Most solution comparison articles compare software from two different companies. In this case, we're comparing two SAP solutions: SuccessFactors Compensation Module and SAP SuccessFactors Incentive Management (previously SAP Commissions).

Through our experience implementing SAP solutions for countless clients, we know each solution works for different organizations. In this article, we have compared these two solutions to share our expertise.

After reading this you will understand these factors in each solution’s performance:

• Purpose
• Functionality
• Ideal User Types
• Integration
• User Interface
• Compliance and Reporting
• Cost

Comparing these solutions

SAP offers two software solutions for human resources and compensation management: SAP SuccessFactors Incentive Management and SuccessFactors Compensation Module.

Purpose

The primary purpose of SAP SuccessFactors Incentive Management is to manage and automate sales compensation processes. Its primary focus is calculating and administering variable pay and incentives for large sales teams and other employees receiving commission-based payments. This tool helps organizations simplify the commission calculation process, minimize errors, and guarantee prompt and precise payouts.

The SuccessFactors Compensation Module is a component of the SAP SuccessFactors suite that deals with various HR functions. Its primary focus is managing employee compensation, including base salary, bonuses, and other rewards, to ensure fair and competitive pay practices.

Functionality

SAP SuccessFactors Incentive Management

Commission calculations and modeling: Helps design and calculate various commission structures.

Incentive plan management: Facilitates the creation and management of incentive programs.

Payout management: Automates commission payout processes.

Reporting and analytics: Provides insights into sales performance and commission-related data.

SuccessFactors Compensation Module

Salary planning: Supports annual merit and bonus cycles.

Compensation guidelines: Allows organizations to define compensation policies and procedures.

Compensation analytics: Provides data and insights for compensation decisions.

Integration: Integrates with other SuccessFactors modules, like Performance Management and Employee Central, for a holistic HR solution.

Ideal User Types

SAP SuccessFactors Incentive Management are typically used by sales departments and organizations with a significant portion of their workforce on commission-based pay structures. Organizations often choose Commissions if they have large and complex compensation requirements.

SuccessFactors Compensation Module is more broadly applicable because HR departments across various industries and employee types can use it. Small organizations with simple compensation requirements prefer using the SuccessFactors Compensation Module.

Integration

These solutions can easily and seamlessly integrate with each other and other SAP products. Commissions information is linked directly from the SuccessFactors Total Compensation dashboard.

"The biggest benefit from having these two solutions together is that whether I'm an employee or manager logging into SuccessFactors, I can see access and manage my team - whether they're on a commission's plan or just a, non-revenue generating employee on a regular bonus plan."

- Christy Robinson 
Director, Global GTM Total Rewards and Workforce Management

User Interface

SAP SuccessFactors Incentive Management generally has a user interface tailored to sales professionals and compensation administrators. The two-sided access with a robust mobile app for both teams allows for increased transparency and improved incentive compensation strategy.

SuccessFactors Compensation Module offers a user-friendly interface for HR professionals, managers, and employees. It is generally meant for the HR department and leadership, not for sales teams.

Compliance and Reporting

SAP SuccessFactors Incentive Management offers more robust tools for report design, automation, and complexity. 

SuccessFactors Compensation Module may provide more extensive support for compliance with labor laws and regulations, as it covers broader compensation management areas.

Cost

The cost of implementing and maintaining these solutions can vary widely depending on the organization's size, the complexity of compensation structures, and the level of customization required.

Want to learn about SAP SuccessFactors Incentive Management pricing? 

SMB Pricing

Enterprise Pricing

Which solution is right for you?

When it comes to managing HR and compensation, the SAP SuccessFactors Incentive Management and SuccessFactors Compensation Module each have their own unique strengths.

SAP SuccessFactors Incentive Management is ideal for sales compensation management for large (200+) teams, whereas the SuccessFactors Compensation Module provides a solution for managing mostly non-variable compensation across the entire organization. 

Would you like to read more about incentive compensation management? Check out these articles:

ICM Software Selection: 5 Essential Factors You Shouldn’t Ignore

12 Completely Avoidable Problems with Incentive Compensation Management

Uniting SAP Commissions and SuccessFactors for Sales Excellence

Photo by Kyle Glenn on Unsplash