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13/11/2020 Gartner Reprint https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 1/26 Licensed for Distribution Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises Published 9 November 2020 - ID G00463465 - 46 min read By Analysts Jason Cerrato, Chris Pang, Jeff Freyermuth, Ron Hanscome, Sam Grinter, Ranadip Chandra, Amanda Grainger, John Kostoulas, Helen Poitevin Human capital management suites support core HR, payroll, talent management, workforce management and HR service management. Application leaders in organizations with more than 1,000 workers who are pursuing a cloud HCM strategy should use this research to identify vendors for further evaluation. Strategic Planning Assumptions By 2023, 60% of large enterprises will have invested in a major initiative to improve their manager experience by automating administration of worker-related human capital management (HCM) tasks. By 2025, 60% of global midmarket and large enterprises will have invested in a cloud-deployed HCM suite for administrative HR and talent management. However, they will still need to source 20% to 30% of their HCM requirements via other solutions. Market Definition/Description Cloud human capital management (HCM) suites deliver functionality that helps organizations attract, develop, engage, retain and manage their workforces. These solutions support a variety of HCM capabilities (albeit to varying degrees based on the offering): HR administrative functions (admin HR) — Include core HR (organizational, job and employee data, employment life cycle transactions, employee, manager, and role-based self-service access), benefits and payroll administration. This capability may also include environmental, health and safety (EHS), grievance tracking, wellness or other value-added competencies. HR service management (HRSM) — Includes personalized direct access to policy, procedure and program guidance for employees and managers. It may also include integrated case management, knowledge base, digital document management and virtual assistants (chatbots). Talent management (TM) applications — Include recruiting, onboarding, performance and engagement management, compensation planning, career and succession planning, learning and development, and workforce planning.

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Page 1: Magic Quadrant for Cloud HCM Suites for 1,000+

13/11/2020 Gartner Reprint

https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 1/26

Licensed for Distribution

Magic Quadrant for Cloud HCM Suites for 1,000+Employee EnterprisesPublished 9 November 2020 - ID G00463465 - 46 min read

By Analysts Jason Cerrato, Chris Pang, Jeff Freyermuth, Ron Hanscome, Sam Grinter, Ranadip

Chandra, Amanda Grainger, John Kostoulas, Helen Poitevin

Human capital management suites support core HR, payroll, talent management, workforce

management and HR service management. Application leaders in organizations with more

than 1,000 workers who are pursuing a cloud HCM strategy should use this research to

identify vendors for further evaluation.

Strategic Planning AssumptionsBy 2023, 60% of large enterprises will have invested in a major initiative to improve their manager

experience by automating administration of worker-related human capital management (HCM)

tasks.

By 2025, 60% of global midmarket and large enterprises will have invested in a cloud-deployed

HCM suite for administrative HR and talent management. However, they will still need to source

20% to 30% of their HCM requirements via other solutions.

Market Definition/DescriptionCloud human capital management (HCM) suites deliver functionality that helps organizations

attract, develop, engage, retain and manage their workforces. These solutions support a variety of

HCM capabilities (albeit to varying degrees based on the offering):

HR administrative functions (admin HR) — Include core HR (organizational, job and employee

data, employment life cycle transactions, employee, manager, and role-based self-service

access), benefits and payroll administration. This capability may also include environmental,

health and safety (EHS), grievance tracking, wellness or other value-added competencies.

HR service management (HRSM) — Includes personalized direct access to policy, procedure

and program guidance for employees and managers. It may also include integrated case

management, knowledge base, digital document management and virtual assistants

(chatbots).

Talent management (TM) applications — Include recruiting, onboarding, performance and

engagement management, compensation planning, career and succession planning, learning

and development, and workforce planning.

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HCM suites also provide reporting and data as needed by local and international regulations, and

most often include analytics and role-based dashboard capabilities. Reporting and analytics may

also be assisted by advanced technologies, such as artificial intelligence (AI) or natural language

processing (NLP). Transactional employee and manager self-service are now embedded as roles

in each supported HCM business process. Mobile access is a fundamental part of these

offerings. HR service management continues to appear as an embedded process in HCM suites,

including program or policy search, and employee case management.

User interface (UI) options for HCM suites continue to increase with the further incorporation

and/or integration of chatbots and/or virtual assistants. Chat integration allows users to perform

basic transactions or retrieve information without leaving their corporate chat windows. These

methods of retrieving HR information and performing transactions enable employees to complete

processes without actually logging in; they also deliver a more frictionless experience.

Overall user experience (UX) continues to be a leading selection criterion. As organizations

support workforces with ever-rising expectations of connectivity, in-person conversations with HR

administrators are being replaced by interactions with devices and applications. This shift to

digital HR administration drives the need for compelling and personalized UX, as applications

become the “face” of HR departments. HCM suites continue to support digital transformation

efforts by including highly visible and frequently used processes such as onboarding, training,

shift clock in/clock out, or reviewing pay stubs. HCM suites support several periodic (and

increasingly continual) processes, such as U.S. benefits open enrollment, performance

management and compensation planning. These processes require most of the employee

population to work through a complex, multistep process and involve conditional approval

workflows. Usability, process transparency and real-time analysis are critical.

HCM suites are used primarily to manage regular full-time and part-time employees. Increasingly,

vendors are adding functionality specific to manage and report on contingent and/or freelance

workers. However, most customers still use a vendor management system as their primary tool

for contingent worker administration to address billing, integration with provisioning systems and

related processes. Customer interest in using HCM suites to manage, or at least track, the

contingent workforce continues to increase. But most vendor pricing metrics are cost-prohibitive

for maintaining data on temporary workers. Additionally, some vendors’ organizational structures

do not easily lend themselves to temporary or matrixed relationships. Data privacy laws for

temporary workers may also influence where the data is stored for those workers.

The midmarket demand for a global HR system of record (SOR) remains strong. The need to

operate in multiple countries with diverse regulatory, data access and privacy requirements has

become common even for enterprises in the 1,000- to 2,500-employee range. However, the total

number of countries involved is typically fewer than five, and populations outside corporate

headquarters are a small fraction of the total workforce. Global needs are relatively modest

Workforce management (WFM) — Includes absence management, time capture, time and

attendance evaluation, task/activities tracking, budgeting and forecasting, and scheduling.

