RCM Technologies Expands HCM Software Services with UKG Ready Reseller Offering Empowering Small Businesses with All-In-One HCM Solutions

Rhea-AI Summary

RCM Technologies (RCMT) has launched a new program to resell the UKG Ready suite directly to small businesses, expanding its Human Capital Management (HCM) service offerings. As a value-added reseller with decades of industry expertise, RCM aims to provide small businesses with streamlined HR processes and enhanced operational efficiency.

With over 33 million U.S. small businesses employing more than 61.6 million workers, RCM's HCM Solutions offers immediate access to industry-leading technology for efficiently managing workforce needs while maintaining compliance. The company is already one of the largest implementation partners for UKG Ready, and this new reseller partnership extends its commitment to delivering top-tier HCM solutions.

The UKG Ready platform enables businesses to optimize payroll, time tracking, talent management, and employee engagement in one integrated system. RCM's dedicated support team provides expert guidance and seamless integration with existing workflows. The program is available immediately, with more information accessible at www.rcmt.com/hcm.

Positive

• Expansion into new market segment by becoming UKG Ready reseller
• Targeting 33 million U.S. small businesses with 61.6 million workers
• Leveraging existing expertise as one of the largest UKG Ready implementation partners
• Diversifying revenue streams beyond current portfolio

Negative

• None.

Insights

Financial Analyst

RCM Technologies' expansion into reselling UKG Ready HCM software represents a strategic pivot that could meaningfully impact the company's growth trajectory and revenue profile. This move transforms RCM from primarily an implementation partner to a full-service provider in the HCM space, creating a potentially lucrative recurring revenue stream.

The addressable market is substantial – with 33 million U.S. small businesses employing 61.6 million workers. Even capturing a fraction of this market could generate significant returns. The HCM software market for small businesses is projected to grow at a CAGR of approximately 10-12% through 2030, making this a high-growth sector.

What makes this particularly compelling is RCM's existing expertise with UKG Ready. As one of UKG's largest implementation partners, RCM has already developed deep product knowledge and implementation methodologies that can be leveraged in the reseller relationship. This gives them a competitive edge over pure-play resellers who lack hands-on implementation experience.

From a financial perspective, this move could enhance RCM's revenue quality in several ways:

• Higher-margin recurring revenue from software subscriptions
• Expanded service opportunities through implementation, customization, and support
• Potential for upselling additional services across RCM's diverse portfolio
• Reduced cyclicality compared to project-based implementation work

The timing is strategic, coming as small businesses increasingly seek integrated HR solutions to manage remote/hybrid workforces and navigate complex compliance requirements. Many small businesses are still using fragmented, outdated systems – creating a significant replacement opportunity.

However, investors should monitor several key metrics as this initiative develops: customer acquisition costs, retention rates, average contract values, and the pace of market penetration. The success of this venture will depend on RCM's ability to effectively transition from an implementation mindset to a sales and relationship management approach – two distinct skill sets that don't always overlap.

While not transformative to RCM's $143.7 million market cap immediately, this expansion creates a foundation for sustainable growth and potentially higher valuation multiples as the recurring revenue component increases as a percentage of total revenue.

PENNSAUKEN, N.J., Feb. 25, 2025 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (NasdaqGM: RCMT) proudly announces the launch of RCM HCM Solution’s new program to resell the UKG Ready suite directly to businesses, marking a significant expansion of its Human Capital Management (HCM) service offerings. As a value-added reseller of UKG Ready technology, RCM brings decades of industry expertise and an exceptional depth of product knowledge to small businesses seeking streamlined HR processes, enhanced operational efficiency, and superior employee experiences.

With over 33 million U.S. small businesses, employing over 61.6 million workers¹, the demand for scalable, easy-to-use HR solutions has never been greater. RCM’s HCM Solutions provides immediate access to industry-leading technology, enabling small business owners to efficiently manage workforce needs while maintaining compliance and driving growth.

"Small businesses are the backbone of our economy, yet they often lack access to the same high-quality HCM solutions as larger enterprises," said Meghan Rapp, leader of RCM’s HCM Reseller Practice. “Our new offering is designed to change that by providing software, services, and expert support tailored to the unique needs of growing businesses. We’re committed to helping small business owners streamline their HR operations, stay compliant, and focus on what they do best, running and growing their business.”

