SAP HCM to SAP HXM – Here’s what you must know about this Upgradation

SAP HCM to SAP HXM – Here’s what you must know about this Upgradation

SAP being one of the most stringent organizations offering end to end cloud services has always been at the forefront of innovation. Staffed with an array of products and software suite solutions, their development community never fails to apprise its audience. What this implies is that they keep rolling out new features and solutions that have the power to keep businesses adept with industrial advancements.

A similar move was taken by the team when they decided to extend their HR portfolio. As the year was about to end, SAP came up with an announcement stating their decision to provide extended support to the existing on-premise SAP HCM offerings. This decision brought massive unrest in the community. Where few were highly fascinated with the move, critics found this as an upright mistake, the organization was about to make.

To top this was the statement that followed the replacement of SAP HCM by SAP HXM. This created a fuss in the industry as none were aware of what HXM really means and will it be an extension or a replacement by the community. In case, you found yourself to be part of this gross situation, this article will shed some light and help your demystify the concepts of SAP HCM.

What is SAP HXM?

Unlike the rumors about HXM, it isn’t anything new but a mere replacement of the C in HCM. It is very likely to have similar undertakings and is ideally an amalgamation of all software solutions that were once part of the HCM suite.

What HXM does is unify the end to end HCM processes under a single roof and ward off the silos as part of the previous infrastructure. From onboarding to development, talent management, and recruitment, the all-new SAP HXM has them. As a distinguished organization, SAP now embeds data to drive each of the Employees Central Payroll or other features. Each of these are fueled by managing, onboarding, compensating, and developing employees.

As the X in HXM is about experience management, SAP now has introduced new metrics namely Qualtrics. As of now, the licensing of Qualtrics has been kept different from the existing SAP SuccessFactors and employed in a standalone environment. However, the company might reconsider adding it to its standard packages sometime in the future.

A merger of X and O: SAP Enters a New Partnership

Before seeing what X and O are all about, let’s understand the concept of X and it’s an association with Qualtrics. As mentioned above, Qualtrics is one of the leading metrics that help in experience management. In a simple sense, what this does is performs an in-depth analysis of the experience and the sentiments of the employees as well as the customers to come up with relevant insights on their experiences.

O stands for operational data and is one of the core processes of our HCM software suite. Introducing the idea of experience management in the existing HCM suite enables HR managers to leverage the experiences drawn by the customer and the employees to understand why they behave in a certain manner. This information is largely helpful in finding what stems dissatisfaction among them and then make sound decisions to recycle the approach.

Several surveys and testimonials have proven to enhance the offerings of the metrics in a way improving the quality of decisions made. A recent incident predicted that because men were the only ones in the recruiting panel, women had a notion of not being equally judged. They thought the industry was biased. This along with other findings helped restructure Qualtrics in a manner that could benefit all.

Why Do HXM Matter?

Earlier in 2000 and before, organizations weren’t of the view that employee satisfaction affects business performance. It was only after 2000 that they realized employee engagement to be directly proportional to organizational profits. A consensus revealed that 70% of the employees are happy quitting their job and the only reason being poor satisfaction or job engagement.

This was a threat and still is for most of the organization. As so it appears, we live in the information age where nothing remains new. Channels such as Glassdoor are highly effective and employees have the ease to comment about their job and workplace. One wrong word and the organization’s image could fall down. No wonder why the leaders are now seen investing in their employee’s growth so much.

It is now extremely important to look and cater to employees’ experience while working. A negative image not only disrupts the employee interaction but also counts your loads of customers. So, HXM is without a doubt, the need for present-day organizations.

The Key to Business Success: Employees & Consumers

Even though customers remained an important part of the businesses, employees weren’t given the right value. How do they or what they believed remained a matter of no concern? Today, things have changed and organizations are bound to keep their employees within the loop.

The onset of HXM in SAP HR portfolio will help organizations assessing and analyzing their employee’s experiences and take steps to better the same. Also, it will help organizations regard employees more than just resources or their capital for growth. It is believed that enterprises that would give employees and their voices a word would attain a competitive edge in the industry and remain ahead of others.


In the end, Human Experience Management is not just about effective talent management but also includes leveraging the power of employees to increase profits and add to business value. With the evolution of HXM as part of the SAP SuccessFactors software suite, HR professionals now have the ease to integrate their end to end business processes without actually facing any conflict. Not to mention that organizations can now exercise caution when dealing with employees keeping their experience at the forefront.

How SAP and other organizations benefit from the extension is something we would know only in the times to come. For now, all can wait and see how things unfold.



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