Why is UKG Better Than Workday?

Choosing the right Human Capital Management (HCM) system is a critical decision for any organization. Two of the leading players in the HCM space are UKG (Ultimate Kronos Group) and Workday. Both offer comprehensive suites of tools to manage HR, payroll, talent, and workforce operations. However, they cater to different needs and strengths. While Workday has established itself as a broad, enterprise-level solution, UKG often presents a more specialized and arguably superior solution in specific areas. This article will delve into the nuances of both platforms, exploring scenarios where UKG’s capabilities make it a potentially better choice than Workday.

Introduction: Understanding the HCM Landscape

Before diving into a direct comparison, it’s essential to understand the complexities of the HCM landscape. Modern HCM systems are far more than just digital filing cabinets for employee records. They encompass a wide array of functions, including:

• Core HR: Managing employee data, benefits administration, and compliance.
• Payroll: Processing employee payments, taxes, and deductions.
• Talent Management: Recruiting, onboarding, performance management, learning & development, and succession planning.
• Workforce Management: Scheduling, time and attendance tracking, labor forecasting, and absence management.
• Analytics and Reporting: Providing insights into workforce trends and performance.

Both UKG and Workday offer solutions across all these areas, but their approaches, strengths, and target markets differ significantly. Understanding these differences is crucial to making an informed decision.

UKG vs. Workday: A High-Level Overview

At a high level, Workday is often characterized as a unified, cloud-based HCM suite designed for large enterprises. It emphasizes a consistent user experience and a comprehensive view of the workforce. UKG, on the other hand, offers a more modular approach. While also cloud-based, it comprises different suites that can be implemented individually or together. UKG’s strength lies in its deep expertise in workforce management, particularly for organizations with complex scheduling, time tracking, and labor compliance needs. This often makes UKG a more suitable choice for industries like retail, healthcare, manufacturing, and hospitality.

Workday’s unified architecture aims for seamless data flow and reporting across all modules. UKG’s modularity allows for greater flexibility and customization but may require more integration effort if multiple suites are deployed. The choice between the two depends largely on the organization’s size, industry, specific needs, and technological capabilities.

Why UKG Might Be a Better Choice: Key Advantages

While Workday is a powerful and well-regarded HCM platform, several scenarios exist where UKG’s specific capabilities might make it the better option. These advantages stem from UKG’s deep focus on workforce management, its industry-specific expertise, and its flexible deployment options.

1. Superior Workforce Management Capabilities

Workforce management is where UKG truly shines. Its solutions offer unparalleled depth and breadth in areas such as:

• Advanced Scheduling: UKG’s scheduling tools are far more sophisticated than Workday’s, particularly for organizations with complex scheduling needs. They support various scheduling methods, including shift bidding, automated scheduling based on demand forecasting, and employee self-service scheduling. Workday’s scheduling capabilities, while improving, often lack the granularity and flexibility required by organizations with variable staffing needs.
• Time and Attendance Tracking: UKG offers a wider range of time and attendance tracking options, including biometric time clocks, mobile time tracking, and integrations with various payroll systems. Its timekeeping rules engine is highly configurable, allowing organizations to automate complex pay rules and ensure compliance with labor laws. Workday’s time tracking is more basic and may require additional customization or third-party integrations for complex scenarios.
• Labor Forecasting: UKG’s labor forecasting tools leverage historical data and predictive analytics to accurately forecast staffing needs based on anticipated demand. This helps organizations optimize staffing levels, reduce labor costs, and improve customer service. Workday’s forecasting capabilities are less mature and may not provide the same level of accuracy or detail.
• Absence Management: UKG’s absence management solution offers robust features for tracking and managing employee absences, including vacation time, sick leave, and leave of absence. It automates the absence request process, ensures compliance with absence policies, and provides insights into absence trends. Workday’s absence management is adequate but may lack the depth and flexibility of UKG’s solution.
• Compliance Management: UKG’s workforce management solutions are designed to help organizations comply with complex labor laws and regulations, including wage and hour laws, overtime rules, and meal and rest break requirements. It provides built-in compliance checks and alerts to help organizations avoid costly penalties and litigation. Workday’s compliance capabilities are more general and may not provide the same level of specific guidance for workforce management compliance.

For organizations where workforce management is a critical business function, UKG’s superior capabilities in this area often make it the preferred choice over Workday.

