Companies now understand that their workers are their most significant asset in the current challenging business climate. Successful organizations know the importance of managing, developing, and maintaining a talented staff. How do you pick the best Human Resource Management software for your company from the many available? If you’re trying to decide between SAP Human Capital Management (HCM) and SAP SuccessFactors, this article will break out the main distinctions between the two.
The Foundation of SAP HR and SAP SuccessFactors
Human resource management is a common problem that both SAP HCM and SAP SuccessFactors aim to solve. They share certain features and capabilities, but each is built on a different set of technologies. Let’s get down to brass tacks.
SAP Human Capital Management (SAP HCM)
SAP HCM, often known as SAP Human Resource or SAP Human Resource Management System, is a flexible HRMS that may be installed on-premises. Its uses are many, ranging from HR management to payroll processing to applicant tracking to training and development. SAP HCM streamlines multi-tiered application and approval procedures by including human resource management.
Key Modules of SAP HR HCM:
- Organizational Management: This module helps organizations map their overall structure and automate hierarchy-dependent tasks, such as career planning and applicant management.
- Personnel Administration: It serves as the central repository for employee master data, eliminating the need for paper-based procedures and ensuring data accuracy.
- Personnel Time Management: This module aids in planning, recording, and evaluating employee performance based on documented working hours, including attendance management and wage calculation.
- Payroll Accounting: It handles salary groups, working hours, absence times, and special payments, ensuring compliance with regulatory standards.
- Talent Management: The goal is to match open positions with available human resources based on criteria like qualifications, fostering career and development goals.
- Recruitment: It automates operations like job interviews and application tracking, streamlining the entire hiring process.
- Employee Self-Service (ESS) and Management Self-Service (MSS): ESS enables employees to access their data, while MSS empowers managers to produce and update personnel data.
on contrast, SAP SuccessFactors is an all-inclusive HRM solution that operates on the cloud. It’s a component of SAP’s HXM suite, which aims to improve the working conditions of all SAP employees.
Key Features of SAP SuccessFactors:
- E-Recruiting: Facilitates a collaborative, objective, and mobile selection process.
- Onboarding: Offers a customizable onboarding procedure, including new hires, recruiting managers, and onboarding buddies.
- Compensation: Provides a compensation profile, mapping all compensation procedures.
- Performance Evaluation: Regulates target agreements and monitoring of target achievement for performance evaluation.
- Learning: A platform for learning linked to other modules like goal management and onboarding.
- Succession and Development: Controls and automates succession planning operations.
- Employee Central: Manages master data, personnel administration, organizational management, absences, and payroll accounting (optional). It also serves as the foundation for integration with on-premise solutions.
- SAP JAM: A social networking-style communication and collaboration platform for employees.
- Analytics: Allows the creation of reports for all SuccessFactors modules.
The Road Ahead
SAP’s offerings include SAP HCM and SAP SuccessFactors, but the corporation is now focusing on HXM solutions that can be implemented in the cloud. While both options are presently obtainable, SAP HCM’s end of life is scheduled for the year 2040.
In conclusion, your company’s demands, technology preferences, and long-term ambitions should all factor into your decision between SAP HCM and SAP SuccessFactors. Take into account the scalability, pricing, and your company’s readiness for cloud-based solutions. Both systems have the potential to improve HR operations, motivate employees, and propel a company forward, but which one you select will depend on its specific needs.