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UKG
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UKG is an American multinational technology company with dual headquarters in Lowell, Massachusetts, and Weston, Florida. It provides workforce management and human resource management services. UKG stands for Ultimate Kronos Group.

Key Information

History

[edit]

UKG stands for Ultimate Kronos Group. The company was founded in April 2020 as a result of the merger of Ultimate Software and Kronos Incorporated.[3] Former Kronos CEO Aron Ain was the CEO and chairperson of the combined company until July 1, 2022, when he stepped down as CEO to become Executive Chairperson.[4][better source needed]

On February 20, 2020, Ultimate Software and Kronos Incorporated announced they agreed to form a new cloud computing venture specializing in workforce management and human capital management. The combined company, valued at $22 billion, would be one of the largest cloud computing companies. Kronos CEO Aron Ain became CEO and chairman of the new company, with more than 12,000 employees and dual headquarters in Lowell, Massachusetts, and Weston, Florida.[5][better source needed][6][7][8] The merger was officially completed on April 1, 2020,[9][10][better source needed] and in August, the company's name was announced as Ultimate Kronos Group (UKG), which became effective on October 1.[11][better source needed] According to Society for Human Resource Management, the new company became one of the largest HR technology vendors in the highly competitive economy section that includes ADP, Ceridian, Taleo, Successfactors, Zoho Corporation and Workday.[12][13] In reports on the company from 2021, UKG was noted for its inclusive, diversified workforce and community-oriented work environment.[14][15][16][verification needed]

Several executive appointments followed in 2021 and 2022. In May 2021, the company appointed tech industry veteran Brian Reaves as the company's Chief Belonging, Diversity, and Equity Officer.[17][full citation needed] In December 2021, UKG launched its Close the Gap Initiative, a $3 million campaign funded by the company to address salary inequity for U.S. workers' wages, in particular for women and people of color.[18][full citation needed] In July 2022, UKG named Christopher Todd as chief executive officer succeeding Aron Ain who was named executive chairman of the board of directors.[19][full citation needed]

In July 2024, UKG replaced Christopher Todd as chief executive officer with former SAP Co-CEO, Jennifer Morgan.[citation needed] In that same month, UKG eliminated approximately 2250 positions worldwide, about 14% of their employees.[citation needed] The event was accompanied by UKG accidentally notifying impacted employees via a premature email of instructions regarding how to return their laptops.[citation needed]

NWSL Challenge Cup

[edit]

In 2023, the company sponsored a $1 million prize for the NWSL Challenge Cup, an annual tournament organized by the National Women's Soccer League.[20]

Acquisitions

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UKG was established in April 2020 following the merger of Ultimate Software and Kronos Incorporated.[9][10][better source needed][11][better source needed] In June 2021, the company acquired EverythingBenefits, a developer of cloud-based business software that connects employers to insurance, retirement and other information. The acquisition allowed UKG to incorporate EverythingBenefits' procedural knowledge including its suite of payroll, HR service delivery, and workforce management, among other tools.[21] On September 1, 2021, UKG bought Great Place to Work® Inc., the company behind Fortune's annual list of 100 Best Companies to Work For.[22][23] In December 2021, UKG acquired Ascentis Corporation, a midmarket provider of HCM and time management solutions.[24]

In February 2022, UKG acquired SpotCues, an employee engagement and communication solution. SpotCues was relaunched as UKG Talk. As of July 2023, UKG Talk has more than 1 million users. The company also expanded into the Caribbean market with its acquisition of Interboro Systems Corporation, based in Puerto Rico, the same month.[25] In November 2022, UKG acquired the Oxford-headquartered strategic workforce planning software company, Quorbit.[26]

In June 2023, UKG acquired Immedis, an Irish global payroll platform from CluneTech for over €550 million. The platform was relaunched as UKG OneView with a focus on multinational workforce management, payroll, tax and funding.[27][28]

Workforce—Institute and Activity Report

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Established in 2007, Workforce Institute is the company's think tank and research platform for organizations providing information on Human Capital Management issues that include working environment optimization, analytical and educational tools, accommodation of people with disabilities and more. The organization also conducts surveys and issues annual reports on global workforce trends and developments.[29][30][31][32]

The Workforce Activity Report is an index analyzing shift work trends from over four million people across more than 35,000 U.S. businesses. Reports are published and briefings are held each Tuesday prior to the publication of the Bureau of Labor Statistics Employment Situation Report. The Report is covered widely by news organizations and government sources.[33][34][35]

Ransomware attack

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In December 2021, UKG disclosed that it was targeted by a ransomware attack that was first detected on December 11, 2021. The malware attack affected the Kronos Private Cloud feature used by many large businesses including Boots, Gap Inc., Marriott International, MGM Resorts International, PepsiCo, Sainsbury's, Samsung, Staples Inc., Tesla, Inc., Whole Foods Market, Yamaha Corporation, YMCA, and others while some governmental entities such as the cities of Cleveland, Springfield, Massachusetts as well as the New York Metropolitan Transportation Authority were also affected.[36][37][38][39][40]

