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 is often misunderstood or equated with other types of systems. To clarify: SAP SuccessFactors is not an ERP system. It does not replace SAP S/4HANA or SAP ECC and does not map financial, logistics or production processes. SAP SuccessFactors is also not a CRM system, pure payroll software or on-premise software.
SAP SuccessFactors consists of several modules:
1. Recruit to Onboard
The "Recruit to Onboard" process helps companies efficiently find and select the right talent and seamlessly transition them into onboarding.
From the first encounter to a successful start, every step becomes a positive experience for candidates and recruiters.
Intuitive technologies create space for what matters most: genuine connections instead of administrative hurdles. This means that successful collaboration begins even before the first day of work.
Recruiting #SmartRecruiters
The SuccessFactors Recruiting module and SmartRecruiters (a SAP company) support the entire application process – from job postings and applicant management to hiring a candidate.
Companies can efficiently publish job vacancies and manage applications centrally. Candidates enjoy a modern application experience with transparent processes.
At the same time, recruiters and managers benefit from automated workflows and analysis functions.
Onboarding
Onboarding makes it easier for new employees to get started by automating administrative processes and promoting cultural integration. New colleagues are provided with relevant information and tasks even before their first day at work.
Managers and HR can transparently track progress in the onboarding process. This speeds up the induction process and strengthens employee retention right from the start.
2. Develop to Grow
The "Develop to Grow" process promotes personal growth and strengthens confidence in one's own development. Employees discover their strengths, actively shape their careers and grow with the demands of the future.
Companies can use this to create a culture in which potential is recognised, promoted and retained. This results in sustainable success for each individual and the entire team.
Succession & Development
Succession & Development enables succession planning and the definition of career paths within the company. HR and managers can identify critical positions and systematically promote suitable talent.
Employees gain insight into possible development paths and competency expectations. This supports a sustainable talent strategy and minimises the risk of losing expertise.
Learning
The Learning module provides a central platform for managing and implementing training and development measures. Companies can provide both mandatory training and individual learning paths.
Employees benefit from user-friendly access to e-learning, face-to-face courses and learning recommendations. At the same time, HR and management gain valuable insights into learning progress and skills development.
3. Reward to Retain
The "Reward to Retain" process creates tangible appreciation – through fair remuneration, transparent recognition and individual development opportunities.
When performance is recognised and rewarded, genuine motivation arises. Companies not only strengthen retention and satisfaction, but also trust and loyalty. Because those who feel valued stay with conviction.
Performance & Goals
This module supports the definition, tracking and evaluation of employee goals. Managers and employees can set individual goals together and review them regularly.
Structured performance reviews also increase transparency with regard to individual contributions and company goals. In addition to classic performance reviews, the module offers functions such as 360-degree feedback, continuous ad hoc feedback and development dialogues.
This creates a holistic overview of performance, which promotes transparency and individual development.
Compensation & Variable Pay
The compensation module assists in the planning and management of remuneration strategies. Companies can use it to manage salary adjustments, bonus calculations and stock options transparently and consistently.
Managers receive decision-making support through budget controls and clear guidelines. This ensures fair remuneration systems and increases employee motivation and retention.
4. Manage Workforce
The Manage Workforce process brings people, data and dynamics together in a modern working environment. It provides clarity about teams, roles and resources – anytime, anywhere.
Intuitive self-services and mobile solutions give employees and managers control and flexibility. This creates transparency, which strengthens collaboration and promotes agility.
Employee Central
Employee Central (EC) forms the central database for all employee master data. It enables uniform management of personnel information, organisational structures and employment contracts.
Integrated self-service functions allow employees and managers to control many processes independently. EC thus forms a master data base for all other HR processes and modules.
Employee Central can be purchased as part of the SuccessFactors HCM Suite or as a standalone product.
Employee Central Payroll
Employee Central Payroll is the cloud-based solution for payroll accounting in SuccessFactors. It is based on SAP Payroll technology, but is integrated into Employee Central and uses its master data.
Companies benefit from automated, scalable and legally compliant payroll processing. Standard integrations and regular updates ensure accuracy and compliance worldwide.
Employee Central Time Tracking
Employee Central Time & Attendance offers comprehensive functions for recording and managing working hours and absences.
Employees can enter their hours, holiday requests and sick leave directly via self-service. Managers gain transparency regarding team capacities and absence rates.
With automated approval workflows and country-specific regulations, the module ensures efficient and legally compliant time processes.
The learning module from SAP SuccessFactors is a comprehensive learning management system (LMS).
The module supports companies in planning, implementing and evaluating training measures and enables personalised 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
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:
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 software solution for digital human resources management with new code lines, i.e. a completely new, cloud-based software-as-a-service solution available to companies via the SAP S/4HANA Public Cloud.
SAP HCM (Human Capital Management), on the other hand, is an on-premises solution. The name SAP HXM (Human Experience Management) was used for SAP HCM for a while, but is no longer in use.
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:
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.
