SAP HCM vs SAP SuccessFactors comparison

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8,856 views|7,054 comparisons
89% willing to recommend
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14,726 views|9,756 comparisons
85% willing to recommend
Comparison Buyer's Guide
Executive Summary
Updated on Mar 29, 2022

SAP HCM vs SAP SuccessFactors

We performed a comparison between SAP HCM and SAP SuccessFactors based on our users’ reviews in five categories. After reading all of the collected data, you can find our conclusion below.

  • Ease of Deployment: Both solutions receive mixed reviews in this category. Some users of each product say the setup is straightforward, while others say that the initial setup is complex.
  • Features: SAP HCM reviewers report being satisfied with its scalability, performance, and learning features. Several SAP HCM reviewers mention that it can be difficult to configure. SAP SuccessFactors reviewers say it performs well, is scalable, and has a large variety of features. A few SAP SuccessFactors users say it is not very user-friendly.
  • Pricing: Most SAP HCM reviewers say it is an expensive solution. One SAP SuccessFactors user writes that the price is high, but others say the pricing is flexible depending on the customer’s license.
  • ROI: SAP HCM users say they expect to see a ROI, as it reduces manpower. SAP SuccessFactors reviewers do not mention ROI.
  • Service and Support: Users of both solutions are for the most part satisfied with the level of support they receive.

Comparison Results: SAP SuccessFactors comes out on top in this comparison. It offers a wider variety of features than SAP HCM does and is easier to configure. SAP SuccessFactors also receives higher marks in the pricing department, thanks to its various licensing options.

To learn more, read our detailed SAP HCM vs. SAP SuccessFactors Report (Updated: May 2024).
772,422 professionals have used our research since 2012.
Featured Review
Quotes From Members
We asked business professionals to review the solutions they use.
Here are some excerpts of what they said:
Pros
"It's very suitable for large, multi-geography companies but also very suitable for medium companies with multi-geography operations.""They have some interesting features in the learning space.""The payroll and time management features are useful.""SAP HCM has valuable features for analytics data management.""HCM is a very important module that each organization should want to use. It will help any organization to calculate and control the cost of their human resources.""The valuable features of SAP HCM include managing employee data from hiring to retirement.""All our employee data, like performance and payroll, is managed through SAP HCM.""SAP HCM can handle a large number of employees. We can easily process payrolls and check the arrangements, and the client can also check the performance of the employees. Additionally, it has some advanced features."

More SAP HCM Pros →

"There are a lot of features in SuccessFactors that HR can actually explore. We recently implemented a learning platform that employs the individual staff to actually manage their own learning.""Flexible with a lot of good features.""It's a uniform user interface.""The most important feature is the ability to follow up on the yearly performance of the team. It's very good for management to understand how people are performing.""The interface is user-friendly. It is very simple and intuitive, so it's good.""The SuccessFactors learning applications within the SuccessFactors learning modules, as well as the performance management system, are highly beneficial for each and every employee in our organization. These tools eliminate the need for using Excel to manage data, allowing for direct input into the system. This streamlines the process, making it easier to view and analyze information. We can readily access our performance history, comparing our actions and achievements from the previous year. At present, we are consistently monitoring our day-to-day performance.""Scalability-wise, I rate the solution an eight out of ten...It is a stable solution.""We have found objects like Foundation and MDF most valuable."

