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Infographic: SAP SuccessFactors 1H 2025 Release for HCM

Infographic: SAP SuccessFactors 1H 2025 Release for HCM
Discover the groundbreaking updates and major improvements in the 1H 2025 SAP SuccessFactors Release with our easy-to-digest infographic!

The latest SAP SuccessFactors release delivers powerful enhancements designed to revolutionise your HR processes. From AI-powered innovations to streamlined workflows, this update empowers your organisation to achieve more with less effort.

Key innovations include:

  • Joule AI copilot integration across mobile and desktop platforms
  • WalkMe guided tours for SAP SuccessFactors applications
  • Enhanced Employee Central capabilities for streamlined hiring and data management
  • AI-assisted insights for succession planning and interview feedback
  • Reimagined candidate experience with guided application processes
  • Comprehensive alumni experience with post-employment system access
  • Universal rollout of the latest Goal Management
  • Advanced Payroll Control Center for complete payroll cycle management

These powerful enhancements deliver measurable improvements to employee experience, operational efficiency, and strategic decision-making.

As your trusted SAP partner, Zalaris provides expert guidance to help you leverage these innovations effectively within your organisation.

Ready to explore how the 1H 2025 release can transform your HR operations?

Complete the form below to download our comprehensive infographic and take the first step towards HR excellence.

Discover what’s new: Highlights of the SAP SuccessFactors 1H 2025 Release for HCM

Discover what’s new: Highlights of the SAP SuccessFactors 1H 2025 Release for HCM
By leveraging advanced global core HR, integrated AI functionalities, and a cohesive skills framework, SAP SuccessFactors HCM empowers organisations to align their HR processes, uncover vital workforce analytics, and adapt seamlessly to the ever-changing business landscape.

The SAP SuccessFactors 1H 2025 Release for HCM heralds a new era of innovation, with more than 250 updates and enhancements, seamlessly integrating AI-powered features and streamlined workflows to revolutionise HR processes. These comprehensive updates not only enhance core functionalities but also introduce cutting-edge tools designed to optimise employee experiences and drive organisational success. Join us as we delve into the transformative enhancements that will redefine the future of HR management with SAP in your organisation.

Highlights Topics of the SAP SuccessFactors 1H 2025 Release

Image – Highlights Topics of the SAP SuccessFactors 1H 2025 Release

SAP SuccessFactors Employee Central Core

Employee Central continues to evolve with updates that streamline processes and improve data integrity.

  • Add new employees to a position

A significant enhancement to Employee Central allows HR teams to initiate the new hire process directly from a position in the Position Org Chart.

Key fields like hire date, position, and company are prefilled and read-only, streamlining the process and reducing manual entry.

  • New National ID Information with validity period

To enable tracking of changes to national ID information, the validity fields ‘Valid From’ and ‘Valid To’ have been added to the National ID Information section.

These fields allow you to store multiple national ID records for a person, supporting more flexible, accurate, and compliant handling of national ID data across different countries and time periods.

  • Mass Data Management for job information

Mass Data Management now supports the ‘Job Information’ object, allowing synchronous processing of up to 50 records for a single mass change request. Previously, this functionality only supported the ‘Position data’ object.

This solution enables both technical and non-technical users to efficiently manage mass changes in ‘Job Information’.

Mass Data Management for job information

Image – Mass Data Management for job information

SAP SuccessFactors People Analytics

People Analytics introduces enhancements that strengthens reporting capabilities and deliver actionable insights.

  • Foundation Object Workflows now reportable in Story reports

You can now report on Foundation Object Workflows in Story reports.

The Foundation Object schema includes the ‘Workflow Step’ and ‘Workflow Step Approver’ tables for reporting on workflow details.

  • Workflow Request details for Custom MDF Objects now reportable in Story reports

The Generic Object Workflow Request table is available as a related table for the chosen custom MDF object.

This enhancement allows tracking workflow approvals for better visibility and control.

  • Compensation Structure now reportable in Story reports

The new Compensation Structure table can be found as a related table from the Compensation Information table.

This enhancement enables detailed and location-specific reporting on compensation structure, aiding better-informed decisions regarding compensation policies.

Compensation Structure now reportable in Story reports

Image – Compensation Structure now reportable in Story reports

  • Deprecations withdrawn

The following deprecations that were announced before have now been withdrawn:

  • Pixel Perfect Talent Card (PPTC)
  • Tiles and Dashboard reports
  • Canvas Reports for transactional reporting
  • Table Reports

SAP SuccessFactors Foundation/Platform

Foundation sees significant updates focused on enhancing user experience, improving efficiency, and enabling AI-powered insights.

  • Mobile

SAP’s AI copilot, Joule, is now available in mobile apps, supporting transactional, navigational, and informational activities across various modules.

This enhancement allows users to manage daily tasks more intuitively and efficiently using Joule.

  • Multi-language support for Joule

Joule now supports multiple languages, including English (US), German (Germany), French (France), Spanish (Spain), Portuguese (Brazil), Japanese, Korean, Chinese (Simplified), Vietnamese, Greek, and Polish.

  • WalkMe guided tours for SAP SuccessFactors applications

WalkMe guided tours provide structured, step-by-step assistance for employees, managers, and administrators to help them complete common tasks.

SAP has delivered WalkMe guided tours in several SAP SuccessFactors product areas like People Profile, Org Chart, Continuous Performance Management and Learning Team View to help people of all role types make the most of the system.

WalkMe guided tours for SAP SuccessFactors applications

Image – WalkMe guided tours for SAP SuccessFactors applications

  • Enhancements to the latest People Profile in SAP SuccessFactors Mobile

Enhancements include Microsoft Teams chat availability, employment indicator for contingent workers, redeem awards action, and field masking for HRIS entities.

These updates enhance the user experience by providing more functionality and visibility within the mobile application.

SAP SuccessFactors Leaning Management System

The Learning module has seen significant improvements that make it easier for both learners and administrators to manage learning activities.

  • Improved Browse Library functionality

The ‘Browse Library’ feature has been enhanced to give users more options to find learning activities they may be interested in completing.

Previously, users were only able to search for courses based on the category or course name input in the search bar, limiting discoverability.

  • New ‘Team View’ reporting hierarchy

Managers can now see team hierarchies on the Team View page, replacing the flat team view where all direct and indirect reports were listed on one level.

Selectable icons expand the hierarchy to show direct reports, and it is now possible to choose the number of levels below the reporting hierarchy visible to users.

  • Optional curricula assignments in the new Learning Experience

Learners will have access to optional curricula and sub-curricula directly from the New Learning home page. Optional curricula assignments will not be visible in the Important Learning section.

This improvement creates a more consistent user experience in the new Learning Experience interface.

Optional curricula assignments in the new Learning Experience

Image – Optional curricula assignments in the new Learning Experience

SAP SuccessFactors Onboarding

The Onboarding module has been updated to provide a more seamless experience, streamlining processes, improving data collection, and incorporating AI-assisted writing.

  • Handle multiple onboarding processes

The system now supports employees having two parallel onboarding processes, such as processes for new hire and internal hire, or an onboarding process for rehire with old employment shortly after termination of a new hire.

The system will display indicators to show which process is involved. Employees can distinguish process tasks through home page card tags and will receive separate documents based on assigned processes, eliminating confusion with multiple open processes.

  • Alumni experience – Post employment system access

Employees can continue to log into the system even after leaving and perform functions such as viewing and adjusting their personal data.

