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The future of HR: Trends shaping Human Resources

Sonya Gillam
4 min read
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The field of Human Resources (HR) has undergone a remarkable transformation over the decades. Throughout the years, the field has moved from a focus on administrative personnel management to becoming a strategic driver of organisational success. What does the future of HR look like?

Today, HR stands at yet another intersection. Technology, culture, and innovation shape the way businesses operate and thrive. As the workplace continues to change, HR professionals are tasked with embracing and balancing these trends with operational efficiency. This article explores the trends in HR and what defines it, highlighting how organisations can adapt to an ever-evolving workforce and create a more dynamic, inclusive, and productive work environment.

The evolution of Human Resources

In the UK, the origins of HR date back to the Industrial Revolution, when factory owners began recognising the need for effective workforce management. As a field, HR has come a long way from the first-ever personnel department in the early 1900s to where it is today. Gradually, over the following decades, organisations started establishing dedicated units to manage worker grievances, dismissals, and safety concerns.

In the latter part of the 20th century, the field transitioned from ‘personnel administration’ to ‘human resources’. This shift reflects the change of perspective. Today’s HR recognises employees as valuable assets rather than a workforce to herd. This strategic future of Human Resources will be further shaped by technology.

The role of technology in the future of HR

The rise of technology facilitates this shift in mindset. Like many other industries, the integration of technology revolutionised HR. Tools are now used to streamline most HR processes, aid decision-making, and improve the overall efficiency of HR practices.

Technology is hard to separate from any other trend or HR initiative. Technological advancements like the rise of artificial intelligence (AI) are interwoven in how organisations handle payroll, deal with diversity, and even conduct business in the first place.

Key technological advancements in HR
Artificial intelligence and machine learning  Blockchain technology  Virtual and augmented reality 

Automate many routine tasks from resume screening to analysing employee performance.

Blockchain changes data management by enhancing the security of employee information.

It can be used to train employees and improve remote collaboration between teams.

 

As HR has moved from simply managing people to generating value, technology will lead HR further away from administration to strategy. HR professionals will have more tools — and time — to focus on building a positive, productive workplace culture, contributing to the overall business success.

Trends in HR: Embracing diversity and inclusion

Although the discussion around diversity and inclusion strategies remains heated, many organisations understand the value of these practices. More businesses will likely harness advanced analytics to drive diversity and inclusion efforts, crafting tailored strategies. There is no one-size-fits-all. A more sophisticated, data-driven and personalised approach can create a stronger organisational culture and improve employee wellbeing.

Employee wellbeing: A priority for HR initiatives

This trend towards employee wellbeing is emerging as another core HR trend. Companies are adopting a more holistic approach, offering:

  • Mental health support through counselling services and mindfulness programs
  • Physical health initiatives and more ergonomic workspaces
  • Financial wellbeing programs to find balance

These HR initiatives are often supported by data-driven technology integrations. These include HR software features such as tracking engagement metrics and analysing mental health issues. They can also help offer on-demand resources via virtual reality. These tools can make employee wellbeing initiatives tailored and targeted to areas of focus within the organisation.

The future of HR: Remote work and hybrid models

Part of the strategy to create a better work environment is the rise of hybrid work models. While there is an ongoing debate about remote work and its uses, some statistics highlight the value of hybrid models. Consider, for example, how:

  • Hybrid employees often feel more connected to their organisation’s mission and purpose than on-site or fully remote employees.
  • 84% of surveyed employees said they get more work done in a hybrid or remote setting than in an office.
  • Hybrid workforces are around 5% more productive than fully remote or in-person workforces.

For HR professionals, the task is to find a balance. Teams need to compromise between parts of the organisation, pushing back on hybrid models and the employees preferring this flexibility. The smart organisation understands that focusing on employee wellbeing, work-life balance, and employee development can lead to powerful results. Hybrid work models can be but one piece of this puzzle.

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The importance of continuous learning and development

The role of continuous learning and development has increased in recent years, shaping the future of Human Resources. This is down to two main reasons:

  • The workplace, including job descriptions, is ever-changing. Employees hired for particular skills will need to adjust to changing work requirements.
  • Employees’ expectations and desires seek more than just a single, static role. Companies that provide a clear career path can enjoy a more loyal and happier workforce.