More SAP SuccessFactors Pros →

Cons
"SAP HCM cannot integrate with other third-party applications. One of the drawbacks we encounter with SAP HCM, specifically in payroll management, is the limitation regarding changing payroll areas within the same month. For instance, if an employee transitions from staff to non-staff status during the month, we face difficulties because the system doesn't allow us to change the payroll.""We find some challenges in the integration between SAP HCM and SAP SuccessFactors.""System usability is a challenge.""The solution is rather expensive.""The product's learning and development features could be better, including new exclusive LMS tools.""I'm currently working for a state-owned government company, and we need to follow some standards and regulations. We also have a strategy to be followed. Sometimes the template and the format are not available in the SAP HCM, so we have to work around this limitation. The tax also sometimes changes in my country, and we have to redo everything to change the payroll calculations, benefits, and things like that. The talent management feature can be improved. It is currently very simple in SAP HCM. SAP is also very hard to integrate. In terms of monitoring, there are no monitoring tools, but as long as we take care of the disk capacity, there is no problem.""The talent modules are lacking in HCM, so I would recommend switching to SuccessFactors for talent management, but HCM excels at time management and payroll.""The limitation of HCM compared to new-era human capital management solutions is the cost."

More SAP HCM Cons →

"There is room for improvement in licensing model.""The solution is quite expensive.""The price of the solution could improve, it is too high.""There is an area of improvement in integrating SuccessFactors with different platforms.""Also, it would be helpful if they could improve its ability to localize the product to Nigeria.""Its overall integration and user experience can be improved. SuccessFactors is a system that is built out of three different systems. The elements part was bought from Plateau, and the original performance dialogue was built by SuccessFactors itself. After that, SAP bought it, and it hasn't improved in the last few years. SuccessFactors is a perfect tool if you use it the way it is meant to be, but if you start building custom sessions and try to use it differently, then it is a total mess. It is not agile. It is like an old Mastodon truck or whatever. We don't have the Employee Central and Competence Management modules. Our company made the choice to not implement the Employee Central module. We also didn't implement the Competence Management module. We use the learning module to do some competence management, but I am not that fond of it. It would have been best to have the whole suite. SAP should never sell this without selling the whole suite because it just doesn't work. The biggest gain for me would be having the possibility of doing strategic personnel planning and managing internal mobility. If it could be used for social purposes, such as creating communities and connecting with media channels, that would be perfect. It should also have the possibilities for local admin and agile product development.""The complete integration process between SuccessFactors modules is not at the level that all customers expect when it comes to complete HR user experience from all angles.""One of the most essential features that needs improvement right now is the reporting functionality. SuccessFactors' reports seem to be lagging a bit behind and we are very interested in customizing the reporting mechanism such that it pushes reports through quickly and automatically."

More SAP SuccessFactors Cons →

Pricing and Cost Advice
  • "Licensing is pretty complex. SAP does not have a straight forward way of licensing, and it differs from client to client."
  • "The terms on which you buy licenses might change due to the way they license in a particular product."
  • "For implementation, SAP offers little support unless you buy SAP Safeguarding from SAP Consulting."
  • "Be careful and guard against future changes in licensing."
  • "In my view, this product is a waste of money for SMB because there are much better products available and licensing is an issue."
  • "You pay per license. There not any costs in addition to the standard licensing fees."
  • "SAP is extremely expensive. The integration costs and customization costs are also a lot."
  • "SAP is expensive, but if you're using the product, then the expensive product becomes inexpensive. Considering its performance and features, I find it quite reasonable."
  • More SAP HCM Pricing and Cost Advice →

  • "The licensing fees are based on the number of modules that are being used, and the number of users."
  • "I don't want to comment on the license cost, to be honest. It could be about $1,000 approximately per customer. However, it's very flexible in terms of the licensing costs depending on the volume and depending on the deal of installation."
  • "If you go by best practices and do it right from the outset, the setup won't be a costly endeavor. In terms of setup, there is a lot of flexibility compared to three years ago."
  • "It could be cheaper."
  • "We have a yearly license. There are no additional costs."
  • "SAP SuccessFactors requires an annual subscription."
  • "It is not expensive because it is a complete suite with a module-based cost."
  • "For SAP, the product is pricey, both CAPEX and the OPEX. It's something that could be improved."
  • More SAP SuccessFactors Pricing and Cost Advice →

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    Answers from the Community
    Netanya Carmi
    Kseniia Gravis - PeerSpot reviewerKseniia Gravis
    User

