SAP is Innovative in Total Compensation Management Value Index

We are happy to share some insights about SAP drawn from our latest Value Index research, Ventana Research Value Index: Total Compensation Management, which assesses how well vendors’ offerings meet buyers’ requirements.

In all of our Value Indexes we utilize a structured research methodology that includes evaluation categories designed to reflect real-world criteria incorporated in a request for proposal (RFP) and vendor selection process for total compensation management. We evaluated SAP and 13 other vendors in seven categories, five relevant to the product (adaptability, capability, manageability, reliability and usability) and two related to the vendor (TCO/ROI and vendor validation). To arrive at the Value Index rating for a given vendor, we weighted each category to reflect its relative importance in an RFP process, with the weightings based on our experience and on data derived from our benchmark research on total compensation management.

SAP’s total compensation management system is part of the SAP SuccessFactor HXM suite of applications where compensation can be used for performance assessments to overall planning and budgeting. SAP was categorized as an Innovative Vendor, ranking third overall in this Value Index evaluation. It ranked second in Product Experience where it was designated a Value Index Leader in Manageability, Reliability and Adaptability. It ranked 10th in Customer Experience and performed best in TCO/ROI, placing seventh. SAP’s overall performance was impacted by its lower rankings in Validation where it ranked 12th, and TCO/ROI. These two categories represent 20% of the weighting in the overall Value Index.

Our assessment finds that SAP could improve its overall performance in Customer Experience by addressing its investment in this area of its HCM suite. SAP’s sixth place ranking in Capability is due to a lack of clarity on the business and technology investment and direction to its compensation application and broader types of it that is required for organizations across all vertical industries.

This assessment was based on SuccessFactors Compensation 2H 2022 products and was available in November of 2022.

SAP, like all compensation management vendors, should ensure they continue to focus on capabilities beyond the core that will only continue to increase in their importance to buyers, like prescriptive analytics, proactive pay equity management, and creative and personalized compensation plans that are becoming increasingly more complex.

This research-based index is the most comprehensive assessment of the value of Total Compensation Management software in the industry. Technology buyers can learn more about how to use our Value Index by clicking here and included vendors that wish to learn more can click here. Read the report here.