August 9, 2023
Cloud-based Human Capital Management (HCM) tool, UKG Workforce Dimensions, uses Artificial Intelligence (AI) to offer enhanced workforce management capabilities over the current product version. But understanding the financial terms, pricing structures for various modules, and the benefits can be confusing. Continue reading to equip your organization for successful UKG Workforce Dimensions contract negotiations.
Reach out to Everest Group’s pricing experts for more information.
Enterprises benefit by using different HCM software tools and platforms to manage and optimize various aspects of the employee lifecycle, ranging from recruitment and onboarding to performance management and offboarding. These tools help enterprises transform traditional HR administrative functions into opportunities to increase employee satisfaction, engagement, and productivity.
The cloud-based HCM tool, Workforce Dimensions, developed by Ultimate Kronos Group (UKG), provides advanced capabilities compared to the company’s widely used Workforce Central tool. Some of Workforce Dimensions’ key features and capabilities include time and attendance management, absence management, workforce scheduling, payroll and HR administration, analytics, and reporting.
By leveraging AI, UKG Workforce Dimensions provides more comprehensive analytics, forecasting, scheduling, and reporting. Many existing UKG Central customers have already started migrating to UKG Workforce Dimensions.
However, many enterprises are still trying to understand the financial implications of migrating, the right price for various UKG Workforce Dimensions modules, and the benefits of the new functionalities.
Top questions to ask in negotiations
To get the best possible deal from UKG, enterprises should seek to get answers to the following five important questions:
- What is the cost increase from UKG Workforce Central to UKG Workforce Dimensions?
- What other aspects should be negotiated in addition to the per employee per month (PEPM) price of the UKG Dimensions bundle?
- Does UKG support existing customers in migrating to Workforce Dimensions by investing in implementation or professional services?
- What is the best time to negotiate with UKG?
- Are there giveaways or other incentives that enterprises can leverage during negotiations?
In addition to these questions, we recommend enterprises also focus on the following factors:
- Consider future demand projections – When negotiating with UKG, businesses should take into account their future demand projections. This is because the PEPM price for the UKG Workforce Dimensions bundle decreases as the number of employees increases. By assessing their near-term demand projections, enterprises can identify the optimal volume and negotiate prices accordingly
- Seek enhanced capabilities in the base bundle – To maximize their investment in UKG, enterprises should not focus on cost alone. Instead, they also should strive to get the most feature-rich base bundle that meets their requirements. Enterprises should push for the inclusion of additional modules, like Data Hub, Analytics, etc., in the base bundle with zero or very minimal increase in the base rate
While each relationship with UKG is unique, we firmly believe these recommendations can put your enterprise in a better negotiating position. To discuss software contract negotiation and for a detailed analysis, please reach out to us at [email protected]. Explore Everest Group’s contract benchmarking offerings to learn more.
