Evolving Digital Trends in SAP SuccessFactors HXM Suite


Evolving Digital Trends in SAP SuccessFactors HXM Suite


The year 2020 has been marked as the year of robust growth in the market of human capital management software; it is eventually pushed with the aid of using the twin forces of Cloud alternative and virtual adoption. In 2020, the leaders of HCM software had to change their plans and decisions rapidly due to the effects of the pandemic. They have to take their services to extreme remote working. Impacts of Covid-19 force them to focus on cost-cutting and remote working. Some modern technologies, digital platforms, and AI/ML are modernizing today’s place of work with the aid of using growing operational efficiencies throughout habitual admin tasks.

SAP has also jumped on the bandwagon with the latest acquisition of SwoopTalent. This will incorporate a powerful, trained artificial intelligence (AI) model that will allow customers to access reliable data to modify the employee experience and empower a future-ready workforce with their new revised workforce solutions.

Adopting more meaningful digital experiences for employees, modernizing talent acquisition methods by adopting video technology, and using AI tools to analyze, identify, and influence how leaders combine several productivity factors to increase team performance are all factors changing the HCM landscape.

The HCM application market (Cloud and on-premises) gained 12 percent in total software revenue in 2019, outpacing the overall ERP software market, which climbed 9 percent in 2019 and is expected to grow at a CAGR of 6% to almost $26 billion by 2026.

Performance Management, Recruiting & Onboarding (assessment, goal management, succession planning), Workforce Management, Core HR (personnel administration, benefits, compensation management, payroll) (absence management, activity tracking, scheduling, time and attendance, and learning management system), and Employee Engagement are all functions of Human Capital Management.

A number of organizations are shaping their future by leveraging digital HCM trends in their core HR functions:

  • Core HR functions: When employees start working for a new firm, AI allows for efficient data and information extraction. Companies are using RPA and AI to handle highly repetitive and data-centric jobs. Vendors are implementing Artificial Intelligence and Robotic Process Automation (RPA) solutions to manage personnel databases and cut operational costs.
  • Management of workforce: Chatbots and human-computer interaction, and mobile technologies are all the rage in workforce management. People + robots = hybrid WFM. The latest skill in this trend is knowing how to align with robots, develop, participate, and work. Supplier example: Kronos: employee deployment planning, time recording, absence management.
  • Compensations Management: Artificial intelligence technology helps employees understand and use the services they are entitled to. AI tools can help employees categorize performance options and choose the best option. It enables employees to understand benefits and helps them choose the right options. Artificial intelligence and online reward portals allow companies to personalize employee benefits.
  • Onboarding and Recruitment: AI/ML supports companies in seamless recruitment and onboarding of suitable candidates, helps select and choose suitable skills from job portals, and analyzes and scans suitable candidates from their videos. Unilever uses HireVue’s AI software to scan the language candidates use, such as active or passive phrases, tone and delivery speed, and facial expressions.
  • Talent and performance: Career growth options for employees are allowed by AI, and Predictive Analytics aids companies to manage talent.
  • Learning and Development and Employee engagement:  By providing employees with digital tools to manage their careers, the employee experience can be enhanced. Companies use gamification and VR to train employees in a more attractive way.

Gartner predicts that by 2023, nearly half of the AI   pilots related to human resources that have been conducted since 2019 will progress to full-enterprise implementation. The dual power of Cloud replacement and digital support for HR processes is the growth driver in 2021. By 2025, more than half of the world’s large and medium-sized companies will use Cloud-implemented HCM suites for administrative HR and talent management investments. However, you still need to capture up to 30% of HCM requirements from other solutions. By 2024, SaaS is expected to account for nearly 73% of the HCM software market.

Further showing a quick glance at how the year of 2021 has been for the SAP SuccessFactors HCM Suite.

For some time, using the power of data and ML for learning, talent, recruitment, and personnel analysis and planning has always been a major trend in HXM. Almost all HCM suppliers are trying to innovate more in this field.

SAP SuccessFactors HXM Suite is SAP’s Cloud software, which is used to manage, attract, and enhance employees’ capabilities to meet workplace challenges. SAP HXM focuses on EX for better business results. It uses machine learning-based recommendations and embedded chat functions.

Currently, more than 7,500 companies worldwide are using SAP SuccessFactors software, including more than 4,000 customers who use SAP’s central HR solution, SAP SuccessFactors Employee Central.

  • Despite the challenges of the global pandemic, more than 400 companies using SAP SuccessFactors solutions will go online in the first half of 2020.
  • The implementation of SAP SuccessFactors remains robust and has formed an important growth unit within SAP. With a 19% share and 12.9% sales growth in 2019, SAP is still the market leader in HCM software.
  • In 2019, SAP SuccessFactors renamed its HCM suite “HXM” to reflect its focus on SAP Qualtrics employee experience management tools, artificial intelligence-driven user experiences, and its impressive partner ecosystem. Integration points with Qualtrics survey and experience management tools apply throughout the HXM suite.


After seeing the rapid growth of technology in the area of HR, it seems like by 2025; most companies will be equipped with the Cloud-based implementation of HCM Suites. Which eventually is going to change the scenario of the workplace and will bound to get success for the organizations.