    So are you striving to successfully deploy and utilize SAP systems to centralize data, streamline operations, gain real-time insights and achieve business efficiency? SAP applications are the backbone of every business. We also discuss the best SAP implementation process as an ideal solution for such problems: https://www.cleveroad.com/blog/why-outsource-sap/ 

    Questions from the Community
    Top Answer:SAP HCM is the one of the best ERP for an organization with a small to large scale business. It has the most efficient payroll functionality. Regards : SAP HR classes in pune
    Top Answer:HCM is a very important module that each organization should want to use. It will help any organization to calculate and control the cost of their human resources.
    Top Answer:When it comes to user experience, SuccessFactors is unquestionably superior, as it provides end users with a new experience and an advanced user interface. Additionally, the entire concept of SF is to… more »
    Top Answer:Differences between Workday, Oracle Cloud,w and SAP SuccessFactors:w Oracle: "simple interface and deep customization to suit the purpose." SAP: Multiple functionalities that increase process… more »
    Top Answer:The tool is easy to use for performance management. We haven't experienced any issues with SAP SuccessFactors for performance management, which is great. However, since we're still learning to use it… more »
    Top Answer:We don't utilize even half of the licenses because not everyone uses them. With SAP SuccessFactors, though, we're now conducting all our performance evaluations within the system, so I suppose we're… more »
    Ranking
    3rd
    out of 68 in Cloud HCM
    Views
    8,856
    Comparisons
    7,054
    Reviews
    18
    Average Words per Review
    451
    Rating
    8.1
    1st
    out of 68 in Cloud HCM
    Views
    14,726
    Comparisons
    9,756
    Reviews
    40
    Average Words per Review
    498
    Rating
    7.7
    Comparisons
    Workday logo
    Compared 24% of the time.
    Oracle HCM Cloud logo
    Compared 13% of the time.
    ADP GlobalView Payroll logo
    Compared 4% of the time.
    PeopleSoft logo
    Compared 3% of the time.
    UKG logo
    Compared 3% of the time.
    Also Known As
    SAP Human Capital Management
    SuccessFactors
    Learn More
    Overview

    SAP HCM is a benefits administration solution that has a comprehensive set of tools and features for managing and optimizing all aspects of human resources. SAP HCM covers various HR functions including payroll, time and attendance management, talent management, succession planning, and employee performance evaluation.

    The goal of SAP HCM is to help organizations streamline HR processes, improve workforce productivity and efficiency, and support strategic HR decision-making. With SAP HCM, HR departments can manage employee data, track and analyze key HR metrics, and automate various HR processes to save time and resources. It is widely used by large organizations across various industries.

    SAP HCM Features

    SAP HCM has many valuable key features. Some of the most useful ones include:

    • Personnel administration: With SAP HCM, users can manage employee master data, such as personal details, employment contracts, and job information.
    • Payroll: The solution provides automation of payroll processes, including tax calculation, payment generation, and reporting.
    • Time and attendance management: Automated tracking and management of employee time and attendance help users streamline HR processes. 
    • Talent management: SAP HCM includes tools for recruiting, onboarding, training, and development of employees.
    • Succession planning: With this feature, users can plan and manage employee career development and succession within the organization.
    • Performance and goal management: SAP HCM is designed with performance evaluation, goal setting, and development planning for employees.
    • Compliance management: SAP HCM offers management of legal and regulatory requirements related to HR processes.
    • Reporting and analytics: Generation of reports and analysis of key HR metrics help support decision-making.
    • Integrations: The solution has integration with other SAP modules, such as SAP Finance and SAP Supply Chain, that provide a comprehensive solution for HR management.