Managers can also access alumni data via the offboarding dashboard.

This feature strengthens employer-alumni relationships while requiring less effort from HR.

  • Enhancement to the E-Verify ‘Further Action Notice’ process

The E-Verify Further Action Notice (FAN) process is now fully integrated into the Onboarding module.

If there is a discrepancy in information that leads to an E-Verify Tentative Non-Confirmation (TNC) employment verification result, hiring managers can now choose to complete the FAN process within the onboarding program or the existing offline process (e.g. in person).

Enhancement to the E-Verify ‘Further Action Notice’ process

Image – Enhancement to the E-Verify ‘Further Action Notice’ process

SAP SuccessFactors Recruiting

The Recruiting module has received significant updates focused on improving the candidate experience and leveraging AI capabilities with AI-assisted writing in more areas.

  • AI-assisted interview feedback insights

In Interview Central, users can now generate insights using AI based on interview feedback about candidates that has been provided by interviewers.

By leveraging these AI-generated insights, recruiters can save time summarising feedback, make more informed decisions about a candidate’s suitability, and ensure consistency in review criteria across all applicants.

  • Candidate ‘drag and drop’ functionality

The drag and drop feature allows for quick and easy movement of single or multiple candidates within the recruiting status pipeline.

Whether moving one or multiple candidates, the functionality respects permissions for each status and provides feedback to the user if there are issues with permissions or eligibility.

  • Reimagined candidate experience

A ‘Guided Application Experience’ is now available to provide candidates with a walkthrough of the application process, which can include business rules to make it more dynamic based on their responses.

Applications and candidate information are stored in dedicated places, and candidates have more control over their account with additional personalisation settings.

Reimagined candidate experience

Image – Reimagined candidate experience

SAP SuccessFactors Performance and Goals

Performance and Goals modules have been upgraded with new user interfaces and AI-powered features.

  • Universal rollout of the latest Goal Management

Following the 1H 2025 release, the latest Goal Management upgrade will be universally enabled for all customers.

The universal rollout ensures that customers still using the legacy version will be upgraded to the latest version, with no option to revert.

The latest Goal Management supports a more streamlined and modern goal-setting process.

  • Create team goals using Generative AI

For customers with AI licenses, users can now create team goals using generative AI with the latest Goal Management.

With the new Generate goal creation option, users can input a brief description of the required goal, and AI generates relevant content based on the goal plan template.

Users can review and refine the AI-generated content, maintaining control over the final goals.

Create team goals using Generative AI
Image – Create team goals using Generative AI

  • Latest experience of Performance Management forms

The redesigned Performance Management form introduces a streamlined and flexible new layout with vertical navigation bars, tables for rating sections, and dynamic side panels to structure content more intuitively.

The new layout also incorporates AI features to support the review process.

SAP SuccessFactors Talent Intelligence Hub

The Talent Intelligence Hub (Opportunity Marketplace) has received updates focused on enhancing flexibility and improving recommendations.

  • Withdrawing assignment offers

Assignment owners and co-owners can now withdraw assignment offers even after applicants have accepted an offer.

They can also decline applications or withdraw offers in bulk using the ‘Decline Applications’ option in the Applicants list.

  • Linking Dynamic Teams to assignments

Assignment owners can now link their Dynamic Teams to Opportunity Marketplace assignments when creating or editing assignments.

When applicants accept the offer, they are added to the dynamic team automatically.
Linking Dynamic Teams to assignments

Image – Linking Dynamic Teams to assignments

  • Enhanced opportunity recommendations

Non-intelligent opportunity recommendations have been added to the ‘Opportunities to Grow’ section in the skills details page in Growth Portfolio.

For customers with intelligent recommendations enabled, the section now contains both intelligent and non-intelligent recommendations, with duplicates removed.

SAP SuccessFactors Succession and Development

Succession and Development modules have been enhanced with AI capabilities and improved functionality for mentoring and career development.

  • AI-assisted Successor insights

Users can now access AI-driven insights in the Succession Org Chart or Position Tile view by selecting the Generate Insights option when there are 1-10 successors.

These insights are organised into an Overall Summary in the Successor Insights dialog box, providing a high-level overview of job role requirements and all nominated successors.
AI-assisted Successor insights

Image – AI-assisted Successor insights

  • Team development summary in the latest Career Worksheet

Managers can access a new team development summary through the Growth Portfolio Team View.

On the Summary tab, they can view roles and aspirations, identify skill strengths, and identify skills to improve.

This enhancement helps managers better support their employees’ upskilling and career development by providing a comprehensive overview of team capabilities and development needs.

  • Allow mentors to manage development goals for mentees

Mentors with the appropriate permissions (new mentor-MT role) can now manage their mentee’s development goals on both the ‘Development Goals and Mentoring’ pages.

This feature provides tighter integration between Mentoring and Development Planning, allowing mentors and mentees to track career development during mentoring activities.

SAP SuccessFactors Employee Central: Time Management

Time Management has received updates and enhancements, including AI-driven features, improvements to employee experience, and expanded time sheet functionalities.

  • Enhancements for consolidated Time Recording

Enhancements for Consolidated Time Recording supported in the SAP S/4HANA, include:

  • Cross-Midnight attendance recording based on the work schedule.
  • Generation of Fixed Breaks based on the Work Schedule configuration.
  • Allowance recording.
  • Absences are displayed in real-time.
  • Work schedule details are displayed.

Enhancements for consolidated Time Recording

Image – Enhancements for consolidated Time Recording

  • Half-day absences for Clock-Time users

In the Time Off interface, clock-time users can now select the first or second half of a day when creating an absence request without having to enter the start time and end times.

The Custom Duration option lets employees enter the start and end time of an absence request. The duration of the absence is calculated accordingly.

SAP SuccessFactors Employee Central Payroll

The payroll module has received significant upgrades that improve user experience, optimise operations, and offer a more comprehensive view of payroll activities

  • AI-assisted payment statement information

One of the most innovative updates is the AI-assisted ‘Explain My Pay Statement’ feature for Employee Central Payroll based on SAP Human Capital Management for SAP S/4HANA.

Users can now use SAP Joule to get explanations of their most recent pay statements or compare them with previous statements.

  • Payroll Control Center: Manage payroll activities

Business users can now manage a complete payroll cycle from start to finish with the new Payroll Control Center: Manage Payroll Activities solution.

This feature not only runs payroll calculations but also handles all necessary payroll activities such as bank transfers, statutory reporting, and internal reporting.

Payroll Control Center: Manage payroll activities

Image – Payroll Control Center: Manage payroll activities

  • Payroll information in the alumni experience

Former employees (alumni) can now view and download pay statements as part of the alumni experience.

Those assigned the new ‘alumni’ role can access the system after their employment ends to view and download pay statements, payroll and tax-related documents, as well as compliance-related information in the Payroll tab.

  • Legal changes for countries and specific regions

This update provides an overview of the most important legal changes in Employee Central Payroll.

Updating the ECP system to country-specific legal requirements helps ensure compliance with local laws and avoids potential legal penalties and fines.

  • New local version for Bulgaria

A tailored ECC version for Bulgaria is now available.

This version includes Personnel Information, Address Information, Challenge Information, Contract Elements, and Dependents Information.

With this feature, customers can run Employee Central Payroll in Bulgaria, ensuring compliance with local regulations and improving payroll management efficiency.