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compared with those of large enterprises, and local payroll providers are most often used. A

robust and consistent repository of HR demographic, organizational and (sometimes) talent data

is viewed as necessary to provide total workforce analytics, streamline administration, expand

talent management opportunities and maintain compliance. As a result, this Magic Quadrant

evaluates how well each vendor satisfies HCM functions for large enterprise customers, as well

as midmarket enterprises with more than 1,000 employees. It also assesses geographic coverage

from product and operational standpoints.

Clients with a limited market presence outside their home region (e.g., North America or Europe)

may consider Niche Players or Challengers, due largely to their addressable market. In this

scenario, exercise one of the following options to derive a more accurate representation of vendor

capabilities:

Magic Quadrant

Use the online interactive Magic Quadrant and set the Geographic Strategy criterion to its

lowest weighting.

Review Critical Capabilities for Cloud HCM Suites for 1,000+ Employee Enterprises, which

contains six specific use cases for organizations, three of which have a more limited regional

focus:

Core HR plus talent HCM suite for larger global organizations (more than 5,000 workers)■

North American midmarket HCM suite (1,000 to 5,000 workers)■

Europe-headquartered midmarket HCM suite (1,000 to 5,000 workers)■

New: North American administrative compliance suite for hourly workers (with 1,000 to

2,500 workers)

North American administrative compliance suite for hourly workers (with 2,500+ workers)■

Asia/Pacific-headquartered midmarket and enterprise suites (more than 1,000 workers)■

Figure 1. Magic Quadrant for Cloud HCM Suites for 1,000+Employee Enterprises

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Vendor Strengths and Cautions

This 2020 cloud HCM Magic Quadrant report utilizes vendor presentations, demos and surveys for

Gartner research and review. Additional scoring and analysis were conducted through Gartner

analyst product reviews, Gartner client inquiry data, Gartner Client Peer Insights data and external

social media analytics. Unless otherwise indicated, reported vendor customer counts are as of June

2020.

ADP

ADP is a Niche Player in this Magic Quadrant for its HCM suite, ADP Workforce Now.

Source: Gartner (November 2020)

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ADP Workforce Now is primarily used by organizations that have 500 employees or fewer.

However, it does have approximately 2,000 customers with 1,000+ employees, with several as

large as 10,000+ employees. ADP Workforce Now offers features such as payroll, core HR, U.S.

benefits administration, recruitment, performance, time and labor, and analytics to North

American customers. The suite does not include features such as global benefits administration

or succession planning, but it does offer robust capability for WFM, compliance and analytics.

ADP’s roadmap continues to expand on mobile-first, guided interactions with access to data and

insights for users in the flow of work. The vendor will be integrating other ADP products such ADP

Standout for employee engagement.

ADP also offers its ADP Next Gen HCM for larger, more complex buyers. Next Gen HCM is a

teams-based HCM solution designed from the ground up with several advanced features.

However, the focus of our 2020 review is specific to Workforce Now.

Strengths

Cautions

Market focus: ADP Workforce Now received above-average scores for the features that are

most relevant to its customers and the markets in which they compete. ADP plays to its

strengths and is designing thoughtful solutions to challenging problems such as using

machine learning (ML) for time/labor and compensation compliance, and oversight across the

suite.

Partnership strategy: ADP scored highly in the strategic alliances category for the availability

and execution of its implementation and software partners. The vendor consistently offers one

of the largest partner ecosystems in the market.

Innovation: ADP Workforce Now offers advanced technology to help customers respond to

transformation and face new challenges post-COVID-19; for example, touchless time-clock

interfaces utilizing facial recognition, and an automated workflow for unemployment claims

and appeals management support. These advanced capabilities differentiate this solution from

other options at the smaller end of the 1,000+ employee market.

HRSM offering: ADP Workforce Now has improved some of its capability around HR help desk

and service delivery with recently added chatbot functionality, and electronic document

management and collection. However, it still scored below average for HR help desk and UX

relative to other suites reviewed in this Magic Quadrant.

Performance management offering: ADP Workforce Now offers performance and goals

management, and some of the product integrations and interfaces have improved. But it still

scored toward the bottom end for this module compared with other participating vendors’

solutions.

Depth of partnerships: Those seeking a complete HCM suite with advanced capabilities may

discover functionality gaps within ADP Workforce Now. ADP addresses those gaps through

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Cegid (Meta4)

Cegid Meta4 is a Niche Player in this Magic Quadrant.

Cegid acquired Meta4 in September 2019, adding a suite of cloud HCM solutions — based on the

Meta4 PeopleNet platform, which has been rebranded as Cegid PeopleNet — to its diverse

product portfolio of HCM, ERP, accounting and retail software.

The Cegid PeopleNet solution delivers the full spectrum of HCM suite functions and has 1,800 live

customers, supporting over 22 million employee records. Most of its customers have between

2,500 and 25,000 employees. Robust core HR and WFM capabilities, as well as natively built

localized payroll for Southern Europe and Latin America, make the solution most suitable for

organizations in these regions.

Cegid Meta4 is currently making enhancements to its process automation and onboarding

functionality. Its product roadmap has a strong focus on incorporating AI/ML to improve UX,

contextualization, process efficiency and compliance.

Strengths

Cautions

its integrated solution marketplace, but not all of its partners are equal. To aid organizations,

ADP Marketplace offers interactive tools to provide guidance on identifying partners with the

right level of integration and the appropriate depth of functionality.

Market focus: Meta4 has an established presence in Southern Europe and Latin America, and a

strong track record in meeting the requirements of multicountry customers in those regions.

Such organizations often require complex configurations to address global and local legislative

and compliance requirements.

Customer support: Many of Meta4’s core customer base have presence in countries that have

been strongly affected by the pandemic. Meta4 responded to the crisis with timely facilitation

of remote training workshops to help its clients comply with sudden regulatory changes (for

example, furlough policies and tax exemption eligibility).

Product localizations: The expertise and experience of Meta4 in the countries in which it

operates helped accommodate the complex work regulations and time reporting mandates laid

out by the different governments for implementing strict lockdowns and easing protocols. The

solution also added the ability to register time and attendance of remote workers.

Innovation: Cegid Meta4 needs to keep pace with the continuing modernization of TM

functionality — specifically, its current lack of support for AI/ML use cases could result in the

solution falling behind the competition.

