Ultimate Software Group was one of the most influential human capital management technology companies in North America, best known for building cloud-based HR, payroll, and workforce management tools under the UltiPro brand. Over time, the company became associated with employee-centric software, strong workplace culture, and enterprise HR innovation. Its merger with Kronos in 2020 created UKG, or Ultimate Kronos Group, a major global provider of HR, payroll, talent, and workforce management solutions.

TLDR: Ultimate Software Group developed UltiPro, a cloud HCM platform used by organizations to manage payroll, HR, benefits, talent, and employee data. After merging with Kronos, the combined company became UKG, bringing together Ultimate’s HR and payroll strengths with Kronos workforce management expertise. For example, a mid-sized company with 2,500 employees could use UKG to reduce manual payroll work, improve scheduling accuracy, and centralize employee records across multiple locations. In practical terms, organizations often seek these platforms to reduce administrative time, improve compliance, and provide employees with self-service access to HR information.

Company Background and Early History

Ultimate Software Group was founded in 1990 by Scott Scherr in Weston, Florida. The company entered the market at a time when many HR departments still relied heavily on on-premises systems, spreadsheets, and manual payroll workflows. Its mission was to simplify human resources administration while giving employees and managers easier access to workforce information.

The company’s flagship product, UltiPro, became one of the earliest widely adopted cloud-based human capital management platforms. Instead of requiring organizations to maintain complex local infrastructure, UltiPro offered HR and payroll capabilities through a hosted model. This helped position Ultimate Software as a forward-looking provider in the shift from traditional HR software to software as a service.

Ultimate Software became publicly traded in 1998 and grew steadily by focusing on enterprise and mid-market customers. Its reputation was shaped not only by its technology but also by its workplace philosophy. The company frequently appeared on “best places to work” lists, reflecting an internal culture that emphasized employee well-being, benefits, and engagement.

Core Products and Capabilities

Before the UKG merger, Ultimate Software’s main product suite was centered on UltiPro. The platform supported a broad range of HR functions designed to help organizations manage the employee lifecycle from hiring to retirement.

  • Payroll: UltiPro handled payroll processing, tax calculations, direct deposits, wage records, and compliance reporting.
  • Core HR: The system maintained employee profiles, organizational charts, job histories, compensation details, and personal information.
  • Benefits Administration: Employers could manage enrollment, eligibility, life events, and benefits communications.
  • Talent Management: UltiPro included tools for recruiting, onboarding, performance management, succession planning, and learning.
  • Employee Self-Service: Workers could view pay statements, update personal data, request time off, and access HR documents.
  • Analytics and Reporting: HR teams could use dashboards and reports to track workforce trends, turnover, compensation, and compliance metrics.

One of Ultimate Software’s differentiators was its focus on people analytics. Rather than treating HR data as static records, the company promoted insights that could support better decision-making. For example, HR leaders could analyze turnover patterns by department, location, or manager, then create targeted retention strategies.

The Kronos Merger and Creation of UKG

In 2020, Ultimate Software merged with Kronos Incorporated, a long-established workforce management company known for timekeeping, scheduling, labor forecasting, and attendance solutions. The merger created Ultimate Kronos Group, later branded as UKG.

The combination was strategically significant. Ultimate Software brought deep expertise in HR, payroll, employee records, and talent management. Kronos contributed decades of experience in workforce management, particularly for organizations with hourly, shift-based, or distributed workforces. Together, the companies formed a broad HCM and workforce operations platform serving industries such as healthcare, retail, manufacturing, hospitality, education, logistics, and public services.

The merger also reflected a larger market trend: organizations increasingly wanted unified systems that could connect payroll, scheduling, attendance, HR compliance, and employee experience. By joining forces, UKG aimed to offer a more complete solution for both salaried and hourly workforces.

UKG Product Portfolio After the Merger

Following the merger, UKG organized its offerings into several major product families. While product names and packaging have evolved, the portfolio generally centers on HCM, payroll, workforce management, and employee experience.

UKG Pro

UKG Pro evolved from Ultimate Software’s UltiPro platform. It is designed primarily for mid-sized and large organizations that need comprehensive HR, payroll, talent, compensation, and analytics capabilities. UKG Pro supports employee lifecycle management, payroll administration, benefits, recruiting, onboarding, performance reviews, succession planning, and workforce reporting.

