What is SAP SuccessFactors

Are you wondering what is SAP SuccessFactors? No more wait! This is the right blog to learn what is SAP SuccessFactors. This blog covers what is SAP SuccessFactors, its benefits and features, various components, and much more. Also, you will learn about the different deployment models and integration factors of SAP SuccessFactors. Once you complete reading this blog, you will undoubtedly understand what is SAP SuccessFactors, how it works, and its applications in a detailed way

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Gone are the days – HR teams merely focus on recruitment, employee attendance, payroll management, and other HR operations. Today, HR teams employ effective strategies and tools to transform human potential into the best business outcomes. To achieve that, the teams use advanced tools to simplify recruitment and onboarding, optimize HR operations, manage employees, etc. This way, they help to increase employee performance and enhance business outcomes.

Of the many tools that HR teams use for optimizing HR operations, SAP SuccessFactors is a noteworthy and robust tool widely used globally. It is a cloud-based tool that HR teams use to simplify HR operations and drive the teams to work efficiently. Curious to know – What is SAP SuccessFactors? This blog will help you.

This blog aims at uncovering what is SAP SuccessFactors, its features and benefits, SAP SuccessFactors software components, deployment models, and a lot more along the road. Once you complete reading this blog, understanding SAP SuccessFactors is a cakewalk.

Okay! Without any further ado, let’s jump into the blog.

Table of Contents

What is SAP SuccessFactors?

Essentially, SAP SuccessFactors is a cloud-based Human Capital Management (HCM) software. It is a Software-as-a-Service (SaaS) product with which you can effectively streamline employees’ recruitment, performance appraisal, payroll, and skill development processes.

Know that SAP SuccessFactors is a robust tool widely used by large-scale organizations. No wonder SAP SuccessFactors is being used by around 220 million users all over the world, currently.

With SAP SuccessFactors, you can smoothen out new employees’ onboarding and create a positive work atmosphere from the very moment they step into the company. This software also encourages employee engagement and triggers agility in companies. Besides, you can quickly track the performance of employees and motivate them to boost individual employee performance and business performance.

It is extremely important to note that you can make analytics by analyzing the employee data deeply and gaining insights from the analytics and reports. The insights will help you draw solid conclusions and drive your business to grow better. In short, SAP SuccessFactors software speeds up HR operations and boosts productivity.    

We hope that you should have got some good ideas about SAP SuccessFactors right now. Next, we will get to know the benefits of SAP SuccessFactors in the following section.

If you want to enrich your career and become a professional in SAP SuccessFactors, then enroll in "SAP SuccessFactors Training". This course will help you to achieve excellence in this domain.

Benefits of SAP SuccessFactors

The benefits of SAP SuccessFactors software are plenty. By embracing SAP SuccessFactors, you can optimize HR operations, automate mundane tasks, and eventually improve performance.

Let’s outline the benefits below one by one.

  • Streamlines HR Operations

With SAP SuccessFactors, you can streamline the HR operations such as sourcing candidates, recruitment, attendance, payroll processing, employee benefits, talent management, and many more.

  • Simplifies Goals Management

With the help of SAP SuccessFactors, employees can set their professional goals. Not only that, they can track the progress tightly and adjust plans based on that.

  • Accelerates Recruitment process

SAP SuccessFactors speeds up end-to-end recruitment processes. Also, it helps HR professionals efficiently manage candidates' profiles and records.

  • Smoothens out Onboarding

SAP SuccessFactors facilitates a smooth onboarding process for new employees. Also, it drives HR teams to organize and track the effectiveness of training programs efficiently.

  • Improves Performance Management

This is one of the significant benefits of SAP SuccessFactors. This software lets you identify and appreciate talents at the right time. The metrics created by the SAP SuccessFactors help employees find where they stand right now regarding their performance. Also, the software helps point out the areas where they must improve.

  • Reduces Costs

By embracing SAP SuccessFactors, you can reduce IT infrastructure expenses significantly. Also, the software speeds up all HR operations, reducing time and improving productivity.

  • High Scalability

As SAP SuccessFactors is a cloud-based tool, it provides excellent scalability to its users. So you can increase the size of resources seamlessly.

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Key Features of SAP SuccessFactors

SAP SuccessFactors comes with many vital features that make the tool robust and efficient.

Let’s take a close look at the features in the following.

  • SAP SuccessFactors provides a holistic Human Capital Management (HCM) suite to accelerate HR operations
  • SAP SuccessFactors simplifies recruitment operations as well as onboarding
  • By leveraging SAP SuccessFactors, companies can make global-level operations seamlessly
  • It is the best tool that quickly adapts to the changing needs of HR operations.
  • With SAP SuccessFactors, you can generate reports on payroll timesheets
  • SAP SuccessFactors software supports employees’ learning and development processes in the best way possible.
  • SAP SuccessFactors is the software companies use to meet compliance and auditing requirements.