Many sources reported that the attack possibly occurred as a result of the Log4Shell zero-day, but UKG claimed it did not have evidence of Log4Shell being responsible for the ransomware incident.[40][41][38][36]

Ownership

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Private equity firm Hellman & Friedman, which was the controlling shareholder of both Ultimate and Kronos, is the controlling shareholder of UKG.[42] Blackstone, which also owned stakes in both previous companies, is the largest minority investor with a 20–25 percent stake.[2][6][better source needed] Other minority investors include GIC, Canada Pension Plan Investment Board, and JMI Equity.[5][better source needed]

Products and services

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Awards and recognition

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  • America's Greatest Workplaces 2023[44]
  • America's Most Innovative Companies 2023[45]

References

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

UKG

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from Grokipedia
UKG, legally known as Ultimate Kronos Group, is an American multinational technology company that provides cloud-based human capital management (HCM), payroll, scheduling, and workforce management software solutions to organizations globally. Formed on April 1, 2020, through the merger of Ultimate Software, founded in 1990, and Kronos Incorporated, established in 1977, the combined entity was valued at $22 billion at the time of the all-stock transaction. With dual headquarters in Lowell, Massachusetts, and Weston, Florida, UKG employs around 16,000 people and serves over 80,000 organizations across various industries, emphasizing integrated platforms for HR, timekeeping, and compliance. The merger aimed to leverage Kronos's workforce management expertise with Ultimate's HCM capabilities, positioning UKG as a leader in the sector amid growing demand for digital HR tools. Notable achievements include recognition for innovative AI-driven workforce insights and scalability for enterprises, though the company encountered significant challenges, such as a 2021 ransomware attack on its Kronos systems that disrupted services for numerous clients and prompted data security litigation.

Origins and Formation

Predecessor Companies: Kronos and Ultimate Software

Kronos Incorporated was established in 1977 as a Massachusetts corporation focused on developing and manufacturing workforce management solutions, including hardware and software for timekeeping and labor tracking. Headquartered in Lowell, Massachusetts, the company initially emphasized electronic time-recording devices before expanding into comprehensive software platforms for scheduling, attendance management, and payroll integration to help organizations control labor costs and enhance operational efficiency. Over the decades, Kronos grew through strategic acquisitions, such as assets from Computer Recovery, Inc. in the early 1990s, and positioned itself as a leader in workforce analytics and compliance tools serving industries like retail, healthcare, and manufacturing. In 2007, private equity firm Hellman & Friedman acquired Kronos in a leveraged buyout valued at $1.8 billion, enabling further investment in cloud-based innovations and global expansion while maintaining its core focus on time and labor optimization. Ultimate Software Group, Inc., founded in 1990 and based in , specialized in cloud-delivered management (HCM) solutions tailored for mid-to-large enterprises. The company's flagship UltiPro platform, first released in 1993, integrated payroll processing, HR administration, talent acquisition, performance management, and employee features, emphasizing user-friendly interfaces and data-driven insights to streamline operations. Ultimate Software pursued growth via targeted acquisitions, completing four deals between 2013 and 2018 to bolster capabilities in areas like benefits administration and analytics. Recognized for its workplace culture, the firm consistently ranked among Fortune's "100 Best Companies to Work For" starting in 2012, which supported its reputation for innovative HCM technology amid a shift toward SaaS models. Both companies operated as independent entities under 's ownership prior to their convergence, with Kronos excelling in time-and-attendance precision for hourly workforces and leading in holistic HCM for salaried and knowledge-based employees, setting the stage for complementary strengths in the evolving HR technology landscape.

2020 Merger and Initial Integration

On February 20, 2020, and entered into a definitive merger agreement to combine their human capital management (HCM) and solutions, creating a new entity valued at $22 billion with projected annual revenue approaching $3 billion and over 12,000 employees. The transaction, backed by firms including , was structured as a merger of equals aimed at leveraging Kronos's strengths in timekeeping and scheduling with Ultimate's cloud-based HCM capabilities. The deal closed on April 1, 2020, marking the formal formation of the combined company, which initially operated under transitional governance while planning unification. Leadership for the merged entity was established with , former CEO of Kronos, appointed as CEO to oversee initial operations, and Chris Todd, previously senior vice president at , named President to handle product and customer strategy. This structure emphasized continuity from both predecessors, with Ain focusing on cultural alignment and Todd on integrating sales and development teams. On September 1, 2020, the company unveiled its rebranding to Ultimate Kronos Group (UKG), effective October 1, 2020, adopting the tagline "Our purpose is people" to symbolize a unified focus on employee-centric technology. The rebrand accompanied early efforts to consolidate branding across marketing, websites, and internal communications, serving over 50 million workers globally through the combined portfolio. Initial integration prioritized harmonizing disparate systems and processes, including aligning Kronos's on-premises and cloud workforce tools with Ultimate's UltiPro HCM platform to enable seamless data flows for payroll, scheduling, and analytics. However, observers noted challenges in reconciling underlying product architectures, pricing models, and support structures, which risked complicating customer migrations and roadmap planning without careful orchestration. Efforts included cross-training teams and piloting unified sales strategies to avoid silos, with the company reporting revenue stability and growth by November 2020, closing fiscal year 2020 near $3 billion amid the merger's momentum. Despite these steps, full operational synergy required ongoing investment in API integrations and cultural melding between the "Kronites" and "Ultipeeps" workforces.

