Cost Savings And Business Benefits Enabled By SAP SuccessFactors HCM Solutions
The SAP SuccessFactors HCM (human capital management) suite of solutions includes cloud-based human resources software that integrates to create a complete HCM system. It helps streamline HR processes, improve recruitment and retention, train and reskill the workforce, and take advantage of technologies such as AI and machine learning.
The SAP SuccessFactors HCM Suite includes the following solutions: Core Human Resources and Payroll, Time and Attendance management, Learning and Development, Performance and Compensation, Recruiting and Onboarding, and Workforce Planning and Analytics.
SAP SuccessFactors commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and objectively examine the potential return on investment (ROI) medium-sized customers may realize by deploying its SAP SuccessFactors HCM solutions. The purpose of this study is to provide readers and prospects with a framework to evaluate the potential financial impact of the SAP SuccessFactors HCM solutions on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester conducted in-depth interviews with four medium-size customers, each with between one and 10 years of experience using various solution components of SAP SuccessFactors HCM. For this TEI study, Forrester has created a medium-sized composite Organization to illustrate the quantifiable benefits and costs of a medium-sized customer investing in SAP SuccessFactors HCM. Based on characteristics of the interviewed customers, the composite Organization is a medium-sized enterprise in the products and services business. It has operations in one country and has 1,200 employees. It has been using SAP SuccessFactors HCM for three years to integrate its people-related business process activities. It started with the following solutions in Year 1 (ramp year for benefits): Employee Central and Payroll, Recruiting and Onboarding, and Performance, Goals and Compensation. In Year 2 it rolled-out the Learning, Succession and Development solutions. For more information, see the section titled The Composite Organization.
Key Findings
- Quantified benefits. The composite medium-sized Organization experienced the risk-adjusted present value (PV) quantified benefits and cost savings of the following services totaling $1,907,433 over a three-year period:
- Employee Central and Payroll: $402,397.
- Recruiting and Onboarding: $417,487.
- Performance, Goals, and Compensation: $462,756.
- Learning, Succession, and Development: $624,793.
- Costs. The medium-sized Organization experienced the following costs:
- Internal labor to plan and deploy SAP SuccessFactors: $55,000.
- Incremental hardware, database and operating system license, and maintenance: $0. The medium-sized Organization incurred none of these costs with the SAP SuccessFactors cloud solution.
- SAP SuccessFactors subscription fees: $394,692.
- SAP Preferred Success fees: $78,938.
- Ongoing internal administrative and management labor for SAP SuccessFactors: $405,000.
- Partner fees for professional services implementation assistance – variable.
