SaaS Work Management Software Market Comparison

Market Landscape for Work Management Software

Software is going to the cloud which has given rise to the emergence of SaaS replacing licensed
software.

And with SaaS democratizing software for the masses, new software applications are
increasingly worker-centric as opposed to departmental or functional administration oriented.

“Work management software," a term popularized by Bill Kutik in 2011, combines ‘social
performance management’ with collaboration tools into existing finance, revenue, services
delivery, HR, and industry solutions. Work management software commonly blends the line and
integrates across functions including HR, Sales, and Finance. Common application focuses are:
 Revenue Management: Management across partner/marketing/sales/CRM stage to
sales performance management to client work management.

 Talent Management: From recruiting to employee management including the full
employee work cycle from hire to retire/fire as well as career development and
management.

 Workforce Management: Empowers the worker to perform better.

While every company today requires technology to effectively manage, grow, and outperform
the completion; growth and adoption of SaaS Work Management software is being driven by
consumer oriented employees.

The Future of Work: Adapt to Today’s Workforce
Work and the workforce are different today.
 Today’s workforce is comprised of free agents, supertemps, Millenials, and the virtual
workforce. For these groups work management is about leveraging the latest technology
that fits into normal routines and behaviors to better perform.

 To employers work management is about management engagement. The days of paying
for wasted hours is dwindling as the ability to measure, monitor, and recognize individual
and team contributions near real-time is prevalent.

The future of the work management software is being widely influenced by consumerism,
globalism, and community centrism. The rise of consumerism and its impact on work
management is everywhere from social to mobile to self-service. Technology today enables
customers and employees to be much more engaged with their products and companies.

We live in exciting times because the consumerization of technology has completely shifted the
way to build a brand, acquire customers and grow a company. Every day companies around the
world reinvent themselves to adapt to today’s work. Regardless of industry, customers and
employees are online.

Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046

Contact us for the complete report for any of these areas:
I. Technology Applications
a. Human Capital Management (HCM): Talent Management HRMS / HRIS
b. Talent Acquisition Recruiting & Staffing Technology
c. Workforce Management: HR Social Corporate Performance Management
d. Career Management
e. FAO (Finance and administration back-office)
f. Industry Solutions for Healthcare, Professionals, Hospitality
II. Outsourcing
a. RPO
b. FAO
c. MSP / ITO
d. Healthcare Finance Services / Healthcare IT
e. HRO, PEO, ASO
III. Global Landscape
a. Payroll + HRMS / HRIS
b. Talent Acquisition
c. Workforce Management
IV. Work Management Buyer's Guide
V. Industry Resources for Work Management

SaaS Market Adoption
While SaaS is increasingly replacing licensed software, SaaS is also being adopted by small and medium
organizations bringing enterprise capabilities to a much larger audience. In fact, the global market
potential1 for SaaS extends to every function and facet of business. SaaS is not always the best solution
fit, but its high user adoption is far-reaching across organizational size, industry, and location.

While the market for large companies2 is saturated with executives debating the merits of
adopting/upgrading to SaaS, the biggest market opportunity in the USA for SaaS is small business with
more than a million registered businesses and the mid-market with 100,000 companies. It is
understandable that the majority of businesses will opt for a SaaS model that they can pay on-demand for
what they actually use.

Top SaaS adoption drivers cited by buyers in 2012 include:
 “Outgrowing our current system” + “The need to move to a SaaS model”
 “Need better reporting and data capture” + “Centralize data”

The limit to SaaS growth is based on business growth as deciding to implement new software still requires
meaningful ROI because if the software solution does not directly tie to dramatic improvement in
employee engagement, customer satisfaction, profitability or a major growth driver then it is not going to
be a priority.

SaaS adoption is increasing as the current growth rates of market leaders is outpacing licensed software,
and the recent investment funding and M&A deal activity highlights more growth to come in the future.

1
$21B global market in 2012 (Gartner). 83% of all companies expect to adopt SaaS (IDC). HR systems growing at CAGR 8% to 22% depending upon module (Forrester).
2
In the United States, half of all employees work for large companies or government. There are only 25,000 large organizations with more than 10,000 employees
headquartered in the United States.


