SuccessFactors Modules
SuccessFactors offers a broad suite of cloud HR modules covering everything from core human resources to talent management. But that doesn’t mean every module is necessary for your organization.
Choosing the right mix of SuccessFactors modules is crucial to avoid overspending on features you won’t use. Many companies have learned the hard way that buying too many modules leads to “shelfware” – paid-for subscriptions that sit unused.
By clearly understanding what each SuccessFactors module does and how modules are packaged, you can focus on the ones that truly meet your HR needs.
This guide breaks down the core HR vs. talent modules, how SAP bundles and licenses them, and strategies to right-size your SuccessFactors investment (and sidestep SAP’s upselling tactics).
Read our SAP SuccessFactors Licensing & Optimization Hub.
Core HR vs Talent Modules in SuccessFactors
In the SuccessFactors product family, there are two main categories of modules: core HR and talent management. Core HR refers to your primary HR system of record – namely, the Employee Central module (and the related Employee Central Payroll add-on).
This is the foundational database for all your employee information. On the other hand, the talent modules manage specific HR processes, including hiring, performance reviews, and learning, among others.
Employee Central (often called EC) is the cloud HRIS that stores all employee master data (personal info, job info, etc.).
It’s the hub that many other modules connect to. Employee Central Payroll is an optional add-on for processing payroll in the cloud, tightly integrated with EC. Together, these form the “HR core.”
The rest of the SuccessFactors suite is the talent side sometimes referred to as the SuccessFactors talent suite. These modules include Recruiting, Onboarding, Performance & Goals, Compensation, Learning, Succession & Development, and more.
You can implement talent modules alongside Employee Central or even integrate them with a different core HR system.
However, having Employee Central as your core HR module generally makes integration smoother. Data like job titles, departments, and manager relationships flow seamlessly into talent processes when everything is on the same platform.
SAP often encourages customers to adopt Employee Central as the foundation for a full SuccessFactors rollout – and if you’re aiming to use multiple modules, it’s usually a good idea.
Certain modules do require EC (for example, the Employee Central Payroll module requires EC). Many talent modules can run standalone, but extra integration might be needed to feed them employee data.
In short: Employee Central is the engine of your SuccessFactors car, and the talent modules are the add-ons. You want the right add-ons for your journey, but you also need a solid engine to drive them.
SuccessFactors Module List – Functionality and Licensing
Let’s break down the major SuccessFactors modules, what they do, and any special notes on how they’re licensed:
- Employee Central (EC): The core HRIS module for managing employee records, organizational structure, and HR processes. Employee Central is often a prerequisite for tight integration with other modules. (Licensing is typically per employee, covering your entire workforce.)
- Employee Central Payroll (ECP): A cloud payroll processing module that works with Employee Central to handle payroll and tax calculations. It’s essentially SAP’s cloud alternative to on-premise SAP payroll. (Licensed per employee paid through the system; requires Employee Central as the core.)
- Recruiting & Onboarding: Tools for talent acquisition and new-hire onboarding. Recruiting Management is an applicant tracking system (ATS) for posting jobs and managing candidates, while Onboarding handles the process of bringing new hires into the company. (These are often sold together. Licensing might be based on the number of employee seats or recruiter users; Onboarding is frequently bundled with Recruiting rather than purchased standalone.)
- Performance & Goals: Used to set employee goals, conduct performance reviews, and evaluate competencies. It streamlines the performance appraisal process and aligns individual goals with company objectives. (Usually rolled out to most employees or at least all salaried staff. Licensing is per user in the performance process.)
- Compensation & Variable Pay: Supports annual compensation planning cycles – including salary adjustments, bonuses, and stock/equity awards. Managers can use it to allocate pay increases and rewards based on guidelines. (Typically, you license this for all employees who are included in comp planning, e.g., all full-time employees. It’s often purchased together with the Performance module.)
- Learning (LMS): A learning management system for employee training, e-learning courses, and compliance training. It lets you create or import training content, assign courses, and track completions. (Licensing is per learner. If you need to train external audiences like partners or customers, you’d require an “extended enterprise” license to cover those users as well.)
- Succession & Development: Helps with succession planning for key roles and career development for employees. HR can track potential successors for critical positions, and employees can chart career paths and development goals. (Often used for a select group – e.g., leadership and high-potential employees – rather than everyone. Licensing can be limited to that subset of employees if desired.)
- Workforce Analytics & Planning: Advanced analytics and workforce planning tools. Workforce Analytics provides dashboards and reports on HR metrics (turnover, diversity, talent trends, etc.), while Workforce Planning helps model future scenarios like predicting talent gaps or workforce needs. (These tools are usually used by a small HR analytics or strategy team. Licensing might be a flat enterprise fee or based on a limited number of named analyst users.)
- Other Add-ons: SuccessFactors also offers additional components, such as the Employee Central Service Center (an HR help desk/ticketing system for employee inquiries, integrated with EC) and collaboration platforms like SAP Jam (a legacy collaboration tool) or the newer Work Zone (a modern intranet/workplace portal). These are optional modules that can enhance your HR ecosystem (each comes with its own licensing model).
