Steve Goldberg's Analyst Perspectives

Ultimate Software Finishes Strong in Validation for Compensation

Posted by Steve Goldberg on Apr 20, 2020 3:00:00 AM

Here are some insights on Ultimate Software drawn from our latest Value Index research, which provides an analytic assessment of how well total compensation management 1-13vendors’ offerings address buyers’ requirements. The Ventana Research Value Index on Total Compensation Management 2020 is the distillation of a year of market and product research efforts by Ventana Research. We evaluated Ultimate Software and six other vendors in seven categories, five product-related (adaptability, capability, manageability, reliability and usability) and two concerning the vendor (TCO/ROI and vendor validation). To arrive at the Value Index rating for a given vendor, we weighted each of the seven categories to reflect its relative importance in an RFP process, with the weightings based on data derived from our benchmark research on total compensation.

Ultimate Software and its product, Ventana_Research_Value_Index_Total_Compensation_Management_2020_Ultimate_Software_200127UltiPro, place seventh in this Value Index, but also earned Value Index Leader status in the Validation category. Total compensation management is not one of Ultimate Software’s product emphasis areas, but the offering provides valuable capabilities such as the ability to automatically apply geographic differentials by locations and pay grades and configure an unlimited number of bonus pools and salary plans for budgeting and allocation purposes. It can display metrics and KPIs at different incentive payout levels and automatically recalculate payouts when a worker’s status changes. UltiPro is a unified HCM suite so it provides tight integration with performance management.

Ultimate’s best scores are in the Reliability and Adaptability categories, the former due to a major emphasis in product design and cloud infrastructure on performance and scalability. A customer’s ability to configure an unlimited number of bonus pools and salary plans for budgeting and allocation purposes, the product’s major configurability around compensation statements and its organic linkage with compensation management across the unified suite contributed to its high score in Adaptability.

Ultimate’s compensation offering is more suited today for traditional forms of compensation. It also would benefit from improvement in the areas of TCO/ROI, as it offers less-than-robust ROI and business case support, and Validation, due to only modest signs of investment and product advancements.

This research-based index is the most comprehensive assessment of the value of total compensation management software in the industry. You can learn more about our Value Index as an effective vendor selection and RFI/RFP tool here. Participating vendors can learn more about how to use the Value Index here.

Regards,
Steve Goldberg

Topics: Human Capital Management, Total Compensation Management

Steve Goldberg

Written by Steve Goldberg

Steve is responsible for the Human Capital Management (HCM) research and advisory services practice. He guides HR and business leaders in leveraging their workforce for competitive advantage. He guides HCM technology vendors on the market of buyers and where their applications and technology can have maximum impact. Steve's uniquely diverse HCM experience spans over 30 years, including HR process and HCM systems practitioner leadership roles, heading up product strategy for one of the most respected HCM application vendors, and operating his own global advisory practice. His expertise areas of coverage include HRMS, Talent Management and Workforce Management, with specialized focus on recruiting, learning, performance, compensation and payroll. Prior to joining Ventana Research, Steve worked as a corporate VP in HR at UBS/Swiss Bank Corporation and Huizenga Holdings, product strategy leader at PeopleSoft and Unicru, and was also VP and Research Director at Bersin & Associates. Over 35,000 HR professionals and business executives have been informed by one of Steve's presentations on HCM, or have read his published work. Steve holds an MBA in Human Resource Management from University of Buffalo School of Management and a BBA in Industrial Psychology from The City University of New York.