Steve Goldberg's Analyst Perspectives

SAP SuccessFactors is a Product Leader in Total Compensation Management Value Index

Posted by Steve Goldberg on Apr 17, 2020 3:00:00 AM

Here are some insights on SAP SuccessFactors drawn from our latest Value Index research, which provides an 1-12analytic assessment of how well total compensation management vendors’ offerings address buyers’ requirements. The Ventana Research Value Index on Total Compensation Management 2020 is the distillation of a year of market and product research efforts by Ventana Research. We evaluated SAP SuccessFactors and six other vendors in seven categories, five product-related (adaptability, capability, manageability, reliability and usability) and two concerning the vendor (TCO/ROI and vendor validation). To arrive at the Value Index rating for a given vendor, we weighted each of the seven categories to reflect its relative importance in an RFP process, with the weightings based on data derived from our benchmark research on total compensation.

SAP SuccessFactors ranks sixth Ventana_Research_Value_Index_Total_Compensation_Management_2020_SAP_200127overall in this Value Index, though it achieves Value Index Leader status in four of the seven categories we evaluate— Usability, Reliability, Adaptability and Manageability. Thus, the vendor is also a Value Index Leader in our aggregate Product supercategory. The product allows customers to manage competitive compensation programs with capabilities to forecast and model base, bonus, and long-term incentive plans to find the optimal balance between competitive pay and affordability.

SAP ranks first in the Usability category due to the product’s highly engaging graphical displays of decision-support data and context. This includes compensation worksheets, profiles, budget allocations, forecasting and modeling, and its mobile just-in-time reward and recognition functionality. The product also provides strong compensation communications on bonus eligibility, potential payouts and the full value of rewards packages. Users can personalize rewards statements, project bonus payouts and manage global compensation budgets with central oversight while reflecting local market trends.

The vendor would have performed better in the TCO/ROI and Validation categories if it provided ample references, product-specific customer case studies and shared information on its level of business case and ROI support. In the Capability category, SAP SuccessFactors’ compensation product lags some other products evaluated in areas such as job matching and pricing against market benchmark data.

This research-based index is the most comprehensive assessment of the value of total compensation management software in the industry. You can learn more about our Value Index as an effective vendor selection and RFI/RFP tool here. Participating vendors can learn more about how to use the Value Index here.

Regards,
Steve Goldberg

Topics: Human Capital Management, Total Compensation Management

Steve Goldberg

Written by Steve Goldberg

Steve is responsible for the Human Capital Management (HCM) research and advisory services practice. He guides HR and business leaders in leveraging their workforce for competitive advantage. He guides HCM technology vendors on the market of buyers and where their applications and technology can have maximum impact. Steve's uniquely diverse HCM experience spans over 30 years, including HR process and HCM systems practitioner leadership roles, heading up product strategy for one of the most respected HCM application vendors, and operating his own global advisory practice. His expertise areas of coverage include HRMS, Talent Management and Workforce Management, with specialized focus on recruiting, learning, performance, compensation and payroll. Prior to joining Ventana Research, Steve worked as a corporate VP in HR at UBS/Swiss Bank Corporation and Huizenga Holdings, product strategy leader at PeopleSoft and Unicru, and was also VP and Research Director at Bersin & Associates. Over 35,000 HR professionals and business executives have been informed by one of Steve's presentations on HCM, or have read his published work. Steve holds an MBA in Human Resource Management from University of Buffalo School of Management and a BBA in Industrial Psychology from The City University of New York.