2. Industry-Specific Expertise

UKG has a strong track record of serving specific industries, including retail, healthcare, manufacturing, hospitality, and the public sector. It has developed industry-specific solutions that address the unique challenges and requirements of these sectors. For example:

• Retail: UKG offers solutions tailored to the needs of retailers, including point-of-sale (POS) integrations, demand-driven scheduling, and real-time labor cost tracking.
• Healthcare: UKG provides solutions designed for healthcare organizations, including patient acuity-based scheduling, nurse staffing optimization, and compliance with healthcare regulations.
• Manufacturing: UKG offers solutions for manufacturers, including production scheduling, time tracking for shop floor employees, and labor cost analysis.
• Hospitality: UKG provides solutions for hotels, restaurants, and other hospitality businesses, including tip management, server scheduling, and guest service optimization.
• Public Sector: UKG offers solutions designed for government agencies and other public sector organizations, including civil service rules management, grant tracking, and compliance with government regulations.

Workday, while increasingly targeting specific industries, often takes a more generic approach. UKG’s deep industry expertise allows it to provide more tailored solutions that meet the specific needs of its customers. This can lead to faster implementation times, greater user adoption, and a higher return on investment.

3. Greater Flexibility and Customization

UKG’s modular architecture provides greater flexibility and customization options than Workday’s unified platform. Organizations can choose to implement only the modules they need and can customize those modules to meet their specific requirements. This is particularly beneficial for organizations that have complex or unique business processes. While Workday offers some customization options, it is generally less flexible than UKG.

This flexibility extends to deployment options as well. While both platforms offer cloud-based solutions, UKG also offers on-premise deployment options for organizations that prefer to host their own software. This can be a significant advantage for organizations with strict data security or compliance requirements.

4. Stronger Focus on Labor Compliance

As mentioned earlier, UKG’s workforce management solutions are specifically designed to help organizations comply with complex labor laws and regulations. This is a major advantage for organizations that operate in highly regulated industries or that have a large hourly workforce. UKG’s compliance features include:

• Wage and Hour Compliance: UKG automatically calculates overtime pay, ensures compliance with minimum wage laws, and tracks meal and rest breaks.
• Leave of Absence Compliance: UKG manages employee leave requests, tracks leave balances, and ensures compliance with federal and state leave laws, such as the Family and Medical Leave Act (FMLA).
• Pay Equity Analysis: UKG provides tools to analyze pay data and identify potential pay inequities based on gender, race, or other protected characteristics.
• Compliance Reporting: UKG generates reports that help organizations demonstrate compliance with labor laws and regulations.

Workday also offers compliance features, but they are generally less comprehensive and less focused on workforce management-specific compliance requirements. For organizations that prioritize labor compliance, UKG’s solutions offer a significant advantage.

5. Cost Considerations

While the overall cost of ownership can vary depending on the specific needs of the organization, UKG can sometimes be a more cost-effective option than Workday. This is particularly true for smaller and mid-sized organizations that may not need the full breadth of Workday’s capabilities. UKG’s modular approach allows organizations to pay only for the modules they need, while Workday’s unified platform requires organizations to pay for the entire suite, even if they don’t use all of the features.

Furthermore, the implementation costs for UKG can sometimes be lower than Workday’s, particularly for organizations with complex workforce management needs. UKG’s industry-specific expertise and flexible customization options can help to streamline the implementation process and reduce the need for expensive custom development.

Specific Use Cases Where UKG Excels

To further illustrate the advantages of UKG, let’s consider some specific use cases where UKG’s capabilities make it a potentially better choice than Workday.

1. Large Retail Chain with Hourly Employees

A large retail chain with thousands of hourly employees across multiple locations faces complex scheduling, time tracking, and labor compliance challenges. UKG’s workforce management solutions can help the retailer to:

• Optimize staffing levels based on anticipated customer traffic and sales forecasts.
• Automate the scheduling process using algorithms that consider employee availability, skills, and preferences.
• Accurately track employee time and attendance using biometric time clocks and mobile time tracking.
• Enforce complex pay rules and ensure compliance with wage and hour laws.
• Reduce labor costs and improve operational efficiency.

While Workday could handle basic scheduling and time tracking, it would likely lack the sophistication and flexibility required to meet the retailer’s complex needs. UKG’s industry-specific expertise and advanced workforce management capabilities would make it a more suitable choice.

2. Hospital with 24/7 Operations

A hospital with 24/7 operations faces unique scheduling challenges due to the need to provide continuous patient care. UKG’s healthcare-specific solutions can help the hospital to:

• Schedule nurses and other healthcare professionals based on patient acuity levels.
• Ensure adequate staffing levels at all times to meet patient needs.
• Manage employee fatigue and prevent burnout.
• Comply with healthcare regulations, such as those related to nurse staffing ratios.
• Improve patient satisfaction and outcomes.

Workday might be able to handle basic HR and payroll functions, but it would likely lack the specialized scheduling and compliance capabilities required by a hospital. UKG’s healthcare-specific solutions would provide a more comprehensive and effective solution.

