HCM platform provider Ceridian draws nods from advisers
Ceridian, a developer of human capital management systems, drew Wall Street’s attention with its recently announced plans for an initial public offering. Benefit brokers and advisers may also want to take a closer look at the company’s HCM solutions for their mid-market employer clients.
“We see the Ceridian Dayforce platform as having come to market focused on an unmet need involving organizations with predominantly hourly workers,” notes Ron Hanscome, a vice president at market researcher Gartner. The product suite’s installed base has grown from a handful of early adopters in 2013 to more than 4,000 customers at present.
Anne Burkett, national practice leader for HR technology at USI Insurance Services, recommends the Ceridian suite to clients with both salaried as well as hourly workers. “The overall platform is really good,” she says, adding that it also provides first-rate support for brokers. “It shows that they see value in our community,” she maintains.
Dayforce, Ceridian’s cloud-based HCM platform, is geared to the mid- and large-employer markets. The suite integrates benefits and core HR administration, payroll and employee timekeeping functions with workforce and talent management features. Ceridian’s PowerPay, another cloud-based solution, is geared toward smaller employers.
Competitors offer employee timekeeping applications that are well-suited for keeping tabs on salaried or clerical workers, Hanscome explains. But Ceridian’s solution also addresses hourly workforce management requirements, such as overlapping shifts, union restrictions and job scheduling based on daily labor demand.
Another plus for employer is how Dayforce integrates hourly workforce scheduling features with other core HR functions such as benefits. Employers “have grown tired of having a separate workforce management capability that [wasn’t] integrated with other core HR functions,” observes Hanscome. “They like the integrated capability that DayForce delivers for certain industries,” he says, such as retail, manufacturing, hospitality and to a lesser degree healthcare.
Ceridian’s customer base is primarily drawn from the U.S and Canada, although the service provider is also currently expanding into Europe via a partnership with SD Worx, another HRIS vendor.
Closer to home, earlier this month Ceridian HCM Holding Inc. announced an IPO of 21,000,000 shares of its common stock for $19.00 to $21.00 per share. The company will be listed on the New York Stock Exchange and Toronto Stock Exchange under the ticker symbol CDAY.
In preparation for the IPO, Hanscome says Ceridian is planning to divest its non-HCM businesses, including its business process outsourcing unit and its LifeWorks employee assistance program.
Ceridian declined to comment for this story.