SAP SuccessFactors Compensation and Variable Pay

Compensation and Variable Pay module has been enhanced with AI capabilities and improved transparency in compensation management.

  • AI-assisted plan instructions

The system now offers AI-powered assistance to enhance Plan Instructions for variable pay templates and improve content in the Compensation Statement Editor, ensuring clarity, consistency, and alignment.

This reduces manual effort, streamlines the compensation planning process, and helps teams focus on strategic decision-making.

AI-assisted plan instructions

Image – AI-assisted plan instructions

  • Employee Central data on compensation statement templates

Organisations can now display Employee Central data on Compensation Statements without including dedicated fields in the compensation plan.

This feature supports various data types including Date, Boolean, String, Localised, Translatable, and Legacy Picklists.

The enhancement provides more personalised and informative compensation statements without maintaining dedicated fields in the Compensation plan.

  • Template validation and PDF preview for rewards statement templates

A new validation has been added when importing custom templates as XSL files in the statement editor.

Users can now use the ‘Download Sample PDF’ action to preview PDF statements before generating them for employees.

The new validation for XSL imports helps catch formatting issues early, ensuring smooth template uploads, while the preview option lets you verify statement layouts, reducing errors and improving accuracy.

Exclusive eBook: Your ultimate guide to the SAP SuccessFactors 1H 2025 release in Human Capital Management (HCM)

The SAP SuccessFactors 1H 2025 Release for HCM represents a significant step forward in HR technology, with a strong focus on AI integration, improved user experiences, and streamlined processes.

By implementing these updates, organisations can enhance their HR operations, make better talent decisions, and provide superior experiences for employees at all stages of their journey.

Our global team of SAP SuccessFactors specialists have meticulously examined the newest features and improvements in this release, covering the full scope of the HCM suite. Their analysis has resulted in a detailed eBook, delivering valuable insights into the updates across all modules and their practical uses.

Grab your copy of the eBook now to deep dive into all the other updates from the 1H 2025 release.

Digital HR solutions – Transforming your human resource processes

Digital HR solutions – Transforming your human resource processes_Header_Global_2503
As workplaces become increasingly digital, HR teams are embracing technology to keep pace with evolving workforce expectations, automate routine tasks, and make data-driven decisions that enhance efficiency and strategic planning.

Adopting digital HR practices not only enhances operational efficiency, but is also essential for attracting top talent and fostering a motivated workforce. Technologies, such as artificial intelligence (AI), advanced analytics, and cloud-based platforms can optimise many key HR functions including talent management, recruitment, onboarding, performance evaluation and employee engagement. With digital solutions, HR teams can create a responsive, agile, and employee-centric workplace environment.

In this article, we explore digital HR trends and how organisations can successfully implement them to maximise their benefits.

Digital HR and the impact of technology on Human Resources Management (HRM)

Every industry has undergone a technology boom in the 21st century, and HR is no different. The global HR technology market is growing with a CAGR of 9.2% and is projected to grow into a US $81.84 billion market by 2032. Digital HR solutions leverage technology to enhance and automate human resource processes, making HR functions more efficient and data-driven.

HR digital transformations are integral to meeting employee expectations; As forbes notes, today’s employees expect the HR tools they use to be as intuitive and easy to use as the consumer tech we all use every day. Modern HR is now a strategic, tech-driven function. Organisations around the world plan to adopt cutting-edge technologies into their HR workflows, with four out of five HR experts noting their interest in integrating AI into their HR processes, with over half expressing enthusiasm and excitement.

While digital HR shows a lot of promise, it is integral to choose solutions that fit your organisation’s unique needs. Read on to learn more about HR functions that stand to benefit the most from leveraging technology.

Digital HR trends that are reshaping key HR functions

Artificial intelligence, cloud-based solutions, and advanced analytics are revolutionising HR, transforming everything from recruitment to employee experience. These innovations are not just improving efficiency but redefining how HR operates in a digital-first world. A Deloitte study on AI adoption in HR functions among retail businesses decreased HR function calls by 33% and cut time spent resolving workplace process issues by 75%. This underscores AI’s role in streamlining HR operations and enhancing productivity.

Here are the key HR functions undergoing the most significant transformation, where AI and digital tools are reshaping processes and driving smarter workforce management:

Recruitment & Onboarding: AI-powered tools help recruiters efficiently identify the most suitable candidates for unique positions, based on skills and experience, streamlining the hiring process. New hires can access necessary documents, training materials, and introductions to their teams before their first day. These systems support faster integration, reduce administrative overhead, and help improve retention. Additionally, remote onboarding tools enable consistency and connection for employees across locations, ensuring a cohesive experience regardless of geography. Once employees are onboarded, remote management tools keep geographically dispersed teams connected and productive.

Performance Evaluation: Continuous feedback platforms are replacing traditional annual performance reviews. These AI-driven systems can track progress in real time, providing employees and managers with insights into areas for development and help align individual goals with company objectives, enhancing engagement and accountability.

HR Analytics & Decision-Making: Advanced analytics provide predictive insights into employee turnover, productivity, and engagement levels. Companies leveraging people analytics report a 25% increase in business productivity.

Employee Experience & Learning: Employee experience platforms provide tailored learning recommendations and self-service options to enhance employee engagement and satisfaction. Self-service features typically include updating personal information, viewing payslips, submitting leave requests, accessing customised learning paths, and accessing performance feedback.

These platforms empower employees to take greater control over how their data is managed. Meanwhile, managers gain valuable tools to track progress, recognise achievements, and support development plans, allowing them to proactively cultivate talent. Training has evolved beyond passive sessions in meeting rooms. Employees can now use personalised learning materials, accessible even on mobile devices, delivering a more engaging and inclusive learning experience.

Benefits and challenges of digital HR

Adopting digital HR practices provides substantial benefits. Organisations can enjoy operational efficiency, improved data management accuracy, and greater employee engagement through personalised experiences. Additionally, leveraging digital HR solutions delivers actionable insights. These enable proactive rather than reactive HR strategies.

However, transitioning to digital HR does come with challenges. Organisations often face resistance to change, data security concerns, and the need for significant investment in training and infrastructure.

Let’s break down the opportunities digital HR presents, and the obstacles that must be overcome to ensure a successful adoption.

 

Benefits of digital HR solutions Challenges of digital HR solutions

Enhanced operational efficiency

Resistance to organisational change

Automates repetitive tasks, freeing up HR teams for strategic initiatives.

Hesitancy to adopt new technologies and workflows.

Improved data accuracy and management

Data security and privacy concerns

Reduces errors in HR data, ensuring reliable employee records.

Increased reliance on digital systems requires robust cybersecurity measures to protect sensitive information.

Increased employee engagement

High initial investment in technology

Personalised digital HR tools improve employee satisfaction and retention.

Upfront costs for implementing new HR systems can be significant.

Streamlined recruitment and onboarding

Need for comprehensive training

Digital recruitment tools and digital onboarding improve candidate experience and speed up hiring.

HR teams need proper training to effectively use digital tools and maximise their benefits.

Actionable, data-driven insights

Integration issues with existing systems

Leaders can make informed decisions about workforce trends and needs.

Integrating new digital HR solutions with existing infrastructure can be challenging.

Greater agility and responsiveness

Lack of direct oversight

Cloud-based HR platforms enable real-time decision-making and proactive risk management.

Since cloud HR is often administered by an HR provider, organisations may hesitate to lose direct control.