Corporate Evolution

Key Mergers and Acquisitions

In September 2021, UKG acquired Great Place to Work Institute, Inc., a global authority on workplace culture certification and , to integrate employee into its HCM . This move enabled UKG to offer clients data-driven insights on organizational trust and performance, distinct from traditional software functionalities. On February 24, 2022, UKG purchased SpotCues and its Groupe.io mobile communications platform, targeting enhanced connectivity for deskless and frontline workers through features like shift notifications and team collaboration tools. The acquisition addressed gaps in real-time , particularly in distributed workforces. In March 2022, UKG acquired Ascentis Corporation, a Minnesota-based provider of integrated HR, , and timekeeping software serving small to mid-sized enterprises. This expanded UKG's customer base in the U.S. SMB segment and incorporated Ascentis's compliance-focused modules into its broader suite. On June 6, 2023, UKG announced an agreement to acquire Immedis from CluneTech, a specialist in multi-country payroll orchestration for multinational corporations. The deal facilitated managed payroll services across over 100 countries, reducing complexity for global employers by combining Immedis's localization expertise with UKG's core HCM infrastructure. In June 2025, UKG acquired Shiftboard, a Seattle-based provider of AI-driven scheduling software tailored for shift-based industries such as energy, oil and gas, and manufacturing. The integration aimed to embed Shiftboard's optimization algorithms into UKG's workforce management tools, improving operational efficiency for hourly and contract labor.
DateAcquired EntityKey Focus Areas
September 2021Great Place to Work InstituteWorkplace culture analytics and certification
February 2022SpotCues (Groupe.io)Mobile employee communications
March 2022Ascentis CorporationSMB HR, , and timekeeping
June 2023ImmedisGlobal multi-country
June 2025ShiftboardIndustry-specific scheduling for and

Product Roadmap and Legacy System Transitions

UKG's product roadmap post-merger prioritizes the unification of human capital management (HCM) and (WFM) functionalities into two primary suites: UKG Pro for mid-to-large enterprises and UKG Ready for small-to-medium businesses (SMBs). UKG Pro builds on Ultimate Software's UltiPro foundation, emphasizing scalable cloud HCM with advanced AI integrations for , , and , while UKG Ready incorporates Kronos's WFM strengths tailored for simpler deployments in hourly workforces. The roadmap for 2024-2025 includes accelerated AI adoption for predictive workforce insights, enhanced global capabilities, and market expansions, such as the planned launch of UKG Ready in for SMEs. Key enhancements in recent roadmaps feature AI-driven tools for and compliance, as highlighted in UKG Pro Talent updates released in late 2023, alongside ongoing investments in multi-country platforms evaluated highly for vision and roadmap alignment in 2024 analyses. UKG's strategic focus also extends to industry-specific modules, with assessments guiding future-state optimizations in sectors like healthcare, incorporating agency over career paths and predictive scheduling. These developments aim to address evolving megatrends, including AI-enabled and hybrid work models projected to shape workplaces through 2025. Legacy system transitions have centered on migrating Kronos customers from on-premise Workforce Central to cloud-based UKG Dimensions or UKG Pro WFM, driven by end-of-support announcements for legacy versions. As of early 2024, UKG urged prioritization of these migrations, with support for Workforce Central phasing out to encourage adoption of unified platforms that integrate former Ultimate and Kronos data models. The process involves smart configuration migrations, , and end-to-end to minimize disruptions, with UKG providing readiness assessments and best practices for retail, , and healthcare users. Challenges in these transitions include potential data inconsistencies and extended timelines, as noted in guides emphasizing pre-migration audits and phased rollouts to avoid costly errors like incomplete compliance mapping. UKG supports these efforts through professional services, including automated tools for configuration transfer from legacy Kronos setups and integration with UKG Insights for reporting continuity. For holdovers, transitions are less disruptive given their pre-merger cloud-native architecture, but full unification requires harmonizing WFM elements into UKG Pro. Overall, these migrations align with UKG's cloud-first strategy, with success metrics tied to reduced on-premise maintenance and improved scalability as of 2025 implementations.

