Study conducted by the Gantry Group that did a comparative analysis on customer satisfaction with HRMS & Payroll solutions.

1. Gantry
Group
Customer
Satisfaction with
HRMS & Payroll
Solutions:
Comparative Study
February 2009
Top Study Findings
• Study respondents represented a broad mix
The Gantry Group, LLC of HR/payroll solution vendors. The
majority of respondents used ADP,
150 Baker Avenue Ceridian, or Ultimate Software, so study
Suite 301 findings are focused on these solution
Concord, MA 01742 providers.
www.gantrygroup.com
• Study found that companies that switched
from a service bureau solution to an on-
premise or software-as-a-service (SaaS)
solution are more satisfied than those who
have stayed with a service bureau.
• Study findings showed that Ultimate
Software customers were the most highly
satisfied and most willing to recommend
their current vendor.

2. Contents
Executive Summary ...............................................................................1
Comparing Leading HR Management Solutions......................................3
Customer Satisfaction & Retention ................................................................................ 3
Vendor Strengths ....................................................................................................... 4
Solution Implementation ............................................................................................. 5
Switching Vendors...................................................................................................... 5
Comparing Leading Payroll Solutions ....................................................5
Customer Satisfaction & Retention ................................................................................ 5
Vendor Strengths ....................................................................................................... 7
Solution Implementation ............................................................................................. 7
Switching Vendors...................................................................................................... 8
Conclusions ...........................................................................................8
About the Study.....................................................................................9
About The Gantry Group, LLC...............................................................11

3. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
Customer Satiisfactiion wiith HRMS & Payrollll
Customer Sat sfact on w th HRMS & Payro
Sollutiions: Comparative Market Study
So ut ons:
Executive Summary
In late 2008, Gantry Group conducted a comparative market survey designed to explore
customer satisfaction with the leading human resource management system (HRMS) and
payroll vendors at companies with more than 200 employees. Over 15,000 emails were sent to
solicit the sample of 513 completed responses for HRMS and 493 completed responses for
payroll. The study received responses for over 10 HR and payroll solutions. However, there
were only enough responses for three vendors that yielded a sample sufficiently large for
statistical representation. These three vendors included ADP, Ceridian, and Ultimate
Software, who together make up over 70% of the sample. For this reason, analysis was
limited to comparisons between these three vendors. More details about the study
sample can be found in the section entitled “About the Study.”
The objective of the study was to compare customer experiences with the leading HRMS and
payroll solution vendors. In addition to gaining insight into how satisfied customers are with
their current vendor and why, the study was intended to explore why customers switched from
one vendor’s solution to another.
Overall Vendor Satisfaction
Overall Customer Satisfaction
Ceridian 73%
ADP 84%
Study Average 89%
Ultimate 99%
0% 20% 40% 60% 80% 100%
Source: Gantry Group 2009 Figure 1 – Overall Customer Satisfaction
According to the survey results for both HR and payroll users, Ultimate Software customers
reported the highest overall satisfaction of 99%. The average response for satisfaction from the
overall total sample was 89% satisfaction. ADP and Ceridian’s customer satisfaction were below
the sample average at 84% and 73%, respectively. Vendor satisfaction shown in Figure 1 is
measured as the aggregate of all levels of satisfaction.
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4. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
Overall Likelihood to Recommend Vendor
Ceridian 46%
ADP 59%
Ultimate 86%
0% 20% 40% 60% 80% 100%
Ultimate ADP Ceridian
Source: Gantry Group 2009 Figure 2 – Likelihood to Recommend Vendor
The differences in satisfaction seen in Figure 1 were even more pronounced when respondents
were asked about the likelihood of recommending their current vendor to a business colleague.
This question is typically equated with a more “pure” estimation of customer satisfaction
because it eliminates other factors such as existing investment or entrenchment with a
particular vendor, or the respondent’s knowledge of alternative solutions. Responses to this
particular question are frequently equated with customer loyalty.
Figure 2 shows that 86% of Ultimate customers would recommend Ultimate’s solution. This
compares with 59% of ADP customers and 46% of Ceridian customers (overall for both HR and
payroll).
Improved Satisfaction When Switching Away from Payroll Service
Bureau Model
One of the most provocative findings in the study concerned the difference in current vendor
satisfaction between customers who switched vendors but stayed with the service bureau
model, compared to those who changed from a payroll service bureau to a software-as-a-
service solution or on-premise software model. Customers who switched from the service
bureau to a SaaS or on-premise solution were more satisfied with their current
vendor than those who switched vendors but stayed with a payroll service bureau.
