If a tech company decides to expand, the best approach for HR is to go for SAP SuccessFactors to manage various processes across the regions. Isn’t it? However, the biggest question is: Should we customize the SAP SuccessFactors system to match every local need, or standardize for global efficiency?
Choosing the right approach is quite challenging. Let’s dig into the details for Customization vs. Standardization in SAP SuccessFactors to help you make the best choice for your business.
Confused Between Standardization and Customization in SAP SuccessFactors?
When SAP changed traditional ERP into a cloud-native suite, SuccessFactors became a leader in global talent management. When businesses adopted fundamental modules such as Employee Central, Performance & Goals, Recruiting, and Learning, they faced similar questions to earlier SAP ERP adopters:
- Should we simply adopt SAP’s standard processes as delivered?
- Or do we need custom forms, workflows, and third‐party integrations to meet our exact requirements?
Standardization lets deployment of SAP SuccessFactors models faster, lower TCO, and easier upgrades, but customization helps you get unique features that the standard system can’t offer for compliance or competitive edge.
What Is Standardization in SuccessFactors?
Standardization in the SF refers to using SAP’s pre‐delivered templates, user interfaces, business rules, and workflows with minimal or no code changes. Major aspects include:
- Pre-built data models in standard data fields within Employee Central (EC) for common HR data, including location, job code, and pay grade.
- SuccessFactors comes with built-in approval workflows for common tasks like hiring, promotions, and time-off requests.
- It includes ready-to-use reports and dashboards for HR teams to quickly access data using tools such as Ad Hoc Reports, Canvas Reports, and People Analytics.
- SAP provides Global Employment Templates (GET), which are pre-configured for different countries and help businesses skip the hassle of building location-specific processes.
- You can connect SuccessFactors to other tools, like Workday or Microsoft Teams, using SAP’s pre-built integrations and connectors.
Advantages of Standardization in SuccessFactors
Here are the major benefits of opting for standardization in SAP SuccessFactors Implementation:
Lower Total Cost of Ownership (TCO)
One can deploy standard configurations quickly without the need for specialized developer effort. Quarterly SF upgrades become more predictable because there is little to no custom logic to modify or retest.
Faster Time to Value
By adopting processes like Delivered Performance Review templates or standard Succession Management frameworks, companies can be operational at a minimum time compared to building fully custom workflows.
Proven Best Practices
SAP SuccessFactors invests heavily in R&D for HR processes. Standard configurations follow industry and global best practices, such as standard appraisal cycles, compensation planning processes, to give organizations a solid foundation.
Simplified Maintenance
With minimal custom code, ongoing support becomes less complex. Admin teams can adjust delivered business rules rather than maintain separate custom scripts.
Alignment with SAP’s “Clean Core” Philosophy
SAP supports keeping the core SF HCM platform free of custom code, pushing logic to SAP Business Technology Platform (BTP). This clean core ensures higher system performance, better security, and simplified upgrade paths.
Common Pitfalls of Over‐Standardizing
- Limited differentiation, as many organizations with truly unique, industry‐specific processes may find that standard templates lack the necessary depth.
- User adoption challenges occur if end users, especially power users or line managers, feel constrained by a generic process; they may resort to “shadow IT.
- Missed Competitive Edge due to inability to tailor onboarding journeys, performance metrics, or learning pathways.
What is Customization in SAP SuccessFactors?
It goes beyond simple configuration; it often involves code changes, extended MDF objects, or third‐party integrations to fulfill specific business rules. It usually includes:
- Creating specialized data models that don’t exist in standard EC data models.
- Writing advanced business rule logic beyond what is available in the ‘Manage Business Configuration’ UI to adjust approvals, handle multi‐parallel workflows, or calculate tough eligibility criteria.
- Custom UI extensions (UI5/Fiori Widgets) in the SF dashboard to surface data from non‐SAP systems like custom learning portals or external benefits platforms.
- Custom analytics and dashboards to build custom dashboards using SAP Analytics Cloud (SAC) or Tableau, tailored to specific stakeholders.