Leadership and Organizational Changes

In the wake of the 2020 merger between and , , former CEO of Kronos, assumed the role of CEO for the newly formed UKG, overseeing initial integration efforts while maintaining dual CEO structures temporarily from the predecessor firms. On July 1, 2022, Ain transitioned to Executive Chair, with Chris Todd, a long-time Kronos executive, appointed as CEO to drive operational unification and growth amid post-merger challenges including system harmonization. Todd, who had joined Kronos in 2007 and held various senior roles, emphasized innovation during his tenure, which spanned until August 2024. On July 29, 2024, UKG announced as its new CEO, succeeding Todd after his 17 years with the company; Morgan, with prior experience as co-CEO of , was selected for her expertise in scaling operations globally. Under Morgan's leadership, UKG undertook operational overhauls in mid-2025, including executive team realignments drawing from SaaS veterans to enhance functional areas like product development and sales, aimed at accelerating double-digit revenue growth amid competitive pressures in HR technology. These changes followed a 2023 that disrupted services and prompted internal reviews of resilience, though no direct causal link to leadership shifts was publicly detailed. Organizationally, post-merger integration involved consolidating redundant functions from Kronos and , resulting in a unified structure by 2021 with streamlined R&D and support teams, though specific headcount reductions were not disclosed in official releases. By October 2025, UKG executed a global rebrand emphasizing a " operating platform" mission, reflecting evolved priorities under new toward integrated HCM solutions, accompanied by board additions like Donna Morris in August 2025 to bolster HR strategy governance. These shifts prioritized agility in a market favoring cloud-native providers, with Morgan publicly stressing urgency in adapting to AI-driven trends.

Ownership Structure

Private Equity Backing and Stakeholders

UKG operates as a under the control of a led by LLC (H&F), which became the majority owner following the acquisitions of its predecessor companies and their subsequent merger. H&F first acquired in 2014 through a valued at approximately $4.8 billion, positioning it as the controlling shareholder prior to the formation of UKG. The consortium's involvement expanded in January 2019 when , was taken private in an $11 billion deal spearheaded by H&F, with participation from Blackstone, GIC (Singapore's ), and the Investment Board (CPP Investments). This structure carried into the April 1, 2020, merger of Kronos and Ultimate Software to form UKG, valued at $22 billion, where H&F retained and the investor group maintained ownership of the combined entity. Key stakeholders include H&F as the principal investor, alongside minority stakes held by Blackstone, GIC, and CPP Investments, which collectively influence strategic decisions such as expansions, acquisitions, and operational efficiencies aimed at value creation. These investors have extended their holdings beyond initial timelines, with H&F committing to further growth initiatives post-merger, including product integrations and market expansions. No public equity exists, limiting broader stakeholder input to internal mechanisms involving executive and board representation from the backing firms.

Governance and Decision-Making

UKG operates as a , with governance primarily shaped by its controlling shareholder, , alongside minority investors including Blackstone. This private equity structure grants significant influence over strategic decision-making, emphasizing operational efficiencies, portfolio value maximization, and preparation for potential exits such as an or sale, rather than short-term public market pressures. The board of directors oversees major decisions, including executive appointments and high-level strategy, with composition reflecting private equity priorities and industry expertise. Aron Ain serves as executive chairman, providing continuity from the predecessor companies following his tenure as CEO until July 1, 2022. In May 2021, the board expanded to include Melissa Thomas-Hunt, former global head of diversity and belonging at Airbnb; Jennifer Morgan, then head of portfolio operations at Blackstone (later appointed CEO in July 2024); Pat Wadors, chief people officer at Procore Technologies; and Timothy Campos, CEO of Woven and former CIO at Facebook. More recently, in August 2025, Donna Morris, executive vice president and chief people officer at Walmart, joined the board, adding HR and strategic scaling expertise. Private equity representatives likely hold key seats, enabling direct input on financial and growth-oriented decisions. Day-to-day decision-making is led by the executive team under CEO , who assumed the role on July 29, 2024, bringing experience from and Blackstone to focus on global SaaS expansion and innovation. The team includes Rachel Barger as president of go-to-market, Suresh Vittal in product leadership, and Arlen Shenkman in finance, collaborating on operational and product roadmap choices aligned with board directives. As a private entity, UKG's processes prioritize data-driven insights from its HCM suite for internal efficiencies, with limited public disclosure on internal committees or voting mechanisms compared to publicly traded peers. This structure supports agile responses to market demands, such as AI integration and mergers, but subordinates broader stakeholder input to investor returns.

