Human capital management (HCM) software drives company growth by automating processes related to the entire employee lifecycle. From recruitment and development to offboarding, there are a lot of small transactions that, when left unattended, could lead to compliance issues.

Oracle and SAP are among the leading automation solution providers in this space. These two companies share the same market space, leading businesses to choose between Oracle Cloud HCM and SuccessFactors by SAP.

This article examines the capabilities of both Oracle Cloud HCM Cloud and SAP SuccessFactors. By assessing their similarities and differences, you can find the solution that best suits your needs.

What Is Oracle’s Cloud Human Capital Management (HCM) Platform?

The Oracle Cloud HCM platform is one of the broadest HCM solutions available, leveraging a cloud-native infrastructure to provide the best employee experience. There are about two dozen Oracle Cloud HCM modules, divided into five major sections:

  • Human Resources (HR)
  • Talent Management
  • Workforce Management
  • Payroll
  • HCM Analytics

Oracle Cloud HCM is entirely deployed in the cloud and is part of the Oracle Cloud Applications Suite. It shares a common data structure and is natively integrated with Oracle’s other SaaS business applications such as enterprise resource planning, supply chain management, customer relationship management, and more. It allows Oracle to utilize the HCM data in their other applications.

Oracle Cloud HCM as an Innovation Partner

One particular strength of Oracle Cloud HCM is its predisposition toward innovation. Among the different HCM software options available, it is the most innovation-driven, with most of its updates and features coming from its users and clients.

With over $6 billion in annual R&D investments, Oracle has over 18,000 patents securing its innovations, including best practices from various industries. The platform remains relevant with the latest technology, such as AI, machine learning, IoT, and blockchains.

If you’re running a company that requires access to the latest tools and solutions, using the Oracle Cloud HCM application drastically reduces the need to develop custom third-party capabilities.

What Is SuccessFactors by SAP?

SAP SuccessFactors is a cloud-native HCM solution deployed through the Software-as-a-Service (SaaS) model. Modules in SuccessFactors are divided into four main areas:

  • Employee Experience Management
  • Talent Management
  • Core HR and Payroll
  • HR Analytics and Workforce Planning

This SAP HCM platform is also designed for integration, with SuccessFactors working with SAP ERP. However, this process is not straightforward, as users will need to use either HANA Cloud Integration (HCI) or SAP NetWeaver Process Integration (PI).

The added cost and labor required to discourage users from adopting the entire SAP environment. They either settle for standalone SuccessFactors or use the HR module with SAP ERP.

SuccessFactors LMS: Streamlined Learning for Employees

One aspect of the SAP SuccessFactors platform that continues to draw clients is its SuccessFactors Learning Management System (LMS). It consolidates most learning requirements, making it easy for employees to get on board and trained. This part of the SAP HCM platform is ideal for driving organizational skill management and employee development.

It automates compliance training, freeing up time for your HR teams. Additionally, it improves learner engagement, compliance, and retention with blended learning and personalized materials.

Oracle HCM vs. SuccessFactors
Credits: Marek Levak

Oracle Cloud HCM vs. SuccessFactors: Deployment and Features

The choice between Oracle and SAP HCM applications among business owners and HR professionals proves tricky since they both cover most human capital management requirements.

To help you start your decision-making process, below are some technical factors to break the Oracle Cloud HCM vs. SuccessFactors impasse.

Deployment: True Cloud SaaS vs. Hybrid Cloud Setup

In terms of deployment, Oracle Cloud HCM can be considered a true-cloud SaaS-based solution. It is deployed, run, maintained, and integrated entirely into the cloud. Your business remains robust and future-proof without disruption from implementation and end-of-life scenarios.

On the other hand, SAP SuccessFactors is also deployable from the cloud. While it is sufficient to cover most HCM needs, it requires SAP S/4HANA to support end-to-end processing. Organizational structures, headcount planning, employee records management, and finance workflows all need the S/4HANA business suite, requiring additional resources to deploy.

Features: Native Modules vs. Third-Party Add-Ons 

As mentioned earlier, both platforms support the standard HCM needs of any modern company. However, below are specific human capital requirements where Oracle Cloud HCM and SAP SuccessFactors vary.

  • Native AI Recruitment. With Oracle Cloud HCM, AI is integrated into the apps within the platform. With SuccessFactors, its recruitment relies on third-party AI tools. This means that Oracle has the upper hand in optimization, reducing your time hiring and onboarding new team members.
  • Employee Health & Safety.  SuccessFactors comes with the SafetyFactors EH&S module, which a third party develops. Meanwhile, Oracle Cloud HCM comes with its native EHS module. Again, a natively-developed module has the upper hand regarding integration, streamlining risk assessment, and costs.

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  • Automation. In terms of automating administrative tasks, Oracle Cloud HCM uses AI-driven functionality with a user-friendly interface. It makes it easy for HR professionals to endorse clerical activities to the platform, with minimal coding or technical knowledge required.

Get the Oracle Cloud HCM Platform That Suits Your Needs

Let’s be honest–there’s no easy or right answer for whether you should towards Oracle or SAP. Both are powerful pieces of software and offer comparable functionality. But that doesn’t mean they’ll both deliver equal value to your organization.

Get in touch to find out how SAP’s and Oracle’s offerings fit your organization’s needs, get Oracle Cloud HCM training for your staff easily, and leverage the expertise of a team with 20+ years of experience.

Featured image Credits: Andrea Piacquadio