SAP Switching to Kronos in SuccessFactors Reseller Agreement: is this confusing you?
This article had written itself, when I realised I was 3000 characters above limit in replying to Jarret Pazahanick’s group post sharing some insights on the contractual impact of the new reseller agreement between SAP and Kronos for SuccessFactors customers.
Subscribing to Kronos on an SAP contract, may or may not be the best option contractual option for SuccessFactors customers
The article Jarret shared shows an interesting perspective, basically saying it might still be the best move for a SAP SuccessFactors customer to hold a direct contract with Kronos. Fair enough. At the end of the day, it’s down to the actual T&Cs offered and can be decided on that basis right?
Workforce Software is still an option and there are other solutions, too
What’s more important:
Even as Kronos is now contractually the most preferred of SAP’s preferred T&A partners, this doesn’t mean customers don’t have other options. I always found the former perception that Workforce Software is the default or even the only option frustrating, particularly as it’s not usually the preferred choice for most customers in continental Europe (though there are always cases, where it might be). Kronos seems to be better value for money for most European customers, but, hey, it’s still not the only choice:
- Workforce Software is still there and has an integration. It might just be right for you, if you are looking for some DYI style flexible T&A.
- ATOSS, though never a “preferred” partner, does have integration packages and would be my first guess for German customers (though also gaining ground globally).
- Other vendors may fit your bill best and may be brought to the same level of integration without too much difficulty.
A Hybrid with Employee Central Time and Attendance may keep the bill down
- SuccessFactors EC Time Off and Time Sheet, though not as feature-rich as the specialist solutions, becomes more and more viable for many customers and comes with a distinct advantage: it’s already included in the SuccessFactors Employee Central subscription fee.
- If you are cost conscious (and who dares to tell their CFO that they are not?), SuccessFactors’ built-in T&A solution may be a great option, even if it’s only for a part of your workforce. Particularly, once time clocks, night shift and German style Flextime (“Gleitzeit”) are fully supported, hopefully later this year.
T&A is less global than we’d like it to be
The problem I see with the choice of one single preferred preferred (repetition intended) T&A partner lies in the regional and local differences. The general perception is: “Payroll is local – T&A, whilst a local process, can be a global solution“, because it’s not regulated as strongly as payroll. However, regulation as well as “normal practice” have created significant regional and local differences and therefore you’ll find solutions that may be great for, say, the US, but very difficult to implement in Germany.
T&Cs are not the only decision criteria for T&A solutions
So, SuccessFactors customers and prospects (same as with most any other HCM solution) should look at the options available, when defining their cloud transformation roadmap, and the question whether or not you can buy a solution on an SAP contract should only be one of many criteria. After all, you only have to agree the contract once, but you and your whole workforce will be using the new solution every day.
In the best of worlds, you’d end up with
- a single T&A solution or
- a single 3rd party solution complemented by Employee Central T&A for office workers on less complex rules or for the mobile workforce.
However, as a large global organisation, you may also find that, for the time being, the best solution is a mix of regional solutions.
The only thing worse than a difficult choice is having no choice
The options SuccessFactors customers have regarding payroll and T&A in particular sound confusing. That’s probably, because they are confusing. In German, we call this “Qual der Wahl” (“Torture through Choice”). But it’s better to think your options through for a couple of weeks than taking a less than optimal turn. Or worse – an easy instinctive mistake to make: avoiding the “problem” by jumping to a solution vendor, who doesn’t provide choice to their customers.
If you are looking for advice to define your organisation’s Digital HR Roadmap, we at Adessa are happy to help, as we recognise the importance of understanding each organisation’s starting point and planning a bespoke journey from there. Just drop me an email on email@example.com to discuss or meet me in any major German city on my Tour d’Allemagne in the next two months (no, I’m not taking the bike).