Core Products and Services

Human Capital Management Suite

UKG's Human Capital Management (HCM) suite comprises cloud-based platforms, primarily UKG Pro for mid-to-large enterprises and UKG Ready for small-to-medium businesses, integrating HR, , talent acquisition, performance management, and workforce analytics to manage the employee lifecycle from to . These solutions emphasize data-driven insights, compliance automation, and employee portals to streamline operations and reduce administrative burdens. UKG Pro, evolved from Ultimate Software's UltiPro and enhanced post-2020 merger with Kronos capabilities, supports global workforce management with modules for core HR (including and benefits administration), talent management (encompassing learning, , and performance reviews), and advanced analytics via UKG People Analytics for predictive workforce planning. It processes across multiple countries, handles complex tax compliance, and integrates timekeeping with AI-driven forecasting to optimize scheduling and labor costs, serving over 80,000 organizations as of 2023. Reviews commonly distinguish UKG Pro’s experience by role: administrators benefit from extensive configuration depth, while frontline managers and occasional users can find interfaces dense in heavily customized deployments, making training and change management a key adoption factor. In contrast, UKG Ready targets smaller operations with scalable features like automated processing, basic HR compliance tools, and mobile-accessible employee scheduling, incorporating enhancements such as "Model My Pay" for pay prediction and streamlined workflows for benefits enrollment announced in September 2024. Both platforms prioritize security with role-based access and audit trails, though UKG Pro offers deeper customization for industry-specific needs like higher education grant tracking or retail demand-based staffing. The suite's unified architecture enables seamless data flow between modules, fostering through personalized dashboards and reducing turnover via insights into factors like pay equity and , with reported benefits including up to 20% faster hiring cycles in user implementations. UKG maintains these offerings through regular updates, such as AI integrations for bias-free recruiting, while ensuring with third-party systems via APIs.

Payroll and Scheduling Solutions

UKG's payroll solutions, primarily delivered via the UKG Pro platform, automate core processes such as wage calculations, tax withholdings, and generation, supporting real-time processing for organizations with diverse workforces. These tools integrate with broader human capital management (HCM) systems to handle compliance across federal, state, and local regulations, reducing manual errors through features like automated audit trails and exception reporting. Employee capabilities allow workers to access pay stubs, update personal details, and manage deductions via mobile apps, enhancing while minimizing administrative burdens. UKG also provides UKG Global Payroll Solutions through the UKG One View platform, enabling comprehensive management of multi-country payroll. This solution offers unified visibility and compliant processing across more than 160 countries and 120 currencies, connecting to local in-country payroll providers to ensure compliance while centralizing global payroll data. Key features include UKG One View for a single global view of payroll data, automated compliance updates, continuous validation for error detection, multi-currency support, and scalability to consolidate multiple payroll systems into one. In 2025, UKG was named Global Payroll Supplier of the Year by the Global Payroll Alliance for the second consecutive year. In scheduling, UKG leverages modules derived from legacy Kronos capabilities, offering cloud-based tools for , shift optimization, and skill-based assignment to align labor with operational needs. Key functionalities include automated schedule generation that factors in employee availability, preferences, and labor laws; mobile features for shift swaps, time-off requests, and open-shift pickups; and to balance full-time and part-time staffing based on transaction volume or traffic patterns. Specialized variants, such as UKG EZCall, cater to sectors like healthcare by creating equitable physician rotations. The integration of and scheduling within UKG's unified platform ensures seamless data flow from time tracking and to pay , enabling accurate of hours, , and premiums while automating compliance checks for wage-and-hour rules. This end-to-end approach supports industries with variable staffing, such as retail and , by linking scheduling decisions directly to outcomes, though requires configuration to handle custom rules and third-party integrations.

Industry-Tailored Modules

UKG's industry-tailored modules extend its core human capital management (HCM), , and platforms—primarily UKG Pro for larger enterprises and UKG Ready for midmarket organizations—with sector-specific configurations, workflows, and integrations to handle unique regulatory, operational, and labor demands. These modules leverage embedded , AI-driven forecasting, and compliance to optimize , reduce costs, and enhance in environments like shift-based operations or regulated reporting. For instance, they address challenges such as high turnover in retail or patient volume variability in healthcare through pre-built features rather than generic adaptations. Healthcare modules integrate scheduling, timekeeping, and with clinical workflows, using AI to predict fluctuations, match skills to shifts, and automate Payroll-Based Journal (PBJ) submissions, which reportedly saves hundreds of administrative hours for post-acute and senior living providers. The system unifies data across roles from nurses to support staff, cutting corrections by up to 50% and minimizing via real-time visibility, serving over 3,500 hospitals and 10,000 post-acute facilities as of recent deployments. Compliance tools ensure adherence to standards like HIPAA and CMS requirements, while features aid retention in shortage-prone fields. Retail solutions emphasize flexible scheduling for variable demand, such as seasonal peaks, with mobile-first time and attendance tracking for store associates and predictive labor forecasting tied to sales data. Modules include exception-based processing to handle tipped wages and union rules, alongside analytics for optimizing store-level staffing to control costs in high-turnover settings. These address retail-specific pain points like shifts and associate engagement through portals. Manufacturing modules focus on production-line efficiency, offering real-time workforce visibility to counter labor shortages and volatility, with tools for skill-based scheduling, downtime minimization, and integration with systems for demand-driven shifts. Features include management alerts and compliance for safety regulations like OSHA, enabling just-in-time staffing adjustments. Additional verticals, such as , , and , incorporate tailored compliance (e.g., FLSA for government entities), demand-responsive scheduling for food service variability, and risk analytics for banking fraud prevention, all built on UKG's unified data platform to support scalability across global operations.

