Migrating from SAP HCM to SFSF: Advantages and Challenges

Dec 12, 2023
SAP | 4 min READ
Technological advancement has propelled organizations to streamline their workflows, including HR processes, in unprecedented and increasingly rationalized ways. A significant number of enterprises are already using SAP Human Capital Management (HCM) on S/4HANA to manage their HR operations, with usability expected till 2040.
Rajesh Nair
Rajesh Nair

SAP Practice Head


However, the focal point of SAP’s HCM transition strategy is SAP SuccessFactors (SFSF). The transition from SAP HCM systems to SAP SFSF offers a myriad of cloud advantages, such as:
  • Streamlined IT infrastructure
  • Reduced costs of ownership
  • Instant access to the latest SAP functionality
  • Innovative tools for the workforce to deliver the necessary value
  • Rapid scalability to address new business demands
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Without a doubt, SAP SFSF enables enterprises to empower their employees with advanced digital HR functionalities, self-service flexibility, and round-the-clock access to information.
Unveiling SAP SuccessFactors Functionalities and Advantages
The platform has three broad segments that offer substantial benefits in streamlining processes:
Core HR
The primary segment of Core HR is Employee Central, which stores and maintains employee master data. At the same time, Employee Central Payroll supports payroll calculations for 49 countries (with customization options for unsupported countries). The EC Payroll solution also includes a full range of functions for processing payrolls, such as employee pay calculation, tax compliance, and payroll reporting. It can manage sophisticated payroll rules and measures and supports many payroll scenarios, including hourly, salaried, and contract-based personnel.
Additionally, organizations can manage payroll calculations through SAP HCM and integrate them with SAP SuccessFactors.
Categorized into two core areas, Ask HR and HR Ticketing, the Employee Central Service Center fuels the management of HR and knowledge-based services. With various assessments, informational content, and activities for health improvement, Work-Life module helps employees track their well-being. Lastly, SAP SuccessFactors Diversity and Inclusion enables companies to build and maintain a diverse and inclusive global workforce by leveraging AI-ML technologies.
Talent Management
Within Talent Management, disparate components contribute to fostering a robust workforce. For instance, Performance and Goals helps organizations conduct meaningful employee appraisals and use objective principles to align employee goals with business goals. Similarly, Compensation Management involves access-controlled budgeting, calibration, compensation plans, and variable pay options.
The Recruiting module aids in selecting suitable talent, while Onboarding streamlines new hire processes, facilitates cross-boarding for employee transfers, and manages offboarding procedures. New hires access necessary documents through the New Hire Portal, while the HR team gains comprehensive insight into employee qualifications, skills, and work history.
In addition to the above, the Learning Management component integrates social and mobile features to optimize learning experiences and empower supervisors in creating personalized courses for team members. The suite includes Succession Planning and Career Development, which enable HR teams to identify high-potential individuals for critical roles and develop tailored plans for their growth. The Career Development Planning (CDP) module also simplifies learning management and career advancement activities.
Reporting and Analytics
Workforce Analytics enables strategic analysis, converting transactional data into a robust set of time-trending metrics and dimensions. With Workforce Planning, HR can also plan for vacancies, create new positions, and anticipate employee needs.
Navigating Challenges in Deploying SAP SFSF
Addressing the challenges inherent in deploying SAP SFSF requires a strategic approach. To navigate the technical intricacies of this robust platform, organizations can employ the following strategies:
  • Define clear functional scope: Given the range of modules and functionalities within SAP SFSF, opting for a precise functional scope can expedite deployment and minimize unnecessary expenses. Implementing the standard SFSF solution helps in adhering to project budgets.
  • Engage the right stakeholders: The complexity of SAP SFSF necessitates involvement from diverse hierarchical levels within the organization. Engaging a technology partner well-versed in both business processes and IT solutions can accelerate project success. Such partners also offer crucial ongoing support post-deployment.
  • Testing and user involvement: Transitioning from HCM to SFSF might alter the user experience. Comprehensive testing of common scenarios involving all stakeholders becomes imperative to ensure a smooth transition.
  • Training initiatives: While using SAP SFSF isn't inherently complex, ensuring maximum efficiency and swift ROI involves training the HR team, senior management, and other end-users as an integral part of the project implementation.
  • Continuous improvement: Even after the successful launch of SuccessFactors, ongoing technical tasks exist to maximize its efficacy. Consistent learning about the system, initiating new HR initiatives, and implementing best practices contribute to seamless improvements and enhanced platform utilization.
Maximizing Business Potential with SAP SFSF
SAP SFSF stands out as a comprehensive cloud solution, offering a spectrum of HR functionalities that deliver substantial value to businesses. These features not only drive digital innovation but also foster employee satisfaction, cost reduction, risk mitigation, and streamlined HR processes, ensuring superior outcomes. Empowered with enhanced HR capabilities, organizations can efficiently focus on optimizing workforce efficiency and accomplishing overarching business objectives.
That said, successfully migrating from SAP HCM to SFSF requires a profound understanding of business requisites and IT considerations. Collaboration with a technology partner aligned with SAP becomes pivotal, enabling organizations to swiftly adapt and customize functions as needed, ensuring agility and speed in operations.
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