    SAP HCM Benefits

    There are many benefits to implementing SAP HCM. Some of the biggest advantages the solution offers include:

    • Improved HR processes: The solution’s automation of HR processes, helps reduce manual effort and increases efficiency.
    • Better data management: SAP HCM provides centralized management of employee data, improving data accuracy and reducing the risk of errors.
    • Increased productivity: Because the solution streamlines HR processes, it frees up HR staff to focus on other strategic tasks.
    • Improved compliance: SAP HCM helps businesses reduce the risk of non-compliance by making legal and regulatory requirements related to HR processes easy and manageable. 
    • Better decision-making: Access to real-time HR data and analytics enables data-driven decision-making.
    • Increased transparency: SAP HCM improves visibility into HR processes, enabling HR departments to monitor performance and identify areas for improvement.
    • Better employee engagement: The solution’s provision of self-service options for employees improves employee satisfaction and engagement.
    • Cost control: SAP HCM’s automation of HR processes reduces costs associated with manual HR processes.
    • Talent management: The solution’s tools for attracting, retaining, and developing employees increase overall workforce productivity and effectiveness.


    Reviews from Real Users

    SAP HCM is a solution that stands out when compared to many of its competitors. Some of its major advantages are that it has good payroll and personnel administration, it’s a powerful tool for maintaining company data, and has valuable SuccessFactors talent modules. 

    According to Dave D., Project Manager at Telecom Namibia, “[SAP HCM] allows us to do all of our HR management processes, including payroll and personnel administration.” He also adds, “Technical support is excellent."

    “I think that it's a very powerful tool for maintaining your company data. When you maintain your data in SAP, you can generate any kind of HR report with one click,” says Sameer Y., Team Leader at Fauji Meat Limited.

    Another PeerSpot reviewer, Arsala A., SAP HCM / SF Consultant at a computer software company, explains what she likes most about SAP HCM: "Payroll processing is my favorite HCM feature, and I like all the SuccessFactors talent modules also. SAP is making good progress on enhancements to the features in the SF modules."

    SAP SuccessFactors is a valuable human resource management system (HRMS) solution that streamlines numerous HR tasks and activities, such as payroll, talent management, and people processes, to help make the entire HR process run more smoothly and improve the overall employee experience. It is primarily developed to meet the needs of enterprise-class organizations. SAP SuccessFactors can also help users to boost business processes and achieve desired outcomes.

    SAP SuccessFactors is cloud-based and built as a Software as a Service (SaaS) tool. It can integrate seamlessly with any existing ecosystem. This solution can easily be accessed from any web browser, from any location, with any device.

    SAP Success Factors Key Features

    • Improve core HR and payroll process: SAP SuccessFactors can help users improve productivity by simplifying everyday tasks, streamlining processes across the organization, establishing consistent business practices, and improving the bottom line by reducing risk. SuccessFactors core HR tools include time and attendance, payroll management, document management, and additional core HR services to meet regulatory and compliance needs.

    • Staff planning and HR analytics: SuccessFactors can facilitate an improved DE&I (Diversity, Equity, and Inclusion) environment using intuitive people data measurements. The solution can help create action plans to ensure that hiring goals are met in a timely manner, preventing critical staffing gaps and ensuring that productivity and profitability goals are consistently being achieved.

    • Employee welfare management: SuccessFactors allows users to respond in a timely manner to employee needs and concerns, to better understand employee motivations, to keep employees happy and involved, to specify employee dissatisfiers, and to help improve the overall employee experience. The solution will also facilitate employee performance using an intuitive holistic approach, improve employee benefits, and guide and administer the entire employee career growth. SuccessFactors provides valuable opportunities for employee growth through intuitive individualized learning and career development opportunities. It also rewards and recognizes good performance and provides pathways for successful career growth. The solution will help to attract and retain the best available talent in the marketplace.
    • Succession Planning: The solution can be used to assist with talent sourcing, candidate management, and improving the overall candidate experience to include new hire onboarding, offboarding, and more. SuccessFactors also provides action plans for performance and compensation management, education and career development, talent reviews, leadership planning, and even sales performance management, goal setting, and quotas.