UKG Dimensions and Workforce Management

Kronos technology became a foundation for UKG’s workforce management tools. These solutions help organizations manage time clocks, schedules, labor forecasting, absence management, and compliance with labor rules. For industries with complex staffing requirements, workforce management software can help prevent understaffing, reduce overtime, and improve scheduling fairness.

UKG Ready

UKG Ready is often positioned for small and mid-sized businesses that need an integrated HR, payroll, time, and talent solution. It provides a flexible suite for organizations that may not need the scale of an enterprise system but still require strong compliance and automation capabilities.

Employee Experience Tools

UKG also emphasizes employee engagement and communication. Its solutions may include sentiment tools, surveys, access to pay and schedule information, mobile self-service, and manager dashboards. The aim is to help organizations understand how employees feel, improve communication, and reduce friction in everyday HR processes.

Industries and Use Cases

UKG solutions are used across a wide range of industries. In healthcare, scheduling tools can help hospitals manage nurses, clinicians, and support staff across shifts. In retail, workforce forecasting can align labor with expected customer traffic. In manufacturing, time and attendance data can connect workforce costs with production requirements.

For example, a retailer operating 120 stores may need to schedule thousands of part-time and full-time employees while accounting for local labor laws, availability, overtime rules, and seasonal demand. A UKG workforce management system can centralize scheduling and time capture, while payroll tools ensure that approved hours flow into pay processing accurately. This type of integration can help reduce duplicate data entry and improve payroll confidence.

Strengths of the Ultimate Software Legacy

Ultimate Software’s legacy remains visible in UKG’s brand and product philosophy. The company was known for placing people at the center of HR technology, which shaped its approach to user experience, customer service, and employee data. Its earlier emphasis on cloud delivery also helped make it a key player in modern HCM software.

Several strengths are commonly associated with the Ultimate Software heritage:

  • Cloud-first HCM: UltiPro helped normalize cloud-based HR and payroll systems.
  • Employee-centered design: The platform emphasized accessibility for employees, managers, and HR teams.
  • Payroll expertise: Ultimate Software built a strong reputation for payroll accuracy and compliance support.
  • Culture-driven identity: The company’s internal people-first culture influenced its external brand.
  • Analytics focus: Workforce insights became a major part of the platform’s value proposition.

Solutions Overview and Business Value

UKG’s broader value lies in connecting HR strategy with daily workforce operations. A company can use the platform to hire employees, onboard them, schedule work, track time, process payroll, measure performance, and analyze retention. This creates a more connected data environment than separate systems for HR, payroll, scheduling, and reporting.

The business benefits typically include reduced manual administration, improved compliance visibility, better workforce planning, and enhanced employee self-service. Managers gain access to information that can support faster decisions, while employees can often resolve routine HR needs without waiting for an administrator.

However, like most enterprise HR platforms, successful implementation requires planning. Organizations usually need clean employee data, defined payroll rules, integration requirements, training programs, and change management. The platform’s value depends not only on software features but also on how well an organization configures processes and encourages adoption.

Conclusion

Ultimate Software Group played a major role in shaping the modern HCM market through its UltiPro platform, people-focused culture, and early commitment to cloud HR technology. Its merger with Kronos created UKG, a broader company combining HR, payroll, talent, and workforce management. Today, the Ultimate Software legacy continues through UKG solutions that help organizations manage employees more effectively, from strategic HR planning to everyday scheduling and payroll operations.

FAQ

  • What was Ultimate Software Group?
    Ultimate Software Group was a human capital management software company best known for UltiPro, a cloud-based HR, payroll, and talent management platform.

  • What happened to Ultimate Software?
    Ultimate Software merged with Kronos in 2020 to form Ultimate Kronos Group, now known as UKG.

  • Is UltiPro still available?
    UltiPro evolved into UKG Pro, which continues to provide HR, payroll, talent, benefits, and analytics capabilities.

  • What does UKG stand for?
    UKG stands for Ultimate Kronos Group, reflecting the merger of Ultimate Software and Kronos.

  • Who uses UKG solutions?
    UKG serves organizations across healthcare, retail, manufacturing, hospitality, education, logistics, government, and other sectors.

  • What are the main UKG products?
    Major products include UKG Pro, UKG Ready, and workforce management solutions built from Kronos technology, including time, attendance, scheduling, and labor management tools.