Geographic reach: Cegid Meta4’s placement as a Niche Player is largely due to Meta4’s historic

focus on targeted geographies and industries, compared with its competitors. This focus is

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Ceridian

Ceridian is a Leader in this Magic Quadrant.

Ceridian has more than 4,400 customers live on its Dayforce product, with a strong concentration

of North American midmarket, hourly-based organizations using core HR, WFM, benefits, TM and

payroll.

In recent years, the vendor has increased its capability to serve multinationals headquartered in

North America by expanding its global footprint. Notable acquisitions supporting this initiative

include Excelity, an APAC-based payroll outsourcing provider, and RITEQ, an Australian WFM

vendor. Ceridian has added payroll localizations for the U.K., Ireland, Australia and New Zealand,

and has Mauritius, Mexico and Germany in development.

Strengths

Cautions

reflected in the vendor’s comparatively modest customer growth.

Marketing resources: Meta4 has primarily marketed to global companies headquartered in

Southern Europe and Latin America. Now, as a Cegid company, the increased capacity to

market and sell beyond that audience needs time to grow and provide results.

Market understanding: Ceridian scored above average in this category for strong execution and

a well-developed roadmap. With Dayforce HCM, it services its existing customer base well, has

functionality that aligns with customer requirements and, as it looks to expand and grow, has

added a global leadership team.

Market responsiveness: Ceridian demonstrated several new features built around helping

organizations increase their internal agility, such as assisting digital transformation by pulling

more value out of their HR data, enhancing HR service management and applying AI in

recruiting.

Innovation: Ceridian’s Dayforce Wallet capability offers employees access to their earned

wages on-demand. It also provides flexibility for organizations with increasingly complex

workforce requirements and various types of workers.

Geographic reach: As Ceridian looks to expand its global customer base, new payroll

localizations will likely take time to mature in order to generate mainstream adoption. Ceridian’s

clientele remain 95% North America based.

Talent management offering: While Ceridian’s TM functionality has improved, some areas will

need additional enhancements (such as development plans and mentoring features) for the

vendor to compete more effectively against other Magic Quadrant Leaders and better match

the complex use cases of large global enterprises.

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Cornerstone OnDemand

Cornerstone OnDemand is a Niche Player in this Magic Quadrant.

Cornerstone OnDemand is best known as a leading global TM suite and learning management

system (LMS) vendor. Its inclusion as an HCM suite provider is the result of its expanding core HR

capability. This module has primarily been marketed in Europe, and only a small portion of its

current customers are headquartered in North America. Its core HR module has been growing in

adoption, with more than half of Cornerstone customers using six or more HCM modules.

For 2020, Cornerstone OnDemand’s HR suite will be enhanced with improved organization

visualization and modelling capabilities stemming from its acquisition of Saba Software in April

2020. With Saba onboard, the organization now services approximately 7,000 customers, totaling

75 million users across 180 countries. As Cornerstone OnDemand continues to build out the suite

and compete in this space, it is focused on client success and customer support, as well as

growing its global partner ecosystem.

Strengths

Cautions

Acquisitions: Ceridian’s acquisitions have yet to be fully integrated into the business. It remains

to be seen whether their stand-alone capabilities can enrich the Dayforce solution beyond

payroll.

Talent management: Cornerstone OnDemand was a frequent Leader in the now-retired “Magic

Quadrant for Talent Management Suites,” and it continues to be one of the highest evaluated

HCM suite vendors for the learning and performance management capability.

Sales execution: Cornerstone OnDemand has experienced a 13% year-over-year growth

combined with a strong, blended sales model and competitive pricing.

M&A strategy: In January 2020, Cornerstone OnDemand acquired Clustree. As a result, its

Career Planning module will benefit from the acquisition’s AI-driven skill analytics, as well as a

robust skills ontology for career support and analysis.

Gaps in the suite: Cornerstone OnDemand has a strong TM and talent acquisition focus, but

does not offer native payroll or benefits administration. The vendor offers a payroll API

connector and has developed a partner network of dedicated payroll providers.

Core HR capability: Cornerstone OnDemand demonstrated innovative approaches and

advanced capabilities in several TM areas of the HR suite. However, where it scored poorly

relative to other offerings was in the capability and innovation within its core HR module. Select

capabilities from the Saba acquisition will likely address some of the gaps beginning in 2021.

Integration: Although Cornerstone OnDemand offers documented APIs, customer feedback

and Gartner inquiry identified a need to improve integrations to external applications. As a

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Infor

Infor is a Niche Player in this Magic Quadrant.

Infor provides an HCM suite that is used by customers in 78 countries, in addition to its ERP

offerings. It supports numerous large organizations, with 60% of its customers having between

1,000 and 10,000 employees. Infor has a large healthcare and manufacturing customer base, with

approximately 50% of its customers in these two industries. It also has a large customer base in

the public sector. Infor customers have a presence in approximately 50 countries, and just over

20% of its customers are headquartered outside of North America.

On its roadmap are several product updates including additional localizations for payroll, an

adaptive testing platform for talent, and some scheduling and prioritization features for WFM.

Strengths

Cautions

result, several customer experience measures in our research appeared as average or below

average when compared with other providers.

Vertical focus: Infor maintains strong industry vertical knowledge with specific developed

functionality for healthcare and manufacturing, and has added other industries year over year.

It has a strong industry channel strategy, with members of its various sales, consulting and

product teams dedicated to industry business lines.

Financial backing: In February 2020, Infor was acquired by Koch Industries, and Koch is the

largest user of Infor’s HCM suite, with 130,000 employees across 53 countries. Koch helps

make Infor well capitalized, as it looks to enhance its suite through development, partners and

potential M&A.

Customer focus: Infor demonstrated ways it is helping customers respond to the business

challenges of COVID-19 and digital transformation. For example, customers are increasingly

addressing virtual and remote work, and Infor scored above average for onboarding by enabling

organizations to design experiences for a variety of worker transitions. The module can also be

used for employment changes beyond initial employment, such as promotions and relocations

that may occur over the employee life cycle.

Talent management modules: Infor scored below average for multiple TM modules, including

succession and career planning. Compared with other vendors in this Magic Quadrant, its

functionality is basic and offers limited advanced modeling and planning.

Workforce planning offering: Infor’s workforce planning capability scored poorly compared

with the Leaders in this Magic Quadrant, due to the vendor’s focus on labor scheduling rather

than on other advanced capabilities. Additionally, portions of its workforce planning capability

are tied to enterprise performance management modules that sit outside of the HCM suite.

