups.
Overview
• The modular system allows addition of other modules after initial
implementation without extra integration costs.
• International configurability includes foreign currency management,
localization of forms in different languages, and filtering for
international data regulators (i.e. only data that is relevant and
allowed to be collected appears in fields).
Strengths
• Despite longevity in the marketplace, NuView is a boutique offering
without major market share. This may limit user community support.
• The user interface is boxy and appears dated compared to the fresh
aesthetic of many competitors.
• Mobile capabilities are limited to basic administrative tasks and to
phones with IE and Windows Mobile 5.0 or higher.
Challenges
$1 $1M+
Vendor declined to provide product pricing
Emerging Player
McLean & Company 19
McLean & Company Recommends:
Deep payroll expertise allows for a variety of options to integrate and manage payroll according to
individual client needs, especially in North America.
Product:
Employees:
Headquarters:
Website:
Founded:
Presence:
Ascentis HR
79
Bellevue, Washington
ascentis.com
1980
Private, $3.6 M revenue
Ascentis is a more traditional HRIS provider, with solid payroll functionality and market longevity
Emerging Player• Strongly focused on the mid-market (75-2,500 employees),
Ascentis is the product of a 2007 merger between EBS Online,
a payroll services company, and Ascentis.
• Ascentis serves over 1,400 clients.
Overview
• Ascentis provides strong payroll functionality as well as
integration with other providers.
• Its partner network of benefits providers is robust, particularly
for US-based clients.
• Over 300 standard reports provide new SaaS clients with a lot
of out-of-the-box options prior to customization.
Strengths
• US-based support limits global scalability, and a low number of
international clients despite the vendor’s longevity is indicative
of a limited geographic focus.
• While Ascentis plans to add advanced modules (recruiting was
just released in May 2011), it has not mastered the “integrated
talent management” suite like its competitors.
Challenges
$1 $1M+
Vendor declined to provide product pricing
McLean & Company 20
The McLean & Company SaaS HRIS/HRMSVendor Shortlist Tool is designed
to generate a customized shortlist of vendors based on your key priorities.
Identify leading candidates with the SaaS HRIS/HRMSVendor Shortlist Tool
• Overall Vendor vs. Product Weightings
• Top-level weighting of product vs. vendor
criteria
• Individual product criteria weightings:
Features
Usability
Affordability
Architecture
• Individual vendor criteria weightings:
Viability
Strategy
Reach
Channel
This tool offers the ability to modify:
McLean & Company 21
Exemplary performers offer multiple languages, international reporting, and
have a strong global client portfolio.
Global organizations require scalability, international experience, language and compliance capabilities
Global Scalability
Features and Usability
Mobile Functionality
1
2
3
Exemplary Performers
Viable Performers
Poor Performers
4
McLean & Company 22
Exemplary performers have strong scores in both functionality and usability,
with viable performers excelling more at one or the other.
Integrated talent management requires a variety of features and slick usability to encourage use
Global Scalability
Features and Usability
Mobile Functionality
1
2
3
Exemplary Performers
Viable Performers
Adequate Performers
4
McLean & Company 23
Robust mobile functionality on various mobile devices rather than just
selected devices gets top points.
Mobile functionality is an emerging trend with high demand from busy HR professionals and managers
Global Scalability
Features and Usability
Mobile Functionality
1
2
3
Exemplary Performers
Viable Performers
Poor Performers
4
McLean & Company 24
Appendix
1. Vendor Evaluation Methodology
2. Value Index Ranking Methodology
3. Product Pricing Scenario & Methodology
McLean & Company 25
Vendor Evaluation Methodology
McLean & Company’s Vendor Landscape market evaluations are a part of a larger program of vendor evaluations which includes Solution
Sets that provide both Vendor Landscapes and broader Selection Advice.
From the domain experience of our analysts as well as through consultation with our clients, a vendor/product shortlist is established. Product
briefings are requested from each of these vendors, asking for information on the company, products, technology, customers, partners, sales
models, and pricing.
Our analysts then score each vendor and product across a variety of categories, on a scale of 0-10 points. The raw scores for each vendor are
then normalized to the other vendors’ scores to provide a sufficient degree of separation for a meaningful comparison. These scores are then
weighted according to weighting factors that our analysts believe represent the weight that an average client should apply to each criteria. The
weighted scores are then averaged for each of two high level categories: vendor score and product score. A plot of these two resulting scores
is generated to place vendors in one of four categories: Champion, Innovator, Market Pillar, and Emerging Player.