Check Out: SAP SuccessFactors Interview Questions

SAP SuccessFactors Components

Know that SAP SuccessFactors software is increasingly used by many large-scale companies only because of the effectiveness of its key components. The wide array of SAP SuccessFactors components or modules makes the software an excellent choice for simplifying HR operations.

success factors components

Let’s go over the components one by one in the following.

  • SuccessFactors Employee Central

It is one of the main components of SAP SuccessFactors software. This module includes many key functionalities that help to manage all the HR functions and eventually improve HR performance. Also, this component stores all the employee data, allowing you to view and manage the data easily. Also, you can generate insightful analytics and reports by analyzing the data in-depth.

The significant thing about this component is that it adjusts to the changing needs of today’s employees’ management and HR activities.

successfactors employee central

  • Performance and Goal Management

This SAP SuccessFactors module helps to measure the performance of employees. Based on the metrics, HR teams can pass their reviews and advice to employees. As a result, employees can enhance their performance. Not only that, they will align with the goals of their companies. Overall, this component is vital in improving productivity and business outcomes.

  • Employee Payroll

This SAP SuccessFactors module simplifies payroll processing with its automation capabilities. It manages various payroll processes such as gross-pay calculation, paychecks and deposit advice, gross-to-net calculation of paychecks, and many more. Also, this component performs data replication monitoring as well as payroll configuration effectively.

This SAP SuccessFactors component easily integrates with third-party solutions such as workforce software and Kronos time management. It empowers HR teams to speed up employee management and reduce time dramatically. Besides, this module helps to release payments on time.

  • Compensation

This SAP SuccessFactors module deals with various compensation types, basic pay and variable pay, bonuses, incentive plans, etc. With this component, you can make efficient compensation plans, feasible pay options, budgeting, and more. You can decipher the impact of compensations on budgets with the help of the real-time analytic capabilities of SAP SuccessFactors. Note that this component supports all types of currencies.

  • Work Zone

This SAP SuccessFactors module allows you to integrate multiple HR applications with SAP SuccessFactors. It integrates other SAP products too. The integration simplifies processes such as assigning tasks, communications, etc. Mainly, this component assists in configuring the templates based on users' needs.

work zone

  • Learning

SAP SuccessFactors' learning component allows employees to manage their learning process and self-development. With the help of this module, supervisors can recommend suitable courses to their team members, track their progress, and guide them neatly. In this regard, you can employ the To-do lists and status pods to track the progress of the learning process.

  • Visa and Permits Management

This SAP SuccessFactors component helps manage employment visas and work permits. It means this component assists employees, contractors, and dependents get their employment visas and permits. This module also sends notifications to users about the status of their applications for visas and permits. So it is easy to identify the bottlenecks and take the right measures based on that.

  • Recruiting

This SAP SuccessFactors component manages the end-to-end recruiting processes, such as sourcing, communicating, and hiring candidates. This module simplifies the hiring process by employing three core modules. The modules are recruiting management, recruiting posting, and recruiting marketing.

The recruiting management module is essentially a collaborative recruiting management platform. The next one, the social recruiting marketing platform, has an SEO-based career site builder. Recruiting posting is a module that helps HR teams to post job requirements on various job portals.

  • Analytics and Reporting

This SAP SuccessFactors module combines financial and operational data. This module supports analyzing data and gaining helpful insights. As a result, you can make data-driven solid decisions. Additionally, you can create supply and demand forecasting accurately with this module.

History of SAP SuccessFactors

The company SuccessFactors was founded by Lars Dalgaard in 2001. The company became public in 2007 by joining the NASDAQ global market. After that, it acquired five other companies within ten years, strengthening its cloud business.

SAP acquired SuccessFactors for 3.4 Billion USD and renamed it SAP SuccessFactors in 2012. This acquisition made SAP a big shot in the SaaS business. Later, SAP SuccessFactors was empowered by the addition of crucial features such as workforce management and attendance management in 2015. 

SAP SuccessFactors – Deployment Models

SAP SuccessFactors software offers four types of deployment models, as shown below:

  • Talent Hybrid

You will apply this deployment model when you use on-premise SAP ERP or SAP S/HANA to perform HR operations. You will use the tools in addition to the SAP SuccessFactors HCM Suite for managing talents.

  • Full-Cloud HCM

You will implement this deployment when the SAP SuccessFactors HCM suite is fully involved. You can make this deployment when you include the employee central payroll. This is undoubtedly the best deployment model for new users of SAP SuccessFactors.

  • Core Hybrid

You will leverage this deployment model when you use an employee central component in the cloud. This deployment doesn’t depend on the SAP SuccessFactors HCM Suite applications.

  •  Side-by-Side

Applying this deployment model allows you to run Employee Central and SAP ERP HCM in parallel. With this model, you can synchronize data between two systems. At the same time, you can maintain the individual master system as well.

