Talent management and human resources play a critical role in the success of any organization. To address these challenges, SAP offers two renowned solutions: SAP SuccessFactors and SAP HCM (Human Capital Management). In this article, we will explore the key features of both solutions and how they can drive efficiency in human capital management.

SAP SuccessFactors

SAP SuccessFactors is a cloud-based solution that focuses on talent and human resources management. Its notable features include:

Performance management: Facilitates goal setting and evaluation, performance reviews, feedback and recognition, and analysis of employee performance.
Recruitment and selection: Simplifies the management of hiring processes, from publishing job offers to selecting and hiring candidates.
Learning Management: Provides tools for creating, managing and monitoring employee training and development programs.
Compensation & Benefits: Helps manage employee compensation, including salaries, bonuses, incentives, and fringe benefits.
Personnel and Payroll Management: It allows you to manage employee data, record employment information, perform payroll calculations and manage other aspects related to personnel administration.

SAP SuccessFactors is SAP's strategic solution for human capital management in the cloud and offers an intuitive interface, process automation and advanced analytical capabilities.

Functioning SAP HCM

SAP HCM, on the other hand, presents three solution scenarios:

SAP HCM ECC: Currently available until 2030.
SAP HCM Integrated in S/4 HANA: Available until 2025.
SAP HCM for S/4HANA: Available from the third quarter of 2022 until probably 2040.

Choosing between these options depends on several factors, such as on-premises retention strategy, transition to the cloud, and desired operating models.

Regardless of the choice, both SAP solutions offer a wide range of services for human resource management. However, there are two key differences to consider:

Core components such as payroll and time management will be based on proven SAP HCM for S/4HANA solutions, ensuring their continuous availability to customers.
SAP SuccessFactors stands out for its integration of modern master data management and process support in a user-centric interface, making it an attractive solution for new implementations.

Regardless of the technical challenges, such as integration, interfaces and technologies used, companies should first ask themselves the following key questions before deciding on one or another solution option: What modules or components does each solution cover and in what form? How many customer-specific enhancements are available and how relevant are they? How do I want to operate and execute my processes? HCM and the systems that support them in the future? The scope of services of the two SAP solutions for core HR processes does not differ significantly.

There are two differences to take into account:

The core components, Payroll and Time Management, will also be based on the proven scope of services and flexible functions in SAP HCM for S/4HANA. This indicates that proven solutions will continue to be available to customers.

The integration of modern master data management with extensive process support for recruiting, talent management, collaboration and employee support in a fully user-centric interface is what SAP will offer and develop in SAP SuccessFactors today and in the future. This also makes these scalable solutions interesting for “lateral entrants.” In return, SAP HCM for S/4HANA offers investment protection and further continuous development to existing customers in particular.

In summary, SAP SuccessFactors and SAP HCM offer robust solutions for human capital management. The choice will depend on the specific needs of your organization and your vision for the future. Both solutions are designed to optimize operations and maximize the performance of human capital, making them valuable assets for any company seeking excellence in human resource management.