Improved compliance and regulatory management

Continuous maintenance and updates

Automated compliance tracking ensures adherence to labour laws and reduces risk.

Digital HR systems require ongoing updates, monitoring, and enhancements to stay up-to-date.

 

Best practices for implementing digital HR solutions

To successfully implement digital HR solutions, organisations must take a strategic approach that ensures seamless integration, user adoption, and long-term efficiency.

Here are the best practices to maximise the impact of digital transformation in HR:

Clearly define goals and outcomes expected from digital HR initiatives: Establish measurable and realistic objectives aligned with organisational strategy, ensuring clarity for all stakeholders.

Engage stakeholders early, securing buy-in from leadership and employees: Active involvement from senior leaders, HR personnel, and employees fosters a collaborative approach. This reduces resistance and promotes organisational alignment.

Prioritise user-friendly and intuitive technology to ease adoption: Selecting intuitive and accessible tools significantly reduces barriers to adoption, encouraging widespread use across teams.

Invest in comprehensive training and ongoing support to ensure smooth transitions: Tailor-made training programmes and continuous support mechanisms enable employees to adapt to new digital systems. Quicker adoption rates maximise the benefits of new digital systems.

Continuously assess and optimise the implementation process based on feedback and measurable outcomes: Regular evaluations through employee feedback, usage analytics, and performance metrics inform ongoing adjustments. This ensures sustained improvement and alignment with evolving organisational needs.

Ensure robust data security measures are in place: Implementing rigorous data protection protocols and compliance with relevant regulations safeguards sensitive employee information, maintaining trust and mitigating risk.

Promote transparency and consistent communication: Clear and consistent messaging throughout all phases of implementation helps manage expectations, facilitating a positive adoption experience.

Read more on the topic

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Embracing digital HR solutions for a competitive edge

By adopting digital HR, businesses can enhance operational efficiency, improve employee engagement, and gain strategic insights into workforce trends. HR advancements also impact employee productivity. A study from PwC shows that 77% of employees are more productive when provided with digital HR tools that offer self-service options and personalised experiences.

Digital HR isn’t a luxury anymore – it’s a necessity. In today’s competitive market, leveraging advanced HR technology is vital. In doing so, they not only future-proof their HR operations but also cultivate an environment where talent and productivity thrive.

Find the right solution The relevant software solution for digital HR transformation

Given the various complexities of digital HR solutions, choosing an expert HR partner who understands your organisation’s unique needs is crucial for successful digital transformation.

Zalaris Peoplehub is an enterprise-ready solution that seamlessly integrates payroll, time tracking, travel expenses, and talent management. Looking to upgrade your existing SAP infrastructure? Leverage Zalaris’ consulting services – with over 25 years of expertise, we specialise in implementing SAP SuccessFactors to help organisations unlock their full HR potential. Get in touch with our team today to get started.

Employee data management – best practices for your HR team

Employee data management – best practices for your HR team_Header_Global_2503
Employee data is one of the most valuable assets HR managers and their teams can manage.

Yet, it’s often undervalued until something goes wrong. Consider a study by Davies that found that 36% of UK financial services businesses faced regulatory compliance penalties between June 2023 and June 2024.

A structured approach, guided by HR and supported by IT departments, ensures compliance, enhances decision-making and drives efficiency. By implementing best practices, organisations can turn employee data into a strategic asset rather than an administrative burden. This article explores the critical importance of robust employee data management, highlighting its role in driving business success and outlining best practices for HR teams.

Understanding employee data and its significance

Many businesses focus on client data to analyse market trends and customer behaviour. However, employee data is equally vital for organisational growth.

Understanding what constitutes employee data and recognising its impact on business performance is essential for any company striving for efficiency and long-term success. The deeper an organisation’s understanding of employee data, the more effective their workforce management and decision-making will be.

What is employee data?

Employee data typically includes the following types of employee details:

  • Demographic information (age, ethnicity, etc.)
  • Personal and employment details
  • Performance metrics
  • Medical requirements
  • Holiday entitlements
  • Wage agreements
  • Skills and specialisations

The impact of employee data on business performance

Structured employee data management influences three major areas of business: growth, compliance and cost efficiency.

1. Business growth

Improving effectiveness: Employee data helps organisations optimise their workforce management. It enables efficient resource allocation, talent forecasting, and succession planning.

Aligning business goals: The data enables organisations to align different strategies with broader business objectives. Decisions around employees, such as hiring decisions, are based on data, not guessing.

Gaining insights: Employee details provide a comprehensive view of the workforce, allowing businesses to identify trends, strengths, and weaknesses.

Optimising performance: The data improves understanding of employee productivity and performance, leading to targeted improvements in these areas. Organisations can make the most of their available resources, helping boost growth and save money.

2. Compliance

Meeting regulatory requirements: Proper employee data management ensures adherence to employment laws and data protection regulations like UK GDPR.

Enhancing transparency: Properly managed employee data ensures clear access to employee rights and the purpose behind data collection. This fosters trust, ensures compliance, and strengthens workplace communication.

3. Cost efficiency

Reducing unnecessary costs: Effective employee data management and use can lead to significant cost savings. Data-driven strategies ensure more efficient recruitment and retention, reducing wasteful spending.

Streamlining operations: Well-organised employee data eliminates redundant processes and ensures accurate record-keeping, improving overall efficiency.

Improved growth, better compliance, and cost-saving efforts can streamline business operations. The wealth of available data and its strategic use also boost the overall employee experience. Companies have access to information on employee satisfaction, retention rates and overall engagement, which they can use to improve employee satisfaction.

Best practices for employee data management

Gathering data is not complicated in today’s digital landscape, but without a structured approach, organisations may face fragmented information, security risks, and compliance challenges. An effective data management strategy must focus on three areas: data collection, security, and compliance.

Data collection and management

The groundwork for best practices begins with data collection and management. Organisations need to take five steps:

1. Choose appropriate tools: Select software that is user-friendly, integrates with existing HR database software, and scales to meet growing organisational needs.

2. Integrate with existing processes: Consolidating employee data onto a centralised platform streamlines management and provides HR with a comprehensive view. Cloud-based HR platforms such as SAP SuccessFactors are widely recognised for their ability to unify employee data, ensuring consistency and enhancing accessibility across departments.

3. Automate processes: Implement automated systems for data entry and updates. This can eliminate errors, save time and reduce compliance risks.

4. Centralise data: A  single platform ensures consistency and provides a single source of truth for employee information.

5. Define collection goals: Set clear objectives for gathering employee data. A well-defined goal for measuring engagement helps direct focus and ensures the goal is measurable.

Data privacy and security

In 2023, over 2,800 data breaches in the UK compromised millions of records. As organisations begin to gather data, ensuring its security is essential to maintaining trust and compliance.

Data security must be shared responsibility between HR teams and IT departments. HR managers should set privacy policies and clearly define access rights while IT teams implement secure technological solutions. Key best practices to strengthen data privacy and security include:

Best practice
Description
Prioritising employee privacy
Obtain consent before collecting, storing, and using personal employee information, and ensure that UK GDPR guidelines form the foundation of the data strategy.
Implementing strict access controls
Establish clear protocols for accessing sensitive information and limit the access to those with a legitimate need.
Employing secure technology
Use employee database software with robust quality management, undergoing regular security audits. Focus on finding software with certifications like ISO 27001.
Ensuring data accuracy
Conduct regular audits to verify the accuracy of stored information.
Developing retention policies
Have clear guidelines for data storage, deletion, and archiving.
Implementing robust security measures
Enforce strong security protocols, including encryption and continuous data monitoring.

