What is SAP SuccessFactors?

SAP SuccessFactors enables companies to manage and improve their HR management processes. 

It is a cloud-based platform with SAP Business AI - for core HR functions as well as for talent management, personnel analyses, recruiting and learning. 

SAP SuccessFactors is the successor to SAP HCM.

SAP SuccessFactors is a modular HR cloud solution from SAP. It aims to optimize the processes of personnel management and human capital management (HCM) in companies.

SuccessFactors was founded as a company in San Francisco (USA) in 2001 and has been part of SAP since 2012 following its acquisition.

SAP SuccessFactors supports companies in all areas of HR work: from recruiting, developing and retaining talent to improving the employee experience, from payroll and personnel planning to sales performance management.

With the AI-supported solutions from SAP SuccessFactors HCM, companies can also improve the employee experience with an AI assistant, for example, or optimize personnel planning with intelligent analyses.

By integrating data-driven approaches and best practices, the cloud solution enables user-friendly and effective HR management overall.

SAP SuccessFactors Full HCM Suite - as it is officially known - is the successor solution to SAP HCM, the previous on-premise version.

The cloud-based SAP SuccessFactors platform for digital HR management contains all the functions of classic HCM. Additional functionalities such as “Onboarding”, “Employee Central” for master data management, “Analytics” and “Compensation” for remuneration processes are also available.

SAP SuccessFactors consists of several modules:

• Employee Central: The central module for Core HR in SuccessFactors, which serves as a central database for employee and organizational data.
• (E-)Recruiting: This module supports the recruitment of talent with functions for job advertisements, the selection process, applicant management and onboarding.
• Performance & Goals: This module can be used to optimize employee evaluations and goal achievement.
• Compensation: Enables the administration of salaries, bonuses and other compensation (incl. salary history).
• Learning: This is a mobile learning management system (LMS) for promoting training and further education.
• Succession & Development: This solution can be used to manage and automate succession planning and employee development.
• Workforce Analytics: This module provides analyses and reports for data-based decision-making.

SAP SuccessFactors Employee Central is the central module for Core HR in SAP SuccessFactors, the central database for HR data.

The solution is used

• for master data management of employee data,
• for mapping personnel administration and
• for organizational management.

Employee Central can be purchased as part of the SuccessFactors HCM Suite or as a standalone product.

The SAP SuccessFactors Learning module is a comprehensive Learning Management System (LMS).

The module supports companies in the planning, implementation and evaluation of training measures and enables personalized learning paths.

No, SAP SuccessFactors is not a standalone ERP (Enterprise Resource Planning) system like SAP ECC or SAP S/4HANA. SAP SuccessFactors is a specialized solution for HR management that can be seamlessly integrated into SAP S/4HANA.

An ERP system such as SAP S/4HANA Cloud offers many other functionalities with which companies can manage, control, analyze and optimize their entire central business processes (finance, sales, manufacturing, production, etc.).

Yes, unlike its predecessor SAP HCM, SAP SuccessFactors is a fully cloud-based solution in the public cloud. This offers companies numerous advantages, such as

• Future-proofing through regular updates
• High flexibility in the scaling of functions
• Accessibility from anywhere and at any time (device-independent)

SAP SuccessFactors can be seamlessly integrated into existing systems, especially the SAP S/4HANA ERP suite.

SAP enables smooth data exchange via standardized interfaces and best practices. This allows companies to transfer their existing data and processes to the new cloud solution.

ATS (Applicant Tracking System) and LMS (Learning Management System) are functions of SAP SuccessFactors. For example, the Recruiting module acts as an ATS for managing application processes. The Learning module also offers comprehensive LMS functions for training and further education. However, SuccessFactors is not a CRM (Customer Relationship Management) system.

SAP SuccessFactors offers companies a powerful, data-driven and user-friendly cloud platform for managing and modernizing HR processes.

The modular solution supports digital transformation and helps companies to manage and develop their employees more effectively.

Some advantages of SAP SuccessFactors at a glance:

• Lower IT costs due to the elimination of on-premises hosting
• Solutions for core HR functions that can be used worldwide
• Intuitive interfaces and mobile use possible
• Comprehensive analyses and reports for strategic HR management
• Quick adaptation to new requirements thanks to modular extensions

SAP SuccessFactors enables companies to automate their HR processes, make data-based decisions and improve the employee experience.

The platform is future-proof thanks to the integration of SAP best practices, AI-supported functions such as talent analyses and operation in the public cloud.

SAP's solution is used by companies of all sizes and industries worldwide - from multinationals to SMEs and start-ups.

According to SAP, more than 100,000 customers from various industries worldwide use SAP SuccessFactors solutions (as of 2024).

SAP SuccessFactors Full HCM Suite is a solution for digital HR management with new code lines that is available to companies via the SAP S/4HANA Public Cloud.

SAP HCM (Human Capital Management), on the other hand, is an on-premises solution. In the meantime, the name SAP HXM was used for SAP HCM, which is no longer used.

SAP SuccessFactors Full HCM Suite offers modern functions such as data-supported analyses and a more user-friendly interface. The cloud solution enables regular updates and seamless integration with existing ERP systems such as SAP S/4HANA.

The main maintenance for the SAP ECC solution SAP HCM expires at the end of 2027. SAP offers optional extended maintenance until the end of 2030 for a fee (Extended Maintenance). There are three options for SAP HCM migration to the HR cloud solution:

• Companies can migrate directly and completely from SAP HCM to SAP SuccessFactors HCM.
• They can use SAP HCM for SAP S/4HANA with HANA database (private cloud or on-premises; maintenance commitment until 2040 by using SAP S/4HANA).
• Or they can opt for a hybrid model consisting of SAP HCM with SAP S/4HANA and SAP Success Factors (for example from SF Employee Central as the master data system and SAP Payroll and SAP Time Management from SAP HCM for SAP S/4HANA) and a gradual transition.

The migration from SAP HCM to SAP SuccessFactors requires careful planning.

For example, companies must ensure that data integrity is guaranteed during the migration. Professional coordination of the new solution with the existing IT systems and solutions is also a key success factor.

Last but not least, the changeover requires thorough employee training to familiarize them with the new cloud solution and its functions.