Top organisations will focus on leveraging AI for more tailored experiences and skill-based training. Tools like SAP Talent Management can help with adaptive learning platforms that focus on developing specific skills and aligning with business needs.

Winning organisations will also explore the trend of soft skill development. Programs that improve communication, collaboration, and leadership development can help employees prepare for changing workplace needs.

Preparing for the future of HR

The future of HR is dynamic, innovative, and tied to the needs of a modern workforce. From integrating advanced technologies like AI and blockchain to adopting hybrid work models and personalised employee wellbeing initiatives, HR is transitioning into a more strategic and value-driven function.

To stay ahead, organisations must focus on fostering a culture of learning and adaptability. By leveraging data-driven insights and emerging tools, HR professionals can create workplaces that meet employee expectations and drive business success. Choosing the right tools and partners can facilitate this. Our expertise in innovative technology, talent management, and process optimisation provides tailored solutions to organisations. We specialise in helping businesses stay ahead of the curve and meet the demands of a rapidly evolving HR landscape.

Partnering with us ensures businesses can focus on their most valuable asset, their people. If you’d like to learn more, contact our team today.

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SAP HCM vs SAP SuccessFactors: Choosing the right HR solution

Elliot Raba
4 min read
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Organisations must select the right HR management system to streamline operations and improve the employee experience.

Industry leader SAP offers the most popular options in the space. Their SAP HCM and SuccessFactors solutions optimise HR operations.

These two products, however, differ significantly in their deployment models, functionalities, and long-term viability. This article explores the key features, benefits, and considerations of SAP HCM and SuccessFactors, to help organisations make informed decisions. Whether seeking an on-premises solution with extensive customisation or a modern, cloud-based platform prioritising agility and innovation, understanding these systems is essential for choosing the right HR solution.

Understanding SAP HCM and SuccessFactors

SAP HCM and SuccessFactors are both HR management systems developed by SAP. Although developed by the same company, these systems represent the different generations of HR technology.

What is SAP HCM?

SAP HCM, sometimes referred to as SAP HR, is a comprehensive software module within the SAP ERP system designed to manage various HR processes within an organisation. The system supports functions from employee recruitment to performance management on-premises.

What is SuccessFactors?

SAP SuccessFactors is a cloud-based HCM suite that optimises workforce management and HR processes. The framework offers a comprehensive set of models covering the entire employee lifecycle, from recruitment to retirement.

Key differences between SAP HCM and SuccessFactors

Both modules aim to streamline and optimise HR processes at their core. However, there are a few differences to consider when looking for an HR system.

SAP HCM
SAP SuccessFactors
Deployment model
On-premises solution, installed and managed on the organisation’s servers.
Cloud-based SaaS solution hosted and managed by SAP.
Functionality
Focuses on traditional HR functions like payroll, time management and employee administration.
Offers advanced features for talent management, employee development and performance measurement.
Customisation
Highly customisable to meet specific business needs.
Built on standardised best practices with fewer customisation options.
Integration
Integrates well with other SAP modules but may require more work with third-party integrations.
Offers pre-built integrations with other SAP systems and easy integration with cloud-based applications.

 

Benefits of SAP HCM for organisations

The benefits of SAP HCM come from its centralised nature, which enables central administration and increased efficiency in automating HR processes. HCM can seamlessly integrate with other SAP modules. Its core functionality covers core HR functions, and the system is highly customisable to meet business needs around issues like payroll and time management.

Benefits of SuccessFactors HR system

For SAP SuccessFactors, the benefits come from its cloud architecture. The system is accessible from any location, and extensive analytics and AI integrations are available to maximise its functions. The system also offers excellent support around people management, supporting strategic HR tasks such as talent management and recruiting.

Factors to consider when choosing between SAP HCM and SAP SuccessFactors

Both systems benefit organisations, and choosing between SAP HCM and SuccessFactors depends on specific needs. The decision should be made with the following points of focus:

Deployment model

Consider the IT capabilities and whether in-house infrastructure is available to support the setting up and maintenance of SAP HCM. A cloud-based solution may better fit a smaller organisation, requiring a faster and more agile deployment. Organisations can also consider hosting their HCM on external servers.