 

Compliance and ethics

As organisations begin to establish security best practices around employee data management, focus must also be given to compliance and ethics. The primary data protection law and regulation to consider here is the UK’s primary data protection law, GDPR.

Businesses and entities must clearly communicate employee rights regarding their personal data. This isn’t just about letting employees know about their rights, but also explaining in detail why employee data is gathered in the first place. It’s vital to make employees aware of the benefits of collecting data. Employees also need to have access to their personal information to nurture trust and transparency.

The final key step for compliance best practices is ensuring continuous training. Organisations should implement comprehensive data protection training programmes to educate employees on their responsibilities. Clearly communicate ethical guidelines and the reasoning behind data collection practices. The more informed and trained employees an organisation has, the stronger its data security becomes.

Failing to maintain compliance can lead to severe consequences, including substantial financial penalties, legal action, reputational damage, and loss of employee trust. In fact, violations of UK GDPR can incur fines of up to £17.5 million or 4% of annual global turnover, whichever is greater.

These are not purely potential but have led to fines, like Germany handing out a €35 million penalty for mishandling employee data to H&M. Therefore, proactively educating employees and fostering a culture of compliance is not just advisable but essential.

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Conclusion: The importance of effective employee data management

Effective employee data management goes far beyond maintaining records. It involves leveraging valuable insights to drive growth, enhance compliance, and boost operational efficiency. As highlighted, poor data handling can expose organisations to significant regulatory risks, financial penalties, and reputational damage. These are challenges that no modern business can afford to overlook.

By proactively adopting best practices in data collection, privacy, and security, HR and IT teams can protect the organisation and ensure HR processes remain efficient, transparent, and compliant.

Our solutions assist your organisation in establishing and managing the framework around employee data. We can set up and run the entire HR database software ecosystem, from payroll to performance management. With us, you can design a well-managed employee data strategy to support business objectives.

A well-managed data strategy positions organisations as forward-thinking workplaces that make informed decisions. Businesses cannot wait until compliance becomes an issue. Contact our team today to future-proof your employee data strategy and ensure lasting success.

The business payoff: Why Payroll Control Centre (PCC) matters

The business payoff Why Payroll Control Centre (PCC) matters_Header_Global_2503
When it comes to managing payroll, SAP SuccessFactors Employee Central Payroll (ECP) stands out as an exceptional solution for mid-sized and large organisations. At the core of its success is a groundbreaking feature, the Payroll Control Centre (PCC).

This innovative tool redefines payroll operations, offering centralised payroll management, real-time data validation, alerts management and advanced automation. For businesses looking to streamline their processes, ECP’s integration of PCC makes it the ideal choice to manage payroll efficiently, accurately, and compliantly.

A modern solution for payroll challenges

Traditional payroll processes often involve repetitive batch jobs, manual validations, and considerable time spent correcting errors late in the payroll cycle. Typically, you need large spreadsheets with process descriptions and the information on “who” has to do “what” and by “when”. Yet, there is little transparency over end-to-end processes, and this often leads to more work and less accuracy.

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The PCC eliminates these inefficiencies, offering a more dynamic and real-time approach. This unified solution prioritises efficiency, compliance, and user experience, consolidating payroll tasks in one accessible location for ultimate simplicity.

The core idea is to ensure data quality whenever employee information is updated. When an employee’s data changes, the Payroll Control Center detects the update and applies the relevant policy validations specifically to those employees. A so-called “policy” contains all the validation rules that tell us whether data quality for a specific payroll process is good or not.

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The ‘One-click Monitoring’ feature lets you simulate payroll from day one of the period. PCC stores test payroll results in declustered tables (optimised for speed) allowing validation rules (policies) to run, simulate postings, and generate bank files, even for test runs. This gives your payroll team plenty of time to spot and fix issues before the live run, boosting efficiency and accuracy.

By the time the productive payroll is processed, payroll and master data related alerts have already been corrected during the test runs. This minimises last-minute issues, allowing more time for finalising payments and ensuring a smoother payroll cycle closer to payday.

Key features of the Payroll Control Centre

1. Pre-configured payroll processes

At the heart of PCC is its role as a centralised hub for all payroll activities. Its user-friendly dashboard delivers a comprehensive overview of the payroll process. These pre-configured processes that help organisations standardise and automate their payroll execution. This minimises errors and ensures consistency across multiple payroll cycles.

2. Off-cycle management

PCC enables efficient management of off-cycle payroll runs, such as bonus payments, terminations, and corrections, ensuring seamless handling of special cases.

3. Validation rules

A standout feature of PCC is its reliance on policy-driven processes. Customisable validation rules ensure payroll data meets both compliance requirements and quality benchmarks. These configurable validation rules automatically flag discrepancies, such as missing data or incorrect calculations. Organisations can easily set up and adjust these rules to reflect their specific business policies. Thanks to a low-code/no-code design, payroll administrators can modify these rules without needing advanced technical skills, enhancing flexibility and efficiency.

4. Alerts management

Teamwork makes the dream work – The PCC system generates alerts based on predefined validation rules and are pushed to payroll managers in real time, who can then assign tasks to administrators for resolution. This automation reduces manual intervention and speeds up the correction process. For instance, a missing address alert might be routed to the HR Leader, while a negative gross pay issue could be automatically assigned to the payroll administrator, optimising the workflow.

5. KPIs and drill-down KPI analysis

PCC provides powerful Key Performance Indicators (KPIs) and drill-down capabilities, enabling payroll teams to analyse trends, and gain deeper insights into the key metrics represented within the KPIs.

The business payoff: Why PCC matters

1. Real-time insights and time saving

PCC offers real-time monitoring of the payroll execution across all the payroll areas (pay frequencies), enabling faster decision-making and reduce processing delays.

2. Payroll audit

Every action within PCC—from end-to-end process execution to alert management—is fully tracked and auditable, ensuring transparency and accountability

3. Customisable validation rules

Organisations can configure validation rules based on their specific requirements using a user-friendly interface, eliminating the need for extensive technical support.

4. Streamlined end-to-end payroll execution

Pre-configured processes in PCC reduce manual interventions, shortening payroll cycle times while maintaining compliance and precision.

5. Scalability

Whether you’re a small business or a global enterprise, PCC adapts to your payroll needs, making it a future-proof solution.

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How it works in real life

Imagine it’s payroll week, and you’re running a test cycle. PCC flags a few employees with off-hours. A quick drill-down reveals the issue—someone forgot to log Friday’s hours. You assign it to your time-sheeting expert, and it’s resolved fast, all before the final run. Meanwhile, you track progress on a sleek dashboard, keeping the process on rails. That’s PCC in action.

Deployment considerations

Deploying the Payroll Control Center (PCC) demands thoughtful preparation. A prerequisite is a backend payroll system, such as Employee Central Payroll (ECP), running at a minimum support pack level – ensuring it stays current with the latest updates. Success hinges on meticulous planning, including process mapping and configuration, alongside a commitment to training and thorough testing. SAP delivers biannual updates (H1 and H2), so build a strategy to incorporate new features and maintain compliance. Partnering with an implementation expert can streamline technical upgrades and unlock PCC’s full potential for your business.