    Reviews from Real Users

    “We are using it for a lot of things: HR, performance management, and learning management. There are a lot of features embedded in SuccessFactors. We recently implemented a learning platform that employs the individual staff to actually manage their own learning. They can do it at their own pace. SuccessFactors allows you to manage your team, have calibration for promotion, and you can generate reports and see how you're doing.” - Alaba O., IT Asset Management Lead at Dangote Industries Limited

    “SuccessFactors Talent Management tools help us in managing the entire employee journey. HR and managers can use the succession and development tool to create career paths and staff development plans. When combined with the learning tool, these development objectives can help employees gain the skills they need to advance their careers within the company.” - Yamen Z., SAP Project Manager at a manufacturing company

    Sample Customers
    City of Cape Town, ADAMA Agricultural Solutions Ltd., TransAlta Corporation, Keolis, PT XL Axiata Tbk, National Football League (NFL), Plan International, Yoh, A Day & Zimmermann Company, China Talent Group (CTG TMO), Umicore S.A., Butterfield Bank, Skrill Group Ltd.
    City of Cape Town, ADAMA Agricultural Solutions Ltd., TransAlta Corporation, Keolis, PT XL Axiata Tbk, National Football League (NFL), Plan International, Yoh, A Day & Zimmermann Company, China Talent Group (CTG TMO), Umicore S.A., Butterfield Bank, Skril
    Top Industries
    REVIEWERS
    Energy/Utilities Company19%
    Computer Software Company13%
    Manufacturing Company6%
    Hospitality Company6%
    VISITORS READING REVIEWS
    Computer Software Company14%
    Manufacturing Company9%
    Financial Services Firm8%
    Retailer6%
    REVIEWERS
    Manufacturing Company26%
    Computer Software Company17%
    Financial Services Firm9%
    Comms Service Provider8%
    VISITORS READING REVIEWS
    Educational Organization45%
    Computer Software Company8%
    Manufacturing Company6%
    Financial Services Firm6%
    Company Size
    REVIEWERS
    Small Business27%
    Midsize Enterprise10%
    Large Enterprise63%
    VISITORS READING REVIEWS
    Small Business21%
    Midsize Enterprise16%
    Large Enterprise63%
    REVIEWERS
    Small Business22%
    Midsize Enterprise15%
    Large Enterprise63%
    VISITORS READING REVIEWS
    Small Business10%
    Midsize Enterprise50%
    Large Enterprise39%
    Buyer's Guide
    SAP HCM vs. SAP SuccessFactors
    May 2024
    Find out what your peers are saying about SAP HCM vs. SAP SuccessFactors and other solutions. Updated: May 2024.
    772,422 professionals have used our research since 2012.

    SAP HCM is ranked 3rd in Cloud HCM with 48 reviews while SAP SuccessFactors is ranked 1st in Cloud HCM with 90 reviews. SAP HCM is rated 7.6, while SAP SuccessFactors is rated 7.8. The top reviewer of SAP HCM writes "Allows you to generate reports, easy integration and offers out-of-the-box support". On the other hand, the top reviewer of SAP SuccessFactors writes "Offers many useful modules and integrations, and helps companies adhere to best practices". SAP HCM is most compared with Workday, Oracle HCM Cloud, ADP GlobalView Payroll, PeopleSoft and UKG, whereas SAP SuccessFactors is most compared with Workday, Oracle HCM Cloud, PeopleSoft, UKG and Cornerstone Learning. See our SAP HCM vs. SAP SuccessFactors report.

    See our list of best Cloud HCM vendors and best Talent Management vendors.

    We monitor all Cloud HCM reviews to prevent fraudulent reviews and keep review quality high. We do not post reviews by company employees or direct competitors. We validate each review for authenticity via cross-reference with LinkedIn, and personal follow-up with the reviewer when necessary.