SAP SuccessFactors Review: Is It Right for Your Business?
Charlette has over 10 years of experience in accounting and finance and 2 years of partnering with HR leaders on freelance projects. She uses this extensive experience to answer your questions about payroll.
Robie has more than five years of content writing experience and specializes in writing about payroll and human resources software for small businesses.
This article is part of a larger series on Payroll Services.
SAP SuccessFactors is a robust human capital management system that helps midsize to large business and global companies manage their HR and payroll process. Most of its modules require a minimum of 100 employees, although global payroll requires a 500-employee minimum. With SAP, you can onboard your employees, pay them, help them track their work goals, and even train them. Global payroll and local compliance support are also available.
What We Like
- Full-featured platform with modular HR solutions; you can select features that you want
- Global HR and payment processing
- Professional services and 24/7 year-round support
- Seamless integration with SAP products
What's Missing
- Pricey for small organizations
- Some modules have employee minimums (typically 100); global payroll requires at least 500 employees
- Third-party software integrations may require professional services
- Training and IT support may be required for successful implementation
Deciding Factors
- Ease of Use: It has a slightly steep learning curve, but if you have prior experience using other SAP products, then it is relatively easy to use.
- Pricing:
- Small businesses will find SAP expensive. It’s ideal for midsize to large companies that don’t have budget constraints and need advanced HR tools.
- SAP pricing is based on the solutions you need. You have to call the provider to discuss your requirements and request a quote.
- Based on the quote we received, annual licensing fees for its payroll solution start at $200,000 (this includes a one-time setup fee).
- Plan requirements: At least 100 employees for most modules (a minimum of 500 employees for its global payroll solution)
- Implementation and support services: Custom-priced; you can select from several professional services—from setup support to learning options and expert advisory services
- Setup timelines: Standard implementation takes around 12 to 20 weeks, depending on the solutions selected and the number of employees/system users that you have.
What We Recommend SAP SuccessFactors For
SAP SuccessFactors has a comprehensive human experience management (HXM) suite designed to streamline and automate basic to advanced HR processes—from hiring and pay processing to succession planning and performance management. While its all-in-one system may be too much for small businesses, it’s optimal for midsize to large businesses that don’t have limited budgets (SAP can be pricey) and plan to expand operations to other countries (it can handle global payroll).
In short, SAP SuccessFactors is best for:
- Businesses planning on hiring a global team: SAP can help companies expand their global workforce. In fact, it ranked as one of our top picks for international payroll services. It provides global payroll processing and localized legal, compliance, and employment support.
- Large companies with 1,000+ employees that are planning on hiring: SAP can provide the HR support needed by large companies; advanced recruiting, hiring, and onboarding tools are available, including time-saving automated processes. It is more expensive than your average software for small businesses, and large companies typically have the capital to cover the costs.
- Companies already using SAP solutions: If your company is already using SAP business tools, you can easily add additional integrated modules to create a complete HR solution customized for your business. The learning curve, which can be pretty high with this software, may also be easier to manage if you’re familiar with the way it works already.
When SAP SuccessFactors Would Not Be a Good Fit
- Small companies with few employees: Small companies don’t usually require the advanced HR services that SAP provides, which means the price tag isn’t worth it for them. If your company is small with basic operations and you only need a low-priced payroll system, check out our guide to the best free payroll software.
- Companies wanting to integrate SAP into other HR software: SAP is intended to work with other SAP solutions and thus operates as a complete all-in-one HRIS. Configuring integrations with other popular business software can be challenging or may need to be custom created. For HR software options that may integrate easier with outside software, check out our guide on the best HR software.
Looking for something different? Read our guide to the best HRIS/HRMS software for small businesses to find a solution that’s right for you.
SAP SuccessFactors Pricing
Since our Last Update:
We go into more detail on SAP’s pricing for its payroll solution, including the number of employees you need to purchase its modules.
SAP pricing is based on the number of employees you have and the solutions you need. It has a modular system that allows you to select the features you want, such as time tracking, payroll, analytics, and talent management. Additional solutions like system implementation, software training, professional services, and support plans cost extra.
Based on the quote we received, annual licensing fees for its payroll product start at $200,000 (this includes a one-time setup fee). You have to pay add-on fees if you want other modules, like recruiting ($3 per employee monthly) and performance management ($4.17+ per employee monthly).
You also have to meet the minimum employee count if you want to purchase SAP SuccessFactors modules. For most of its solutions, you need to have at least 100 employees. However, its global payroll tool requires a minimum employee count of 500.
SAP SuccessFactors Features
SAP SuccessFactors makes available a broad range of HR tools that together can create a complete HR solution with advanced recruiting, performance management, reporting, and attendance tracking functionalities.
Let’s explore some of SAP SuccessFactors’ most prominent HR features in-depth.
HR tools
SAP SuccessFactors provides comprehensive HRIS tools for companies with large and global operations. HR features include benefits and plan enrollment management, employee profiles and organizational charting, HR reporting and insight tools, compliance support, and talent management. You can access all features online and on mobile devices—provided an internet connection is available.
To help manage current and new employees, SAP SuccessFactors helps with storing employee information, recording life event changes (such as marriage), tracking benefits enrollment, and processing HR and tax documents. Employees can sign in to their profile and change their data when needed.
