Understanding HR system components: Explore SuccessFactors, the preferred choice of leading organizations.

Businesses worldwide are adapting to more changes than ever. Leading companies are handling these shifts using smart tools, and the top choice among them? It’s SAP SuccessFactors (or can be referred to as SAP SuccessFactors Core HR). This tool, with its main features – Employee Central, Employee Central Payroll, and Time & Attendance – is essential for today’s evolving business world.

1. What is SAP Success Factors?

SAP SuccessFactors, a leading cloud-based suite for talent management and human capital management (HCM) software, is revolutionizing HR operations globally. Launched in 2001 and acquired by SAP in 2012, this software as a service (SaaS) platform is pivotal in handling diverse HR functions like recruitment, employee performance, HR analytics, payroll, learning activities, and more. Known for its versatility and compatibility with various legacy systems, SAP SuccessFactors has evolved into the SAP SuccessFactors Human Experience Management (HXM) Suite, delivering individualized employee experiences.

SAP SuccessFactors is more than a tool – it’s a full HR solution. It includes important parts like Employee Central, Payroll, and Time & Attendance. Many companies around the world use it. This cloud-based system helps manage workforces everywhere, both locally and globally. It makes HR tasks simpler by putting them on one easy-to-use platform. This platform is accessible on various devices and locations.

It brings together key HR operations. This lets companies improve and grow their HR services all over. SAP SuccessFactors covers:

• Workforce management
• Recruitment
• Payroll management
• Time and attendance
• Legal compliance in over 95 countries
• Work visa management
• Organisational analysis
• Organisational reporting structures
• Service delivery

Now, SAP SuccessFactors is used by over 220 million people in more than 200 countries, translated to more than 40 languages.  It’s a leader in global HR management.

2. Reasons why top organizations choose SAP SuccessFactors?

From global giants like Microsoft Corporation and IBM to regional leaders such as Sun Group (Vietnam) and Deloitte (Vietnam), organizations worldwide, including in Vietnam, are opting for SAP SuccessFactors and its components.

Many companies pick SAP SuccessFactors for its solid benefits. We’ll look at these from two main angles:

1. Organizational Benefits:

• Streamlines tracking of key HR details across the workforce.
• Keeps pace with changes in business and staff.
• Models and visualizes the workforce, offering real-time, data-driven operational insights.
• Fosters a modern, attractive work environment for talented individuals.
• Boosts strategic decision-making, significantly impacting business performance.
• Promotes growth.

2. Workforce Benefits:

• Provides a high-quality, intuitive self-service experience.
• Simplifies access and management of benefits like pensions, reimbursements, allowances, and insurance, saving time and increasing job satisfaction.
• Enables easy recording of absences and attendance, giving employees instant, real-time data on overtime, premiums, and balances.
• Improves communication with HR via preferred channels.

3. Understanding the impact of SAP SuccessFactors in HR management for businesses

In today’s digital economy, integrating a real-time human resource management system is no longer optional but a critical component in the infrastructure of any business. According to Megawaty Khie, Vice President of SAP SuccessFactors for Southeast Asia, businesses are deploying SAP SuccessFactors for the substantial benefits it brings to their human resource systems. Some key advantages include:

• Creating positive work experiences: The onboarding program in SAP SuccessFactors helps new employees adapt quickly by pairing them with long-term employees as mentors. This helps businesses retain committed staff for the long term.
• Attracting and retaining talent: SAP SuccessFactors encourages ongoing dialogues between employees and managers, helping identify common goals. These conversations are stored in the system, forming the basis for future decisions, including pay raises and promotions, making the process transparent for all employees.
• Employee training: The ‘hire to retire’ strategy in SAP SuccessFactors focuses on training young, inexperienced staff for future senior positions, providing businesses with internal succession options instead of relying solely on external recruitment.
• Ensuring fair recognition: A transparent and effective performance evaluation system is crucial for employee dedication. SAP SuccessFactors addresses this by providing a clear framework for recognizing employee efforts and contributions.
• Building strong internal relationships: SAP SuccessFactors improves the employee work experience by gathering data to understand their needs and aspirations, ensuring they feel connected, supported, and empowered.