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Kronos (UKG)

Kronos is a Niche Player in this Magic Quadrant for its HCM suite, Kronos Workforce Ready.

Kronos, best known for its global strength in WFM solutions, merged with Ultimate Software in

April 2020. Together, these organizations form the newly named Ultimate Kronos Group (UKG).

Kronos Workforce Ready is an admin HCM solution focused on small and midsize businesses.

Post-merger, it is likely to continue to target organizations with less than 2,500 employees due its

strong adoption and experience in the lower midmarket. Workforce Ready has approximately

3,800 customers. The solution is best suited for North America midmarket organizations with

hourly workforces in manufacturing, healthcare or retail. Kronos added approximately 800 new

customers to Workforce Ready in 2019. It also grew its international presence, with 20% of

customers now based outside of North America.

The product’s future roadmap includes payroll localization for the U.K. and Canada, and global

payroll aggregation in 2020.

Strengths

Cautions

Partner strategy: Gartner client inquiry revealed some challenges with finding global qualified

implementation partners and third-party providers. Infor has added some service partners to

address this, but its partner ecosystem still lags that of Leaders in this Magic Quadrant.

Total cost: Kronos provides strong total cost of ownership (TCO) value for midmarket

organizations, from a natively built suite that satisfies hourly — and some global — workforce

needs. Its HCM solution is primarily designed to be implemented and maintained by small IT or

HR departments.

Integration with Ultimate: Due to the merger, Kronos has now integrated Ultimate Software’s

PeopleDoc HR document management, workflow and help desk capabilities with Workforce

Ready, significantly improving its HR service management capabilities.

Customer support: Kronos Workforce Ready’s postimplementation “hypercare” period includes

live chat support with experts and not just automated, script-based query resolution. Kronos

also offers live-chat support for all customers, resulting in shorter response times and positive

measures of customer satisfaction.

Product gaps: Given its HCM focus on midmarket organizations with complex hourly

workforces, Workforce Ready is less suitable for organizations with more-complex TM and

analytics requirements.

Talent modules maturing: Several new use cases — such as high-volume recruiting,

personalized career pathing and talent pool management — have been added into the TA and

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Oracle

Oracle is a Leader in this Magic Quadrant.

Oracle Cloud HCM is a robust and global HCM offering with no major gaps that continues to build

capability, delivering enhancements across the suite over the last 12 months. Updates this year

include configurable user transactions using HCM Experience Design Studio and enhanced digital

assistant interactions. Oracle also provides a collaborative community for customer support, with

over 55,000 members and thousands of interactions per month. Oracle has seen significant

customer growth in financial services and the public sector. Additionally, more than 50% of its

customers deploy both Oracle Cloud HCM and Oracle Cloud ERP. Gartner estimates that more

than 3,400 customers have purchased Oracle’s Global HR module as of May 2020 (more than

2,050 are estimated to be live).

For the second year, Oracle maintains its position as one of the top two vendors for both

customer experience and overall product/service.

Strengths

Cautions

TM module. However, maturity is needed for the above features to see broad adoption in the

customer base.

Geographic reach: Kronos has seen double digit growth in EMEA and AUS markets, but it’s still

heavily focused on North America, with 80% of its customers headquartered there.

Customer support: In 2020, users found a variety of Oracle resources, functionality and user

groups extremely helpful to address HR technology challenges and use-case opportunities due

to COVID-19. Customers had the ability to share best practices, templates, system

configurations and use cases from other customers through Oracle webinars and training

sessions.

Business model: Oracle has delivered 98% of features against its 2019-2020 product roadmap.

The vendor is equipped with significant resources and has a business model that delivers

global scale with localized expertise.

Innovation: Oracle has invested heavily in improving and expanding its mobile capabilities. It

now has over 200 transactions that managers and employees can complete using a mobile

device, supporting its high scores for UX.

Frequent releases: Oracle’s pace of feature functionality upgrades and releases has sometimes

created a challenge for organizations. Customer comments are split between appreciating the

pace of enhancements and being challenged with keeping up with testing, deploying new

features and training.

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SAP

SAP is a Leader in this Magic Quadrant.

Sap SuccessFactors is SAP’s designated HCM cloud platform. The solution supports localization

and compliance (including benefits, payroll and HR) across 99 countries and is localized for

payroll in 46 countries. It is entirely available via public cloud. Since the last iteration of this

research, SAP has made concerted efforts to improve its customer support services and

resources. It has held customer adoption and empowerment events and expanded its 24/7

support model with 500+ support engineers across 15 global locations. SAP SuccessFactors

positions its HCM suite as a human experience management (HXM) suite. Its focus on journey

mapping and “moments that matter” is embedded in process workflows.

Strengths

Cautions

Module adoption: Customer data pertaining to mobile usage showed lower adoption for

modules such as Learning and Career Planning. These are areas that are targeted for

enhancement, but capability today may lag some more specialized vendors.

WFM planning and analytics: Oracle scored above average in most categories. However,

capabilities for which it was seen as just average or below include WFM, workforce planning

and analytics. Gartner clients and Oracle Cloud HCM customers have also suggested these as

areas for further enhancement. Oracle appears to be addressing those areas with its new

Fusion Analytics Warehouse, an offering released just as this research was concluded.

Geographic strategy: SAP scored highest of all evaluated vendors for its global capabilities. It

is clearly one of the most capable, globally sold and deployed vendors. SAP SuccessFactors

supports local best practices and compliance in 99 countries (46 for payroll). It delivered 2000+

regulatory and compliance updates over the last year.

Performance management: SAP received some of the highest scores in this review for

performance management and goal setting. It was previously listed as a Leader in the now-

retired “Magic Quadrant for Talent Management Suites,” and its experience and capability

continue as part of the full HCM suite.

Talent suite: SAP SuccessFactors received top scores across every module of prehire and

posthire TM applications. It scored above average for recruiting, onboarding, career and

succession planning, and compensation planning.

Module capability: SAP SuccessFactors customers demonstrate above-average levels of full

suite adoption. But some of its modules received just average scores compared with other

vendors in this report, including benefits administration and reporting. Additionally, WFM,

workforce analytics and planning are adopted less often.