Advantages of Customization in SuccessFactors
The following are the major benefits of customizing the SAP SuccessFactors system:
Custom Business Processes
Businesses can work uniquely with multi‐tiered approval flows for complex compensation plans. Customization also supports innovative HR practices like continuous performance management with custom rating scales.
Competitive Differentiation
Companies in specialized industries often need unique learning or competency frameworks that standard SF modules cannot support.
Improved Employee Experience
With custom dashboards and UI extensions, you can create a more intuitive, employee‐friendly interface for higher adoption and engagement. The tailored onboarding journeys, branded career portals, or custom reminders can satisfy new hires.
Integration with Legacy or Regional Systems
In regions where certain statutory compliance systems like local payroll engines or training platforms aren’t supported by SAP’s standard connectors, custom integrations become essential.
Common Risks & Considerations with Customization
- Higher implementation and maintenance costs as custom coding needs specialized developers.
- There is usually an upgrade in complexity because heavily customized objects may break after quarterly SF releases.
- Without proper documentation and governance, custom solutions can become black boxes, making future enhancements harder.
- Custom integrations might introduce vulnerabilities if not built to SAP’s security guidelines.
The Best Approach- Balancing Customization & Standardization
Finding the ideal equilibrium between tailored innovation and standard agility requires a structured decision‐making framework. Below is a recommended approach for SuccessFactors teams:
Conduct a Detailed Business Requirement Analysis
For this, you need to document existing workflows, then find out which processes map directly to SuccessFactors standard flows. Then classify requirements in terms of compliance, differentiation, and redundant or shadow IT.
Leverage SAP’s Activate Methodology & Best Practices
SAP Activate provides clear guidance for mapping business processes to SuccessFactors standard templates (“Fit‐to‐Standard” workshops). In workshops, bring in both HR SMEs and technical architects to explore configuration first before jumping to code.
Apply the Configuration vs. Customization Decision Tree
Does standard SF functionality fully satisfy the requirement? If YES, implement using configuration (e.g., via “Configure Business Rule” or “Manage Data” in Admin Center). If NO, then ask, can the requirement be met via the Metadata Framework (MDF) with zero coding? If yes, use MDF portlets and custom picklists rather than full code. If not, proceed to custom code but limit scope and isolate to SAP BTP sidecar solutions to keep the cloud tenant core clean.
Adopt Standardized Customization (Clean Core)
SAP advocates pushing heavy logic to SAP BTP or to external microservices, rather than embedding custom scripts directly in SF. It is better to use standard APIs (OData, SCIM) to connect SF to BTP Extensions, to ensure you maintain a clean core and receive smoother upgrades.
Establish Governance & Lifecycle Management
For this, you need to follow these steps:
- You need to store all custom components in a Git repository with detailed README files.
- Before each SF release, conduct an ‘impact assessment’ to identify which custom objects or APIs might break.
- Maintain separate QAS (Quality Assurance System) and Preview environments. Run end‐to‐end regression tests for custom objects.
- Track key adoption metrics to analyze if customizations are delivering the planned ROI; otherwise, make up your mind to go back to standard features.
Case Study
Global Manufacturing Firm: Minimal Customization, Maximum Standardization
The challengeis to streamline performance management across 30+ countries with a coordinated appraisal cycle, but retain localized rating scales.
Solution?
Adopt SF’s standard Performance & Goals templates, adjust rating labels such as Exceeds Expectations vs Meets Expectations via configuration, and use standard cascading goals. For country‐specific regulatory reports, implement minor MDF extensions like country picklists for appraisal sign‐offs. All other processes should be standard, resulting in a 50% reduction in deployment time and smooth quarterly upgrade cycles.
Final Words
It is important to balance customization and standardization in SAP SuccessFactors. For this, you need to follow SAP’s best practices and keep customizations limited to SAP BTP extensions. This ensures flexibility without compromising system agility, scalability, or upgrade readiness. Keep in mind, customize only when truly needed, and keep the system clean, well-documented, and future-proof.