Skip to the main content.
Contact
Contact

Customers & Partners

CTA

SAP Human Capital Management (HCM)

Efficient workforce management

Learn more

SAP Human Capital Management (HCM)

Efficient workforce management

Learn more
Challenges Sap Human Capital Management

What is SAP HCM?

Definition

As a comprehensive human resources management system, SAP Human Capital Management (HCM) brings together all the necessary HR functions in one place. It is the leading HR system for personnel administration, payroll, development, and applicant management. It also includes functions for personnel management and control as well as complex approval processes. The system automates hierarchical processes and is closely linked to the company's structure. SAP HCM can be customized through the integration of submodules.

SAP HCM key modules

Icon_SAP_HCM_Personaladministration_V02

Personnel Administration

Personnel Administration (PA) in SAP HCM serves as a central database for employee information and enables the digitisation and simplification of personnel data management. This frees HR departments from administrative tasks and allows them to focus on strategic activities.
Icon_SAP_HCM_Personalzeitwirtschaft

Personnel Time Management

Personnel Time Management (PT) offers several approaches to recording working times flexibly and efficiently. Structured time recording, integration with other SAP modules, and employee self-service tools simplify the process.
Icon_SAP_HCM_Personalabrechnung

Payroll

The Payroll (PY) module in SAP HCM consolidates all relevant information for smooth payroll processing and ensures compliance through regular updates. Simulations in advance help to avoid errors.
Icon_SAP_HCM_Organisationsmanagement

Organizational Management

Organizational Management (OM) provides a structured view of the organization's structure and work processes, supports the planning and implementation of organizational changes, and supports functions such as career and applicant management.
Icon_SAP_HCM_LearningSolution

Learning Solution

Learning Solution (LSO) simplifies the organization of training and development through centralized administration and automated processes. This ensures efficient delivery. The Learning Solution includes traditional classroom training as well as virtual, web-based learning.
Icon_SAP_HCM_eRecruiting_V02

E-Recruiting

The E-Recruiting module helps to manage vacancies and recruit new employees. With multiple features and a separate applicant database, companies can digitize their recruitment and simplify the application process.

ESS/MSS in SAP HCM

In addition to the modules mentioned above, SAP HCM offers Employee Self Services (ESS) and Manager Self Services (MSS). These are so-called FIORI applications that enable employees and managers to manage employee data, working time corrections, vacation requests, travel requests, further training and much more independently in the system - via a web interface or app. This relieves the HR department and increases the efficiency of administrative processes, especially for decentralized process steps.

Benefits of SAP HCM

At a glance

Icon_SAP_HCM_Effizienz

Efficiency

Improve efficiency by centralizing the management of all employee master data.
Icon_SAP_HCM_Transparenz

Transparency

Improve visibility with standardized records and traceability of changes.
Icon_SAP_HCM_Zeitersparnis

Time savings

Save time by partially automating payroll.
Icon_SAP_HCM_Urlaubsbeantragung

Digital Processes

Digital vacation request with approval workflow.

SAP HCM for S/4HANA vs. SuccessFactors

SAP SuccessFactors

SAP SuccessFactors is a cloud-based, end-to-end SAP HCM solution that helps companies map their HR processes.

  • Employee Central: Manage employee master data, HR processes, absences, and organizational charts.

  • Employee Central Payroll: Cloud-based payroll with over 50 supported country localizations.

  • Time Management & Time Tracking: Comprehensive, configurable time management solution to facilitate time and attendance management.

  • Recruiting & OnBoarding: Supports job posting, sourcing, candidate management, and facilitates the hiring and onboarding of new employees.

  • Learning: A Learning Management System (LMS) that provides capabilities for skills management, learning, and development

  • The Performance & Goals modules help align business strategy and goals, and improve employee performance through coaching and feedback.

  • Succession & Development: Plan for succession within the organisation, develop employees and managers based on career development plans

  • Compensation & Benefits: Create and administer compensation programs that meet employee and organizational needs and budgets

  • Analytics: Reporting and analysis of employee data processed in SuccessFactors modules to make informed decisions

HCM for SAP S/4HANA

The introduction of SAP HCM for S/4HANA (H4S4) in October 2022 will enable companies to seamlessly transform their HR systems. This migration guarantees the maintenance of core topics (including payroll and time management) until 2040 and ensures the further digitalization of business processes. Customers have several configuration options in terms of operating mode, SAP integration and SAP software used.

The transformation can be carried out using various methods, including greenfield and brownfield methods, as well as Selective Data Transition (SDT). Selective Data Transition (SDT), in particular, offers benefits such as accelerated conversion, reduced project risk, and adaptation to complex requirements.

The implementation of SAP HCM for S/4HANA (H4S4) opens up a wide range of opportunities for companies to improve HCM functionality and operational processes. Companies need H4S4 because legacy SAP ERP solutions, such as SAP ERP HCM, will be retired by 2027 or 2030. H4S4 provides performance optimizations and an improved user experience, as well as the continued use of HCM functionality. Talent solutions such as Learning Solution and E-Recruiting can continue to be used with H4S4, but will need to be technologically updated.

Successful migration to SAP HCM for S/4HANA

On-premise, private or public cloud

Different modes of operation create different opportunities: SAP HCM for S/4HANA (H4S4) On-Premise offers a similar feature set to SAP ERP HCM. There is also a private cloud edition with a reduced set of capabilities. SAP SuccessFactors is available for customers who want to move to the public cloud. A combination of the different operating modes is possible and even necessary for certain scenarios, resulting in hybrid HCM system landscapes.

Roadmap to H4S4

Whichever path you choose: The new concepts introduced with S/4HANA require adjustments. For example, the introduction of the SAP Business Partner Model or custom code that needs to be HANA-ready for the S4 move. A specific analysis of your system is required to define these and other simplification points. Our HCM experts at Natuvion can help you with this.

We can help you with the following, among others:

  • Workshops zur SAP HCM Strategie

  • SAP HCM Strategy Workshops

  • SAP HCM for S/4HANA workshops

  • SAP Readiness Check Analysis

  • Custom code analysis

  • Review of third-party add-ons for S/4HANA readiness

  • Creation of a worklist to address incompatibilities/simplifications

  • Plan for replacement/alternative of unsupported sub-applications and applications

  • Define conversion approaches (selective data migration, brownfield, greenfield)

  • Estimate the implementation: prepare time, resource and budget planning

  • Optional: Analysis with DCS Analyze

Information Lifecycle Management (ILM) in SAP HCM

Stringent data protection regulations, such as the General Data Protection Regulation (GDPR) in the EU, are causing companies to focus more and more on implementing data protection measures in their SAP and non-SAP systems.

In the SAP HCM environment in particular, personal data is handled on a daily basis and companies need to have (and maintain) control over it - regardless of the system on which it is stored.

SAP ILM is a tool for automatically managing data and metadata in the SAP system. It helps companies meet GDPR requirements by locking, archiving, and deleting personal data.

Ressources

Contact

Want to know how we can help you with your SAP HCM transformation? Simply fill out the contact form and we will get back to you as soon as possible.

Contact us now