Additionally, businesses prefer SAP SuccessFactors for its superior features compared to other solutions:

• Faster deployment: Reduces operational and resource costs.
• High security: Dedicated hardware, storage systems, and networks for each client ensure maximum safety.
• Ease of use: Small and medium-sized businesses can easily update key performance metrics in real time, and users can quickly access necessary information.
• Customizability and future upgrades: SAP can be customized and upgraded to meet the evolving needs of a business.

4. The main functional modules of the SAP SuccessFactors solution

The immense benefits of the SAP SuccessFactors solution for HR systems in businesses are undeniable. These benefits stem from its comprehensive functional modules, effectively addressing lingering HR issues. Let’s explore the key functional modules of SAP SuccessFactors, each enhancing HR operations globally:

• Employee Central (EC): This core HR module offers a comprehensive HR system, covering organizational data, workforce data, and personnel changes, supported by self-service features for employees and managers. It also includes global benefits management and time and attendance tracking, ensuring global compliance and connecting employees worldwide.
• Recruiting: SAP SuccessFactors Recruiting helps build lasting relationships and find talented candidates. It enables recruiters to interact effectively with potential candidates, enhancing the recruitment experience and ensuring the right fit for the organization.
• Onboarding: The Onboarding module aids in creating engaging programs for new hires, reducing onboarding time, and fostering early connections, thereby increasing long-term employee retention.
• Learning: This module fosters a learning culture within organizations, attracting learners with innovative training experiences. It develops skills for the digital transformation era, enhancing workforce efficiency and business outcomes.
• Succession & Development: Featuring tools like Talent Search and Talent Pools, this module professionally builds a talented workforce. It ensures employees align with their goals through ongoing coaching and feedback and streamlines mentoring processes.
• Performance & Goals Management (PMGM): This module simplifies the creation, alignment, management, and measurement of corporate and individual goals. It facilitates goal setting and performance evaluation, aligning employee efforts with business objectives.
• Compensation: SAP SuccessFactors Compensation enables organizations to develop and manage salary and benefits in line with employee needs, business goals, and budgets. It ensures fair and equitable compensation, motivating optimal employee performance.

Each of these modules plays a crucial role in elevating HR practices with SAP SuccessFactors, making it a strategic ally for businesses and organizations worldwide in optimizing HR processes.

5. Practical application of the SAP SuccessFactors solution in businesses

The SAP SuccessFactors solution, with its diverse range of functional modules and capability to optimize and solve complex HR management challenges, has become a top choice for many domestic and international businesses. To date, numerous SAP SuccessFactors projects have been successfully implemented, demonstrating the solution’s practical effectiveness in addressing HR management challenges in businesses.

A representative from TH Group, Ms. Pham Thu Hien, shared in the seminar “Performance management – A difficult equation for businesses at the end of the year” that since the implementation of SAP SuccessFactors in 2018, significant improvements in key indicators have been observed: Overall productivity of the group has increased; HR management efficiency has improved, shortening internal approval times, and employee satisfaction indices have risen due to more streamlined management processes.

Also at the seminar, Ms. Ta Binh Minh, a Senior HR Solution Consultant at SAP Vietnam, affirmed that SAP SuccessFactors does not dictate the size of the business but depends on the organization’s development strategy. With its superior advantages and an optimized technology platform, this solution has been trusted and implemented for human resource development by large corporations globally. In Vietnam, major groups like SunGroup, Vingroup, TH Group, Coca Cola, Sacombank, VPbank, CMC Corporation, Novaland, Daikin, Shinhan, and others, are effectively using this technology.

In general, SAP SuccessFactors is a management solution designed to optimize the human resource systems of businesses. However, deploying this solution presents several challenges and requires reliable partners. As a partner of SAP Vietnam, Sphinx leads in providing Enterprise Management Consulting and Digital Transformation services. We commit to offering advisory and implementation services for SAP SuccessFactors that meet the HR management needs of various organizations, ensuring service quality and competitive pricing.