Research and Data Initiatives

UKG Workforce Institute

The UKG Workforce Institute, established in October 2007, functions as a dedicated and advisory body within UKG, comprising researchers, educators, and advisers who conduct studies on key workplace challenges such as unplanned , , and workforce analytics. The institute's outputs include surveys, predictive analyses, and educational resources aimed at informing management practices, often drawing on global data from thousands of employees and leaders across industries and demographics. Key activities encompass annual workplace trend predictions, post-event reviews, and sector-specific reports; for example, its 2023 predictions addressed evolving hybrid work models and talent retention, with a 2025 review evaluating their accuracy amid economic shifts. In 2024, the institute published Industry Insights Reports for sectors including , , and , analyzing AI integration, talent trends, and operational disruptions based on field research and collaborations like those with Great Place to Work. These reports synthesize data to highlight actionable insights, such as the need for enhanced internal talent mining to address shortages. Notable studies include the Trust in the Workplace report, commissioned with Workplace Intelligence and surveying nearly 4,000 individuals to examine employee-leader dynamics and cultural factors influencing retention. A 2024 global study revealed that 88% of managers reported mentoring employees for advancement, while frontline perspectives underscored demographic variations in and future-oriented concerns. Additionally, the institute has addressed , recommending recurring check-ins by managers to support employee amid rising pressures. In India-focused research from 2022, over half of surveyed workers expressed reluctance for their children to pursue similar roles, citing instability in evolving labor markets. The institute's work emphasizes data-driven education for organizations, though as a UKG affiliate, its findings often align with promoting HCM technologies for issues like performance recognition and HR priorities. By 2022, it marked 15 years of operations, expanding from initial focus on core HCM topics to broader global trend analysis.

Workforce Activity Report

The UKG Workforce Activity Report (WAR) provides monthly analyses of U.S. labor market trends derived from anonymized time punch and payroll data of approximately 6.2 million hourly workers across UKG's customer base, offering a weekly-sampled view of patterns that precedes official (BLS) reports by about two weeks. Launched as a tool for leaders to gauge real-time dynamics, the report tracks metrics such as total shift starts, year-over-year (YoY) growth in activity, and sector-specific variations, emphasizing empirical shifts in hourly rather than broader economic narratives. While the data's granularity stems from actual employee records, its scope is limited to UKG's predominantly mid-market and enterprise clients in hourly-intensive industries like retail, healthcare, and , potentially underrepresenting salaried or gig workers. Key indicators in the include the Workforce Activity Index, which measures month-over-month (MoM) and YoY changes in shift volume; for instance, August 2025 recorded the first negative MoM shift growth year-to-date at -0.2%, signaling cooling in certain sectors amid broader economic pressures. Sector breakdowns reveal disparities, such as April 2025's 0.1% YoY decline in shift starts contrasted with modest gains in , highlighting early labor market strains before BLS confirmation. June 2025 data showed a 1.3% YoY rise in overall , driven by small businesses (under 100 employees) leading job expansion, though healthcare exhibited persistent understaffing with flat or negative growth. These findings are computed from aggregated, privacy-compliant data without individual identifiers, enabling high-frequency tracking but reliant on UKG's platform adoption for representativeness. The report's utility lies in its predictive edge for forecasting and hiring decisions; for example, July 2025 insights indicated sustained but decelerating activity growth at 1.1% YoY, correlating with subsequent BLS nonfarm revisions. UKG positions as a complement to , cautioning that while it captures operational realities from frontline data, external factors like policy changes or seasonal adjustments may influence interpretations. Independent analyses have noted its alignment with BLS trends but occasional divergences due to the report's focus on active hourly shifts excluding voluntary separations or . Released via UKG's and press wires, the supports evidence-based without endorsing specific policy responses.

