UKG, a leading provider of HR, payroll, and workforce management solutions for all people, today provided a business update for the third quarter of fiscal 2023, ending June 30, 2023.
“We’re entering the final stretch of fiscal 2023 on extremely strong footing, with Q3 results putting us ahead of our profitability plan for this year and significant investments that will dictate how we serve customers large and small for many years to come,” said Chris Todd, CEO at UKG. “Existing customers continue to reinvest in UKG, as migration to our modern cloud solutions increased more than 50% compared with last year. New customer deals propelled us over 80,000 total customers worldwide, and we continue to ensure our customers are realizing value quickly, with hundreds of go-lives each quarter. Last, and certainly not least, our acquisition of Immedis creates a new standard for multi-country payroll through the UKG One View platform being sold today to transform how businesses pay people around the world.”
Third Quarter 2023 Business Highlights
UKG announced the agreement to acquire Immedis — a deal that closed in early July — and the launch of UKG One View, an adaptable, intelligent “schedule to fund in one” experience for North American-based multinational businesses that modernizes multi-country payroll in 160 countries and 120 currencies.
“This is a savvy and powerful move that allows UKG to build off of Immedis’ established global payroll brand that has technology and services supporting over 160 countries,” wrote Claude Werder, senior vice president and principal HCM analyst at Brandon Hall Group. “It firmly establishes UKG as a leading player in global payroll, especially given the company’s stated vision to transform the global payroll paradigm into a more efficient, technology-enabled multi-country payroll experience.”
UKG also announced new product innovations, successes, and enhancements, including:
- A generative AI (GenAI) partnership with Google Cloud that will apply large language models (LLMs) through Vertex AI across UKG solutions to create more conversational interactions, augment employee requests with more relevant business insights, and, combined with Great Place To Work® proprietary data, support people managers with a deeper understanding of how business decisions can impact employee engagement. Google Cloud and UKG also joined forces to host 1,100 UKG employees in a two-day hackathon to develop novel and impactful HCM applications and experiences using GenAI.
- UKG Developer Hub, a dedicated portal powered by the UKG FleX platform that organizations can use to extend the capabilities of their UKG technology, deploy real-time data exchanges between UKG and new or emerging third-party solutions, and even build their own applications and workflows that harness intelligent UKG engines.
- The grand opening of a new Innovation Hub in Montevideo, Uruguay, housing a growing group of 100 engineers focused on the development and delivery of UKG solutions, including the forthcoming UKG Great Place To Work® Hub.
Forrester Research named UKG a Leader in The Forrester Wave™: Human Capital Management Q2 2023 report, a rigorous evaluation of HCM vendor market presence, solution strength, and innovation strategy. This was the latest in a string of HCM industry reports to name UKG a Leader, following similar evaluations from Gartner, Nucleus Research, and Sapient Insights Group.
UKG customers continue to share their ROI and operational success stories as well as how partnering with UKG has helped propel strategic initiatives around diversity and the employee experience, including Bon Secours Mercy Health, Mike Morse Law Firm, EmergeOrtho, and Coast Mental Health.
New and longtime customers selecting UKG HR, payroll, and workforce management solutions in the quarter included:
- A U.S. retail chain with more than 500,000 employees and a broad portfolio of transportation, e-commerce, and business services;
- Canada's largest food service, hospitality, and support services organization, employing 25,000 people across its family of companies;
- A leading pan-European dentistry group, operating in 11 European markets and employing nearly 10,000 skilled dental professionals;
- One of Scandinavia’s largest retailers, operating stores, restaurants, and coffee shops across 1,500 locations;
- A French computer company with a presence in more than 100 countries, particularly active in the defense, finance, healthcare, manufacturing, public, and telecommunication sectors;
- The North American subsidiary of one of the world’s iconic automobile brands, with more than 30,000 associates working in 12 U.S. manufacturing facilities and 21 research facilities;
- A global home improvement retail chain based in Canada employing 23,000 people;
- A Canada-based gold mining company producing precious metals from operations globally, recognized for its leading environmental, social, and governance (ESG) practices;
- A hotel, residential, and timeshare operator, franchisor, and licensor with a portfolio of more than 30 brands and 8,500 properties across 140 countries and territories; and
- A health system consisting of a world-renowned academic medical center, a teaching hospital, several community-based hospitals, and a children’s health system.
Beyond sales successes in the quarter, UKG also brought the first-ever million-dollar prize pool to U.S. women’s professional soccer as part of the 2023 UKG NWSL Challenge Cup. In its first year as the tournament’s title sponsor, UKG aims to not only bring pay equity to the world of professional sports, but also to shed light on the need for continued commitment by employers across every industry to focus on achieving equity of opportunity and equity of pay for women and other underrepresented groups.
Within its own walls, UKG continues to earn accolades for its award-winning culture and commitment to being a great workplace for all, with honors such as:
- Forbes naming UKG to its America’s Best Employers for Diversity list, a ranking of U.S.-based companies that foster exceptional diversity-related practices;
- Comparably naming UKG one of the Best Companies for Career Growth and for having one of the Best CEOs for Women; and
- The Business Group on Health Best Employers list recognizing UKG with an Excellence in Health and Wellbeing Award.
“People are at the heart of every decision UKG makes, from building an inclusive culture for our employees to delivering innovative solutions to our customers,” said Todd. “We’re uniquely positioned in the HCM industry to offer organizations of every size the insight and technology to build great places to work. Our culture of belonging and innovation, and the opportunity to come together to elevate every workplace we touch, continues to set us apart.”
At UKG, our purpose is people. As strong believers in the power of culture and belonging as the secret to success, we champion great workplaces and build lifelong partnerships with our customers to show what’s possible when businesses invest in their people. One of the world’s leading HCM cloud companies today, UKG and our Life-work Technology approach to HR, payroll, and workforce management solutions for all people helps 80,000 organizations around the globe and across every industry anticipate and adapt to their employees’ needs beyond just work. To learn more, visit ukg.com.
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