Spinifex ‘Easy PCC’ enhancement (add-on)

For organisations looking to supercharge their PCC experience, Spinifex Easy PCC offers an add-on solution that simplifies implementation and enhances functionality. This tool streamlines the setup of validation rules and KPIs with pre-delivered error checks and reconciliation reports, cutting deployment time from months to weeks. Its user-friendly interface allows payroll teams to modify checks and generate custom reports without technical expertise, boosting efficiency and reducing reliance on developers. By integrating seamlessly with SAP SuccessFactors, Easy PCC helps ensure accurate payroll runs and proactive error detection, saving time and minimising compliance risks.

The future-proof bonus

SAP keeps the PCC evolving. There were major updates allowing payroll managers to configure the validation rules using “Manage Configuration”, improvements on “Teams” feature to auto-assign alerts, performance optimisations and much more. In upcoming releases – Deeper AI integration is on the horizon. SAP is further simplifying it to align with their next-gen payroll vision (SFPAY), though PCC remains tied to the current ECP payroll engine.

In a world where accuracy, compliance, and efficiency are non-negotiable, the SuccessFactors Payroll Control Center delivers.

Final thoughts

Payroll doesn’t have to be a grind. The SuccessFactors Payroll Control Center turns a stressful chore into a streamlined process, giving you control, clarity, and a little breathing room. It’s not just about paying people – it’s about doing it right, every time, without losing your sanity. So next time payday rolls around, why not let PCC be your co-pilot?

The hybrid approach to workplace management: Balancing flexibility and efficiency

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The hybrid approach has reshaped the modern workplace - and caused heated discussions. For many, blending remote and in-office work enhances flexibility, productivity, and employee satisfaction. For others, it presents challenges in communication, collaboration, and work-life balance.

For HR decision-makers, implementing a hybrid work model requires strategic planning, establishing clear policies, and choosing the right HR technology.

A thoughtful strategy can balance the flexibility that remote work offers and the collaborative benefits of in-office work. This article explores these best practices that help HR teams align organisational efficiency with employee wellbeing and business goals.

Understanding the hybrid work model

The hybrid working model combines remote and in-office work, allowing employees to choose where they are most productive. While the concept existed before, it surged in popularity after the COVID-19 pandemic, which forced organisations worldwide to adapt to remote work.

Today, remote work has seamlessly integrated into current practices. According to the Office for National Statistics (ONS), 28% of working adults in the UK were working in a hybrid model in 2024, indicating this approach’s positive impact on employee engagement and business resilience.

There are several models of the hybrid approach:

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Each model presents unique challenges and opportunities. To succeed, HR leaders must define expectations, establish strong communication frameworks, and choose the right technologies to support this collaboration.

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Hybrid roles: Defining responsibilities and expectations

Organisations must first address the responsibilities and expectations of hybrid workers to create a comprehensive framework that supports and monitors employees. This can further promote efficiency, fairness, and employee satisfaction.

Explicit guidelines for work time, both in terms of when to be in the office and when to work remotely, as well as work hours for remote days are helpful in establishing a fair environment.

  • Outline communication protocols for different work settings.
  • Analyse each role to determine which are suited for the hybrid framework.
  • Adjust job descriptions and clearly reflect the requirements and expectations for each role.
  • Define who is responsible for technical support and training.
  • Establish protocols for accessing company resources and data from various locations.
  • Adapt performance review processes to account for hybrid work arrangements.

The advantages and disadvantages of hybrid work

Read on to dive into advantages and disadvantages of the hybrid approach, and strategies to tackle disadvantages effectively.

Advantages Disadvantages

Increased flexibility 
Employees benefit from more autonomy in choosing where and when they work. 

Inequalities 
Some organisational roles may not be suited for hybrid work, which can potentially lead to uneven hybrid opportunities within teams and tension between employees. 

Enhanced productivity 
Studies have shown that employees may be better able to focus on deep work and improve productivity. 
Communication challenges 
The absence of face-to-face interaction can hamper the natural flow of communication, especially if this aspect isn’t prioritised in implementation. 
Cost savings
Downsizing office space and reducing expenses related to utilities and supplies leads to cost savings. 
Employee isolation
Reduced contact can lead to feelings of isolation and weaker interpersonal relationships.
Improved employee satisfaction 
Employees feel more in control over their work, significantly enhancing morale. 
Limited access to resources 
For smaller companies, a hybrid approach may make it more challenging to provide the necessary tools and platforms for effective work. 

 

Many of these disadvantages and advantages depend on the strength of the framework companies implement. With sound processes and structures, you can leverage the advantages of hyrbid work without getting caught up in the disadvantages.

Hybrid workplace strategy: Creating a balanced environment

Crafting a consistent strategy is the key to maximising the benefits of a hybrid workplace. Follow this roadmap to set up your strategy and create a balanced environment:

Defining the hybrid work model

Organisations must assess employee preferences and align them with business objectives. Conducting a survey can help receive feedback and choose a model that aligns with operational requirements. The hybrid model works best when you establish clear expectations for working hours, communication frameworks, and guidelines for performance evaluation.

Investing in technology infrastructure

Identifying what tech is necessary to support remote workers is a high priority. Organisations can help by creating a toolbox that includes information and support on:

  • Reliable internet access and providers
  • Secure VPN connections
  • Collaborative tools and platforms

Helping employees create ergonomic and efficient home-office setups is vital. Providing the right technology or resources to set up appropriate working conditions can boost productivity. A study by Public Health England showed that the work environment can significantly impact wellbeing and productivity, and can build employee trust and satisfaction.

Fostering communication

Businesses must establish clear communication protocols. Consistency is ke – all team members must follow guidelines whether they are working at home or in the office. It’s important to have regular check-ins and updates, even with employees in the office.

Promoting inclusivity and equity

A balanced hybrid approach recognises the importance of both styles of working. It’s vital to ensure equal access to resources, opportunities, and information for all employees. Including remote-first workers in promotions and mentoring programs builds trust. Employees who have limited access to hybrid work opportunities must be rewarded with other opportunities for flexible work.

Supporting employee wellbeing

Encouraging work-life balance by setting boundaries between work and personal time is vital for hybrid work. Organisations need to have clear expectations as to when employees are required to be available and productive. A good starting point is to create a culture of trust and accountability, focussed on productive outcomes rather than micromanagement of how time is spent and where.

Overcoming the challenges of hybrid work

We outline common challenges organisations face with hybrid work, and strategies to overcome them.

Communication and collaboration

  • Challenge: Hybrid work can amplify communication issues and create over-reliance on technology.
  • Solutions: Businesses need to establish clear communication protocols and leverage tools for video conferencing, data handling, and team collaboration. Regular meetings between in-office and out-of-office teams can help ensure consistency.

Culture and connection

  • Challenge: Maintaining company culture and fostering connections between employees is difficult, leading to a lack of unity.
  • Solutions: Creating informal virtual gatherings to replace the ‘water cooler’ conversations can help create unity. Emphasising organisational values in team meetings creates more cohesion.

Productivity and employee motivation

  • Challenge: The hybrid model can make monitoring performance and maintaining motivation complex.
  • Solutions: Clear targets help direct employee focus, while regular manager check-ins ensure progress is tracked with an emphasis on outcomes rather than hours worked. Training on time management and productivity in remote settings can also benefit employees.