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Talentsoft

Talentsoft is a Niche Player in this Magic Quadrant.

Talentsoft is best known as a European TM suite vendor, with more than 2,200 clients operating in

130 countries, as of May 2020. With the addition of Talentsoft Hub, the vendor now has core HR

functionality to expand into a full HCM suite option. The majority of its customers have between

1,000 and 10,000 employees. Talentsoft services organizations across Europe, APAC and EMEA.

It supports customers in the financial services, professional services and manufacturing

industries.

In response to COVID-19, Talentsoft has supported customers through an e-learning platform,

some expanded access to services and features, and further integration through collaborative

work tools such as MS Teams.

Strengths

Vertical depth: SAP SuccessFactors has some features/product integrations that may lend

themselves well to certain industries/verticals, such as Validated Learning, recently added high-

volume recruiting capabilities, and integration with SAP Fieldglass for managing contingent

WFM. However, compared with some other HCM vendors evaluated, vertical product alignment

is not as deep.

Complexity and reporting: From a technical product capabilities perspective, SAP

SuccessFactors continues to have challenges associated with integrating disparate acquired

architectures, such as complex implementations, release absorption and reporting. In

response, SAP SuccessFactors has recently delivered a new consolidated reporting platform,

has moved to two releases per year, and is making progress on its intelligent enterprise

initiatives and using more of the SAP technology stack.

Talent management: Talentsoft is a well-established TM vendor and has previously been rated

as a Visionary in the now-retired “Magic Quadrant for Talent Management Suites.” In this

review, the strength of its learning and performance management capabilities continue to score

high in comparison with other vendors.

Innovation: Talentsoft provides several technology features that compete well with the larger

vendors covered in this report, including designing around skills, skill analytics and enhanced

learning. It has also rebuilt its data model and made some acquisitions to help accelerate these

efforts. Talentsoft offers one of the deepest integrations with Microsoft collaboration tools to

help with autoscheduling of performance reviews and interview appointments. It also offers a

growing marketplace of partners to extend its solution.

Partnership strategy: Although Talentsoft’s core HR capabilities are new, formal partnerships

and supported integrations are in place with global payroll and scheduling application vendors.

This enables it to provide additional breadth of administrative and WFM functionality, as well as

payroll services.

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Cautions

Ultimate Software (UKG)

Ultimate Software is a Leader in this Magic Quadrant.

Ultimate Software merged with Kronos in April 2020, and the two companies form the newly

named Ultimate Kronos Group (UKG).

Ultimate Software’s cloud HCM suite, UltiPro, had more than 6,850 clients as of May 2020. The

majority of UltiPro customers have between 1,000 and 2,500 employees, but some are as large as

25,000 employees. UltiPro customers tend to be in financial and professional services, healthcare

and manufacturing. The product is well-suited to midmarket and larger North-America-based

multinational corporations that have most of their workforce in the U.S. and pockets of employees

in other countries.

Continuing Ultimate’s “people first” focus, its product roadmap is full of suite enhancements

aimed at user experience, adaptability, adoption and productivity.

Strengths

Cautions

Core HR emerging: Core HR is an emerging offering in Talentsoft’s portfolio, so it will require

time and continued investment to mature.

HRSM strategy: Talentsoft’s current features for HR help desk and service delivery are very

basic. The system also provides basic workflow capability.

Geographic reach: Talentsoft has customers operating in 130 countries, but these are

predominantly headquartered in Europe. The vendor is striving to increase its presence in

certain markets, such as North America, through partner networks and continuing to innovate

and add functionality.

Implementations: Ultimate’s services capability and customer experiences with

implementation and deployment continue to be highly rated by customers. In predominantly

targeting midmarket North American customers, the vendor can focus its efforts on delivering

new capabilities that are affordable and ready for its customers.

Expanding suite: Ultimate has been responding to the needs of its customers by continually

adding features for voice of the employee (VoE), HRSM document management, AI and ML. It

also works to help organizations get as much out of the full HCM suite as possible.

Innovation: Ultimate continues to deliver product enhancements using ML and sentiment

analysis via its Xander technology. It has also expanded capability for suite extensibility and

been able to pull in third-party system data for reporting.

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Workday

Workday is a Leader in this Magic Quadrant.

Workday targets global midsize and large organizations with its HCM suite. Notable

enhancements this year include expanded use cases and efforts around skills analytics,

enhanced employee profiles, credentials and developing an internal talent marketplace. As of May

2020, more than 3,200 organizations had purchased Workday HCM, with more than 650 new

customers year over year. Workday’s efforts around the Skills Cloud have driven several of its new

enhancements. Its ML-powered Skills Foundation assists with planning, predicting and employee

experience, and currently has 400 live customers.

In response to COVID-19, Workday launched a customer information center, added additional

reporting capability and hosted executive roundtables.

Strengths

WFM and learning: UltiPro has no major gaps, but where it scored lowest relative to other

Leaders’ solutions in this review are for its more limited workforce planning and learning

capabilities. Based on the needs of the organization, UltiPro learning often requires

enhancement through partners.

Geographic reach: Ultimate is working to expand sales, services and support outside of North

America, but these efforts are still in the early stages. Currently, its UltiPro system only

supports 15 languages and some HR localizations still need time to mature.

Workforce analytics: UltiPro’s workforce analytics capability has received high customer

satisfaction over time, but functionality still lags that of some of the other Leaders in this

Magic Quadrant.

Partnership strategy: Workday takes a more active role in managing its implementation and

software partners and enforces high standards for certifications and experience. Its partner

network includes more than 11,000 certified consultants, 90+ software partners and 50+

recruiting point solution partners.

Analytics and reporting: Workday scored the highest in several categories including workforce

planning, workforce analytics and reporting. It continues to advance its capabilities in these

areas with investments in Workday Prism Analytics and People Analytics.

Market responsiveness: Responding to customer feedback, Workday has improved its

Recruiting module with an enhanced Recruiting Hub for better navigation and user experience.

The module handles multiple worker types, includes embedded insights and now supports

automation and mass actions for high-volume recruiting. Customer adoption has steadily

increased, and Workday has continued to expand its partner ecosystem with several Workday

Ventures partners such as Beamery and Mya.

