SAP HCM vs SuccessFactors: A Comparison of Two Popular HR Solutions

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Human resource management is a vital function for any business that wants to attract, develop, and retain the best talent. However, with the rapid changes in technology and business environment, HR professionals face many challenges and opportunities. How can they leverage the latest tools and solutions to streamline and optimize their HR processes, while also enhancing the employee experience and engagement?

SAP, a global leader in enterprise software, offers two popular HR solutions: SAP HCM and SuccessFactors. Both solutions aim to provide comprehensive and integrated features for various HR activities, such as payroll, recruitment, performance management, learning and development, and more. However, they differ in many aspects, such as deployment model, functionality, user interface, integration, flexibility, and maintenance. In this blogpost, we will compare SAP HCM and SuccessFactors on these parameters and help you make an informed decision on which solution is best suited for your business needs.

SAP HCM vs SuccessFactors– Deployment Model: On-Premise vs Cloud

One of the key differences between SAP HCM and SuccessFactors is the deployment model. SAP HCM is an on-premise solution, which means that the software is installed and maintained on your own servers and hardware. This gives you more control and customization options, but also requires more upfront investment and ongoing maintenance costs. You also need to ensure that your IT infrastructure is secure and compliant with the relevant regulations.

SuccessFactors, on the other hand, is a cloud-based solution, which means that the software is hosted and managed by SAP on its own servers. You access the solution via the internet, without having to worry about the installation, maintenance, or security of the software. This reduces the initial and operational costs, and also allows you to benefit from the regular updates and innovations that SAP provides. However, you also have less control and customization options, and you need to rely on the internet connectivity and availability of the service.

SAP HCM vs SuccessFactors-Functionality: Similar Features, Different Architecture

Both SAP HCM and SuccessFactors offer similar features and modules for various HR processes, such as organizational management, personnel administration, time management, payroll, recruiting, onboarding, performance and goals, compensation, succession and development, and more. However, the architecture and design of the solutions are different, which affects the functionality and user experience.

SAP HCM is based on the SAP ERP system, which is a complex and robust platform that integrates various business functions and processes. SAP HCM is one of the key modules in SAP ERP, and it is closely linked to the organizational structure and hierarchy of the business. This allows for a high degree of automation and consistency in the HR processes, but also makes the system less flexible and user-friendly. SAP HCM also requires a lot of customization and configuration to adapt to the specific needs and preferences of each business.

SuccessFactors, on the other hand, is based on the SAP HXM (Human Experience Management) suite, which is a modern and agile platform that focuses on the employee experience and engagement. SuccessFactors is designed to be simple and intuitive, with a user-friendly interface and a modular approach. SuccessFactors also leverages the power of artificial intelligence and analytics to provide insights and recommendations for the HR professionals and employees. SuccessFactors is more flexible and configurable, but not customizable, which means that you have to work within the predefined parameters and options of the solution.

SAP HCM vs SuccessFactors–Integration: Seamless vs Complex

Another important aspect to consider when choosing between SAP HCM and SuccessFactors is the integration with other systems and applications. Integration is essential for ensuring data accuracy, consistency, and efficiency in the HR processes, as well as for providing a seamless and holistic experience for the users.

SAP HCM, being part of the SAP ERP system, offers a seamless and native integration with other SAP modules and solutions, such as SAP Finance, SAP Logistics, SAP Business Intelligence, and more. SAP HCM also integrates with other third-party systems and applications, such as Microsoft Office, Adobe Acrobat, and more. However, the integration with non-SAP systems and applications can be complex and costly, and may require additional tools and services, such as SAP PI (Process Integration) or SAP HCI (HANA Cloud Integration).

SuccessFactors, being a cloud-based solution, offers a more flexible and easy integration with other cloud-based systems and applications, such as Salesforce, Workday, Google Workspace, and more. SuccessFactors also integrates with other SAP solutions, such as SAP S/4HANA, SAP Analytics Cloud, SAP Fieldglass, and more. However, the integration with SAP HCM or other on-premise systems and applications can be challenging and limited, and may require additional tools and services, such as SAP Cloud Platform Integration or SAP Cloud Connector.

SAP HCM vs SuccessFactors–Flexibility: Customization vs Configuration

Another factor to consider when comparing SAP HCM and SuccessFactors is the flexibility of the solutions. Flexibility refers to the ability to modify and adapt the solutions to the specific needs and preferences of each business and user.

SAP HCM, being an on-premise solution, offers a high degree of customization, which means that you can change and enhance the features and functions of the solution according to your requirements. You can also create custom reports, workflows, interfaces, and more. However, customization also comes with some drawbacks, such as increased complexity, maintenance, and costs. Customization also makes it harder to upgrade and migrate to newer versions of the solution, as you have to ensure that your customizations are compatible and functional.

SuccessFactors, being a cloud-based solution, offers a high degree of configuration, which means that you can adjust and optimize the settings and options of the solution according to your preferences. You can also use the extension framework and the metadata framework to add and modify some features and functions of the solution. However, configuration also comes with some limitations, such as reduced control, customization, and differentiation. Configuration also makes it harder to revert and undo the changes, as you have to work within the predefined parameters and options of the solution.

SAP HCM vs SuccessFactors–Maintenance: Responsibility vs Reliability

The final aspect to consider when choosing between SAP HCM and SuccessFactors is the maintenance of the solutions. Maintenance refers to the ongoing activities and tasks that are required to keep the solutions up and running, such as updates, upgrades, backups, security, and support.

SAP HCM, being an on-premise solution, requires more maintenance from your side, as you are responsible for the installation, operation, and security of the software and hardware. You also have to perform regular updates and upgrades to keep the solution current and functional, which can be time-consuming and costly. You also have to ensure that you have adequate backup and recovery plans in case of any system failure or data loss.

SuccessFactors, being a cloud-based solution, requires less maintenance from your side, as SAP is responsible for the hosting, operation, and security of the software and hardware. You also benefit from the regular updates and innovations that SAP provides, which are automatically applied to the solution without any downtime or disruption. You also have access to the backup and recovery services that SAP offers in case of any system failure or data loss.

Conclusion

SAP HCM and SuccessFactors are both powerful and popular HR solutions that offer similar features and modules for various HR processes. However, they differ in many aspects, such as deployment model, functionality, user interface, integration, flexibility, and maintenance. The decision between the two is based on the unique needs, available resources, and strategic objectives of each business. There is no one-size-fits-all solution, and each solution has its own advantages and disadvantages. Therefore, it is important to evaluate both solutions carefully and objectively, and consult with experts and professionals, before making a final choice.

If you are a business looking to implement SAP HCM or SAP SuccessFactors or if you have any other IT consulting requirement then you may contact Birlasoft.

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