to new procedures, technologies, and strategies in the HCM domain. Customization also stands as a major hurdle, with 33% marking it as a top challenge, indicating the struggle of organizations in tailoring their HCM systems to fit unique business needs and requirements. Other issues in- clude data management (22%), integration (21%), and both reporting and availability (each at 15%). • The standout metric for gauging HXM strategy success is employee retention, used by nearly half (49%) of organizations, underscoring the importance placed on talent retention. Additionally, metrics around employee satisfaction (41%) and time to hire (44%), show that employee well-be- ing and efficient recruitment are key HXM pillars. Metrics like cost per hire (33%) and expenses per employee (28%) indicate a cost-aware approach. Interestingly, metrics like labor turnover (20%), and turnover cost (23%) are less prioritized in the HXM performance evaluation. • Regarding the mix of HR solutions employed across our HR community, most participants (32%) are running SAP HR on-premise solutions, suggesting a high reliance on traditional SAP infra- structures. However, cloud solutions are gaining ground, with 20% utilizing SAP SuccessFactors on the cloud. Hybrid environments are also evident, with 17% operating SAP on-premise and SAP SuccessFactors solutions. Fewer organizations rely solely on non-SAP solutions (8% for on-prem- ise and 8% for cloud), with a small portion (6%) running a hybrid of all non-SAP solutions. This reflects the gradual transition towards cloud and hybrid environments in the HR technology space. REQUIRED ACTIONS Based on the survey responses, organizations should make the following plans around their HCM and SAP S/4HANA strategies: • Prioritize HR process modernization with a focus on employee experience. Organizations can enhance the user experience by providing employees with self-service portals to manage every- thing from personal information to performance objectives from a single point of control. Simulta- neously, this allows the HR team to utilize a central record system for employee data, minimizing effort duplication and reducing administrative work. • Create a unified overview of HR activities. Consolidating disparate HR systems is pivotal for unified oversight and streamlined operations. Many organizations struggle with limited visibility and increased complexity with multiple vendor solutions. Transitioning to an integrated system like SAP SuccessFactors HXM Suite, alongside Solution Extension partners, can mitigate these challenges. Such consolidation offers managers clear insight into employee working hours, rest periods, and overtime, fostering compliance with labor requirements. Thus, it provides an oppor- tunity for comprehensive and efficient HR management. • Enable a performance-driven culture with a cloud-based HXM system. Consistent employee performance tracking, the use of systems like SAP SuccessFactors HXM Suite for calculating compensation based on performance ratings, and variable pay bonuses can build a perfor- mance-driven culture. This strategic prioritization can substantially uplift the employee experi- ence, leading to higher engagement, productivity, and business performance,a chief concern among survey respondents across the board. SAPinsider Benchmark Report | HCM and SAP S/4HANA 8