User experience & functionality

SAP SuccessFactors offers a more modern cloud-based functionality that can provide a better user experience. SAP SF offers advanced features that include talent management and employee training, while SAP HCM prioritises core HR functions.

Customisation & integration

For specific business needs, SAP HCM offers high customisation and the ability to integrate with other SAP modules. However, SuccessFactors’ pre-built integrations can help connect the modules easily with other cloud-based applications.

Cost

The upfront costs are higher due to the on-premises setup and licensing fees for SAP HCM. Businesses looking for a more scalable product might prefer to opt for the subscription-based model available with SAP SuccessFactors, which can minimise the initial investment costs.

Maintenance, updates & support

The on-premises deployment of HCM means organisations are responsible for managing HR software updates and maintenance. This means it’s best suited for businesses that have a capable IT department. Those looking to reduce their IT workload may prefer SuccessFactors, as SAP handles maintenance and upgrades.

It’s also worth noting that support for SAP HCM will end in 2027 as SAP shifts its focus to cloud-based products.

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Transitioning from SAP HCM to SAP SuccessFactors

Transitioning from SAP HCM to SuccessFactors is significant for organisations looking to modernise their HR systems. As of January 2025, this transition has become increasingly important due to SAP’s shift towards cloud-based solutions and the impending end of support for SAP HCM in 2027.

Organisations can make this shift a success by focusing on:

  • Engaging stakeholders early in the process to gain buy-in and support.
  • Defining clear objectives and scope for the transition.
  • Deploying external expertise to guide the process.
  • Allocating sufficient resources to the transition and establishing realistic timelines.
  • Setting proper processes in place to handle data transfers to minimise risks during migration.

With the right solution, organisations can streamline their IT infrastructure and reduce costs while accessing the latest HR functionalities. Transferring to SAP SuccessFactors can enhance employee self-service capabilities and improve organisational talent management.

Are you ready to choose?

The choice between SAP HCM and SuccessFactors depends on an organisation’s unique needs, goals, and capabilities. SAP HCM offers a tried-and-tested, highly customisable, on-premises solution. For businesses looking for traditional HR functions and control, it’s a great choice over legacy infrastructure. For organisations that want a future-ready, cloud-based platform, SAP SuccessFactors can deliver advanced tools and innovative capabilities.

As SAP phases out support for HCM, transitioning to SAP SuccessFactors offers organisations an opportunity to modernise their HR systems and unlock easy scalability. Partnering with a trusted expert like Zalaris can help organisations navigate this transition effectively. With extensive experience in both SAP HCM and SuccessFactors, we provide tailored support, ensuring businesses maximise the benefits of their chosen solution with zero disruption to business processes.

From guiding deployment to offering ongoing maintenance, we are uniquely positioned to help organisations supercharge their HR operations. Get in touch with our team to start preparing for the future of work.

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Cloud-based HRMS: Transforming human resource management

Liam Clark
5 min read
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Organisations' Human Resource Management is undergoing a significant transformation. Leading the charge are cloud-based Human Resource Management Systems (HRMS).

These web-based platforms enable businesses to streamline HR processes, enhance operational efficiency, and adapt to the demands of a modern, dynamic workforce.

Unlike traditional on-premise systems, cloud HRMS provide greater accessibility, scalability, and cost-effectiveness. They are a vital tool for organisations looking to optimise their HR functions.

This article delves into these key features, benefits, and challenges. We’ll explore how cloud-based HRMS are reshaping HR management and empowering businesses to stay agile and competitive.

Cloud-based HRMS explained

Cloud-based HRMS refers to web-based platforms enabling organisations to manage their HR functions. Instead of operations being tied to on-premise hardware, the cloud allows access without on-premise infrastructure. They are often Software-as-a-Service (SaaS) products, creating a more flexible approach to human resource management.

Cloud HR software and its increasing popularity are part of a wider trend towards moving away from on-premise infrastructure. The nature of the modern workforce—with many people working off-site—and technological improvements make cloud-based software a cost-effective solution for companies.

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Key features of cloud HR software

Cloud-based HRMS features a wide range of tools to help human resource management processes. These frameworks focus on efficiency, data security, and a more user-friendly experience for both HR professionals and employees.