Figure 3 shows that 90% of respondents who switched from Ceridian to Ultimate would
recommend Ultimate to a business colleague for HRMS or payroll, compared with 63% (HRMS)
and 70% (payroll) of those that switched from Ceridian to ADP, who would recommend ADP.
Customers who switched from ADP to Ultimate were twice as likely to recommend their current
vendor than companies who switched from ADP to Ceridian.
% Respondents Likely to Recommend Current Vendor
Switching Vendors HRMS Payroll
Ceridian to ADP 63% 70%
Ceridian to Ultimate 90% 90%
ADP to Ceridian 40% 44%
ADP to Ultimate 87% 86%
Source: Gantry Group 2009 Figure 3 – Switching Vendors vs Likelihood to Recommend
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5. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
The survey included two separate sections for HRMS and payroll, respectively. Detailed results
from the study are presented in this white paper with HRMS and Payroll analyzed in two
separate sections.
Comparing Leading HR Management Solutions
HRMS Customer Satisfaction & Retention
Respondents were asked to indicate their level of satisfaction with their current HRMS vendor
as well as whether or not they were likely to recommend their current HRMS solution to a peer
or colleague. Figure 4a shows satisfaction results for ADP, Ceridian, and Ultimate HRMS
customers.
HRMS Customer Satisfaction
Ceridian 73%
ADP 81%
Study Average 87%
Ultimate 98%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: Gantry Group 2009 Figure 4a – HRMS Customer Satisfaction
Of customers using Ultimate HRMS, 98% reported satisfaction, compared with 81% of ADP
customers, 73% of Ceridian customers, and 87% of all respondents in total.
Figure 4b shows a similar trend regarding customer loyalty as measured by the likelihood to
recommend the current HRMS vendor to a peer or business colleague. 86% of customers using
Ultimate would recommend their solution compared with 55% and 43% of customers using ADP
and Ceridian, respectively.
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6. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
Likelihood to Recommend HRMS Vendor
Ceridian 43%
ADP 55%
Ultimate 86%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Source: Gantry Group 2009 Figure 4b – HRMS Likelihood to Recommend
HRMS Vendor Strengths
Averaged across the total sample, when asked what the current HRMS system does well, the
top three functions selected by respondents were reporting, integration between HRMS/payroll,
and employee/manager self-service. Figure 5 shows the results.
Rate Strength of Current Vendor’s HRMS Functionality
15
Employee and manager
19
self-service
64
Integration between HR 26 Ceridian
and payroll and other 49 ADP
systems Ultimate
80
24
Reporting 50
85
0 10 20 30 40 50 60 70 80 90
Source: Gantry Group 2009 Figure 5 – Vendor Strength (numbers represent counts)
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7. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
HRMS Solution Implementation
For Ultimate (58%) and ADP (55%), over half of respondents reported solution implementation
of less than 6 months, while 43% of Ceridian customers were implemented in less than 6
months. On average, Ultimate and ADP customers were implemented in approximately 7
months and Ceridian customers in 9 months.
With regard to the implementation costs and expected timeframe, on average the Ultimate
implementation experience was reported as being on-time and on-budget. ADP and Ceridian
implementations on average were reported as being slightly longer or over-budget than
planned.
Satisfaction When Switching HRMS Vendors
The number of respondents switching from Ultimate to ADP or Ceridian was too low for
statistical relevancy. Figure 6 shows likelihood to recommend for customers whose previous
HRMS vendor was ADP or Ceridian, respectively.
When asked the likelihood of recommending their current vendor’s HRMS solution, Ultimate
customers who migrated from a payroll service bureau (ADP or Ceridian) were much more
likely to recommend Ultimate to a business colleague than those who migrated between payroll
service bureaus (ADP and Ceridian).
FIGURE 6 - % of Respondents Likely to Recommend HRMS Vendor
Ceridian to Ceridian to ADP to ADP to
ADP Ultimate Ceridian Ultimate
HRMS 63% 90% 40% 87%
The study results are clear that the majority of companies that switched from one service
bureau to another for HRMS either did not realize an increase in satisfaction (Ceridian) or
experienced a minimal increase in satisfaction (ADP). In the case of customers who switched
from ADP to Ceridian only, 40% reported that they would recommend the Ceridian solution.
