Workday vs. SAP SuccessFactors

If you’re interested in Workday HCM, you have to get in touch with the company’s sales team for a custom quote.

At its core, Workday HCM includes modules for HR management, payroll, recruiting, time and attendance, scheduling, and employee performance. However, you can add and remove modules based on your needs.

Like Workday, SAP hides its prices for its SAP SuccessFactors HXM Suite. Customers are encouraged to contact SAP directly to receive a custom-built solution.

However, unlike Workday, SAP indicates which individual products compose their HXM Suite. Although you can mix and match which products you want, the total cost will fluctuate based on the customizations and advanced features you need.

The table below lists the individual HXM products according to their HR function and starting price.

Workday provides companies with basic functionality for payroll, including accommodating multiple payroll schedules and structures while keeping companies up to date with tax and payroll compliance in varying jurisdictions.

However, compared to ​​SAP SuccessFactors, Workday’s native global payroll capabilities are limited to U.S., Canada, U.K., Australia, and France. Workday payroll compliance support is also limited to those countries.

Suppose your company requires payroll support in countries other than those five, or you already use a local payroll provider in certain countries. In that case, you will need to leverage Workday’s partnership with Strada or a third-party integration—CloudPay, Deel, ADP, etc.

Despite Workday’s lackluster global payroll, its payroll reports and employee-focused payroll features set it apart from SAP SuccessFactors. For example, Workday utilizes a continuous payroll functionality, where any HR changes that affect payroll are immediately recalculated and viewable in pay reports, such as the payroll calculation pipeline.

In addition, Workday allows U.S. employees to take advantage of on-demand pay from their mobile app, an excellent perk for employers to attract and retain talent.

SAP SuccessFactors HXM Suite includes all of the payroll capabilities of its stand-alone SAP SuccessFactors Employee Central Payroll product, including automatic tax calculations and compliance updates in multiple jurisdictions and off-cycle payroll support.

Like Workday, SAP SuccessFactors also offers continuous payroll functionality to reduce payroll processing time for company HR teams.

However, SAP SuccessFactors payroll features are more global-friendly than Workday. It has native, embedded payroll support for over 48 countries.

Moreover, SAP provides companies access to multiple, country-specific data during payroll, including seamless integration of global time tracking and benefits information to simplify cross-company payroll processing. International employees, in turn, receive a localized payroll feel while companies ensure compliance with varying countries’ laws and norms.

Although Workday HCM can provide global compliance updates, companies must partner with a third party for international benefits administration. Workday can, however, centralize global benefits data on companies’ benefits dashboards to understand their benefits programs’ impact quickly.

Workday excels, however, in its medical, dental, vision, 401(k), COBRA, and FSA administration offerings for U.S.-based employees. HR teams can leverage Workday Cloud Connect for Benefits to automatically share and update employee benefits information with over 300 benefits providers and reduce the work associated with manually notifying these providers of benefits changes.

Likewise, companies can stay ahead of ACA compliance requirements for their variable-hour employees through Workday’s Affordable Care Act Dashboard. For the same functionality, SAP SuccessFactors’ customers must add on SAP U.S. Benefits Administration by Benefitfocus, making Workday an ideal solution for companies primarily operating out of the U.S.

SAP SuccessFactors caters to global enterprises by making it easy to manage international employees’ insurance plans, pensions, savings, and reimbursements all in one place. ​​With compliance support in over 100 locales, SAP SuccessFactors can unify benefits management without resorting to multiple governance systems.

For example, ​within SAP SuccessFactors, companies can customize their benefits workflow processes to accommodate open enrollment in the U.S. or superannuation plans in Australia. SAP SuccessFactors even supports electronic data interchange (EDI) with overseas carriers to diminish data exchange administrative work for HR professionals.

Workday includes talent management features to simplify day-to-day employee processes, including geofencing capabilities for time-tracking and voice-activated time-off requests. However, Workday’s contingent talent management features are especially attractive for enterprises with varying worker classifications.

For instance, through Workday’s VNDLY, companies can analyze their skill gaps and automate job requisition creation to source candidates quickly for varying projects. In addition, gig workers, independent contractors, and freelancers receive unified sourcing to offboarding experiences.

Finally, companies can monitor their budget spending and headcount to ensure their labor costs align with their bottom line.

SAP SuccessFactors’ talent management features, like its payroll and benefits administration, are heavily global-focused. For instance, SAP SuccessFactors’ time-tracking features are dynamic and based on the employee’s profile location. This allows companies to comply with differing break rules, overtime, and on-call regulations by country.

Recruiting teams also have an easier time with remote or global talent acquisition, as SAP SuccessFactors provides companies with access to 4,000 source channels in over 80 countries. Recruiting and onboarding practices are also supported in over 46 languages so that companies can source quality talent while accommodating local languages and customs.

Workday leverages AI and machine learning to organize and make sense of employee data from performance review cycles, employee feedback, and skills assessments to help companies identify top performers and align them with appropriate opportunities. Workday’s AI even monitors potential employee flight risks based on performance and feedback so companies can prepare necessary succession strategies.

Additionally, Workday software allows employees to record their skills so managers can track and validate skill sets over time. With this data, companies can quickly pinpoint skill deficiencies and provide upskilling opportunities aligning with an employee’s career goals. In doing so, businesses can close skill gaps and strengthen ties with employees by investing in their professional development.

Where Workday focuses on bigger-picture performance and engagement monitoring, SAP SuccessFactors focuses on optimizing these processes for more efficiency. Take, for example, the features embedded in SAP SuccessFactors’ performance management modules below.

• Mobile app: Employees can add, change, and update their progress on company goals through their mobile devices, allowing managers and HR teams to remain ap
• Goals library: Employees can choose from a library of over 500 ready-to-use SMART (specific, measurable, attainable, realistic, and timely) goals for simple career development.
• Writing assistant: During review cycle, continuous feedback, or 360-degree feedback sessions, managers can use the writing assistant to provide a well-rounded and constructive response to their direct reports.