A Proven Leader in Workforce Technology

RCM has a long-standing relationship with UKG as one of the largest implementation partners for UKG Ready. This new reseller partnership extends its commitment to delivering top-tier HCM solutions with a focus on customer service, deep product expertise, and tailored workforce strategies.

With an extensive portfolio spanning Energy Services, Process & Industrial, Aerospace & Defense, Data & Solutions, Life Sciences, and Health Care Services, RCM Technologies has established itself as a premier provider of business and technology solutions. Its expansion into HCM services aligns with its mission to deliver comprehensive workforce technology solutions that enable operational excellence across industries.

A Solution Built for the Future of Work

The modern workforce is evolving rapidly, with businesses facing complex compliance requirements, remote work challenges, and the need for more efficient HR processes. By partnering with UKG Ready, RCM enables businesses to leverage cutting-edge HR technology to optimize payroll, time tracking, talent management, and employee engagement—all in one platform.

RCM HCM Solution’s UKG Ready reseller program is available immediately, offering businesses seamless integration with existing workflows and expert guidance from RCM’s dedicated support team. As workforce needs continue to evolve, RCM remains committed to driving innovation and helping small businesses navigate the future of HR technology with confidence.

For more information about RCM Human Capital Management Solutions and UKG Ready with RCM, visit www.rcmt.com/hcm or contact HCM Sales at hcmsales@rcmt.com.

About RCM

RCM Technologies (NasdaqGM: RCMT) is a business and technology solutions provider with world-class talent in key market segments. We help design, build, and enable the Industries of Tomorrow, Today. Operating at the intersection of resources, critical infrastructure and modernization of industries, RCM is a provider of services in Health Care, Engineering, Aerospace & Defense, Process & Industrial, Life Sciences and Data & Solutions. www.rcmt.com.

The statements contained in this release that are not purely historical are forward-looking statements within the Private Securities Litigation Reform Act of 1995. They are subject to various risks, uncertainties, and other factors that could cause the Company’s actual results, performance, or achievements to differ materially from those expressed or implied by such forward-looking statements. These statements often include words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” “believe,” “plan,” “seek,” “could,” “can,” “should,” “are confident” or similar expressions. In addition, statements that are not historical should also be considered forward-looking statements. These statements are based on assumptions that we have made in light of our experience in the industry, and our perceptions of historical trends, current conditions, expected future developments, and other factors we believe are appropriate in these circumstances. Forward-looking statements include, but are not limited to, those relating to demand for the Company’s services, expectations regarding our future revenues and other financial results, such as cash flows, our pipeline, and potential project wins, and our expectations for investment and growth in our business. Such statements are based on current expectations that involve several known and unknown risks, uncertainties, and other factors, which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. Risk, uncertainties, and other factors may emerge from time to time that could cause the Company’s actual results to differ from those indicated by the forward-looking statements. Investors are directed to consider such risks, uncertainties, and other factors described in documents filed by the Company with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation (and expressly disclaims any such obligation) to update any forward-looking statements contained in this release as a result of new information or future events or developments, except as may be required by law.

¹ https://advocacy.sba.gov/2023/03/07/frequently-asked-questions-about-small-business-2023/

RCM Technologies, Inc. 2500 McClellan Avenue Pennsauken, NJ 08109

Tel: 856.356.4500 info@rcmt.com www.rcmt.com

Corporate Contacts:  Bradley S. Vizi Executive Chairman Kevin D. Miller Chief Financial Officer

FAQ

What is RCM Technologies' new HCM offering for small businesses?

RCM Technologies (RCMT) has launched a program to resell the UKG Ready suite directly to small businesses, providing an all-in-one HCM solution that includes payroll, time tracking, talent management, and employee engagement capabilities.

How does RCMT's UKG Ready reseller program benefit small businesses?

RCMT's UKG Ready reseller program gives small businesses access to enterprise-level HCM technology with expert implementation support, helping them streamline HR processes, maintain compliance, and improve operational efficiency.

What market is RCMT targeting with its new UKG Ready reseller program?

RCMT is targeting the 33 million U.S. small businesses that employ over 61.6 million workers, a market segment that often lacks access to high-quality HCM solutions typically available to larger enterprises.

What experience does RCMT have with UKG Ready technology?

RCMT is already one of the largest implementation partners for UKG Ready, bringing decades of industry expertise and deep product knowledge to its new reseller program.

When is RCMT's UKG Ready reseller program available?

RCMT's UKG Ready reseller program is available immediately, offering businesses seamless integration with existing workflows and expert guidance from RCM's dedicated support team.