For a more granular category by category comparison, analysts convert the individual scores (absolute, non-normalized) for each
vendor/product in each evaluated category to a scale of zero to four whereby exceptional performance receives a score of four and poor
performance receives a score of zero. These scores are represented with “Harvey Balls,” ranging from an open circle for a score of zero to a
filled in circle for a score of four. Harvey Ball scores are indicative of absolute performance by category but are not an exact correlation to
overall performance.
Individual scorecards are then sent to the vendors for factual review, and to ensure no information is under embargo. We will make corrections
where factual errors exist (e.g. pricing, features, technical specifications). We will consider suggestions concerning benefits, functional quality,
value, etc; however, these suggestions must be validated by feedback from our customers. We do not accept changes that are not
corroborated by actual client experience or wording changes that are purely part of a vendor’s market messaging or positioning. Any resulting
changes to final scores are then made as needed, before publishing the results to McLean & Company clients.
Vendor Landscapes are refreshed every 12 to 24 months, depending upon the dynamics of each individual market.
McLean & Company 26
Value Index Ranking Methodology
McLean & Company’s Value Index is part of a larger program of vendor evaluations which includes Solution Sets that provide both Vendor
Landscapes and broader Selection Advice.
The Value Index is an indexed ranking of value per dollar as determined by the raw scores given to each vendor by analysts. To perform the
calculation, Affordability is removed from the Product score and the entire Product category is reweighted to represent the same proportions.
The Product and Vendor scores are then summed, and multiplied by the Affordability raw score to come up with Value Score. Vendors are
then indexed to the highest performing vendor by dividing their score into that of the highest scorer, resulting in an indexed ranking with a top
score of 100 assigned to the leading vendor.
The Value Index calculation is then repeated on the raw score of each category against Affordability, creating a series of indexes for Features,
Usability, Viability, Strategy, and Support, with each being indexed against the highest score in that category. The results for each vendor are
displayed in tandem with the average score in each category to provide an idea of over and under performance.
The Value Index, where applicable, is refreshed every 12 to 24 months, depending upon the dynamics of each individual market.
McLean & Company 27
Product Pricing Scenario & Methodology
McLean & Company provided each vendor with a common pricing scenario to enable normalized scoring of Affordability, calculation of Value
Index rankings, and identification of the appropriate solution pricing tier as displayed on each vendor scorecard.
Vendors were asked to provide list costs for SaaS HRIS/HRMS solutions to address the needs of a reference organization described in the
pricing scenario.
Additional consulting, deployment, and training services were explicitly out of scope of the pricing request, as was the cost of enhanced
support options, though vendors were encouraged to highlight any such items included with the base product acquisition. The annual software
maintenance rate was also requested, along with clarity on whether or not the first year of maintenance was included in the quoted software
costs, allowing a three-year total acquisition cost to be calculated for each vendor’s SaaS HRIS/HRMS solution. This three-year total
acquisition cost is the basis of the solution pricing tier indicated for each vendor.
The vendors’ three-year total acquisition costs were not normalized to produce the Affordability raw scores and calculate Value Index ratings
for each solution due to the lack of pricing information available for the majority of vendors.
Key elements of the common pricing scenario provided to SaaS HRIS/HRMS vendors included:
• A mid-level clothing manufacturer/retailer with corporate offices on the US West Coast, East Coast, and in the UK, and with 2,200 global
employees is looking for an HRIS SaaS solution. The firm is interested in a complete and comprehensive solution that will effectively plan,
control, and manage HR costs; achieve improved efficiency and quality in HR decision making; and improve employee and managerial
productivity and effectiveness.
• US East Coast (Satellite)
• Employing 200 people (10% of total staff), the East Coast office solely holds a Marketing department.
• England (Satellite)
• Employing 400 people (20% of total staff), the UK office has buyers and manufacturing (200 employees), and 5 additional IT staff. The
company’s remaining 2 HR staff are located here to manage regionally specific functions, including local administration, learning and
development, recruitment, and generalist HR responsibilities. The organization wishes to enter into an agreement that provides for three
full years of service, including licensing, support, and maintenance. Pricing should reflect this term.
• Because the organization operates on a 7/24 hour day (due to a self-hosted website, webstore, shift work, and different time zones) it
requires support availability over extended hours; any quoted support must be sufficient and appropriate to reflect those operational hours.
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