SAP HR vs. SAP SuccessFactors: Choosing the Right HR Solution for Your Business

When managing your organization’s critical human resources data and processes, SAP offers two compelling options: the classic SAP HR (SAP HCM) and the cloud-based SAP SuccessFactors. Each solution offers distinct advantages, and the best choice for your business depends on factors like your company’s size, IT infrastructure preferences, and future HR technology goals.

Understanding the Key Differences

Let’s break down the fundamental ways in which SAP HR and SAP SuccessFactors differ:

• Deployment Model:
  • SAP HR is an on-premise solution. Your organization installs the software on its servers and retains complete control over data and customization.
  • SAP SuccessFactors is a cloud-based Software-as-a-Service (SaaS) solution. It’s hosted and maintained by SAP, reducing your internal IT burden.
• Features and Functionality:
  • SAP HR provides core functionalities like payroll, time management, personnel administration, and some talent management modules.
  • SAP SuccessFactors offers a broader, more integrated suite of talent management tools, including recruitment, onboarding, performance management, learning and development, succession planning, and more.
• User Experience:
  • SAP HR traditionally has a more functional but less intuitive user interface (UI) than modern HR software.
  • SAP SuccessFactors prioritizes a user-friendly, engaging UI designed to promote self-service and reduce the administrative burden on HR teams.
• Customization:
  • SAP HR offers extensive customization to tailor the system to your business processes.
  • SAP SuccessFactors is configurable mainly, allowing you to adjust workflows and elements within a framework of standardized best practices. Heavy customization is less readily available.
• Maintenance and Updates:
  • SAP HR requires your IT team to manage updates, patches, and maintenance tasks.
  • SAP SuccessFactors is maintained by SAP, with automatic quarterly updates ensuring you always use the latest version.

When to Consider SAP HR

SAP HR might be the right fit if:

• Customization is vital: Your business has heavily specialized HR processes that require deep software tailoring.
• Complete control is paramount: You strongly prefer to maintain full control over your HR data and systems.
• Existing SAP investment: You already use multiple SAP solutions on-premise and prefer integrating with an SAP HR system.

When to Consider SAP SuccessFactors

SAP SuccessFactors makes sense if:

• Ease of use is a priority: You want a modern, intuitive HR system for both employees and HR staff.
• Cloud-first strategy: You prefer cloud-based solutions for their scalability and reduced IT maintenance overhead.
• Talent management focus: Your primary goals center on comprehensive talent development and engagement rather than solely core HR functionality.
• Future-proofing: You desire a solution actively supported and developed by SAP for the long term.

The Road Ahead

SAP has clarified that SAP SuccessFactors is the strategic direction for its HR solutions. While SAP HR will continue to be supported for some time, innovations and investments are focused on the SuccessFactors platform.

Making the Decision

Choosing between SAP HR and SAP SuccessFactors involves carefully analyzing your company’s needs, priorities, resources, and strategic vision. Consider getting advice from SAP consultants to understand furtherunderstand which solution best serves your organization’s present and future HR requirements.