Payroll Landscape
Payroll Market Landscape Summary
There are approximately 100 niche players with
significant, meaningful revenues ($2M+ in annual
recurring non “pass-through / non-reseller revenues) plus
four (4) major big players in payroll.

While the payroll market for small businesses with less
than 50 employees is highly competitive (“red ocean”)
between the following vendor types:
 Internal “Do it Yourself” Software
 Big Four Payroll Providers
 Professional Employer Organizations (PEO’s)
 Accountants, Bookkeepers and FAO3 Outsourcers
 Banks (Wels Fargo) & Insurance (Fidelity)
 HR Outsourcers (HROs and ASOs)
 500 service bureaus (mostly single location specific)

The middle market is wide open as no nationwide dominant player exists. Regional payroll services and regional industry specific
payroll and beyond service providers do exist in niches. Payroll Mid-Market Landscape 4:
Regional Payroll + Regional Payroll + HR National Providers: Payroll Software
Benefits Providers

l

Sources: American Payroll Association, IPPA, Ephor Payroll Software Providers5.database, LinkedIn.
Payroll service bureaus are adding additional products/services. These “Beyond payroll services” include HR and other BPO
services such as: a) HRMS features and functionality. B) FAO and other BPO services. C) Workforce management features such as
Time and Attendance, Expense Management, work management, and social features.

3
Both FAO & F&A is abbreviated for “Finance and Administration” outsourcing solution providers. Scope of services vary widely among these providers.
4
Payroll Landscape does not include PEOs such as: TriNet, Insperity, EmpowerHR, AMCheck
5
For Payroll: Evolution, Millenium, ExecuPay
For PEOs: Thinkware Inc’ Darwin, ISystems’ Evolution, Davison HR Pyramid, ExecuPay.
For Time: NetTime Legiant, Cybershift, InfoTronics, WorkforceSoftware, AttendanceonDemand, NovaTime


Mid-Market FAO Outsourcing Service Providers & Software Implementation VARs
FAO USA Market Landscape Non-Healthcare regional providers:

The Future of 21st Century Online Accounting. The Leader in Back Office Services.
Payroll, HRO, Accounting, FAO, Global. AR, AP, GL, Payroll, HRO

Cloud Finance and Accounting Solutions Information is Power.
FAO, Global Payroll + GL

THE PREMIER U.S. BASED FINANCE AND ACCOUNTING
Your Total Financial Solution.
OUTSOURCING FIRM™
AP, AR, Payroll, GL, VBO, Project
FAO, Technology, Compliance

Certified Public Accountants & Advisors
Accounting Outsourcing Solutions. Payroll, Consulting, AP, AR, FL, FAO

Outsourced F&A
Accounting advisory plus outsourced bookkeeping
*There are numerous other regional providers and point specific solutions. Email us at ephor[at]ephorgroup.com for a complete list.

SaaS FAO Software Options:
SaaS ERP Platform for Cloud
Financials Intacct NetSuite Epicor Workday
Company Description Intacct is the award winning cloud fin NetSuite is the industry's first and on ERP software provides a single Enterprise SaaS ERP
SWOT

Strengths: Customer Focus SMEs + Financial Services, Organizations with 10k+
Construction, Manufacturing, Retail SMEs Mid-market employees only as of 2012

Strengths: Customer Base # of clients
8,000 10,000 20,000 300
Key Features/Values
PHP/Oracle technology Java/Oracle technology Multiple products by industry and Complete Suite of Business
Small business solution Small business solution function, C#, VB .NET. Real-time Management Services.
CPA and OEM channels VAR channel in flux flow and single UI between CRM Java/Oracle technology
Strong financials, weak distribution, Newest SaaS public company and ERP and back Enterprise Solution
Overview no CRM Good market share Unclear channel
Good professional services edition High growth; no profits New kid on the block
New CEO for new life High price; add-on charges Very few clients
Moderately priced Deep venture funding
Priced at the high end
URL www.intacct.com www.netsuite.com www.epicor.com www.workday.com


HRMS Landscape for the Mid-Market
HRMS6 Landscape Mid-Market 7Landscape 8
Exhibit9:

