Category All, Best Practices SuccessFactors Add-ons that Grow Employee Satisfaction Discover why SAP’s SuccessFactors is the next progressive step for transforming HR practices into up-to-date operations and what add-ons help to enhance the employee experience further. August 10, 2022 By Ravijojla Novakovic Introduction SAP SuccessFactors is a cloud-based HXM (Human Experience Management) software suite that helps to shape a modern workplace by merging the most recent developments in HR with the latest technology. SAP SuccessFactors is classified into 4 categories that each cover an essential HR area: employee experience management, core HR and payroll, talent management, and HR analytics and workforce planning. Employee experience management pertains to an individual approach to employees’ workplace experiences, aiming to improve employee experience, keep employees engaged by responding to employee needs and engagement drivers, and identify experience gaps. Core HR and payroll is an HRIS software that allows HR managers to create and optimize HR processes in order to increase productivity, organize HR operations and people data, manage global payroll, centralize document management and streamline attendance management. Talent management is about managing employee journeys, creating career pathways, highlighting talent skills, and building agility via optimization of performance, ensuring that the organization’s workforce is guided and valued. Every step of the employee journey, from recruiting to employee exit, is well-defined and covered for a seamless employee experience. Finally, HR analytics and workforce planning deal with comprehensive planning and analytics that provide employers with data-driven insights needed for informed decision-making when it comes to the risks and opportunities and future-proofing an organization’s corporate strategy. What’s the difference between SAP’s SuccessFactors and SAP HCM? While both solutions are SAP-owned (SAP acquired SuccessFactors in 2012), and they are both excellent at helping companies solve their HR headaches with an extensive HRMS (Human Resource Management System), here we outline a few major differences. Cloud Vs. On-site While SAP’s SuccessFactors is a cloud service, SAP HCM (Human Capital Management) is on-site. SAP HCM, also referred to as the SAP Human Resource (HR) and SAP Human Resource Management System (SAP HRMS), is an on-premise solution, meaning it is installed locally on hardware that is kept on the business’ premises. It is fully customizable, meaning to make any changes to the solution so that it fits the client’s needs perfectly; the programmer(s) need to write code to customize it. This is time-consuming and ultimately risky because each new update carries a risk that the code applied to the solution may not fit perfectly. SAP SuccessFactors uses SAP’s HANA Cloud to store data, and users can simply use any browser to access its service. It is less customizable, but it’s highly configurable. It is easier to set it up, and its deployment is less costly and less time-consuming. To further fit the client’s needs perfectly, clients can find an add-on that directly addresses their requirements. Since SAP HCM is an on-site solution, it’s understated that it needs dedicated IT personnel with the necessary skills to upkeep it. In turn, SuccessFactors comes with extensive support from SAP. Also, being a cloud solution, SuccessFactors scores better on scalability functions, depending on company needs. Further on, SAP announced that it will discontinue its maintenance commitment for SAP HCM by 2040. HCM Vs. HXM Even SAP terms its SuccessFactors a ‘next evolutionary step’, signifying that SuccessFactors is more progressive and more fit for modern times. The reason is not only the different technology used to build these two solutions, but also the difference between the terms: Human Capital Management vs. Human Experience Management. Both approaches to managing employees see employees as valuable assets, but Human Capital Management is an older concept. The term human capital dates back to the 17th century, but HCM in practice started only towards the end of the 20th ct. As defined by Baron and Armstrong (2007), HCM refers to: “obtaining, analysing and reporting on data which informs the direction of value-adding people management strategic, investment and operational decisions at corporate level and at the level of front-line management.” Human Experience Management goes a step further; it is employee-centric, and focuses on employee experiences, making sure that all employee-employer points of contact are smooth and seamless. Hence, it is referred to as ‘the next evolutionary step’ because HR theory and practices evolve, as companies realize the value in treating employees as if they are their customers. Different features SAP SuccessFactors is a complete cloud-based HCM solution that offers wide coverage of core HR functionalities with a greater focus on Employee Experience and what matters to employees. SuccessFactors include some features that can’t be found in SAP HCM: E-recruiting, Onboarding processes, Compensation, Performance and Goals learning, Employee Central, Succession and Development, SAP JAM, and Analytics. Additionally, a cross-module reporting and analytics feature is especially valuable for data-driven decision-making processes. This makes SuccessFactors a one-stop shop for all the HRMS company needs, that can be even further enhanced with the use of add-ons. It’s important to note that despite these differences, ultimately, the choice depends on company needs. Since SAP HCM is highly customizable, that may work better with some organizations, as SuccessFactors is based on best practices and standardized methodology. ➵ What is an HCM system? Find more about it here. How do we use SuccessFactors add-ons to improve employee satisfaction? As we’ve just outlined, SuccessFactors is already geared towards placing employees in the central spot, ensuring HR processes are working for them, as well as for the company’s goals. The great asset of cloud-based SuccessFactors is that this can be further fine-tuned, to address the specific needs of organizations. Since SuccessFactors is built as a scalable, configurable, cloud-based software as a service solution that can be further augmented by various need-specific add-ons (plugins). We define employee satisfaction as a measure of employees’ satisfaction at their workplace. This measure is affected by many monetary and non-monetary variables, including total rewards, life and work balance, compensation, various perks and incentives, company culture and values, growth opportunities, and so on. These variables are changing, and nowadays, we’re experiencing the employees’ market: an era characterized by the great reshuffle/resignation and increased employee needs and demands from their employers. In line with the HXM principles and according to AIHR, employee satisfaction is measured by several key metrics: employee turnover rate – refers to the number of employees who leave an organization within a specific time frame. employee absenteeism – is a number of employee unexcused absences within a specific time-frame Glassdoor rating – is a user-generated score that employees use to rank companies based on how it feels working for them ESI (employee satisfaction index) – is calculated based on targeted employee surveys that specifically focus on employee satisfaction eNPS (employee net promoter score) – refers to the rate at which employees would recommend the company as a desired place to work To measure and improve these metrics, the next step is to select the add-ons that target these metrics directly. Here it’s important to mention that the benefit of using add-ons from the HXM perspective is that end-users, the employees, don’t need to exit the host program, SuccessFactors, in order to use the add-on and benefit from its features. Perfectly tailored add-ons meet the users in their workflow, ensuring an exceptional employee experience. 