Competitive Analysis

ADP Competitors

Paycor:

            Paycor HRMS offers a system that encompasses all aspects of human resource management. Paycor has aspects that address employee lifecycle and human resource activities: recruiting and onboarding, employee benefits and ACA compliance, learning management, payroll and tax compliance, time and attendance, and reporting.  All of these aspects are included in the purchase of the system form Paycor.  Paycor also had a large partnership network that enables their system to work with those of other business related task software packages.  With the Paycor system, IVK increases the risk to their operations if the upgrades to all aspects at one time do not work well with all of their legacy systems.

            While all of this functionality is promising, one aspect of ADP’s offering that is made clear is that they enable companies to choose what aspects of their human resource management system they want to purchase and other that they do not. There is a benefit to a company like IVK because certain aspects of their business may be handled by legacy systems that won’t work seamlessly with another at this time.  IVK will have the flexibility to plan for upgrades as they become necessary with ADP. 

Kronos:

            Kronos: online time reporting system used for submitting employee payroll and maintaining compliance. It automatically record holidays, calculate hours and overtime hours, and displaying accrued sick and vacation days. It is used for hospital employees that ensures scheduling accuracy, mitigate compliance risks, and keep hospital staff engaged and focus on delivering quality care.

            Kronos system can be used in many different industries one being healthcare. The cost of the system is $6 per employee per month (Watts & Marvin, 2018). This is more cost efficient than ADP. Kronos also brings value to the business. Such values are that it is a single central system which permits fewer errors. The system is simple and easy to use along with being flexible and accessible at anytime (being mobile). It also configures according to workforce specific needs and offers three different kinds of support. 

These supports are training, live support, and phone. Another value is that 98% of the users are satisfied with the system (“Kronos Workforce Central Review”). Although it brings value to businesses, it also brings risks with it. The system is geared towards small to midsize businesses. Not only that, because it is mobile, data can be accessible if a customer loses their phones or if it was stolen (“Kronos Workforce Central Review”).

SAP:

            SAP (Systemanalyse und Programmentwicklung or System Analysis and Program Development) was founded in Germany in 1972 by four former IBM employees. SAP has over 335,000 customers in over 180 countries. As a company, its first commercial product was not Human Resource system; rather, it was Enterprise Resource Planning.  Their products include not only HRIS, but ERP, CRM, digital platforms, network management, digital supply chain, and analytics.  It has a market share of 18% for HR management software. 

            Unlike ADP, SAP can be purchased for a single user, as well as large corporations. However, like ADP, the cost of SAP is not explicitly stated. There are a few business plans that list SAP pricings. The SAP Business One plan covers a wide span of employees. For example:

(Seidor, n.d.)

 “SAP Business One software includes the basic modules for business, like accounting, sales, inventory, purchasing and operations. It is simple, yet powerful with all of the needed functionality for [employees]” (Seidor, n.d.). 

SAP Values

       SAP provides human capital management (HCM) processes through onsite and cloud-based HR software.  It provides the following functionality: 

·      HR and Payroll:  organizational management, payroll processing, shared services

·      Learning and Development:  learning, collaboration, succession & development

·      Performance Compensation:  performance and goal management, compensation

·      Recruiting and Onboarding

·      Time and Attendance:  time sheets, time documentation, absence management

·      Workforce Planning and Analytics

Because SAP is a global company operating in 48 countries in multiple languages, it may be a good choice for companies with a global footprint.

SAP Risks

        As an HRIS provider, its market share for HR management software is low compared to other companies.  Because of the low market share coupled with the fact that it is a European company, US companies will want to ensure that SAP remains up-to-date all HR related compliance and regulatory requirements and laws.  This may be a risk that will need to be considered when purchasing SAP for HRIS functionality. 

 Comparisons

 Why ADP?

Cost and benefits are clear reasons why ADP is a smart choice for IVK. The figure above demonstrates savings plans in action with other systems compared to ADP. Plan C (using ADP) saves IVK the most money in the long-run. 

Additionally: 

ADP offers the ability to purchase only the aspects of the service you wish to use and the ability to add another aspect later.  

Paycor does not offer the same piece-by-piece purchasing structure that ADP does.

Kronos is not suitable for large businesses, and puts businesses at risk with the software being on mobile devices. 

SAP is a European company whose software might struggle with staying up-to-date in the United States. 

References

Fairchild, M., The top 5 HRIS mistakes and how to avoid them [article]. HRlab.com. Retrieved from: http://www.hrlab.com/hris-mistakes.php.

Gallaugher, John. (2018) Information Security: Barbarians at the Gateway (and Just About Everywhere Else) (pp. 474). Information Systems: A Manager’s Guide to Harnessing Technology (Ver. 6). Boston, MA. FlatWorld. 

Gordon, J. (2016, July 28). Are Your Talent Management Tools a Risk? 5 Ways to Tell. Retrieved November 1, 2018, from https://www.adp.com/spark/articles/2016/07/are-your-talent-management-tools-a-risk-5-ways-to-tell.aspx

Kronos Workforce Central Review. (n.d.). Retrieved November 16, 2018, from https://reviews.financesonline.com/p/kronos-workforce-central/#support

SAP Business One Price. (n.d.). Retrieved November 18, 2018, from http://www.seidor.us/content/seidor-us/en/blog/sap-business-one-price.html

SAP Business One for Large Enterprise - Subsidiaries and Divisions. (n.d.). Retrieved November 18, 2018, from http://www.seidor.us/content/seidor-us/en/solutions/sap-applications/erp-solutions/sap-business-one/sap-at-large-companies-and-subsidiaries.html

Watts, R., & Marvins, R. (2018, May 8). Kronos Workforce Ready. Retrieved November 16, 2018, from https://www.pcmag.com/article2/0,2817,2498859,00.asp