SuccessFactors Bundles vs À la Carte Modules
When purchasing SuccessFactors, you can either pick and choose specific modules (à la carte) or opt for a prepackaged bundle. SAP offers talent suite bundles that combine multiple modules under a single price.
For example, a common talent management bundle might include Performance, Compensation, and Succession together.
There are also broader HCM suite bundles that include Core HR (Employee Central) plus Payroll, plus several talent modules in one big package.
Why consider a bundle? Bundling modules can sometimes lower the overall cost per module compared to buying each one separately.
SAP often gives extra discount incentives if you commit to a larger suite. It also simplifies the contract (fewer line items to manage).
However, bundles aren’t automatically the best deal for everyone. Here are some considerations:
- Bundle advantages: If you truly plan to use all the modules in a bundle, the bundle pricing can be very cost-effective. It’s convenient to get a lot of functionality in one go, and you’ll likely receive a better volume discount from SAP.
- Potential bundle traps: Bundles can lead to paying for modules you don’t end up using. For instance, a bundle might include Succession or Workforce Analytics that sound useful, but your team isn’t ready to deploy those for a while. Those modules could sit idle (as shelfware) while still eating into your budget. It’s not really a “savings” if half of the bundle goes underused.
- All-or-nothing licensing: Be aware that some bundles may require an all-or-nothing scope. For example, if you bundle Learning and Performance, SAP might insist that both modules be licensed for your entire employee population, even if you would have rolled out Learning to only certain groups or Performance to only managers. Bundling can remove the flexibility to license modules for a subset of users.
- À la carte flexibility: Buying modules individually lets you start with what you need most and add more over time. You can always bring in another module later. This ensures you’re not paying for functionality until you’re ready to use it. In many cases, it can be more cost-effective in the long run to stick to the essentials first and expand gradually, rather than grabbing a big bundle upfront and stretching to use every part of it.
The bottom line: evaluate bundle offers critically. Do the math for both scenarios – the combined price of only the modules you truly want now, versus the bundle price.
If the bundle contains modules you’re unsure about, you might be better off without it. Remember, you can negotiate with SAP to add more modules later at a similar discounted rate (more on that soon).
Licensing Impact of SuccessFactors Modules
One tricky aspect of SuccessFactors is that each module can have a different licensing metric. Understanding the SuccessFactors licensing model for each module helps you avoid surprises.
Key points to note:
- Employee Central license model: The SuccessFactors Employee Central license is typically based on every active employee (i.e,. you generally must license your entire workforce). Clarify who counts as an “employee” in your contract – for example, are contractors or seasonal staff included?
- Talent module user counts: Most talent modules let you license a subset of employees rather than every single worker. For instance, you might roll out Performance & Goals to only salaried staff, or use Succession & Development just for a small leadership and high-potential group.
- Recruiting: This module’s cost can be measured in different ways. SAP might charge for recruiting based on your entire employee count (enterprise license) or by the number of recruiter seats (specific recruiting users). Make sure you know which model is in your contract, and choose the one that fits your hiring team’s size.
- Onboarding: Often sold together with Recruiting. Clarify if the number of new hires prices Onboarding or if it’s included as part of a recruiting bundle. You want to avoid paying separately for Onboarding if a bundled option covers it.
- Learning: The Learning Management System (LMS) is typically licensed per learner. In practice, most companies give all employees access to the LMS. Note that if you deliver training to non-employees (like contractors or customers), you’ll need an “extended enterprise” license to cover those users.
- Analytics and Planning: Workforce Analytics & Planning might have its own licensing approach. Sometimes it’s a flat fee for enterprise reporting, but often it’s licensed for a limited number of specialist users (e.g., a few HR analysts). Always confirm if the user counts prices for this module or if it is an enterprise add-on.
Overall, the licensing impact of each module comes down to who will use it.
Always confirm the metric during contract negotiation – is it per employee, per named user, per hire, etc.? Knowing that upfront helps you avoid overbuying or misallocating licenses.
Which SuccessFactors Modules Do You Need First?
Knowing which modules you truly need and in what order to implement them can help you avoid buying everything at once. A phased approach not only saves money initially but also gives your team time to adapt to each new system.
Here are some guidelines on prioritizing modules:
- Start with the foundation (Core HR): If you’re coming from SAP’s on-premise HR or another legacy system, Employee Central (and possibly Employee Central Payroll if you need a payroll solution) is often the first step. This establishes a modern core HR platform to build on. Many companies migrating to cloud HR put EC in Phase 1 to centralize all employee data.
- Quick wins in talent management: Modules like Performance & Goals and Compensation are popular first additions to core HR (or even as standalone cloud solutions alongside an on-prem HR system). They address immediate pain points – streamlining performance reviews and compensation planning – and they have a visible impact. These modules can often be implemented within a few months, delivering quick value for HR and managers.
- Add other modules in later phases: Save the more specialized modules for a later phase. Learning (LMS), for example, requires you to have training content and admin resources in place, so it often comes after core HR and performance are running smoothly. Succession Planning needs solid performance data and strong executive buy-in, so it usually makes sense after those basics are in place.
