Kmart’s HR Transformation: A SuccessFactors Success Story

Kmart, a beloved Australian retail giant, has undergone a significant digital transformation in its human resources (HR) department. It implemented SAP SuccessFactors, a leading cloud-based Human Experience Management (HXM) suite. This move revolutionized Kmart’s workforce management, streamlining processes, enhancing employee experience, and driving strategic HR decision-making.

Why SuccessFactors?

Kmart faced several HR challenges before implementing SuccessFactors:

• Outdated Systems: Kmart relied on legacy HR systems that needed more cohesive and efficient, leading to manual processes and limited data visibility.
• Lack of Self-Service: Employees needed more access to their HR information and often had to rely on HR personnel for basic tasks, leading to delays and a less empowering employee experience.
• Complex Performance Management: Performance reviews and goal setting could have been more complicated and paper-based, hindering effective talent development.

SuccessFactors offered a comprehensive solution to address these challenges:

• Integrated HXM Suite: The platform combines core HR functions (Employee Central) with talent management solutions like performance, goals, recruiting, and compensation. It created a single source of truth for employee data.
• Cloud-Based Accessibility: As a cloud solution, SuccessFactors provides easy access to HR information from anywhere, anytime, improving employee and HR team agility.
• Enhanced Self-Service: Employees can now manage their personal information, view payslips, request time off, and engage in performance and development processes independently.

Kmart’s SuccessFactors Journey

Kmart’s implementation journey involved a phased approach:

1. Employee Central and Payroll: The initial rollout focused on core HR functionalities, streamlining employee data management and payroll processing.
2. Talent Management: Kmart implemented modules like Performance & Goals and Compensation, creating a structured performance management system linked to rewards.
3. Recruiting: The recruiting module transformed Kmart’s hiring process, enabling online job applications, candidate tracking, and improved talent acquisition.

Benefits Realized

Kmart has experienced numerous benefits since adopting SuccessFactors:

• Improved Efficiency: Automated workflows and centralized data reduced the administrative burden on the HR team, allowing them to focus on strategic initiatives.
• Enhanced Employee Experience: Self-service capabilities and a user-friendly interface empowered employees, boosting engagement and satisfaction.
• Data-Driven Decision Making: SuccessFactors’ analytics capabilities provide valuable insights on workforce trends, performance, and talent gaps, enabling informed HR decisions.
• Talent Development: The integrated talent management suite fosters continuous employee development through goal setting, performance reviews, and targeted learning opportunities.

Key Takeaways

Kmart’s successful implementation of SuccessFactors offers valuable lessons for other organizations considering HR transformation:

• Clear Vision: Define HR challenges and the desired outcomes from digital transformation.
• Change Management: Effective communication and training are essential for smooth adoption and user engagement.
• Strategic Focus: Prioritize modules that deliver the most significant impact based on your organization’s needs.

SAP SuccessFactors could be a transformational investment if you want to streamline your HR processes, improve employee experience, and make better data-driven decisions. Kmart’s story demonstrates its potential to revolutionize how businesses manage their most important asset – their people.