While the functionalities of cloud-based HR and payroll software depend on the specific platform, there are certain core functionalities that any good system should have. Key features can be divided into five core categories:

Employee lifecycle
Recruitment and onboarding: Job postings, applicant tracking systems, and interview scheduling to facilitate onboarding processes.
Employee database management: Centralised storage for comprehensive employee data, including work history, payroll information and talent development.
Payroll
Payroll integration: Automated payroll processing, tax calculations and benefits administration
Time and attendance management: Platforms to track overtime and time-off, including leave benefits for payroll.
Performance and skill development
Performance management: Systems to set goals, provide feedback and conduct performance reviews, including ways to track employee progress over time.
Learning and development: Training management, skill tracking and career development planning.
Analytics and data management
Self-service portals: Access and management of personal information, with the ability to submit time-off requests and view company policies.
Analytics and reporting: Functions providing real-time insights, customised dashboards and tools that empower strategic decision-making.
Compliance
Compliance management: Adherence to labour laws and regulations, including compliance with payroll rules.
Employee experience
Mobile access: Access to HR functions from any device with an internet connection works seamlessly.

 

The core functionalities of cloud-based HRMS lead to tangible benefits that can transform an organisation’s operations. These systems collectively enhance operational efficiency, reduce costs, improve employee satisfaction, and enable organisations to focus on strategic growth initiatives.

By taking their HR processes to the cloud, companies can expect:

  • Better accessibility and flexibility: Teams can access the system from anywhere, deepening collaboration, convenience, and transparency.
  • Cost reductions: Eliminating the need for expensive hardware and IT infrastructure reduces the cost of operating HR systems.
  • Enhanced efficiency via automation: Routine tasks can be automated and streamlined, improving turnaround times and reducing administrative burden.
  • Improved data security: Cloud-based HR software offers advanced encryption, regular backups, and deeper security measures than most in-house systems.
  • Effective employee engagement: Self-service portals can empower employees to better manage their employment and data. These features can foster a deeper sense of community, resulting in improved motivation.
  • Better employer branding: Organisations can optimise their recruitment and onboarding experiences, creating a more coherent and positive brand experience for would-be employees.
  • Strategic advantage: Real-time analytics and reporting tools also provide insights that can facilitate data-driven decision-making. This can improve the overall strategy, creating a more growth-oriented workforce planning strategy.

Sustainability is another additional benefit of cloud-based systems. Digitising processes such as payroll can significantly reduce paper usage and contribute to eco-friendly practices. As organisations start paying more attention to ESG matters, opting for a green cloud-based HR and payroll can be a powerful catalyst for meaningful organisational change.

Cloud-based vs traditional HR systems

This wide range of functionalities and benefits have led to an increase in cloud-based systems over traditional HR solutions. Below is a chart that compares some of the key requirements of HR solutions.

Cloud-based HRMS
Traditional HR systems
Access
Accessible from anywhere with an internet connection.
Tethered to physical servers, limiting access to on-premise locations.
Scalability
Adapts to organisational growth without significant disruption and need for additional hardware.
Expanding functionality may require costly infrastructure upgrades.
Cost
Low initial cost with continued monthly costs.
Higher upfront cost, with additional expenses in maintenance and overheads.
Updates
Automated and handled by the service provider.
Demands extensive in-house IT support for updates, with hardware upgrades often disrupting workflow.
Security
Advanced encryption and regular backups needed to ensure data protection.
While offering control, may lack the advanced security measures and suffer from location-based threats.
Analytics
Provides access to instant insight and vast amounts of data.
May not offer similar analytics capabilities or require more hardware investment for processing data.

 

While traditional HR systems offer localised control and may fit specific organisational needs, cloud-based HR provides more flexible options. These systems are more agile, cost-effective, and future-proof. As businesses adapt to changing situations, cloud solutions can offer strategic advantages to organisations of all sizes.

Potential challenges in adopting cloud-based HRMS

Before organisations rush to implement cloud HRMS, they should consider a few challenges.These systems may pose certain issues if not implemented with care.

Security and data privacy

Organisations must ensure they take steps to select services with robust security and data privacy measures. Protecting sensitive employee data and ensuring compliance with all relevant legislation is vital. In essence, companies need to find a balance between security measures and ease of use.