- Match the rollout to your organization’s priorities: Tailor the sequence to your organization’s needs. For instance, a company with urgent hiring needs might deploy Recruiting in Phase 1, whereas another with strict compliance training requirements might start with Learning. The point is to introduce modules when you’re ready to support them.
The takeaway: you don’t need to purchase the entire SuccessFactors suite on day one. Focus on the modules that solve your biggest HR challenges first.
You can expand later as needs evolve or as you prove ROI from the initial modules.
Phased Implementation & Negotiation Roadmap
It’s wise to plot a multi-year roadmap for your SuccessFactors implementation – and negotiate your contract with that roadmap in mind.
SAP’s sales team might encourage a big bang (everything at once), but a savvy strategy is to secure flexibility for future additions without paying for them upfront.
Consider these tactics:
- Negotiate “add-on” rights now: When you negotiate your first SuccessFactors contract, include provisions for future modules. Try to lock in a discount or fixed price for modules you plan to add later. For example, ensure that if you add the Learning module next year, it will be at the same discounted rate as today, allowing you to expand later without a price shock.
- Don’t rush to license everything on Day 1: Resist buying the entire suite upfront just for a discount – if a module isn’t needed in the next year, wait rather than pay for it to sit idle. Start with what you need now, and negotiate that any module you add later will receive the same discount as if bought today (so you won’t be penalized for phasing).
- Use a phased rollout to manage change and costs: A phased implementation is ideal for both budget and user adoption, as it spreads costs over time and avoids overwhelming users with change all at once. Ensure your contract supports this approach (for example, let new modules be added later co-term with your main renewal date).
- Document your roadmap: Share your multi-phase implementation vision with SAP at a high level. Showing that you plan to add more modules in the future (e.g., “Performance and Compensation now, Learning next year”) can actually help you secure better terms on the initial deal. SAP sees the promise of future business, and you get commitments like locked-in pricing for those later modules.
By thinking ahead, you can turn the negotiation into a win-win: you get the flexibility to grow into the full suite on your timeline, and SAP gets the opportunity to earn more of your business over time (without you locking into unwanted modules upfront).
Avoiding Shelfware in SuccessFactors Talent Suite
One of the biggest wastes of budget in any software investment is shelfware – modules or features you’ve paid for but aren’t using.
In the SuccessFactors world, shelfware often happens when companies over-buy the talent suite due to optimistic plans or sales pressure.
To avoid this, keep these tips in mind:
- Be realistic about adoption: Learning and Workforce Analytics need dedicated people (for content creation and data analysis), and without those, these systems often end up underused. Similarly, Succession Planning won’t deliver value without strong leadership buy-in. Only adopt these modules when you have the resources and commitment to make them successful.
- License only what you need now: Only pay for what you will use in the near term. If a module seems like a “maybe later,” then wait until later to buy it. You can always expand your subscription when the time comes – SAP will be happy to sell it to you then.
- Consider trials or phased deployments: If you’re unsure about a module, try a pilot or limited deployment first. For example, roll out Learning to one department or a small group before expanding company-wide. This lets you validate the module’s value in practice before committing to an enterprise-wide license.
- Monitor usage and adjust: Continuously monitor the usage of each module. If one isn’t being utilized, address it. Before renewal, talk to SAP about options – maybe reduce the licenses for that module or swap it for something more useful. Don’t continue paying for an underused module out of habit; it’s better to optimize or remove it than let it become permanent shelfware.
Staying vigilant about usage ensures you maximize the ROI of each module. The goal is a lean, effective SuccessFactors landscape where every module you’ve licensed is actively contributing value to your HR strategy.
FAQ – SuccessFactors Modules & Licensing
Q1: Do I need Employee Central to use other modules?
A: Not necessarily. You can run many SuccessFactors talent modules standalone without Employee Central. However, having Employee Central as your core HR database is recommended for seamless integration, and certain modules (like SuccessFactors Payroll) do require Employee Central.
Q2: What’s included in the SuccessFactors talent suite?
A: The talent suite refers to the SuccessFactors modules beyond core HR. It typically includes Recruiting, Onboarding, performance and goals, Compensation (including variable pay), Learning Management Systems (LMS), and succession and development.
Q3: Can I license modules for only part of my workforce?
A: Yes. Most SuccessFactors talent modules let you license a subset of employees or specific user roles. For example, you might roll out Performance Management to just your corporate staff, or license Succession for only the leadership team.
Q4: Which modules are most often underused?
A: Common “shelfware” candidates are Learning and Workforce Analytics – they often go underutilized if there’s no strong plan or resources to support them. Modules like Succession can also be underused if the organization isn’t ready to fully adopt those processes.
Q5: How should I prioritize which SuccessFactors modules to implement?
A: Begin with the core and high-need modules first. Many companies begin with Employee Central and critical talent modules, such as Performance Management and Compensation. Save specialized modules (Learning, Succession, etc.) for later phases when you’re ready to expand.
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