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Overview

What is SAP SuccessFactors?

SAP SuccessFactors is a full-suite HRIS system focusing on Talent Management and Employee Experience. SuccessFactors is primarily an enterprise solution and works best for companies with large, complex, global workforces. They provide unique recruiting, performance, succession and improve strategic workforce planning, and employee engagement strengths. They often integrate with 3rd party tools such as ADP and UKG for their Core HR (payroll, time & benefits).

Market Segment

SuccessFactors HR system is considered an Enterprise HRIS, which works best for companies with over 1,000 employees. Enterprise solutions are designed to be all-in-one HRIS's for companies with high complexity in their operations. Companies operating in many states and countries and companies with numerous entities and sub-divisions find great value in working with Enterprise HRIS vendors. Enterprise solutions typically take about 6-10 months to implement and often require external consultants to implement and manage the solutions successfully. Enterprise solutions have powerful rules engines and unmatched custom workflow tools that enable them to meet any company's requirements.

Costs

SuccessFactors charges companies on an annual subscription basis. SuccessFactors is often a premium-priced solution but the total cost isn't as expensive as some of their enterprise peers. SuccessFactors' subscription fees can cost between $28 and 38 PEPM.

In addition to the software fees, customers implementing SuccessFactors will require a one-time implementation fee. SuccessFactors (or one of their partners) will charge ~ 100-125% of the annual software fees for their implementation fees (i.e., $300-375K implementation fee on a $300K annual purchase)

Strengths

• SuccessFactors has been a market leader in the Talent Management space for the last decade and offers some of the most advanced functionality around performance management, compensation and learning & development.
• SuccessFactors is the most globally-capable HRIS in the market offering compliance and best practices for over 100 countries
• The performance module within SuccessFactors offers advanced functionality to facilitate more dynamic and continuous review conversations
• SuccessFactors ATS recently rolled out CRM functionality to enhance the entire recruitment process and ensure that qualified candidates are kept aware of new opportunities
• SAP SuccessFactors recruiting provides robust candidate management functionality and performance management functionality
• Given how enterprise-capable and innovative SuccessFactors can be, their platform is often much more price competitive than Workday's

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Weaknesses

• SuccessFactors usually does not offer Core HR (payroll, benefits, time) to companies under 2,000 employees, which can lead to a multi-vendor approach
• SuccessFactors has grown by acquiring upstart HR software companies and integrating them into their platform. This architecture can lead to more advanced functionality but also makes it harder to create holistic reports and hr analytics
• SuccessFactors relies on a 3rd party network to sell, implement and maintain the system, which can lead to additional consulting costs

Integration Capabilities

SuccessFactors is a cloud-native solution that is capable of building integrations with a variety of different point solutions. SuccessFactors' approach to the market has always been to encourage companies to take a best-in-class approach which means they have prioritized open APIs and integration best practices for years

Global Capabilities

SuccessFactors is a system that has developed via acquisition. Due to the number of 3rd party tools that have been acquired to build the system, SuccessFactors does not the most integrated underlying database and this can lead to challenges with data not auto-populating and reporting requiring manual manipulation

Modules Offered

• Cloud Payroll
• Benefits Admin
• HR / Employee Files
• Time Tracking & Attendance
• Onboarding
• Recruiting
• Learning
• Performance
• Engagement

FAQs

What type of organizations is SAP SuccessFactors best suited for?

SAP SuccessFactors is ideal for large firms with over 1,000 employees, especially those with complex, global workforces requiring advanced talent management capabilities.

How is SAP SuccessFactors priced?

SAP SuccessFactors charges companies on an annual subscription basis, typically ranging between $28 and $38 per employee per month (PEPM). Additionally, there's a one-time implementation fee, usually around 100-125% of the annual software fees.

What are the strengths of SAP SuccessFactors?

SAP SuccessFactors is a market leader in talent management, offering advanced functionality in performance management, compensation, learning & development, and recruitment. It boasts robust global capabilities, compliance, and best practices for over 100 countries. The platform also provides innovative features like dynamic performance reviews and CRM functionality within its ATS.

What are the weaknesses of SAP SuccessFactors?

SuccessFactors may not offer Core HR (payroll, benefits, time) to companies with fewer than 2,000 employees, potentially necessitating a multi-vendor approach. Integration with acquired HR software companies can sometimes lead to challenges in creating holistic reports and HR analytics. Additionally, relying on a third-party network for implementation and maintenance may incur additional consulting costs.

What integration capabilities does SAP SuccessFactors offer?

As a cloud-native solution, SuccessFactors can build integrations with various point solutions, prioritizing open APIs and integration best practices. However, challenges may arise due to the system's architecture resulting from acquisitions.