SAP HR vs. SAP SuccessFactors: Understanding the Key Differences

SAP HR and SAP SuccessFactors are influential and respected Human Resource Management (HRM) solutions from SAP, but they have significant distinctions. If you’re exploring HR solutions, it’s vital to grasp the differences to make an informed decision that suits your organization’s needs.

What is SAP HR?

SAP HR, or SAP HCM (Human Capital Management), is SAP’s traditional on-premise HR solution. It offers a comprehensive suite of modules for managing core HR functions, including:

• Personnel Administration
• Time Management
• Payroll
• Organizational Management
• Benefits Administration

What is SAP SuccessFactors?

SAP SuccessFactors is a cloud-based suite of integrated HR modules. It’s part of SAP’s Human Experience Management (HXM) portfolio, emphasizing a more user-centric approach. Key modules include:

• Employee Central (Core HR)
• Performance & Goals
• Recruiting & Onboarding
• Learning
• Compensation

Key Differences

Let’s delve into the primary areas where SAP HR and SuccessFactors diverge:

1. Deployment:
   • SAP HR: On-premise, requiring in-house IT infrastructure and maintenance.
   • SAP SuccessFactors: Cloud-based (Software-as-a-Service), managed and updated by SAP.
2. User Experience:
   • SAP HR: Can have a more traditional interface, sometimes requiring customization for optimal usability.
   • SuccessFactors: Modern, user-friendly interface emphasizing employee self-service and mobile accessibility.
3. Functionality:
   • SAP HR: Provides deep functionality in core HR areas.
   • SuccessFactors: Offers a broader range of talent management modules, promoting a more holistic HR approach.
4. Flexibility:
   • SAP HR: Highly customizable to tailor processes to specific business requirements.
   • SuccessFactors: Primarily configurable with more standardized best practices, offering customization options.
5. Maintenance:
   • SAP HR: Requires internal IT resources for updates, patches, and infrastructure.
   • SuccessFactors: The cloud model means SAP handles maintenance and upgrades.
6. Integration:
   • SAP HR: Well-integrated with other SAP modules (like Finance). It can be complex to integrate with non-SAP systems.
   • SuccessFactors: Designed for easier integration within the SuccessFactors suite and external systems.

Choosing the Right Solution

The best choice for you depends on several factors:

• Company size: Larger implementations often lean towards the depth of SAP HR.
• IT Resources: SuccessFactors’ cloud model reduces in-house burdens if you lack extensive IT support.
• Priorities: If talent management and a modern user experience are essential, SuccessFactors is strong.
• Legacy systems: SAP HR may be better if deep integration with existing SAP systems is a priority.

The Future: SAP is encouraging a transition to SuccessFactors for its cloud advantages and focus on employee experience. Support for SAP HCM has a projected end date of 2040.