*There are numerous other regional providers and point specific solutions. Email us at ephor[at]ephorgroup.com for a complete list.
Does not include HRO10 providers:

6
Driving HR SaaS Work Management is the demand for bundled (multi-process, multi-function) outsourced solutions such as Workforce Management
(WFM) and Human Capital Management (HCM). These outsourcing solutions represent a large market due to limited overall penetration in the small &
medium sized businesses (~50% of all business). In secondary and tertiary markets, enterprise providers with their “bundled” outsource service
offerings are not present. With this unsatisfied demand, there is an opportunity for accelerated organic revenue growth (18%-22% per year).
7
The Business Case for SaaS HRMS…
 Automation of manual processes and administration. Bring the efficiency of transactional
processing from an average of $15 per transaction to a few dollars. Leap into 3rd
generation HR compliance, governance and risk management practices.
 Tools that drive engagement, productivity, and performance against corporate goals.
Social, mobile, and global features that work for today’s workforce including
embedded language, user preferences, regulatory compliance and more.
Primary Benefits…
 Replaces “people dependent” and paper-driven forms with HR technology and
HR services model (shared services, single or multi-process HRO).
 Creates a unified platform; while replacing a “fixed-cost” model with a flexible cost model.
 Reduction in human error, manual errors.
 Improvement in labor costs and return on labor.
8
The market potential for SaaS HR solutions including human capital management and talent management is estimated to be $10B and growing at
18% CAGR8 worldwide8. The demand for SaaS HR solutions, may actually be greater as the use of mobile devices and tablets is accelerating the market
appetite for adoption of SaaS applications and SaaS HR solutions are also being integrated with ERP and other work management applications.
9
HRMS Landscape Top Ten is focused on SaaS. Does not include upmarket products such as Oracle, SAP, Workday, or Lawson/Infor. HRMS does not
include ERP vendors. HRMS vendors not including payroll directly with excluded.
10
HRO: UnicornHRO, ACS, Northgate, ExcellerateHRO. HRO SMB = CorbanOneSource, ZeroChaos, Infosynch, Tag, AccessPointHR, Sheakley, Qqest, IES, UnicornHRO, CPEhr,
Northgate.


HR Social Corporate Performance Management Landscape Connected to HR
Enabling technology requires an engaged and empowered team. CPM is the intersection of EPM11
(employee performance management), BI (business intelligence), and Management Science (Management
Best Practices).

The 2012 consolidation in the HR talent management space has disrupted the market and created many opportunities.
HR vendors now must choose to be an application that interfaces with ERP or payroll HRMS systems or other app
delivery platform or be swept under the wave moving towards the Corporate Performance Management Landscape:

Social software for teams.
SalesForce.com company. Creator of Social Goals. Employee Engagement w/ KPI
The Social Performance Platform that Dashboard Management.
works the way we do!

A better way to get work done.
Teamwork Reimagined.
Productivity Tools to focus on what
Cloud HR Company.
matters, collaborate with your colleagues
Fully integrated talent management
and be recognized for your achievements.
system based on Force.com.

Real Time 360 Feedback and
Recognition Performance Reviews.
Software for the People.

Recognition Done Right!
SaaS Employee Recognition Leader.

Inspiring Talent Management

The new face of workforce analytics. Integrated Talent Management SaaS
Platform.
12
Source for CPM is the Ephor database.

Business drivers of CPM include:
 Seamlessly integrate employee management with operations management.
 Employee Performance Management tools that drive engagement, productivity, and performance against corporate
goals.
 Social, mobile, and global features that work for today’s workforce including embedded language, user preferences,
regulatory compliance and more.

11
EPM (Employee Performance Management), which is greater than a $1B worldwide market11, as an example to show that the HR technology market continues to grow,
consolidate and evolve, consider that EPM started as a stand-alone application and is now readily available as part of an ERP, part of an HRMS, or as a single application. In
2005, Gartner recognized 27 Performance Management Vendors. In 2009, by Ephor’s count, there were 60 vendors with specialized industry solutions with active clients, but in
2011 there were only 17 remaining that had a significant number of clients.
12
PeopleMatter for the service industry.