Partnerships and External Engagements

Sports Sponsorships and Equity Initiatives

UKG has engaged in several sports sponsorships to enhance brand visibility and align with themes of workforce performance and inspiration. The company served as the jersey patch sponsor for the of the from 2020 to 2023, succeeding Ultimate Software's sponsorship from 2017 to 2020 following the merger that formed UKG. In May 2022, UKG secured a multiyear, multimillion-dollar title sponsorship for the (NWSL) Challenge Cup, marking the league's first such corporate title partner and including efforts to address the in sports. Additional partnerships include a June 2025 agreement naming UKG as the official HR, payroll, and workforce management technology partner of the Tour, supporting the management of its nearly 200 global employees via the UKG Ready suite. In January 2025, UKG became the official HR and payroll partner for TGL, a tech-infused team league backed by and , featuring a presenting sponsorship of the UKG Rail Camera around the field of play. UKG also maintains an athlete ambassador program partnering with professional athletes across sports to promote values of peak performance and community impact. Other activations include a 2024 midfield sponsorship at Colorado State University's football field for the . In parallel, UKG pursues equity initiatives focused on workplace diversity, inclusion, and bias reduction, often integrated with its HR software offerings. The company established the Equity at Work Council in June 2020, an interdisciplinary group formed by pre-merger entities and Kronos to research and address workplace inequities through annual studies, open forums for HR leaders, and science-based insights on diversity and belonging. UKG's broader Diversity, Equity, Inclusion, and Belonging (DEI&B) program incorporates foundational bias-mitigation training, partnerships to expand diverse talent pipelines, accountability metrics, and employee resource groups (ERGs) to foster inclusive environments. These efforts extend to product features like the UKG Pro suite's tools for equitable hiring, including Candidate Match algorithms and EEO-1 reporting kits designed to support compliance and reduce disparities. UKG also promotes hiring and has awarded "DEI&B Ally" badges to partners demonstrating commitment to equity practices, as seen in recognitions for firms like OutSolve in 2024 and Achievers in 2025. Philanthropic components under "Belonging, Equity, and Impact" involve nonprofit collaborations and charitable support to empower underrepresented communities globally. Some sports engagements, such as the NWSL , explicitly tie into equity goals by highlighting pay equity in athletics.

Community and Industry Collaborations

UKG supports through structured philanthropic and initiatives. The company donated $3.49 million to 350 nonprofit organizations in 2020, including $575,000 allocated for global aid responses and over $300,000 in branded materials for community use. UKG's Global Volunteer Time-Off policy grants employees at least 16 hours of paid time annually for charitable or community service activities. These efforts extend to employee-driven charitable campaigns facilitated by UKG Pro Giving, which streamlines corporate giving programs. In industry collaborations, UKG maintains an ecosystem of technology partners to enable integrations and enhance capabilities across sectors. Key alliances include an expanded partnership with Google Cloud announced on October 9, 2025, aimed at deploying agentic AI for millions of users in management. Similarly, UKG integrated its solutions with on November 9, 2022, to improve communication and engagement tools. Other notable integrations involve Visier for advanced people analytics since December 7, 2021, and for streamlined recruitment workflows from April 21, 2021. These partnerships target verticals such as healthcare, with collaborating on hospital workforce optimization as of September 17, 2025. UKG also fosters customer interactions via dedicated platforms, where users collaborate on best practices for its HCM and solutions. This includes forums, user groups, and events that facilitate peer knowledge-sharing and product feedback.

2021 Ransomware Attack

On December 11, 2021, a attack targeted the Kronos Private Cloud (KPC), a key component of UKG's management services, rendering multiple cloud-based products unavailable. UKG publicly disclosed the incident on December 13, 2021, confirming that affected services included UKG Workforce Central for timekeeping and scheduling, UKG TeleStaff for , Healthcare Extensions, and Banking Scheduling Solutions. The company immediately isolated impacted systems to prevent further spread, but warned that full restoration could require several weeks due to the need for thorough data integrity verification and system rebuilding. The attack severely disrupted operations for UKG's customers across sectors such as healthcare, public transit, manufacturing, and retail, compelling manual alternatives for employee time tracking, shift scheduling, and processing. High-profile entities affected included Tesla, , Whole Foods, and the New York City , where over 20,000 transit workers faced delays; the incident impacted for more than 8 million workers globally. issuers, hospitals, and police departments reported challenges in estimating hours and issuing paychecks, exacerbating administrative burdens during the holiday period. UKG maintained that its initial investigation found no evidence of customer data being accessed, compromised, or exfiltrated by the , attributing the primary damage to service denial rather than . Recovery efforts prioritized phased restoration, with core time, scheduling, and functions fully operational for all affected customers by late January 2022, though some specialized modules lagged. The event highlighted vulnerabilities in third-party HR platforms, prompting affected organizations to diversify vendors and enhance backup protocols. Legal repercussions followed, with class action lawsuits filed by employees and customers claiming negligence in cybersecurity measures and resulting financial harms from payroll disruptions. In July 2023, UKG reached a $6 million settlement to resolve a nationwide covering U.S. employees of impacted customers, without admitting liability. The total costs to UKG and clients exceeded $9.6 million in settlements and operational mitigations.