Because this question is frequently a proxy for customer loyalty which, in turn, is driven by the
degree to which a solution met the respondent’s expectations, it is reasonable to assume that
customers remaining with the service bureau model did not gain the benefits they may have
expected by changing vendors.
Top Reasons Cited for Switching HRMS Vendors
The primary reasons given for switching away from ADP as a previous HRMS vendor were lack
of scalability (33%) and unsatisfactory customer support (26%). The primary reasons given for
switching from Ceridian as a previous HRMS vendor were unsatisfactory customer support
(33%) and poor reporting (26%).
Comparing Leading Payroll Solutions
Payroll Customer Satisfaction & Retention
Respondents were asked to indicate their level of satisfaction with their current payroll vendor
as well as whether or not they were likely to recommend their current payroll solution to a peer
or colleague. Figure 7a shows the comparative results of ADP, Ceridian, and Ultimate against
the average for the entire sample.
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8. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
Payroll Customer Satisfaction
Ceridian 74%
ADP 88%
Study Average 89%
Ultimate 99%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: Gantry Group 2009 Figure 7a – Payroll Customer Satisfaction
Of customers using Ultimate payroll, 99% reported that they are satisfied compared with the
89% average from the total respondents, 88% of ADP payroll customers, and 74% of Ceridian
payroll customers.
Figure 7b shows a similar trend regarding customer loyalty as measured by the likelihood to
recommend the current payroll vendor to a peer or business colleague. 87% of customers using
Ultimate would recommend their payroll solution compared with 63% and 49% of customers
using ADP and Ceridian, respectively.
Likelihood to Recommend Current Payroll Vendor
Ceridian 49%
ADP 63%
Ultimate 87%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: Gantry Group 2009 Figure 7b – Payroll Likelihood to Recommend
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9. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
Payroll Vendor Strengths
Averaged across the total sample, when asked what the current payroll system does well, the
top three functions selected by respondents were payroll processing without manual
intervention, reporting, and easy payroll corrections. Figure 8 shows the results.
When asked what the current payroll system does well, the results show 94% of Ultimate users
selected payroll processing without manual processing, 83% identified reporting, and 78% liked
the control over when to run payroll. There was a stark contrast across vendors regarding
control over when to run payroll, with 78% of Ultimate customers identifying this as a strength
compared with only 49% of ADP and 33% of Ceridian customers, respectively.
Rate Strength of Current Vendor’s Payroll Functionality
21
Easy payroll corrections
(manual/off cycle 50
checks)
80
13
Control over when to run
42
payroll
82
Ceridian
ADP
Ultimate
18
Reporting 58
87
36
Payroll processing
(gross-to-net) with no 74
manual intervention
99
0 20 40 60 80 100 120
Source: Gantry Group 2009 Figure 8 – Vendor Strength (numbers represent counts)
Payroll Solution Implementation
For all three vendors, respondents experienced similar timeframes for average payroll
implementation time. Implementation of each payroll solution took 3-6 months for ADP,
Ceridian, and Ultimate.
The differences in implementation emerged when respondents were asked to describe their
implementation experience. On average the Ultimate implementation experience was reported
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10. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
as being on-time and on-budget. ADP and Ceridian implementations on average reported as
being slightly longer or over-budget than planned.
Satisfaction When Switching Payroll Vendors
The number of respondents switching from Ultimate to ADP or Ceridian was too low for
statistical relevancy. Table 9 shows likelihood to recommend for customers whose previous
HRMS vendor was ADP and Ceridian, respectively.
When asked the likelihood of recommending their current vendor’s payroll solution, Ultimate
customers who migrated away from a payroll service bureau (ADP or Ceridian) were much
more likely to recommend Ultimate to a business colleague than those who migrated between
payroll service bureaus (ADP and Ceridian).
Table - 9 % of Respondents Likely to Recommend Payroll Vendor
Ceridian to Ceridian to ADP to ADP to
ADP Ultimate Ceridian Ultimate
Payroll 70% 90% 44% 86%
Source: Gantry Group 2009
The study results are clear that the majority of companies that switched from one service
bureau to another for payroll either did not realize an increase in satisfaction (Ceridian) or
experienced a minimal increase in satisfaction (ADP). In the case of customers who switched
from ADP to Ceridian, only 44% reported that they would recommend the Ceridian solution.
Because this question is frequently a proxy for customer loyalty which, in turn, is driven by the
degree to which a solution met the respondent’s expectations, it is reasonable to assume that
customers remaining with the service bureau model did not gain the benefits they may have
expected by changing vendors.