SAP SuccessFactors– Integration Factors

Let’s go through the integration factors of SAP SuccessFactors software.

  • Compensation Data

It is a process that helps to transfer data from SAP HCM to SAP SuccessFactors. Also, you can transfer planned data by using this process.

  • Evaluation of data

It is a process in which employees’ pre-hired data are transferred from SAP HCM to SAP success factors. Once SAP SuccessFactors evaluates it, the confirmation to hire an employee is done.

  • Employee Data

It is a process of transferring employees and company-related data from SAP HCM to SAP SuccessFactors. This transfer also helps to manage talent management effortlessly.

Check Out: SAP HCM Interview Questions

Who can use SAP SuccessFactors?

SAP SuccessFactors is typically helpful for large-scale organizations. In other words, companies that have more than 2000 employees can leverage SAP SuccessFactors to optimize their HR operations. Suppose small-scale companies employ SAP SuccessFactors; they cannot utilize the software's core options, such as payroll and time management.

SAP SuccessFactors Career Opportunities

SAP SuccessFactors is increasingly being used by big companies all across the world. Companies that plan to bring in digital transformation in HR operations embrace SAP SuccessFactors without a doubt.

The significant thing is that the number of companies adopting this software has risen. That's why the demand for SAP SuccessFactors consultants is also increasing in parallel. So this is undoubtedly the right time to make a career in SAP SuccessFactors.

More importantly, in India, SAP SuccessFactors consultants earn a salary package of 7 LPA on average. In the USA, consultants earn an average salary package of around 86,909 USD annually.  

Challenges associated with SAP SuccessFactors

We all know that every coin has two sides. Similarly, every software or tool has certain minuses and many pluses. SAP SuccessFactors also has some drawbacks, which will be below.

  • The implementation cost of SAP SuccessFactors is very high
  • Customization is not simple.
  • Users must undergo rigorous training to get familiar with the software
  • Most of the features cannot be used frequently.
  • Reporting features require additional costs.


1. What do you mean by SAP SuccessFactors?

SAP SuccessFactors is a cloud-based SaaS product with which you can streamline HR operations, simplify recruitment and onboarding, employee management, and many other things. In short, you can simplify HR operations and boost productivity with the help of SAP SuccessFactors.

2. Who can use SAP SuccessFactors?

HR professionals can use SAP SuccessFactors to streamline their HR operations.

3. What are the vital benefits of SAP SuccessFactors?

  • With SAP SuccessFactors, you can manage global-level HR operations effortlessly
  • Recruitment and onboarding are simplified with SAP SuccessFactors
  • Payroll and employee management are simplified with SAP SuccessFactors
  • With SAP SuccessFactors, you can satisfy compliance and auditing requirements

4. Name the modules of SAP SuccessFactors.

  • Employee Central
  • Employee Central Payroll
  • Performance and Goals
  • Recruiting
  • Compensation management
  • Learning
  • Succession and Development
  • Analytics and Reporting

5. What about the future of SAP SuccessFactors?

SAP SuccessFactors is a SaaS-based software increasingly used to optimize HR operations worldwide

6. What type of cloud platform is SAP SuccessFactors?

SAP SuccessFactors is a SaaS-Based cloud platform.

7. Name the three deployment models of SAP SuccessFactors.

  • Talent hybrid
  • Full-cloud HCM
  • Sidebyside HCM

8. Is making a career in SAP SuccessFactors good?

Of course! It is a wise idea. SAP SuccessFactors is the software big companies use to streamline their HR operations. If you pursue a career in SAP SuccessFactors, you will have a bright future.

9. What do you understand by SAP SuccessFactors LMS?

SAP SuccessFactors LMS is a learning management solution that helps managers recommend courses to their team members and track their progress closely.

10. What do you use workflow in SAP SuccessFactors?

Workflows in SAP SuccessFactors automate HR processes and increase the effectiveness of operations.


It’s time to wrap! You must have gone through what is SAP SuccessFactors and its benefits, features, and components of SAP SuccessFactors in this blog. Besides, you should have gained a sound idea of SAP SuccessFactors deployment models and integration factors. This blog might have given you a clear picture of SAP SuccessFactors and its applications.

Further, if you want to improve your knowledge of SAP SuccessFactors, you can go through professional training. MindMajix is the leading e-course provider that offers advanced courses in SAP SuccessFactors. So you can join a course and get certification. It will be a big plus for you to make a career in SAP SuccessFactors.

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Last updated: 12 Dec 2023
About Author


Madhuri is a Senior Content Creator at MindMajix. She has written about a range of different topics on various technologies, which include, Splunk, Tensorflow, Selenium, and CEH. She spends most of her time researching on technology, and startups. Connect with her via LinkedIn and Twitter .

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