What is SAP SuccessFactors?
SAP SuccessFactors HCM software provides an AI-enabled, HR management system to optimize & address workforce transformation needs.
Bring the best out of your workforce with SAP SuccessFactors HCM
SAP SuccessFactors HCM is a cloud-based suite designed to streamline every aspect of human capital management (HCM) across the employee lifecycle. Every process, including recruiting, onboarding, performance management, talent development, compensation, and more, can be managed within a unified, AI-enabled solution. The data-driven insights that emerge from these solutions help HR leaders make informed decisions that drive the business forward while keeping employees happy, productive, engaged, and constantly improving.
SAP SuccessFactors HCM is one of several cloud-based applications offered by SAP. This HCM application can be used alone or with other SAP cloud applications as part of SAP Business Suite.
History of SAP SuccessFactors
SuccessFactors was founded in May 2001 by Lars Dalgaard. Just months later, the company launched its first product, simply called Performance Management.
In October 2006, SuccessFactors introduced the first complete suite of integrated, digital human resource management applications, marking a significant milestone in the SaaS industry. The 2011 acquisition of Plateau, a company specializing in products designed to meet the complex needs for regulatory training, enabled SuccessFactors to expand into the learning management systems market. This made it the first company to cover performance, compensation, recruiting, and learning on a unified HR system powered by analytics.
In February 2012, SAP acquired SuccessFactors. Since then, the suite of cloud HR solutions has empowered over 10,000 customers worldwide, and analysts consistently recognize SAP SuccessFactors solutions as leading products in the HR industry.
What are the key features of SAP SuccessFactors HCM?
SAP SuccessFactors solutions help organizations manage all functions of HR, including compensation and benefits, employee onboarding, goal management, talent development, time management, and payroll.
Here are some HR processes SAP SuccessFactors HCM can optimize—and how AI can help:
Recruitment: Attract and hire talent with the skills your organization needs. SAP SuccessFactors Recruiting uses AI to screen applicants in a more efficient and equitable way.
Onboarding: Help new hires hit the ground running with a personalized, intuitive, and engaging onboarding process. SAP SuccessFactors Onboarding facilitates the timely completion of necessary tasks, like training or goal assignments. AI can help new and departing employees to easily complete required tasks.
Performance management: Continuously develop and nurture your talent in a way that aligns with their personal goals and those of the organization. AI can help employees craft meaningful, measurable goals.
Learning: Ensure compliance and encourage employee development with skills-driven learning and development. AI can help identify growth opportunities and recommend personalized learning plans.
Employee self-service: Provide employees with a way to quickly complete tasks and get accurate answers to HR-related questions.
Reporting and analytics: Get a comprehensive perspective on employees, including their location, skills, and compensation to better align workforce strategies with business priorities.
Compensation and payroll: Make better decisions about employee pay with real-time budget and market insights from SAP SuccessFactors Compensation. Automate and accelerate payroll processes with SAP SuccessFactors Employee Central Payroll to ensure pay arrives on time and error-free.
Career development: Gain visibility into an organization’s talent gaps and reveal who can fill them with SAP SuccessFactors Career and Talent Development. AI-enabled tools can also help decision-makers assess an employee's potential and analyze how their succession impacts the business.
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What are the main benefits of SAP SuccessFactors HCM?
SAP SuccessFactors HCM allows organizations to integrate all their HR processes and experiences into a single platform to simplify workforce management. It breaks down silos, connects disparate workflows, and automates manual tasks to boost efficiency and reduce errors across departments and locations. SAP SuccessFactors HCM also provides the flexibility required to adapt as market, business, and employee needs change. With embedded AI and analytical tools, decision-makers gain real-time insights to make more informed decisions and to ensure continuous alignment between talent and business goals.
In addition, organizations using SAP SuccessFactors HCM report success across a variety of HR KPIs, including:
Time to hire
Employee satisfaction
Employee productivity
Employee retention
Employee data accuracy
Employee engagement
Time savings
How does SAP SuccessFactors compare to the competition?
SAP SuccessFactors HCM sets itself apart from other human resource management solutions by being a truly global solution that provides AI-enabled processes, experiences, and insights across the entire employee lifecycle and across the business.
To summarize, there are six key ways that SAP SuccessFactors HCM differentiates itself from other HCM solutions:
Global core HR and payroll to ensure agility and compliance
Global applications include preconfigured localization frameworks in over 100 countries for core HR, payroll support for over 50 countries, and management of over 700 regulatory changes annually for compliance, privacy, and security.
Unified skills foundation to build a future-ready workforce
SAP SuccessFactors solutions provide personalized employee experiences based on an individual’s needs and career goals. With a single source of truth for skills and AI-assisted talent intelligence infused into every solution, employees can manage their own growth through personalized learning paths, adaptive performance goals, and self-service tools. This dynamic approach fosters engagement, motivation, and a sense of ownership, leading to increased retention and the emergence of a people-centered workplace culture. In addition, SAP SuccessFactors HCM system integrates with an extensive ecosystem of partners and providers of third-party skills data.
Open cloud platform to adapt and extend HR
SAP SuccessFactors HCM is built on the SAP Business Technology Platform, with integrations with hundreds of partners, third-party providers, and government agencies, and a capability to create custom processes, applications, and automations. SAP SuccessFactors solutions integrate smoothly with SAP and third-party systems, including ERP, finance, and supply chain management, making it easy to create a cohesive HR environment. Its open cloud-based architecture also makes it easy to scale and adapt to the demands of a growing business. Open APIs are available for easy integration and development tools to extend and build, helping customers to address niche business needs quickly and cost effectively.
Enterprise-wide suite to drive better people and business decisions
SAP SuccessFactors HCM serves a critical role in SAP Business Suite by providing HR cloud applications and the foundational source of people and skills data required for end-to-end business processes, unified people experiences, workforce insights and planning, and AI. With real-time, data-driven insights across the entire employee lifecycle–from recruitment to onboarding and later to talent development and succession planning–SAP SuccessFactors HCM brings together key metrics and insights in an accessible interface. Dashboards and reports can track workforce trends, identify skill gaps, and align talent strategies with business goals. With clearer visibility into HR and business operations, leaders can proactively address issues and seize growth opportunities.
Embedded AI capabilities to help employees work smarter and faster
SAP SuccessFactors HCM applies AI capabilities to all roles, and the Joule copilot is available across HCM and all SAP cloud applications. With hiring, AI can automate time-consuming processes like resume screening and interview scheduling. Recommendations by AI can also identify top candidates for roles. For current employees, analytical tools can also predict employee attrition and suggest personalized development plans to boost engagement and retention. The World Benchmarking Alliance recognizes SAP SuccessFactors HCM, enabled by 25 leading large language models, as the only human resource management solution provider to meet all its criteria for responsible AI.
Trusted partner committed to customer success to drive adoption and ROI
As a pioneer in enterprise management solutions, SAP has supported organizations of all sizes and industries for over 50 years across all aspects of their business. The Customer Value Journey provides a proven path to success, including onboarding services, industry best practices, and enablement. Once the system is live, employees can quickly adopt the solutions with embedded guidance, and HR management teams can provide continuous optimization based on real-time insights.
In summary, it's an HCM suite that provides the processes, insights, and experiences required to help employees and organizations realize their full potential.
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