6 Great Add-ons for SuccessFactors While SuccessFactors applies a wholesome approach to HRMS, some of its functionalities can be personalized and highlighted by the use of well-chosen add-ons that deal with the desired function specifically. SAP’s store offers a wide selection of tools. We’ve selected 6 add-on applications that will enhance your company’s efforts to improve employee satisfaction; read on to find out what they are. 1. JDMS® | Job Descriptions Made Simple A job description is a crucial aspect of talent attraction. The employee journey starts with the job description, and nothing matters more than getting off on the right foot. Wrong wording or tone and vague outlines of requirements may deter the very candidates you’re after. JDMS add-on helps recruiters simplify their processes around job descriptions, keeping the add-on synced with SuccessFactors for instant availability of updated data. The approval-based integrated language translation tool makes this app stand out from the rest, which helps large companies with multilingual workforces navigate between different versions of job descriptions. 2. Work Zone Work Zone is SAP’s own add-on for creating digital workplaces that allows end-users to access various business applications, data, processes and communications from a single entry point. Work Zone allows companies to create seamless digital environments that enhance digital employee experience and make it easier for employees to collaborate, and work smarter from anywhere. The unique selling point of this app is about unifying various disconnected tools into one virtual space. The best of all is that it’s seamlessly integrated with SuccessFactors, pulling any relevant data from core HRIS as soon as needed. The add-on is further integrable with Microsoft Office 365, Microsoft Teams, Google tools, and Qualtrics. 3. BTC My Timesheet BTC My Timesheet is an add-on dealing with time recording, providing employees with an opportunity to record times on the go, fastly and hassle-free. It’s great for organizations with a workforce that doesn’t work exclusively in the office and that work on the inclusion of the entire workforce, regardless of where and how they work. This add-on is useful because it is possible to access it on several devices, lessening the chance of data loss and accessibility challenges when working away from the office. Since it is immediately synced with SuccessFactors, organizations benefit from tracking employee timesheet data across the organization. 4. 360° Beyond WorkLife Once employees exit, they still have plenty to do with your company. Having the knowledge and experience from working in your company can make these employees your best ambassadors or worst nightmare – negatively influencing a pool of skilled talent your organization needs. In order to keep good relations with your employees, it’s best to keep them on your good side. Supplying ex-employees with timely and relevant information they might need from you is one way of ensuring a seamless employee experience even after they’ve stopped working for you. 360° Beyond WorkLife is an add-on that provides ex-employees with a service portal that allows them to access their employee information, such as tax data, pay slips, pensions, and more. Since this portal is self-service, it effectively lessens the time your active HR employees spend servicing the ex-employees. Additionally, a certain number of ex-employees might decide to return to work for you, and these hires will adapt quicker than entirely new hires who need training from scratch, saving organizations time and money. 5. Fairpay® Equity Analytics: Wage Gap Insights Is DEI high on your value list? If so, your organization may greatly benefit from using an add-on that detects wage gaps across the workforce and helps to achieve pay equity for all employees. Fairpay® Equity Analytics: Wage Gap Insights provides organizations with actionable people and pay analytics. Since it is integrated with SuccessFactors, it pulls employee data instantly and highlights the instances where similar roles are rewarded differently. The add-on allows fragmentation of the workforce per group so as to track the consistency of pay rises and shows which groups are being left behind so that employers act accordingly and leverage their DEI efforts. 6. JobPts JobPts is an employee recognition and rewards software that enables organizations to boost their company culture and significantly improve employee satisfaction. With this appreciation tool, companies tackle employee absenteeism and turnover with social recognition (peer-to-peer recognition) that speaks to the deepest desires of every human being, the need to belong and be recognized for their excellent efforts. JobPts is the ideal tool for capturing and highlighting crucial Moments that Matter, which in turn strengthens workplace relationships and creates a culture of belonging. The end-goals of JobPts add-on are increased employee engagement, improved retention rates, stronger workplace relationships and trust among coworkers, and improved employee wellbeing and loyalty – all factors directly impacting the companies’ bottom line. ➵You can learn more about Job Pts for free. Sign up for a demo. Conclusion To help organizations decide which system works better for them, we’ve outlined the main differences between SAP’s SuccessFactors and SAP HCM. Depending on the organization’s needs, it may decide to choose between an on-site (HCM) and a cloud-based solution (SAP’s SuccessFactors). While both products serve companies’ HR and strategic business goals beyond reproach, this article focused on SuccessFactors’s scalable and highly integrable solution. We’ve singled out 6 add-ons we find most helpful in enhancing companies’ core HRMS from the employee satisfaction point of view. SuccessFactors is indeed the next evolutionary step for companies looking to place their employees at the center. SuccessFactors makes companies adept at competing in the hunt for talent while improving company agility, flexibility, and efficiency. With the help of add-ons, companies target areas that are crucial for their specific needs and elevate employee satisfaction to new levels, keeping the workforce content, productive, and most importantly, not looking for other opportunities. Companies looking to keep pace with the shifting workplace dynamics can expect more future HR tech stack customization. Since the war for talent is here to stay in the foreseeable future, getting onboard the new technology is better now than tomorrow, before other thriving companies take advantage of the HR tools at their disposal.