DSAG survey: H4S4 migrations surge while SuccessFactors gains ground - here's what HR needs to do next
HR tech in German-speaking organizations is moving, but it's not a clean switch to the cloud. A recent DSAG member survey shows most companies are securing their core first with SAP S/4HANA HCM (H4S4), while expanding selectively with SuccessFactors.
Translation: protect stability now, modernize in steps, and keep hybrid in focus.
Where HR systems stand today
- 71% still run SAP ECC HCM (on-premises)
- 39% use SAP SuccessFactors
- 23% use SAP S/4HANA HCM (H4S4) on-premises
- 9% use SAP S/4HANA HCM in a private cloud
Multiple answers were allowed, which reflects the mixed reality many HR teams live with. The transformation is active, but it's far from uniform.
Why H4S4 is the immediate move
Most respondents are converting to H4S4 to protect their investments and keep core HR processes supported. With maintenance deadlines approaching for older ERP HCM, this is a practical step.
The lift is manageable for a "pure" HCM-to-H4S4 migration. Complexity rises when you pair HR with a greenfield S/4 rollout, add Finance, or introduce SuccessFactors in the same wave. Many are going step by step: secure the core with H4S4 first, modernize processes later with cloud modules.
What helps: clear roadmaps, visible dependencies, and reliable migration tools so effort and resources are predictable.
SuccessFactors: steady progress, mostly hybrid
- ~4% have fully implemented SuccessFactors
- ~40% have partially implemented it
- 11% plan to implement
- 28% are not planning to introduce it
- 17% are still evaluating
Adoption tends to start with modules that deliver quick wins:
- Recruiting (41%)
- Employee Central (39%)
- Learning (37%)
- Performance & Goals (34%)
- Onboarding (26%) and Compensation (19%) follow
- Payroll-adjacent modules remain low: Employee Central Payroll (8%), Time Tracking (9%)
The takeaway: cloud value is real, but many organizations keep payroll and time closer to IT and the core for now.
SmartRecruiters replacing SuccessFactors Recruiting: act early
SAP announced a strategic integration of SmartRecruiters into the SuccessFactors portfolio, with plans to replace SuccessFactors Recruiting and make SmartRecruiters' AI features available to customers. Don't wait on this.
- Map current recruiting processes, integrations, and customizations
- Assess data migration paths, search and matching capabilities, and reporting
- Check contracts, licensing, and timing to avoid overlap costs
- Plan change management for recruiters and hiring managers
- Align with your broader H4S4 and hybrid architecture roadmap
Stay close to vendor guidance and community updates via DSAG and official SAP channels.
Will SaaS reduce IT dependency?
- 21% expect less IT dependency
- 47% expect no change
- 32% are unsure
Cloud modules like Recruiting, Learning, or Employee Central can free up HR quickly. But complex functions still depend on IT. Real relief needs process fixes, stable interfaces, and clear integration patterns-hybrid doesn't run itself.
Top HR priorities for the next 1-3 years
- AI in HR: 65%
- Automation/RPA: 53%
- People analytics and predictive HR: 34%
- Skills shortages and digital training: 50%
Meanwhile, many rate these as low to no current relevance: SAP Business Data Cloud/SAP Datasphere for HR data (56%), migration from SAP HCM to SuccessFactors (52%), and hybrid work model integration (46%). In plain terms: stabilize HR IT and meet regulatory and organizational needs first; scale data-driven scenarios after.
Clear licensing and cost models will matter so investments pay off.
A practical action plan
- Decide your core path: H4S4 conversion now vs. larger S/4 program later. Write it down and get buy-in.
- Design your hybrid target architecture: where core HR stays, where cloud adds value, and how data flows.
- Sequence work in waves: secure core (H4S4), then modernize with SuccessFactors modules that deliver fast ROI.
- Harden integrations early: identity, payroll, time, finance, and analytics. Remove brittle point-to-point links.
- Standardize processes where possible to cut rework and lower migration risk.
- Plan for the SmartRecruiters shift: roadmap, data migration, and training for TA teams.
- Invest in AI and automation pilots tied to real KPIs (time-to-hire, learning completion, case resolution).
- Clarify licensing scenarios and TCO across on-prem, private cloud, and SaaS.
- Upskill HR and IT partners together; build admin and reporting capability in HR where it makes sense.
- Use change management from day one-especially comms, role-based training, and support models.
Key takeaways at a glance
- On-prem still dominates HR core; H4S4 is the near-term move to keep the lights on.
- SuccessFactors adoption is modular and hybrid; payroll/time remain conservative.
- Recruiting will shift with SmartRecruiters-start planning now.
- AI, automation, and people analytics will shape day-to-day HR impact next.
- Cloud won't automatically cut IT dependency-processes and integrations decide that.
- Roadmaps, dependencies, and migration aids are the difference between drift and delivery.
Want practical ways to apply AI to recruiting, learning, analytics, and HR operations? Explore AI for Human Resources for tools and workflows you can put to work fast.
For SAP's official HCM and SuccessFactors portfolio overview, see SAP HCM and SuccessFactors.
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