Recruitment Technology Landscape for Talent Acquisition
Recruiting Technology Landscape including eRecruitment Software:

One world. One future. One Solution.
EMPact Hire Expectations.

Talent Drives Performance.

Hiring Made Easy Recruiting Software Social Applicant
Tracking System Platform.

Talent Generation Solutions

Recruiting Solutions Global Leader in Talent Management
Powered by the People! Solutions.

Applicant Tracking in the Cloud. Automate Your Hiring Process

Your source for applicant tracking,
recruiting, and staffing solutions.

Social Recruiting Automation Where Finance Gets Hired.
Financial + Banking.

Healthcare Recruiting Software. RecruitBetter

Inspiring Talent Management
(formerly MrTed + Stepstone)

Beeline from Adecco

Staffing Software + Payroll
Staffing and Recruiting Software. On
Target. On Demand.
Sources: ERE.net, Workforece.com, The ATS Guide, Ephor database. *There are numerous other regional providers and point specific solutions. Email us at
ephor[at]ephorgroup.com for a complete list.


Career Management Technology Landscape
Social13 Recruiting, Networking & Career Management Technology Landscape:

World’s Largest Professional Network.
161m professionals. Career Networking on Facebook.
2m companies. The #1 professional network on FaceBook.
25m professionals
3 million jobs
20,000 internships

World’s Largest Goal Setting Community.
3m people.
Professional networking made easy.
135m members
200 countries

Job Matching Career Networking on Facebook.

Career Management Software

World’s best online marketplace for freelance talent.
350k professionals
Business social network career community for top
young professionals.
900k professionals.

13
Top Social Media Sites =
http://en.wikipedia.org/wiki/List_of_social_networking_websites
http://socialmediatoday.com/node/195917
http://www.focus.com/fyi/50-social-sites-every-business-needs-presence/


Global Landscape for Technology Tools, & Outsourcing Solution Providers

Communities continue to be built around “digital highways.”

Did you know?
 Nordic countries and Singapore top the global networked readiness list for infrastructure14 (Europe has 11
countries in the top 20).
 There is 130%15 mobile adoption in South East Asia compared to 80% in the United States.
The Networked Readiness Index measures the degree
of information and communication technologies (ICT) for competitiveness.

While the USA and much of
Europe faces a decade
forecast for slow growth, much
of Asia and select regions in
the Americas and Middle East
are looking to match growth
with demand.

Regardless of the economic
state, there is a gap of
technically skilled and mid
level workers across the
globe which highlights the
opportunity for both
technology and HR to develop
and empower employees.
Research shows that a 10 percent increase in mobile phone penetration
is associated with a 1 percent growth in GDP.

 Opportunity to “Leap the Chasm.”

Regional work attributes such as technology adoption,
infrastructure readiness, regulatory requirements, and business
customs will largely impact investments and growth. “Leaping
the chasm” for technology and HR processes suggests that more
ready communities with high degrees of technology
infrastructure will be early adopters of Business-Centric HR
Solutions and accelerate HR transformation to transition to
workforce management & talent HCM (human capital
management).

“Historically, there was reluctance to slaughter
the sacred cow, but survival will force the shift –either
you are integral part of the fabric or you are outsourced.”
– Rolf Kleiner, Chief Innovation Officer Kelly Services.

14
The Global Information Technology Report from INSEAD.
15
The Global Information Technology Report from INSEAD.


Aligning HR Technology with the Business Strategy is Critical to Performance

The majority of implementations deployed have failed to realize their ROI business case potential because of costs and
fit, but also because of poor strategy. Selecting the best fit HR technology that matches an organizations culture,
requirements, and strategy is paramount to realizing the ROI benefits.

Technology evaluation and implementation that starts with the business requirements and outcomes needed have
higher return on investment.

Licensed software HR technology focused on transactional initiatives:
compliance and risk management, and administrative automation
which limits the ROI value-proposition to one of labor arbitrage. SaaS
HR and work management software is being driven by and for end-
users.

