Growing Your Business Begins with Growing Your People

An Oxford Economics survey, sponsored by SAP, recently uncovered that close relationships between HR and IT are dynamically driving organizational success together. For 55% of the 550 respondents in HR and IT leadership roles, such collaboration improves talent development, optimizes internal processes, and modernizes systems for overall business success.

This finding confirms what thousands of midsize organizations using SAP SuccessFactors solutions already know. Accelerating the shift to digital HR isn’t just a critical advantage; it’s a game changer for business growth, especially as the need for new skills intensifies due to emerging technologies such as AI.

Oxford Economics’ research explains why: “As AI-enabled technologies like chatbots and personalized recommendations become the norm outside the workplace, HR functions will need to strategize to incorporate similar self-service experiences and other AI-driven use cases into their employees’ way of working.”

Driving Growth with a Talent Management Edge

Midsize organizations often seek a human capital management (HCM) solution that supports scalability and can match the pace and extent of their business growth. Yet, they frequently operate with limited HR capacity, hindering their ability to compete in a complicated talent landscape where a shortage of a million experts is expected by 2030.

Expanding midsize organizations particularly struggle to secure or develop talent with the skills required for growth. Oxford Economics reports that 49% of surveyed organizations cite the inability to find the right talent to maintain operations as their greatest near-term risk. Similarly, 41% of HR executives believe their organization’s inability to reskill and upskill workers to adapt to changing needs is a top threat.

With SAP SuccessFactors solutions, midsize organizations can address both concerns. The HCM solutions can help run a cohesive, organization-wide strategy for upgrading outdated technologies and implementing modern, foundational capabilities such as workforce management tools and AI-enabled functionalities.

Here’s a sneak peek into the outsized outcomes SAP SuccessFactors solutions can deliver:

1. Inclusive Job Descriptions and Assisted Candidate Screening

AI is transforming skills-based hiring by creating compelling job descriptions and enabling inclusive applicant selection so organizations can find the best talent quickly and efficiently. We have thoughtfully embedded these capabilities into the SAP SuccessFactors Recruiting solution to provide organizations with tools to help attract and secure candidates with the right skills. 

Embedded AI assistance helps talent acquisition teams make better, more equitable hiring decisions while reducing time spent on manual, tedious tasks such as creating job descriptions. Insights into applicant skills – extracted from résumés using AI – allow recruiters to quickly identify and rank top candidates based on their match to a job, removing unconscious bias from the process. 

2. Integrated Learning and Talent Management

As the nature of work evolves, so does the approach to HR technology solutions. Integrated learning and talent management systems are pivotal in addressing this dynamic, facilitating a smooth flow of development opportunities for employees.

By leveraging SAP SuccessFactors Talent Management solutions, organizations can tie learning initiatives with talent management processes to help create a cohesive, impactful talent strategy and employee experience. Employees can access learning resources based on their career goals and performance, aligning their development with personal goals and organizational objectives.

3. Intelligent and Personalized Skill Recommendations

The Oxford Economics survey reveals that 30% of HR and IT decision-makers are starting to understand how AI can help meet talent development and retention goals critical to their company’s growth. This includes helping employees stay on track with a personalized view into what they have to, need to, and want to learn.

Adopting a learning management system that includes AI, such as the SAP SuccessFactors Learning solution, gives organizations capabilities that can enhance the learner’s experience. For example, instead of a “search and find” approach to identifying relevant courses and content, an AI-driven system can offer learning options highly relevant to the learner by automatically surfacing personalized recommendations based on the employee’s role, skills, needs, and preferences.

This approach can help save time by pointing learners toward the most relevant and valuable resources, instead of requiring learners to search for them alone. Most importantly, access to self-directed learning and development opportunities fosters a habit of continuous learning and personal growth.

4. New Opportunities for Employees to Grow

Both consumers and employees expect personalized experiences that are easy to navigate and relevant to their needs. Reflecting on this trend, organizations are leveraging solutions – such as the SAP SuccessFactors Opportunity Marketplace solution – to support upskilling and reskilling efforts. 

The solution can connect employees with relevant projects, learning opportunities, mentors, and dynamic teams, presenting recommended matches through centralized access. Integrating talent intelligence into these recommendations can enhance their effectiveness by enabling the identification of skills gaps and the analysis of individual preferences and career aspirations. In return, employees can be empowered to grow and develop in ways that benefit them and the organization, helping to create a more engaged and motivated workforce.

Additionally, with the SAP SuccessFactors Succession & Development solution, organizations can optimize employee experiences by properly preparing them for their next role. For instance, employees can feel empowered to own their career development by exploring career options with AI-driven recommendations and intelligent skills gap identification. Also, with AI-assisted goals, employees can quickly create more ambitious development goals aligned with their growth plans.

5. Holistic Skills Management

Competing for and retaining top talent remains a significant challenge for midsize organizations as the skills gap widens. While visibility into current skills and those required for the future can offer a competitive edge, tackling this issue fully requires a more comprehensive approach beyond skills alone. 

SAP SuccessFactors HCM can address all sides of this complex challenge by considering individual competencies, aspirations, and preferences. Leveraging talent intelligence, the suite allows organizations to enhance the talent experience with a strategy that can cater to the “whole self” of the employee.

6. Enhanced Productivity and Engagement

Aligning employee goals to business objectives is crucial for enhancing productivity and performance. With AI-assisted goals, employees can craft meaningful and aspirational goals in a fraction of the time it usually takes. 

The SAP SuccessFactors Performance & Goals solution enables flexible and continuous performance modeling. Real-time coaching and feedback are included in the flow of work, helping employees feel more supported and engaged while enabling continuous insights and growth.

Building a Workforce Culture of Growth with AI

SAP SuccessFactors solutions can offer a holistic approach to take advantage of the critical role of talent management strategies in driving business growth, as highlighted in the Oxford Economics report. With innovative AI capabilities, the solutions are helping many organizations worldwide win the race for talent and skills and build an agile workforce.

SAP’s commitment to AI innovation is not just about cutting-edge technology. We create HCM solutions that are relevant, reliable, and responsible. Backed by this AI principle, SAP SuccessFactors solutions can offer a competitive edge in the current dynamic talent landscape. Organizations are not only empowered to keep up – they’re also prepared to lead the way with talent management strategies that drive ongoing growth, innovation, and success.

Discover how growth-focused midsize businesses prioritize their HR and IT strategies to help them grow and remain competitive. Read the Oxford Economics study, sponsored by SAP, “Optimizing Talent Management: Best Practices for HR and IT.”

Margit Bauer is director of Product Marketing for SAP SuccessFactors.