Client Profile
A non-profit arts and culture institution needed to optimize its Workday Human Capital Management (HCM) portfolio. The organization aimed to align pricing with value received, right-size its footprint, and secure protections against future price increases. To navigate a high-visibility renewal with limited leverage, the client engaged UpperEdge to guide the negotiation.
Business Issue
The client faced a renewal process with Workday that carried several challenges, including:
- Lack of initial leverage to influence renewal positioning.
- Risk of significant cost escalations without protections on annual increases.
- Concern over Workday’s reluctance to entertain an early renewal.
- Pressure to present a competitive outcome to leadership, balancing cost reduction and long-term portfolio stability.
Approach
UpperEdge developed a comprehensive negotiation strategy tailored to the client’s unique position. This included:
- Crafting executive-level messaging to streamline vendor engagement and accelerate negotiations.
- Providing detailed commercial assessments, cost-modeling, and mark-to-market benchmarking to strengthen the client’s position.
- Equipping the client with structured talking points to consistently communicate priorities and desired outcomes.
- Leveraging the client’s prominent reputation to counteract Workday’s delays and resistance to early renewal.
Negotiated Outcome
Through disciplined execution of the strategy, the client achieved a highly competitive renewal agreement with Workday, including:
- 19% reduction in total SaaS fees from the initial proposal.
- An additional FSE volume pricing discount applicable to increases above the baseline worker count.
- Long-term renewal protections that capped annual increases where none previously existed.
- Flexibility to add SKUs at pre-negotiated pricing throughout the term.
This outcome not only delivered immediate cost savings but also ensured predictable, controlled pricing for future growth and stability of the client’s Workday portfolio.
Ready to maximize the value of your Workday investment? Learn how UpperEdge’s Workday Commercial Advisory Services can help you secure cost savings, price protections, and more favorable terms in your next negotiation. Explore our Workday Advisory Services.
