| Ultimate Kronos Group | |
| Type: | Private |
| Revenue: | $3.656 billion (2022)[1] |
| Num Employees: | 12,000+ |
| Num Employees Year: | 2024 |
UKG is an American multinational technology company with dual headquarters in Lowell, Massachusetts, and Weston, Florida. It provides workforce management and human resource management services.
The company was founded in April 2020 as a result of the merger of Ultimate Software and Kronos Incorporated.[2] Former Kronos CEO Aron Ain was the CEO and chairperson of the combined company until July 1, 2022, when he stepped down as CEO to become Executive Chairperson.[3]
On February 20, 2020, Ultimate Software and Kronos Incorporated announced they agreed to form a new cloud computing venture specializing in workforce management and human capital management. The combined company, valued at $22 billion, would be one of the largest cloud computing companies. Kronos CEO Aron Ain became CEO and chairman of the new company, with more than 12,000 employees and dual headquarters in Lowell, Massachusetts, and Weston, Florida. The merger was officially completed on April 1, 2020, and in August, the company's name was announced as Ultimate Kronos Group (UKG), which became effective on October 1.
In May 2021, the company appointed tech industry veteran Brian Reaves as the company's Chief Belonging, Diversity, and Equity Officer.[4]
In December 2021, UKG launched its Close the Gap Initiative, a $3 million campaign funded by the company to address salary inequity for U.S. workers' wages, in particular for women and people of color.[5]
In July 2022, UKG named Christopher Todd as chief executive officer succeeding Aron Ain who was named executive chairman of the board of directors.[6]
UKG has been noted for its inclusive, diversified workforce and community-oriented work environment.[7] [8] [9] [10]
In July 2024, UKG eliminated approximately 2250 positions (14% of their global employee population) worldwide. UKG accidentally notified impacted employees by prematurely emailing FedEx labels and instructions on how to return their laptops.
In July 2024, UKG replaced Christopher Todd as chief executive officer with former SAP Co-CEO, Jennifer Morgan.
In 2023, the company sponsored a $1 million prize for the NWSL Challenge Cup, an annual tournament organized by the National Women's Soccer League.[11]
Following the merger of Ultimate Software and Kronos Incorporated, the Ultimate Kronos Group was established in April 2020. According to Society for Human Resource Management, the new company became one of the largest HR technology vendors in the highly competitive economy section that includes ADP, Ceridian, Taleo, Successfactors, and Workday.[12]
In June 2021, the company acquired EverythingBenefits, a developer of cloud-based business software that connects employers to insurance, retirement and other information. The acquisition allowed UKG to incorporate EverythingBenefits’ procedural knowledge including its suite of payroll, HR service delivery, and workforce management, among other tools.[13]
On September 1, 2021, UKG bought Great Place to Work® Inc., the company behind Fortune’s annual list of 100 Best Companies to Work For.[14] [15]
In December 2021, UKG acquired Ascentis Corporation, a midmarket provider of HCM and time management solutions.[16]
In February 2022, UKG acquired SpotCues, an employee engagement and communication solution. SpotCues was relaunched as UKG Talk. As of July 2023, UKG Talk has more than 1 million users. The company also expanded into the Caribbean market with its acquisition of Interboro Systems Corporation, based in Puerto Rico, the same month.[17]
In November 2022, UKG acquired the Oxford-headquartered strategic workforce planning software company, Quorbit.[18]
In June 2023, UKG acquired Immedis, an Irish global payroll platform from CluneTech for over €550 million. The platform was relaunched as UKG OneView with a focus on multinational workforce management, payroll, tax and funding.[19] [20]
Established in 2007, Workforce Institute is the company's think tank and research platform for organizations providing information on Human Capital Management issues that include working environment optimization, analytical and educational tools, accommodation of people with disabilities and more. The organization also conducts surveys and issues annual reports on global workforce trends and developments.[21] [22] [23] [24]
The Workforce Activity Report is an index analyzing shift work trends from over four million people across more than 35,000 U.S. businesses. Reports are published and briefings are held each Tuesday prior to the publication of the Bureau of Labor Statistics Employment Situation Report. The Report is covered widely by news organizations and government sources.[25] [26] [27]
In December 2021, UKG disclosed that it was targeted by a ransomware attack that was first detected on December 11, 2021. The malware attack affected the Kronos Private Cloud feature used by many large businesses including Boots, Gap Inc., Marriott International, MGM Resorts International, PepsiCo, Sainsbury's, Samsung, Staples Inc., Tesla, Inc., Whole Foods Market, Yamaha Corporation, YMCA, and others while some governmental entities such as the cities of Cleveland, Springfield, Massachusetts as well as the New York Metropolitan Transportation Authority were also affected.[28] [29]
Many sources reported that the attack possibly occurred as a result of the Log4Shell zero-day, but UKG claimed it did not have evidence of Log4Shell being responsible for the ransomware incident.[30] [31] [32] [33]
Private equity firm Hellman & Friedman, who was the controlling shareholder of both Ultimate and Kronos, is the controlling shareholder of UKG.[34] Blackstone, which also owned stakes in both previous companies, is the largest minority investor with a 20–25 percent stake. Other minority investors include GIC, Canada Pension Plan Investment Board, and JMI Equity.