The talent management tools offered by SAP SuccessFactors are within an HR module that includes recruiting, onboarding, performance management, and compensation management tools. Growing companies can increase their chances of hiring qualified candidates by using its recruiting tools for sourcing and onboarding talent. If the employment agreement doesn’t work out, it also provides helpful offboarding services. To ensure employees continue to progress and turnover decreases, HR teams and managers can utilize its performance management and compensation tools.
Payroll processing
SAP SuccessFactors helps you run accurate payroll using automated processes, integrated time tracking tools, efficient time off and holiday rules, and tax compliance. It supports hourly, salaried, and contract workers, although there is no contractor-specific payroll plan. SAP payroll processing tools can also manage complex deduction scenarios such as retirement investments, garnishments, and benefits.
International payroll
SAP SuccessFactors helps businesses process payroll in 45+ countries. Aside from offering access to local experts who can provide support, SAP’s global payment services can help employers with local compliance, legal, and employment requirements to help avoid expensive non-compliance issues.
The system makes it easy to run global payroll efficiently, by separating access to each country’s payroll processing data.
PTO and time tracking
Time tracking and time off management tools seamlessly integrate with payroll processing and other HR modules to compute paychecks, deductions, and tax calculations. It also tracks the use of PTO and vacation time. And if you need employee scheduling, it has that feature too, albeit at an extra cost.
Managers can review employee time and PTO approvals using a mobile device. You can configure alerts and notifications to alert employees of tasks that may need to be taken care of, such as time-off requests.
Mobile apps for employees are available, allowing them to perform various time tracking functions. From the workplace or remote locations, employees can submit time worked, check time-off balances, raise PTO requests, access pay slips, and view other HR information.
PTO requests show clearly on SAP SuccessFactors’ mobile apps, with the employee’s name, reason for request, and date.
(Source: SAP SuccessFactors)
HR document management
Document management features that SAP SuccessFactors provides help decrease tedious work that HR teams are often burdened by. This HR software can automate the onboarding process, so new hires can review and e-sign HR and tax documents. It securely stores documents online, such as employee agreements and tax forms, using the highest security requirements. SAP document management tools can also be configured to monitor updates and changes. Managers can even enable employee access to documents via the employee portal.
With SAP SuccessFactors, you can upload employee documents, such as contracts and non-disclosure agreements, so they’re securely stored and easily accessible online.
(Source: SAP SuccessFactors)
SAP SuccessFactors Ease of Use
- 24/7 year-round telephone, chat, email, and community support
- Numerous paid support plans available
- Embedded, dashboard, and online support
- Training and deployment consulting services
SAP SuccessFactors has a big learning curve, especially if you’ve never used SAP software. Considering how complex this software is, especially if you need to integrate it with other solutions, it is recommended that new customers take advantage of professional services.
SAP provides numerous professional services for helping customers customize their solutions, implement and deploy the solution, train employees to use the software, optimize the reporting tools, and more. Online and in-person training is also available. Using its training and support solutions, most businesses can configure SAP SuccessFactors to fit their unique needs and manage the day-to-day use of the software with relative ease.
In terms of software integration, SAP SuccessFactors seamlessly connect with other SAP products. Given that SAP has been around for a while, it has created products that target nearly every corner of the market. Its comprehensive suite of solutions includes CRM, accounting and finance, people and talent management, travel and expense tracking, data management, asset management, and analytics tools.
Note, however, that some SAP products require the use of an integration package to set up APIs for custom integrations. There are also specific packages available for connecting its platform with third-party vendors, such as Kronos, IBM Kenexa, and WorkForce.
What Users Think About SAP SuccessFactors
Users Like | Users Don’t Like |
|---|---|
Automated processes | Cost prohibitive for small businesses |
Comprehensive suite of HR solutions | Interface not intuitive; has a slightly steep learning curve |
Easy-to-update employee profiles | Occasional software glitches |
Users who left SAP reviews online said that its HR tools overall made their daily work life more manageable. They commented that its organized employee database, time and PTO reporting tools, automated training features, performance management, and recruiting features are more advanced than similar HR software.
In terms of user interface (UI), some reviewers found the UI simple to use but others said that navigating through all its features can be confusing, especially for new users. Several users also complained about its integrations. They explained that while SAP SuccessFactors is designated to work with other SAP modules, it can be challenging to configure third-party integrations and requires working with SAP’s integrations team to create customized integrations.
At the time of publication, SAP reviews earned the following scores on popular user review sites:
- Capterra: 4 out of 5 based on 225+ reviews
- G2: 3.8 out of 5 based on around 530 reviews
- TrustRadius: 7.7 out of 10 based on nearly 30 reviews
Top SAP SuccessFactors Alternatives
 |  |  |
|---|---|---|
Best for: Companies planning to scale internationally | Best for: Businesses that want technical support and device management for international contractors | Best for: Startups working with foreign contractors or hiring refugees |
Base monthly fee from: $20 per employee for global payroll | Base monthly fee from: $18 per employee (includes payroll add-on) | Base monthly fee from: Free for paying contractors and refugees |
If you’re not sure which provider to get, read our guide to choosing the payroll solution or service that fits your business requirements.
Bottom Line
SAP SuccessFactors has a comprehensive HXM suite that efficiently handles the entire employee lifecycle—from hiring to retiring. Its advanced HR and payroll processing tools seamlessly integrate with other SAP solutions, such as finance and CRM tools, allowing you to manage key business processes with just one platform. Companies with offices and employees in countries outside the US can also benefit from SAP’s global HR and payroll expertise. This makes managing and paying global staff easy for employers.
Sign up for a SAP SuccessFactors plan today.