-----------------------------------------------------------------------------
“Talent Management is a business process not a technology. Talent
management is not human resources, it is a business process. If you
separate HR and the business, into silos or data warehouses it’s
HARD to bring them back together.” Jason Averbrook debating with
Gartner’s Jim Holincheck.
-----------------------------------------------------------------------------

SaaS Usability Driving Adoption
The “consumer” of HR technology is no longer the human resources department. The consumer is the workforce. With
advances in portal capabilities, self-service features, single sign-on to connect many disparate software and
applications plus embedded intelligence, the fact is that the average enterprise will plug in multiple systems plus
future software and tools plus the latest “Apps” as they are available.

If you have $1 to invest in HR technology, is it better to invest it in “Technology designed for
developing and improving capabilities and competencies for the the workforce and not for
workforce (i.e. the majority of the employees) or invest in streamlining
administration.
the HR department; that is
what defines success today.
The deployment and
The Impact:
usability of the technology
is more important that the
features and functionality.”
– Garry E. Meier, HCM and BPO services
investor and advisor.


Work Management Buyer’s Guide
Historically, the cost to implement, manage, and utilize
Criteria Feature/Fact
licensed software has inhibited the routine use of these
1. Vendor Credibility
systems by the masses.
# of Customers Added Per Year with SaaS
Notable Clients
Licensed software rollouts (non-SaaS systems) Notable Partners
additionally require mass coding customization to fit Financial Stability
workflow processes. End-user adoption has been limited 2. Client Fit
due to the expense of implementation and customization.
Verticals

Historically to date, HR technology capabilities have Local Offices
outpaced the adoption and use. In fact, the majority of 3. Technology Solution Fit
implementations deployed have failed to fully utilize the SaaS multitenant scalable platform with Workflow, Real-time Reporting, CRM.
entire suite of features due to the complexity of both Configurability
deployment and the use of these systems. Scalability
Ease of Interoperability (Integration)

Today’s SaaS market leaders are known for: “The Best What vendors are integrated?

Service Deployment.” Performance Management (see PM Feature Comparison)
Business Management Reporting

Adoption can be employee driven when on-demand Global Capabilities

features and apps are prevalent. On-demand means Talent Management
ERP (Enterprise Resource Planning)
SaaS Self-Service is provided for free or at a low-priced
4. Sizzle Features - What are the sizzle features? Compensation Planning, Baseball Card
monthly fee with additional features, modules, and apps
WOW Sizzle Feature #1
able to be purchased/used as needed.

WOW Sizzle Feature #2
5. Cost and Implementation Time/Resource Estimates - What is the ROI? What are the

Contact a professional to put together a specific ROI Pricing Model
Results? How many projects do they start but not complete? Do they publish
assessment for your organization. S (S )?
Methodology - What is the philosophy of the company? Does the process align
?
Analytics and Reporting - What daily, weekly and monthly reports and metrics
?
Cost-Benefit Analysis C ?

Setup Time
Implementation Time to Implement Core
Training Time and Costs
Monthly Average Cost
Total Cost Average Per Client for 3 Years
ROI Expectations

SaaS Performance Management Provider A Provider B Provider C
Application Providers
HR Consulting Services Y - Enteprise Y - E & SMB Nothing beyond
implementation support.
Performance Management Y - Enteprise Y - E & SMB Y - Enteprise

Goals Management Y - Enteprise Y - E & SMB Y - Enteprise

Collaboration Y - Enteprise Y - E & SMB Y - Enteprise

Automated Workflow Y - Enteprise Y - E & SMB Y - Enteprise

Employee Self Service Y - Enteprise Y - E & SMB Y - Enteprise

Manager Self Service Y - Enteprise Y - E & SMB Y - Enteprise

Best Practices Templates, Competencies Y - Enteprise Y - E & SMB N

Templates for Metrics/Dashboard Y - Enteprise Y - E & SMB Y - Enteprise
Y - Via Partners Y - E & SMB Y - Enteprise
Learning Management System
Y - Via Partners Y - E & SMB N
Training Content
Y - Enteprise Y - E & SMB Y - Enteprise
Succession
Y - Enteprise Add-On Y - E & SMB Y - Enteprise
Surveys
Communications
Org. Chart
Career Management N Y - E & SMB Y - Enteprise

Talent Management Y - Enteprise N Y - Enteprise


SaaS Work Management Software Market Comparison

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