Top Reasons Cited for Switching Payroll Vendors
The primary reasons given for switching from ADP as a previous payroll vendor were that the
system did not meet needs (29%) and lack of scalability (26%). The primary reasons given for
switching from Ceridian as the previous payroll vendor were that the system did not meet
needs (36%) and unsatisfactory customer support (32%).
Conclusions
Gantry Group’s analysis of the data from its market study reveals some important insights into
differences between the experiences of customers using HRMS and payroll solutions from ADP,
Ultimate, and Ceridian. Although the data for HRMS vendors was analyzed separately from
payroll vendors, the results for these two important functions are closely matched.
Based on the experiences as measured from this study, we observed companies experiencing
much higher levels of overall satisfaction from their HRMS and payroll solutions when provided
by a SaaS or on-premise software provider rather than a payroll service bureau model. This
result is particularly interesting in light of respondents’ reasons for leaving a prior service
bureau vendor, which included poor customer support, limited reporting, lack of scalability, and
lack of functionality to meet business needs.
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11. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
In particular, the study revealed:
• More customers report satisfaction with their HRMS and payroll solutions from
Ultimate than those using ADP and Ceridian. 99% of Ultimate customers reported
satisfaction compared with a total sample average of 89%.
• More customers would recommend Ultimate HRMS and payroll solutions than those
using ADP and Ceridian.
• Customers who have changed from one service bureau to another are less satisfied
and loyal (measured by likelihood to recommend to a business colleague) to their
current vendor than those who went from a service bureau to Ultimate.
• Customers’ reasons for leaving their previous vendors centered on unsatisfactory
customer support, limited functionality, and lack of reporting.
About the Study
In November 2008, Gantry Group constructed a quantitative online survey designed to reach
HR and payroll executives within U.S. enterprises (200 or more employees) that had deployed
HR solutions from one of 12 vendors including ADP, Ceridian, and Ultimate. One of the primary
objectives was to measure and compare customer satisfaction and retention with HRMS and
payroll solutions from these vendors. Over 15,000 emails were sent to solicit the sample of 513
completed responses for HRMS and 493 completed responses for payroll.
Respondent data was analyzed by the functional category of HR solution currently deployed and
by the specific HR solution vendor.
Ten of the leading HRMS and payroll vendors were included in the study; however, ADP,
Ceridian, and Ultimate represented about 70% of the total sample. For this reason, analysis
was limited to comparisons between these three vendors. Figure 10 shows the distribution of
vendors in the sample.
35% 32%
30% 28%
26%
24% 23%
25%
20%
14%
15%
11%
10% 7% 7%
5% 3% 3% 2% 3% 2%
2% 2% 2% 1% 1% 0%
0%
ADP Ceridian Kronos Law son Oracle Paychex PeopleSoft SAP Ultimate Other
Softw are
HRMS Payroll
Source: Gantry Group 2009 Figure 10 – Vendor Distribution
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12. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
Companies of respondents to the study ranged from 200 employees to over 10,000 employees.
Figure 11 depicts the size distribution for the sample as a whole.
50%
45%
45%
40%
35%
30%
25%
20%
20%
15%
9% 9%
10% 7%
5%
0%
200-1,000 1,001-2,500 2,501-5,000 5,001-10,000 Over 10,000
Source: Gantry Group 2009 Figure 11 – Company Size Distribution
The functional areas of respondents were restricted to heads of the HR and payroll functions at
respondent companies.
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13. Customer Satisfaction with HRMS & Payroll Solutions: Comparative Market Study
About The Gantry Group, LLC
Gantry Group LLC is a privately held market research and
strategy consulting company serving the world’s leading
technology-based solution providers. For the past decade Gantry
Group’s customized market research and consulting services
have armed its clients with targeted market intelligence to
support their strategic business decisions. Backed by over 25
years of experience, Gantry Group delivers to business
executives the firsthand market insights and predictive
measurement capabilities that allow them to make informed
decisions as they plan ahead and anticipate changing market
trends and needs. As a result of Gantry Group’s services, leading
solution providers have designed solution strategies aligned to
what the market truly values, segmented target customers to
support precision marketing, and communicated product benefits
that motivate customer purchases.
Gantry Group clients include IBM, Xerox Global Services, EDS,
Accenture, Mercer, McKesson, Palm and many other solution
providers.
Additional information about Gantry Group can be found at
www.gantrygroup.com.
11
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