3. Manufacturing Company with Shop Floor Employees

A manufacturing company with a large number of shop floor employees needs to track employee time and attendance accurately for production costing and payroll purposes. UKG’s manufacturing-specific solutions can help the company to:

• Track employee time and attendance using time clocks located on the shop floor.
• Allocate labor costs to specific production jobs.
• Monitor employee productivity and identify areas for improvement.
• Ensure compliance with safety regulations.
• Improve production efficiency and reduce costs.

Workday’s time tracking capabilities might be sufficient for some manufacturing companies, but UKG’s manufacturing-specific solutions would provide more detailed and accurate data for production costing and analysis.

The Importance of a Thorough Evaluation

While this article highlights the potential advantages of UKG over Workday in certain scenarios, it’s crucial to emphasize the importance of a thorough evaluation process. Every organization has unique needs and requirements, and the best HCM system is the one that best aligns with those needs. The evaluation process should include:

• Defining your requirements: Clearly identify your organization’s needs and priorities in areas such as HR, payroll, talent management, and workforce management.
• Evaluating both platforms: Conduct a detailed evaluation of both UKG and Workday, considering their features, functionality, ease of use, and cost.
• Requesting demos: Request demos from both vendors and ask specific questions about how their solutions can meet your organization’s needs.
• Checking references: Contact other organizations that use UKG or Workday and ask about their experiences.
• Considering implementation: Factor in the implementation costs, timelines, and potential challenges associated with each platform.
• Pilot program: If possible, conduct a pilot program with a small group of employees to test the platform in a real-world setting.

By conducting a thorough evaluation, you can make an informed decision and choose the HCM system that is best suited to your organization’s needs.

UKG’s Different Suites: A Closer Look

Understanding UKG requires knowing the different suites it offers. Each suite caters to specific needs, and they can be integrated to create a comprehensive HCM solution. Here’s a breakdown of the major UKG suites:

1. UKG Pro

UKG Pro is UKG’s flagship HCM suite, designed for mid-sized to large organizations. It offers a comprehensive set of features for managing all aspects of the employee lifecycle, from hire to retire. Key features of UKG Pro include:

• Core HR: Employee data management, benefits administration, compliance tracking.
• Payroll: Payroll processing, tax management, wage garnishment.
• Talent Management: Recruiting, onboarding, performance management, learning & development, succession planning.
• Workforce Management: Time and attendance, scheduling, absence management, labor forecasting.
• Analytics and Reporting: Real-time dashboards, custom reports, workforce insights.

UKG Pro is a highly configurable and customizable platform, allowing organizations to tailor it to their specific needs. It also integrates with a wide range of third-party applications.

2. UKG Ready

UKG Ready is a cloud-based HCM solution designed for smaller organizations. It offers a simplified and more user-friendly interface than UKG Pro, making it easier for small businesses to manage their HR and payroll processes. Key features of UKG Ready include:

• HR Management: Employee records, benefits enrollment, performance reviews.
• Payroll Processing: Automated payroll calculations, tax filing, direct deposit.
• Time and Attendance: Time tracking, attendance management, overtime calculation.
• Talent Acquisition: Applicant tracking, onboarding, offer management.

UKG Ready is a more affordable option than UKG Pro, making it a popular choice for small businesses that need a basic HCM solution.

3. UKG Dimensions

UKG Dimensions is a workforce management solution designed for organizations with complex scheduling and time tracking needs. It offers advanced features such as:

• AI-Powered Scheduling: Automated scheduling based on demand forecasting and employee skills.
• Real-Time Labor Optimization: Real-time monitoring of labor costs and productivity.
• Employee Self-Service: Mobile app for employees to manage their schedules, time off, and other HR tasks.
• Compliance Management: Automated compliance with wage and hour laws.

UKG Dimensions is often used by organizations in industries such as retail, healthcare, and hospitality, where efficient workforce management is critical.

4. UKG Talk

UKG Talk is a mobile-first communication and engagement platform designed to connect employees and improve communication within the organization. It offers features such as:

• Real-Time Communication: Instant messaging, announcements, and group chats.
• Employee Recognition: Tools for recognizing and rewarding employee achievements.
• Surveys and Feedback: Tools for gathering employee feedback and measuring engagement.
• Knowledge Sharing: Centralized repository for important information and documents.

UKG Talk helps organizations to improve employee morale, engagement, and productivity.

Workday’s Key Modules: A Brief Overview

To provide a balanced perspective, it’s important to understand Workday’s key modules as well. Workday offers a unified suite of applications, meaning they are built on a single code base and designed to work seamlessly together. Key Workday modules include:

1. Workday Human Capital Management (HCM)

This is Workday’s core HR module, providing features for managing employee data, organization structure, benefits administration, and compliance. It includes:

• Core HR: Employee records, organizational management, absence management.
• Benefits: Benefits enrollment, administration, and reporting.
• Compensation: Salary planning, bonus administration, and equity management.
• Payroll: (Available in select countries) Payroll processing, tax filing, and wage garnishment.