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Cautions

Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a result of

these adjustments, the mix of vendors in any Magic Quadrant may change over time. A vendor’s

appearance in a Magic Quadrant one year and not the next does not necessarily indicate that we

have changed our opinion of that vendor. It may be a reflection of a change in the market and,

therefore, changed evaluation criteria, or of a change of focus by that vendor.

Dropped

The inclusion criteria for coverage in this research was raised for several measures, from 2019 to

2020. Some of these criteria include the amount of existing customers a vendor has with more

than 1,000 employees, and the number of net new deals during the proceeding four fiscal

quarters. The fill inclusion criteria can be seen in the next section of this report. As a result, the

vendors below were dropped from this year’s coverage.

Inclusion and Exclusion CriteriaTo be included in this Magic Quadrant, each vendor needed to meet all of the following criteria:

Payroll adoption: Workday Payroll has lower customer adoption than the payroll capabilities of

some of the Leaders in this Magic Quadrant. Workday offers payroll capabilities in Canada,

France, the U.S. and the U.K., but customer adoption is still predominantly North American.

HR service management: Workday Help for HRSM support went live in January 2020. Workday

has also added to its “People Experience” UX through the addition of guided journeys for users.

This fills a previous gap, but these offerings are new and customer adoption is still at an early

stage.

Geographic reach: Workday has customers operating in the APAC region, but its HR

localizations there need time to mature, and regional service and implementation partners are

still limited in comparison with other Leaders in this Magic Quadrant.

ADP (Vantage HCM)■

Ramco■

Deliver core HR administrative transaction support and reporting/analytics capabilities, plus at

least three talent management (TM) functions (recruiting/onboarding, performance

management, career/succession management, learning, compensation and workforce

planning) or a combination of workforce management (WFM) and at least one TM function.

Deploy its solution on either a community cloud or public cloud (subscription-based private

cloud is not acceptable).

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A number of vendor products did not meet all of these criteria. Therefore, they were not included

in this Magic Quadrant. However, their offerings do meet many customer requirements and could

also be considered in an evaluation of HCM suites. Market Guide for Human Capital Management

Suites contains additional profile data for 22 solutions from 17 other vendors, in addition to the 11

participants in this Magic Quadrant.

Evaluation Criteria

Ability to Execute

Gartner assesses a cloud HCM suite vendor’s Ability to Execute by evaluating its product(s),

technologies, services and operations. We assess how these enable it to be competitive, efficient

and effective in the market, and how they positively affect revenue, client satisfaction and

retention, as well as general market reputation. We judge a provider’s Ability to Execute on its

success in delivering on its promises, using the following criteria:

Have at least 125 customers, each with more than 1,000 employees, in production with core HR

and at least two TM functions on either a community cloud or public cloud.

Actively market, sell and implement HCM suites on a stand-alone basis, regardless of any

additional bundling with ERP suites or other applications.

Provide evidence of market momentum documenting at least 25 net new deals during the

previous rolling four fiscal quarters — each with more than 1,000 employees — purchasing core

HR and either two or more TM functions or one TM function and WFM. Note that the timing of

this data should be the prior four quarters through 31 March 2020.

Must be regularly identified by Gartner clients and prospects as a notable vendor in the HCM

market.

Product and Service: This includes the vendor’s capabilities in admin HR, TM, WFM and HR

service delivery (refer to the Market Definition/Description section for a detailed list of

functions). These areas are assessed for functional breadth and ease of use. How well the

vendor integrates the components is also important. Reporting and analytics receive

considerable attention, because they have been major customer concerns. The architecture,

delivery models and use of mobile and social capabilities are also rated. The focus is on the

vendor’s current functionality, although enhancements and/or new modules on the verge of

general availability are also taken into consideration.

Overall Viability: Key aspects of this criterion are the vendor’s ability to ensure the continued

vitality of a product, including support for current and future releases, and a clear roadmap for

the next three years. The vendor must have the cash on hand and consistent revenue growth

during the past four quarters to fund current and future employee burn rates, and to generate

profits. The vendor is also rated on its commitment to the specific product being evaluated, and

the ability to leverage it to generate revenue and profits in the cloud HCM suite market.

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The relative weighting assigned to each criterion is shown in Table 1.

Table 1: Ability to Execute Evaluation Criteria

Sales Execution/Pricing: The vendor must provide multicountry regional and/or global sales

and distribution coverage that aligns with its marketing messages. It must have specific

experience and success in selling cloud HCM suite solutions to HCM buying centers. This

includes deal management, partnering, pricing and negotiations, presales support, and the

overall effectiveness of the sales channels.

Market Responsiveness/Record: This refers to the vendor’s ability to respond, change

direction, build alliances, be flexible and achieve competitive success as opportunities develop,

competitors act, customer needs evolve and market dynamics change. This criterion also

considers the vendor’s history of responsiveness, as this market has developed during the past

seven to 10 years.

Marketing Execution: This criterion assesses the clarity, quality, creativity and efficacy of

programs designed to deliver the vendor’s message. It assesses how these have influenced the

market, promoted its brand and business, increased awareness of its products, and established

a positive identification with the vendor’s product or brand in the minds of buyers. This mind

share can be driven by a combination of publicity, promotions, thought leadership, word of

mouth and sales activities.

Customer Experience: This criterion assesses relationships, resources and programs that

enable customers to be successful with the products and services offered. It includes feedback

from active customers on generally available releases during the past 12 to 18 months. This

can also include the existence and quality of such customer resources as ancillary tools,

support programs, the availability of user groups and SLAs. Sources of feedback also include

Analyst-validated customer reviews from Gartner Peer Insights, relevant to the audience and

criteria for this research. Additional data sources include Gartner inquiries and other customer-

facing interactions taking place at Gartner and industry conferences.

Operations: This criterion assesses the ability of the vendor to meet its goals and

commitments. Factors include the quality of the organizational structure — the skills,

experiences, programs, systems and other vehicles that enable the organization to operate

effectively and efficiently on an ongoing basis.

Product or Service High

Overall Viability High

Evaluation Criteria Weighting

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Source: Gartner (November 2020)

Completeness of Vision

Gartner assesses the Completeness of Vision of cloud HCM suite vendors by evaluating their

ability to successfully articulate their perspectives on current and future market directions,

anticipate customer needs and meet competitive forces. We judge a vendor’s Completeness of

Vision on its understanding and articulation of how market forces can be exploited to create new

opportunities for itself and its clients, using the following eight criteria:

Sales Execution/Pricing Medium

Market Responsiveness/Record Medium

Marketing Execution High

Customer Experience High

Operations High

Evaluation Criteria Weighting

Market Understanding: This refers to the vendor’s ability to understand buyers’ needs and

translate them into products and services. Vendors that show the highest degree of vision

listen and understand buyers’ wants and needs, and can shape or enhance them with their

added vision. We specifically looked for how vendors described the integrated market and

opportunity for their cloud HCM suites as a whole, not merely that of the component products.

