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SAP's Intelligent HR Solution to Eliminate Recruitment Bias

Zacks Equity Research

Software behemoth, SAP SE SAP recently launched the new job analyzer functionality embedded within the SAP SuccessFactors Recruiting Management solution. The solution, which employs SAP Leonardo Machine Learning capabilities, will aid organizations craft competitive job descriptions by getting rid of bias in recruitment process.

Notable features of the job analyzer functionality include the ability to predict as well as flag language that reflects gender bias during recruitment of workforce. This new functionality will empower organizations to expand their talent pools as well as recruit optimum candidates for each role.

SAP is also increasing focus on Business Beyond Bias product initiative, enabling organizations to optimize existing features throughout the SAP SuccessFactors HCM Suite. SAP’s human capital management (‘HCM’) applications are gradually gaining popularity with many international organizations. SuccessFactors Employee Central, which forms the backbone of the company’s Human Capital Management offerings, surpassed the 1,800-customer mark in the second quarter. Driven by solid market traction of cloud business, the company has raised mid-term outlook, signaling brighter days ahead. In the past three months, the company’s stock has yielded a return of 8.2%, outperforming the industry’s increase of 4.7%.

Moreover, the Zacks Rank #3 (Hold) company’s new class of solutions that power the next generation of business applications — SAP HANA has been its biggest top-line driver ever since its introduction. The company’s latest offering from the SAP HANA family, S/4HANA, has established itself as a “mission critical control center” for businesses pursuing digital transformation. This apart, the company constantly upgrades existing products and launches new ones to expand customer base, which offers a competitive edge over peers.

However, dull prospects of the global IT industry in recent quarters, along with flat customer spending projections have adversely affected the company’s performances. Also, over the past few quarters, many of the company’s emerging markets have faced fiscal imbalances and general economic slowdowns, which adversely impacted purchasing power. Currency fluctuations in many of its key markets are also affecting financial performance.

Stocks to Consider

Some better-ranked stocks from the same space include Progress Software Corporation PRGS, Intuit Inc. INTU and Adobe Systems Incorporated ADBE. While Progress Software sports a Zacks Rank #1 (Strong Buy), Intuit and Adobe Systems carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Progress Software has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 10.9%.

Intuit has outpaced estimates in the preceding four quarters, with an average earnings surprise of 32.5%.

Adobe Systems has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 7.8%.

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