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SAP SuccessFactors

By Kinza Yasar

What is SAP SuccessFactors?

SAP SuccessFactors is a leading suite of cloud-based talent management and human capital management (HCM) software. Organizations use SAP SuccessFactors to manage various aspects of HR operations, including recruitment, employee performance, HR analytics, payroll and learning activities.

SuccessFactors was founded in 2001; SAP acquired SuccessFactors in 2012 to extend the cloud-based HCM functionality to enterprise systems. SAP SuccessFactors is based on the software as a service (SaaS) model. It is considered the next generation of HCM suites, and its latest iteration is called the SAP SuccessFactors Human Experience Management (HXM) Suite, which offers individualized employee experiences.

SAP SuccessFactors is compatible with various legacy frameworks. According to the SAP website, it's used by over 220 million users in more than 200 countries and territories around the world.

Key features of SAP SuccessFactors

The SuccessFactors suite includes a variety of talent tools divided into modules. The capabilities included in the suite cover the traditional four pillars of human resource management: recruiting, learning and development, performance management and compensation management. The suite also has onboarding and time and attendance software, as well as modules for workforce planning and people analytics.

The following are some of the most used HR and talent management modules included in SAP SuccessFactors:

History of SuccessFactors

Lars Dalgaard founded the company SuccessFactors in 2001. During its first decade, SuccessFactors acquired five companies to bolster its cloud-based offerings. SuccessFactors went public in 2007.

In early 2012, SAP acquired SuccessFactors for $3.4 billion and made it an indirectly wholly owned subsidiary. It was renamed SAP SuccessFactors. At the time, the acquisition was seen as a major effort by SAP to get further into the emerging SaaS business applications market.

Industry analysts viewed the SuccessFactors acquisition as a significant competitive move against Oracle, SAP's biggest rival in enterprise apps. Soon after, in April 2012, Oracle bought Taleo, a SaaS recruitment and talent management software developer, for $1.9 billion.

SAP SuccessFactors is headquartered in South San Francisco, Calif.

Benefits of SAP SuccessFactors

SAP SuccessFactors provides many advantages for HR departments, including the following:

Challenges with SuccessFactors

While SAP SuccessFactors provides a range HR capabilities, there are some areas that businesses should consider before transitioning to SuccessFactors.

Picking the right HR software can be a daunting process for most businesses. Take a look at popular HR software vendors and get more information on their pros and cons.

14 Nov 2022

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