Marketing Strategy: This criterion assesses whether the vendor has a clearly differentiated

marketing strategy with a set of messages. These messages must appeal to HR organizations

and leaders, and be consistently communicated throughout the organization and externalized

through the vendor’s website, customer programs and positioning statements.

Sales Strategy: The vendor should have a strategy for selling cloud HCM suite software that

uses the appropriate network of direct and indirect sales, marketing, and service and

communications affiliates. The strategy should extend the scope and depth of market reach,

skills, expertise, technologies, services and the customer base. Key elements of the strategy

include a sales and distribution plan, internal investment prioritization and timing, and partner

alliances.

Offering (Product) Strategy: The vendor should demonstrate a vision for application

functionality across the breadth and depth of the cloud HCM suite. We focus beyond the

functional scope listed in the Ability to Execute section. We place additional focus on the

vendor’s vision for the use of emerging technologies; advanced analytics; relevant social,

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The relative weighting assigned to each criterion is shown in Table 2.

Table 2: Completeness of Vision Evaluation Criteria

geographic or industry use cases; integration and ease of use; and support for process

transformations enabling the digital workforce. The product strategy can be a combination of

organic development, acquisition and/or ecosystems. For ecosystems, we pay close attention

to the quality and support of third-party partners. For those that acquire functionality, we pay

close attention to integration strategy and roadmaps.

Business Model: The vendor needs to have a clear business plan for how it will be successful

in the cloud HCM suite market. This plan should include appropriate levels of investment to

achieve healthy growth during the next three to five years.

Vertical/Industry Strategy: The vendor should have a strategy to direct resources, skills and

offerings to meet the specific needs of individual market segments, including vertical

industries.

Innovation: The vendor must show a marshaling of resources, expertise and/or capital for

competitive advantage or investments in new areas. Potential areas include advanced

analytics, ML, diversity and inclusion, service delivery, engagement measurement, and worker

wellness. The vendor must also show UX improvements or new access methods, such as

conversational UIs, chatbots, smartwatches or other wearables.

Geographic Strategy: We examine the vendor’s strategy to direct resources, skills and offerings

to meet the specific needs of regions outside the corporate headquarters location — either

directly or through partners, channels and subsidiaries — as appropriate for that geography and

market.

Market Understanding Medium

Marketing Strategy High

Sales Strategy Medium

Offering (Product) Strategy High

Business Model Low

Vertical/Industry Strategy Low

Evaluation Criteria Weighting

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Source: Gartner (November 2020)

Quadrant Descriptions

Leaders

Leaders demonstrate a market-defining vision of how HCM technology can help HR leaders

achieve business objectives. Leaders have the ability to execute against that vision through

products and services, and have demonstrated solid business results in the form of revenue and

earnings. Leaders effectively leverage cutting-edge technologies in impactful ways. In the cloud

HCM suite market, Leaders show a consistent ability to win deals. These deals include the

foundational elements of admin HR (with a large number of country-specific HR localizations) and

high attach rates of TM, WFM and HR service delivery capabilities. They have multiple proof

points of successful global and regional implementations by customers with workforces in

multiple geographic regions, in a wide variety of vertical industries and sizes of organization (by

number of employees). Leaders are often what other providers in the market measure themselves

against.

Challengers

Vendors in the Challengers quadrant have a broader addressable market than the vendors in the

Niche Players quadrant. They have developed a substantial presence in one market and have

growing presence in multiple markets, but are not able to execute consistently or equally well in

all geographies. They understand the evolving needs of an HR organization, yet may not lead

customers into new functional areas with a strong functional vision. Challengers tend to have a

good technology vision for architecture and other IT organizational considerations, but are not as

operationally mature as Leaders. They have strong customer growth and momentum, financial

health and sustained product investment. Relative inability to execute consistently across the full

range of cloud HCM suite functionality for large and complex global enterprises is primarily what

separates Challengers from Leaders.

Visionaries

Visionaries are ahead of most potential competitors in delivering innovative products and/or

delivery models. They anticipate emerging/changing market needs and move the market ahead

into new areas. Visionaries have a strong potential to influence the direction of the cloud HCM

suite market, but are limited in execution and/or demonstrable track record.

There are no Visionaries in this Magic Quadrant, predominantly due to the greater importance

placed on the execution (including cost-effective and reliable delivery of standardized processes)

of admin HR functions that are, by their nature, more limited in innovation. In addition, much of the

Innovation Medium

Geographic Strategy High

Evaluation Criteria Weighting

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innovation in HCM has taken place in niche TM and analytics applications, which have been

adopted by cloud HCM suite vendors. However, many have had to focus on the threshold of what

is “good enough” for their target segments, so that the benefits of an integrated solution are able

to overcome feature/function gaps.

Niche Players

Niche Players offer cloud HCM suite functionality, but they may lack some functional

components, may focus on limited geographic or workforce scale, or may lack strong business

execution in their chosen market. Niche Players may offer complete portfolios for a specific

vertical or workforce size, but are unable to fully support cross-industry requirements for several

HCM functions — such as WFM, recruiting or learning in TM. They may offer only limited HR

localizations in admin HR. From an execution standpoint, Niche Players may lack the ability to

support large-enterprise requirements or complex global deployments. Despite the challenges

described, Niche Players can offer the best solutions to meet the needs of particular HR

organizations whose requirements align with the vendor’s market focus and capabilities. The

price/value ratio for these vendors is often high. They may consistently win evaluations in a

specific region or industry, but are not consistently winning the whole suite across multiple

regions. Although this may be a matter of execution or relative maturity, it may also be a matter of

the vendor’s chosen market focus.

ContextAll vendors included in this Magic Quadrant sell and support admin HR functions with the option

for the customer to utilize functional capabilities for payroll, benefits, TM, WFM and HRSM. The

extent of support for country-specific HR regulatory requirements and common practices (as well

as their actual implementation experience in countries) varies by vendor. They have customers

that are successfully using their products and services.