2. Workday Financial Management

Workday Financial Management provides a comprehensive suite of financial applications, including:

• General Ledger: Core accounting functions, such as journal entries and financial reporting.
• Accounts Payable: Invoice processing, payment management, and vendor management.
• Accounts Receivable: Billing, collections, and customer management.
• Planning and Budgeting: Forecasting, budgeting, and performance management.

3. Workday Talent Management

This module focuses on attracting, developing, and retaining talent, including features for:

• Recruiting: Applicant tracking, candidate management, and offer management.
• Learning: Learning management system (LMS) for delivering and tracking employee training.
• Performance Management: Performance reviews, goal setting, and career development.
• Succession Planning: Identifying and developing future leaders.

4. Workday Prism Analytics

Workday Prism Analytics allows organizations to bring in data from external sources and combine it with Workday data to gain deeper insights into their business. It provides tools for:

• Data Integration: Connecting to various data sources.
• Data Discovery: Exploring data and identifying trends.
• Reporting and Dashboards: Creating custom reports and dashboards.

5. Workday Adaptive Planning

Workday Adaptive Planning is a cloud-based planning and budgeting solution that helps organizations to streamline their planning processes and improve forecast accuracy. It includes features for:

• Financial Planning: Budgeting, forecasting, and variance analysis.
• Workforce Planning: Headcount planning, compensation planning, and skill gap analysis.
• Sales Planning: Revenue forecasting, sales quota management, and territory planning.

Integration Considerations

Regardless of whether you choose UKG or Workday, integration with other systems is a crucial consideration. Both platforms offer APIs and other integration tools to connect with various third-party applications. However, the complexity of integration can vary depending on the specific systems you need to connect and the level of customization required.

Workday’s unified architecture can simplify integration within the Workday ecosystem, as all modules are designed to work seamlessly together. However, integration with external systems may require more effort, particularly if those systems are not natively supported by Workday.

UKG’s modular approach can offer greater flexibility in terms of integration, as organizations can choose to integrate only the modules they need. However, integrating multiple UKG suites or integrating UKG with external systems may require more planning and coordination.

When evaluating integration options, consider the following factors:

• API availability: Does the platform offer a robust API for connecting with other systems?
• Pre-built integrations: Are there pre-built integrations available for the systems you need to connect?
• Integration tools: What tools and resources are available to help you with integration?
• Integration costs: What are the costs associated with integration, including implementation, maintenance, and ongoing support?

The Future of HCM: Trends to Watch

The HCM landscape is constantly evolving, driven by technological advancements, changing workforce demographics, and increasing regulatory complexity. Here are some key trends to watch in the future of HCM:

• Artificial Intelligence (AI): AI is being used to automate tasks, improve decision-making, and personalize the employee experience.
• Machine Learning (ML): ML is being used to analyze workforce data and identify patterns and trends.
• Cloud Computing: Cloud-based HCM solutions are becoming increasingly popular due to their scalability, flexibility, and cost-effectiveness.
• Mobile Technology: Mobile devices are being used to access HCM systems and perform HR tasks on the go.
• Employee Experience (EX): Organizations are increasingly focused on improving the employee experience to attract and retain talent.
• Data Analytics: Data analytics are being used to gain insights into workforce trends and improve HR decision-making.
• Cybersecurity: Cybersecurity is becoming increasingly important as organizations store more sensitive employee data in the cloud.
• Globalization: Globalization is driving the need for HCM solutions that can manage a global workforce.

Both UKG and Workday are investing heavily in these areas to remain competitive and meet the evolving needs of their customers. When choosing an HCM system, consider how well the platform is positioned to address these future trends.

Conclusion: Making the Right Choice for Your Organization

Choosing between UKG and Workday is a significant decision that requires careful consideration of your organization’s specific needs, priorities, and technological capabilities. While Workday offers a comprehensive and unified HCM suite suitable for large enterprises, UKG often presents a more compelling option in specific scenarios, particularly when workforce management complexity, industry-specific requirements, or a focus on labor compliance are paramount.

UKG’s superior workforce management capabilities, tailored industry solutions, greater flexibility, and strong focus on labor compliance can make it a better fit for organizations in industries like retail, healthcare, manufacturing, and hospitality. Furthermore, its modular approach and potentially lower cost of ownership can be attractive to smaller and mid-sized organizations.

Ultimately, the best way to determine which platform is right for your organization is to conduct a thorough evaluation, involving key stakeholders, and considering all relevant factors. By carefully assessing your needs, evaluating both platforms, and understanding the future trends in HCM, you can make an informed decision and choose the solution that will best support your organization’s success.