Technology and infrastructure

  • Challenge: Ensuring all employees have access to necessary tools is vital to reduce friction and risk of security problems.
  • Solutions: Organisations must invest in robust technology and support remote workers with the right resources. Regular training on digital tools and online collaboration techniques can help. Regular assessment of phishing risks and upgrades to technology can guard organisations from security breaches.

Work-life balance

  • Challenge: Hybrid work models can blur the boundaries between work and personal life, which can lead to burnout and difficulties switching off for employees.
  • Solutions: Organisations must define clear expectations around working hours, and ensure employees are not asked to work during their personal time. Resources and tools to prevent burnout need to be widely shared and available, with regular well-being check-ins.

Conclusion: Optimising hybrid work for success

A well-structured hybrid approach offers significant advantages to organisations. It can introduce greater flexibility, improved productivity, and enhanced employee satisfaction. However, its success depends on careful planning, strategic implementation and choosing the right tools.

We support your HR professionals in streamlining hybrid workforce management. Our end-to-end HR and payroll solutions are cloud-based, enabling seamless workforce planning, attendance tracking, and performance management. Our tools are compliant with local employment regulations and make it easy for organisations to adjust to their policies.

With self-service portals, employees are empowered to manage work schedules, access payslips, and stay connected whether working remotely or in-office. With our advanced analytics tools, HR teams can receive real-time workforce insights to build on their hybrid work strategies.

With years of experience in digital HR transformation, we enable organisations to foster collaboration and enhance employee engagement no matter the work environment. Get in touch with us today to discover how we can support your hybrid workplace strategy for long-term success.

HR change management: Guiding your organisation through transitions

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Technological advancements, regulatory shifts, and strategic decisions can all prompt organisational change.

In the face of these constant shifts, HR change management plays a vital role. With effective change management, organisations can ensure smooth transitions, minimise disruptions and foster adaptability and resilience.

When change occurs, resistance is common. HR teams must carefully guide organisations through transitions. At the core of this process is structured planning and implementation. These elements help employees understand the necessity of change and equip them to engage with it positively. This article examines HR’s role in change management, the key skills required, and the effective frameworks that support successful transitions.

Understanding HR change management

HR change management enables organisations to implement change effectively by providing structure and support. It involves guiding employees through transitions and ensures the adoption of new processes. A well-managed change process has the power to:

  • Reduce resistance
  • Maintain morale, and
  • Improve overall organisational agility.

The role of HR in change management

HR professionals wear many hats to ensure successful change management by taking on multiple roles throughout the process. These roles are represented in the below chart:

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Beyond these roles, HR also acts as the crucial link between leadership and employees. This connection ensures that strategic business objectives align with real-life workforce needs. By fostering a culture of openness and transparency, HR professionals can mitigate uncertainty and create a work environment where employees feel valued and supported.

Essential HR skills for managing change

To drive successful change, HR teams need effective communication, leadership, and analytical skills. Without clear communication, employees and leaders will struggle to understand the logic behind change. The less understanding there is, the greater the resistance organisations may encounter.

HR teams must prioritise strategic planning by assessing organisational readiness and clearly outlining implementation steps. Engaging employees during this process enhances participation and can address concerns of adaptability. Leadership must help build trust and motivate teams to embrace change.

Additionally, empathy plays another key role. Understanding employees’ perspectives, acknowledging their concerns, and addressing uncertainties can significantly enhance engagement and acceptance. Conflict resolution can reduce tensions and resistance to change.

Key HR activities during change management

Two core activities are at the heart of HR change management: communication and feedback. Both play crucial roles in limiting the negative consequences of change.

1. Communication

Communication planning ensures employees receive clear, consistent messages about the transition. Organisations need to provide employees with proper training opportunities and maintain an open dialogue that helps maintain morale. Leadership engagement is a crucial element here, as leaders and executives must actively support and promote the change.

2. Feedback

The other core component is creating a feedback loop. Encouraging employees to share their challenges and experiences allows HR to adjust change management strategies accordingly. A structured feedback mechanism makes the change process inclusive and responsive. With factual information and data, teams can refine plans to better support employees and organisational goals.

Effective change management models for HR leaders

Several frameworks help HR teams implement change effectively. Some widely recognised change management models are:

Lewin’s change management model

This change management theory consists of three stages:

  • Unfreeze: Prepare employees by analysing the current state and explaining the need for change.
  • Change: Implement the transition with clear communication, training, and support.
  • Refreeze: Reinforce the new processes to ensure sustainability and long-term success.

This approach is particularly practical when dealing with cultural shifts or introducing new working methods.

ADKAR change management model

This people-focused model emphasises five key elements:

  • Awareness: Ensuring employees understand why change is necessary.
  • Desire: Encouraging support and commitment to the change.
  • Knowledge: Providing the necessary training and information.
  • Ability: Equipping employees with the skills needed for adoption.
  • Reinforcement: Sustaining the change through ongoing support and recognition.

ADKAR is especially useful for large-scale organisational shifts, such as mergers, acquisitions, or restructuring initiatives.

Kotter’s 8-step process

John Kotter’s model outlines structured steps for successful change. It begins with creating urgency, building a guiding coalition, and developing a vision. The following steps involve enabling action, generating short-term wins, and sustaining momentum. Finally, embedding the change into the company culture ensures long-term success.

This model is ideal for driving high-impact changes where leadership alignment is critical.

McKinsey 7-S framework

This model provides a holistic approach by ensuring alignment between seven key organisational factors: strategy, structure, systems, shared values, skills, style, and staff. Addressing each of these areas helps HR implement a comprehensive change strategy.

The McKinsey model works exceptionally well when aligning HR changes with broader organisational objectives, ensuring that all company elements move in sync.

Each change management theory offers valuable insights. Choosing the right model requires careful consideration and understanding of specific organisational needs.

HR change management process example

Consider an organisation implementing a new digital HR system to improve efficiency. Here’s an example of how the change management process might unfold:

  • Assessing the change: Identifying the need for a more effective HR system and key stakeholders that will implement this change.
  • Planning the transition: Developing a communication strategy, training plans, and securing leadership support. This stage also requires HR teams to select desired change management models.
  • Implementing the change: Rolling out the system while providing training and troubleshooting support.
  • Sustaining the change: Collecting feedback, adjusting, and reinforcing the benefits of the new system.

Beyond technology adoption, similar strategies can be applied to structural changes, policy updates, or shifts in company culture. In all cases, proactive HR involvement is key to ensuring smooth transitions.

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Leveraging HR technology for change management

HR technology can significantly enhance change management efforts by providing data-driven insights and streamlining processes. Zalaris helps organisations manage these transitions efficiently. Companies can leverage HR technology for change management with these solutions to ensure compliance and workforce stability while improving the employee experience:

Additionally, predictive analytics can help HR teams anticipate workforce trends and proactively address potential challenges. These solutions help maintain operational effectiveness, reduce resistance to change, and ensure smooth transitions.

Conclusion: The HR advantage in change management

Successful change management depends on clear communication, thoughtful planning, and ongoing support. HR plays a central role in keeping employees engaged, ensuring smooth transitions, and strengthening organisational resilience. With the right technology and best practices, businesses can navigate change with confidence and set themselves up for long-term success.

We offer the tools and expertise to help organisations manage transitions effectively. Our HR solutions support compliance, improve employee experience, and streamline operations. By integrating tools such as SAP SuccessFactors and the Zalaris HR Integration suite into your change management strategies, you can foster a culture of continuous improvement with ease. Are you ready to experience exceptional HR change management adoption? Get in touch to get started.