This is not an exhaustive list of all providers, because many other regional and/or vertical industry

specialists did not fully meet our inclusion criteria. Other vendors have substantial customer

bases that have deployed their solutions on-premises and are now making the transition to full

cloud HCM suites; these vendors were also excluded from this Magic Quadrant, but are profiled in

the Market Guide for Human Capital Management Suites.

Regardless of the provider you’re considering, ask yourself, “Will this vendor enable more-effective

support for HCM processes across my organization?” and “How well does this vendor align with

our HCM technology strategy?” In many cases, an HR organization must evaluate not just a

vendor’s direct product offerings, but also the ecosystem of technology and service providers that

can fill in whatever functional or business process gaps the vendor may not offer.

Cloud HCM suite clients must continually rely on vendors for continued releases and reliable

infrastructure and service. This relationship is a departure from the relative autonomy in on-

premises deployments. As such, the vendor’s track record for CRM, reliable operations and

executing on product roadmaps should be weighted heavily in selection processes. With new

features being regularly released multiple times per year, checking every “nice to have” box on an

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RFP is less important than alignment with longer-term product direction and confidence that the

vendor will execute against plans and provide good service.

Use this Magic Quadrant as a reference for evaluations, but explore the market further to qualify

the capacity of each vendor to address your unique business problems and technical concerns.

Depending on the complexity and scale of your requirements, your shortlist will be unique. This

Magic Quadrant is not designed to be the sole tool for creating a vendor shortlist. Use it as part of

your due diligence, in conjunction with discussions with Gartner analysts and companion

research, such as Gartner’s Market Guide for Human Capital Management Suites and Critical

Capabilities for Cloud HCM Suites for 1,000+ Employee Enterprises.

Market OverviewIn Gartner’s 2020 HCM market share research, we found one of the consequences of the COVID-

19 pandemic is the delay or rescoping of large transformational HCM projects. Most of these

projects will not restart until there is a clear exit plan from the pandemic and a clearer indication

of the economic prospects for each organization. In any case, we expect most organizations will

do this assessment as part of the preparation for their 2021 budget. Based on this assessment,

about 20% to 25% might be looking to accelerate their plans for 2021.

In the interim, organizations will still have to respond to the heightened need for agility. During the

pandemic, business planning cycles have been reduced from quarters and months into weeks. In

the HCM domain, this is translated into an increased pace of finding talent with the right skills,

particularly inside the organization, and to reskill those with gaps (see Flip COVID-19 Downtime

Into a Strategic Reskilling Opportunity). Building the right skills in the workforce was the top-of-

mind topic in Gartner’s HR leaders survey for two consecutive years. 1 This is to continue, but the

pace just got faster.

Another priority for HR leaders in the last two years has been employee experience. In 2019 and

early 2020, organizations started to make their first steps on this priority (see How to Enhance

Employee Experience When Full HCM Technology Replacement Is Not an Option). During the

COVID-19 period, and despite some expectations that it would deteriorate as a priority, employee

experience has emerged even stronger. A Gartner survey of 214 HR leaders in April 2020 found

that 64% were prioritizing employee experience more highly than before the coronavirus

outbreak. 2 Particularly when organizing the return to the workplace, HR leaders needed to create

new “employee journey maps” to identify and manage the moments that matter most to

employees, such as their first day back and their first team meeting.

In the absence of large transformational spending, a crucial step to address these business

priorities is optimizing adoption of existing solutions. In the large enterprise segment, it is quite

typical to see purchases of specialist solutions from previous years with pilot or regional

deployment (e.g., voice of the employee or continuous performance solutions). In other cases,

many functionalities within HCM suites already implemented were deferred for adoption at later

points in time.

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HCM application leaders need to assume a more active role in driving adoption of existing

solutions, often by repurposing their use to a specific problem (e.g., using VoE to gauge sentiment

of remote teams during lockdown). They will have to partner more closely with their HCM

vendors’ customer success managers and ask for help, tools or data to design adoption activities.

Through active participation in customer communities, application leaders can also bring the

perspectives of other organizations to apply in theirs. Finally, close attention to vendor roadmaps

will provide opportunities to deploy relevant functionalities without the need for extra investment.

Evidence1  Top 5 Priorities for HL Leaders in 2020

2  Gartner Survey Finds 64% of HR Leaders Are Making Employee Experience a Higher Priority

When Planning the Return to Work

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the defined market. This

includes current product/service capabilities, quality, feature sets, skills and so on, whether

offered natively or through OEM agreements/partnerships as defined in the market definition and

detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financial health, the

financial and practical success of the business unit, and the likelihood that the individual business

unit will continue investing in the product, will continue offering the product and will advance the

state of the art within the organization's portfolio of products.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that

supports them. This includes deal management, pricing and negotiation, presales support, and

the overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve

competitive success as opportunities develop, competitors act, customer needs evolve and

market dynamics change. This criterion also considers the vendor's history of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver

the organization's message to influence the market, promote the brand and business, increase

awareness of the products, and establish a positive identification with the product/brand and

organization in the minds of buyers. This "mind share" can be driven by a combination of publicity,

promotional initiatives, thought leadership, word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to be

successful with the products evaluated. Specifically, this includes the ways customers receive

technical support or account support. This can also include ancillary tools, customer support

programs (and the quality thereof), availability of user groups, service-level agreements and so on.

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Operations: The ability of the organization to meet its goals and commitments. Factors include

the quality of the organizational structure, including skills, experiences, programs, systems and

other vehicles that enable the organization to operate effectively and efficiently on an ongoing

basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needs and to

translate those into products and services. Vendors that show the highest degree of vision listen

to and understand buyers' wants and needs, and can shape or enhance those with their added

vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicated

throughout the organization and externalized through the website, advertising, customer

programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network of direct and

indirect sales, marketing, service, and communication affiliates that extend the scope and depth

of market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: The vendor's approach to product development and delivery that

emphasizes differentiation, functionality, methodology and feature sets as they map to current

and future requirements.

Business Model: The soundness and logic of the vendor's underlying business proposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet

the specific needs of individual market segments, including vertical markets.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or

capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the

specific needs of geographies outside the "home" or native geography, either directly or through

partners, channels and subsidiaries as appropriate for that geography and market.

 

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