Post-Merger Layoffs and Operational Disruptions

Following the April 2020 merger of and Kronos to form UKG, the company underwent significant leadership changes, including the ouster of Ultimate Software's founder Scott Scherr and CEO Adam Rogers, which contributed to internal restructuring amid integration efforts. Although UKG initially committed to no layoffs during the merger process, subsequent post-merger adjustments led to workforce reductions to streamline operations and eliminate redundancies from the combined entities. In June 2022, UKG executed layoffs affecting around 100 employees across various roles without advance notice, coinciding with over 1,000 active job postings for new hires. That same year, more than 200 IT positions were eliminated as part of cost-control measures following the merger's cultural and operational clashes between legacy Kronos and teams. By March 2023, UKG reduced its global workforce by approximately 265 roles, or 1.7% of employees, targeting duplicated functions in sales, marketing, and support to align post-merger structures. These actions reflected ongoing challenges in harmonizing the two companies' systems and processes, with employee reports citing a "downhill roll" in and after the merger disrupted prior workflows. Integration efforts also produced operational disruptions, particularly in -facing implementations, where teams were overstretched, leading to project delays and inadequate consultant support one year post-merger. Experts highlighted risks in product consolidation, such as potential feature gaps and pricing pressures at customer renewals, as merged platforms prioritized unified offerings over legacy customizations. These issues stemmed from the inherent complexities of combining Kronos's timekeeping focus with Ultimate's HCM strengths, though no widespread system outages were reported beyond resource strains.

Recognition and Market Impact

Industry Awards and Rankings

UKG has received multiple recognitions from industry analysts for its human capital management (HCM) and payroll solutions. In the 2025 Gartner Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises, UKG was named a Leader, marking the third consecutive year of this positioning based on its completeness of vision and ability to execute. In the accompanying 2025 Gartner Critical Capabilities for Cloud HCM Suites report, UKG achieved the highest score for the North American midmarket use case. The Forrester Wave™: Human Capital Management Solutions, Q4 2025, evaluated UKG as a Leader, assigning it the highest score among vendors in the current offering category, which assesses features like core HR, , and . User-review platforms have also ranked UKG highly. UKG's flagship products—UKG Pro for mid-to-large enterprises and UKG Ready for small to medium-sized businesses—generally receive positive reviews for their comprehensive features in HR management, payroll processing, time tracking, workforce management, compliance, and global capabilities. Average ratings across major platforms such as G2 and Capterra are around 4.2-4.4 out of 5, based on thousands of verified user reviews. Some users note occasional system complexity, implementation challenges, and variability in customer support. G2's 2025 Best Software Awards placed the UKG Ready suite first in the Enterprise Software category (for organizations with 1,000+ employees), determined by verified customer reviews across satisfaction, market presence, and support metrics. In the payroll sector, UKG received the Global Payroll Supplier of the Year award from the Global Payroll Association in 2025, marking the second consecutive year of this recognition following their 2024 win. The award honors excellence in innovation and service delivery.

Economic and Workforce Influence

UKG generates annual of approximately $4.3 billion as of 2024, positioning it as a major player in the management and software sectors. The company holds the top in North American solutions, enabling it to influence operational efficiencies across industries reliant on hourly and shift-based labor. Through its platforms, UKG processes for roughly 13 million client employees via about 7,000 clients, facilitating streamlined compliance and financial operations that reduce administrative burdens for mid-to-large enterprises. A Forrester Consulting study commissioned by UKG estimates that organizations using UKG Pro achieve a 169% over three years, driven by factors such as a 3% increase in , back-office gains, and savings from consolidating legacy technologies. Similar analyses for UKG Ready and UKG Dimensions highlight benefits including reduced unearned benefits costs and improved retention through better staffing analytics, though these projections derive from modeled scenarios based on interviewed UKG customers and may reflect optimistic implementations. By optimizing scheduling, timekeeping, and labor forecasting, UKG's tools contribute to broader economic , particularly in sectors like and retail facing labor shortages, where clients report moderate growth in goods demand alongside talent challenges. In terms of workforce influence, UKG's Workforce Activity Report draws from time-punch and data of over 6.2 million U.S. hourly workers across tens of thousands of customers, providing weekly insights into trends that outlets like have described as more accurate indicators of job creation than official government statistics. This data has documented patterns such as a 1.3% rise in in June 2025, signaling labor market expansions led by small businesses, and informs employer strategies for addressing gaps in critical roles. The UKG Workforce Institute further shapes discourse through industry-specific reports, such as those on retail's adaptations and manufacturing productivity amid overtime reliance, emphasizing data-driven adjustments over unsubstantiated policy narratives. UKG's platforms, serving organizations with populations from hundreds to over 100,000 employees, standardize practices like scheduling and compliance tracking, indirectly influencing retention and by aligning with actual demand rather than rigid hierarchies.

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