 

GDPR in the workplace, UK: Compliance guide for business owners

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Data protection in the workplace is a complex challenge for organisations. The UK General Data Protection Regulation (UK GDPR) necessitates a careful balance of various interests. Understanding and complying with the UK GDPR is vital for protecting individual privacy and avoiding significant penalties.

GDPR sets standards for collecting, storing and processing any personal data related to individuals. Failure to comply can result in financial penalties and damage to trust and business reputation. Let’s look at GDPR compliance in the workplace and the steps organisations operating in the UK need to take to maintain compliance.

Understanding GDPR in the workplace, UK

All organisations operating in the UK as well as those outside the UK that offer goods or services to UK residents or monitor their behaviour must comply with the UK GDPR rules. These cover the following areas:

  • HR practices: Employee data is to be handled in accordance with the UK GDPR.
  • Employee rights: GDPR for employees guarantees certain rights, such as access to data and objection to certain types of data processing.
  • Data protection policies: Businesses have to regularly review and update their data protection policies to reflect any changes in regulations.

The Information Commissioner’s Office (ICO) governs these principles and oversees compliance with the UK GDPR.

GDPR and employee data: key strategies

Remaining compliant with the UK GDPR requires a strategic approach. The following strategies are essential for UK businesses seeking to build a culture of data protection in the workplace.

1. Data minimisation and purpose limitation

Gathering only necessary data for HR functions is crucial for companies. While big data is often helpful in business, in this instance, it is recommended to hold the least amount of data possible to fulfil the necessary functions.

This is important to understand in the context of purpose limitation. Minimising data collection doesn’t mean organisations must avoid collecting data altogether. However, any data gathered should have a specified, explicit and legitimate purpose. This guarantees that organisations collect only relevant and necessary data and process it in a way aligned with these core purposes.

2. Lawful basis for processing

Under the UK GDPR, processing employee data requires a lawful basis. These include contractual necessity, legal obligation, vital or public interest, and legitimate interest. The latter means that an organisation can process data if it has a genuine and legitimate reason, provided that this interest does not override the rights and freedoms of the employee (the subject of the data). It is always beneficial to document the legitimate interest to demonstrate this balance and ensure compliance.

3. Transparency and communication

Organisations are required to provide clear and concise information to employees about their data, including purposes, legal bases, recipients, and storage periods. This requirement fosters good data processing practices and also builds trust. Employees must be aware of their rights under the UK GDPR, including access to their data and the right to lodge a complaint with the ICO.

4. Data security and breach procedures

The government’s survey on data breaches in April 2024 showed that half of businesses (50%) in the UK had experienced some form of cybersecurity breach or attack in the last 12 months. Their research estimates that the cost of an average of £1,205, jumping to £10,830 for medium and large businesses.

A proactive approach to data security is much better than reacting to breaches. Companies must have a clear procedure for reporting and handling data breaches, ensuring timely notification of affected employees and the ICO if necessary.

Organisations also need to consider robust security measures when selecting HR software. All tools in use should have high-level encryption and access controls.

5. International data transfers

The EU has granted the UK an adequacy decision, which recognises the UK’s data protection standards as essentially equivalent to the EU’s. This decision allows personal data to flow freely from the EU to the UK. The adequacy decision is currently valid until June 2025 and may be reviewed at that point.

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GDPR for employees: Rights and responsibilities

Individuals’ data rights are central to the UK GDPR in the workplace, and UK organisations are required to understand these rights to ensure compliance.

Employee rights under GDPR

  • Right to access — Employees have the right to request access to their personal data held by the employer (Data Subject Access Request DSAR), and employers must respond within one month. This is extendable by two months for complex requests.
  • Right to rectification: Employees can request employers to correct inaccurate personal data.
  • Right to erasure (right to be forgotten) — Employees can request the erasure of personal data with certain exceptions, such as when the data is needed for legal obligations, exercising or defending legal claims, or for reasons of public interest. The right to erasure is not absolute.
  • Right to restrict processing: Employees can request that their data processing be restricted under certain conditions.
  • Right to object: Employees can object to the processing of data for direct marketing or other purposes. However, the right to object to processing based on legitimate interests is not absolute and can be overridden if the organisation demonstrates compelling legitimate grounds which override the interests, rights, and freedoms of the data subject.
  • Right to data portability: Employees have the right to receive their personal data in a structured, commonly used format and to transfer it to another controller.
  • Right not to be subject to automated decision-making: Employees have the right not to be subject to decisions based solely on automated processing, such as profiling.

The above summary is a comprehensive overview of employee rights. However, it’s crucial to remember that these rights are not always absolute. The UK GDPR includes specific conditions and exceptions that may apply to each right.

Employee responsibilities

  • Awareness and compliance: Employees need to be aware of GDPR principles, and their role in maintaining data protection at work.
  • Reporting breaches: If employees have any concerns or information about data breaches, they must report it to their employer.
  • Cooperation with DSARs: Employees should cooperate with their employer in responding to DSARs and other GDPR-related requests.

GDPR in HR: implementing best practices for compliance

GDPR in the UK workplace involves many moving parts. To ensure compliance, the following three core strategies enforce best practices:

1. Data processing

At the heart of GDPR compliance in the workplace is how organisations process and deal with the data. UK businesses must:

  • Identify a valid legal basis for processing employee data.
  • Avoid relying solely on consent to its potential limitations.
  • Collect and retain only the minimum amount of necessary and purposeful data to cover core HR functions.
  • Establish clear, well-documented policies that outline timeframes for retaining the different categories of employee data.
  • Ensure data is not kept longer than necessary.
  • Choose third-party solutions for HR functions that are GDPR-compliant and have appropriate contractual arrangements in place.
  • Maintain detailed records of all processing activities to demonstrate compliance.

2. Data security

Organisations must prioritize security in data processing to strengthen GDPR compliance and foster a culture of strong privacy. This can be achieved by:

  • Implementing robust measures covering encryption and access controls.
  • Performing regulated data security audits to protect employee data.
  • Implementing strong access controls, including strong password policies and locking unattended electronic devices.
  • Establishing clear procedures for reporting and handling data breaches.

3. Data awareness

To ensure these policies and procedures have the desired impact, businesses must also have a strong strategy for ensuring and increasing data awareness around GDPR compliance. This means it is important to:

  • Provide clear, detailed privacy notices to employees at the outset of their employment and update them regularly regarding how their personal data is used, what data is collected, and its purpose.
  • Ensure employees understand GDPR principles and their rights under the law.
  • Provide regular training to HR staff and employees to ensure they understand their role in maintaining data privacy.
  • Develop processes to handle data subject requests, like DSAR.

Conclusion: ensuring compliance with professional solutions

Respecting GDPR in the workplace in the UK requires more than just strict policies for compliance. The best approach for companies is to create a structured framework, integrating best practices into daily operations. By prioritising data security, employee awareness and clear communication, businesses can build a strong culture of data protection at work.

Selecting the right HR tools that support and enhance this framework is a must. Our comprehensive HR and payroll solutions help support the organisation’s GDPR compliance journey. With secure data management tools, robust privacy frameworks, and industry-leading expertise, we can help businesses navigate complex data regulations. Organisations can strengthen their data protection while ensuring a seamless employee experience. Learn more about simplified compliance solutions by getting in touch with our experts.