Technical challenges

When implementing cloud-based HR solutions, care should be given to integrating with existing systems. Data migration and maintaining data integrity must be a priority during the transition from legacy systems. Organisations should also prepare and plan for potential downtime and service interruptions.

Organisational challenges

Introducing new systems to teams can lead to resistance. Organisations must ensure enough training is in place to make the transition easier on employees. This can also guarantee a cultural shift towards technology and innovation.

Ongoing management

It is vital to maintain frequent and consistent updates. Organisations should aim to manage vendor relationships and monitor system performance as needed.

A proactive approach to addressing these challenges can help organisations maximise their benefits. This approach minimises potential disruptions, and ensures HR teams can continue to work.

Conclusion: Unlocking the power of cloud HR software

Cloud-based HRMS is more than just a tool for managing human resources. It can be a catalyst for organisational transformation. It can automate processes, enhance data security, and offer real-time insights. In short, cloud HR software allows businesses to focus on strategic growth while fostering employee engagement and satisfaction.

Though challenges such as security concerns, technical integration, and user adoption exist, they can be effectively addressed with proper planning and proactive management. To achieve this, organisations should consider our PeopleHub platform.

The complete system consolidates HR, payroll, time and expense monitoring, and talent management. Our scalable system can automate 98% of core HR systems and integrate with other third-party applications. Don’t just manage HR – unlock its full potential. Get in touch with our team to learn more.

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HCM SAP integration: Enhancing HR efficiency

Liam Clark
5 min read
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Companies looking to streamline their business operations should optimise their Human Capital Management (HCM).

Integrating your existing HCM systems with SAP HCM offers a powerful solution to HR woes. SAP’s HCM framework, working in tandem with other frameworks, enables smooth flow of data. This can lead to enhanced efficiency across the organisation.

The integration optimises core HR processes, aligning them with broader business objectives. It empowers organisations to make data-driven decisions, improve workforce management, and enhance the employee experience. Let us explore the transformative benefits of HCM SAP integration in more detail. By understanding and implementing these strategies, businesses can unlock the full potential of their HR systems.

Understanding HCM SAP integration

HCM SAP integration refers to the process of connecting SAP’s HCM system with other applications, such as other SAP tools or third-party applications. The integration aims to ensure a seamless flow of HR-related data across the organisation.

Key aspects of HCM SAP integration
Data synchronisation

Synchronisation of employee data, organisational structures, and other HR information between SAP HCM and connected systems.
Process automation

Connecting SAP HCM and other modules and systems can automate various HR processes, including payroll and time management.
Cross-module functionality

HR data is available for comprehensive business insights and reporting.
Cloud integration

Cloud integration ensures continuity between on-premises HR applications.

 

Why HCM SAP integration matters

HCM SAP integration results in a more structured and analytical use of HR data across the organisation. It can optimise HR processes and align them with business objectives, leading to many positive outcomes.
Let us explore the top 5 benefits of HCM integration for businesses:

1. Improves business-wide visibility

Businesses can better break down data silos, connecting HR with other core departments in real time. The holistic approach to HR data management enables strategic decision-making across the organisation.

2. Enhances workforce optimisation

Integrated systems provide businesses with the full picture of their workforce. In an environment where different types of work models exist, from hybrid to remote employees, this is vital. A comprehensive understanding of the workforce improves planning, compliance management, and cost optimisation.

3. Increases efficiency via automation

The right human resource solution facilitates automating repetitive tasks, reducing the time and effort to run many HR processes. This can streamline operations and allow professionals to focus on more strategic initiatives.

4. Increases strategic decision-making

Integrated systems provide real-time data and analytics reports that give organisations insights into core HR metrics, including headcount and employee demographics. These insights can develop more evidence-based practices and create a strategic decision-making environment.

5. Boosts user experience

HCM SAP integration can allow a more uniform workflow, leading to a seamless user experience. HCM systems that integrate well together lead to better employee experiences.

How SAP HCM integration supports HR efficiency

The benefits of SAP human resources management integration enable improved efficiency across HR processes beyond just automation. Post-integration, improvements to the efficiency of HR processes are made possible by SAP HCM in several ways.

  • AI-powered insights: SAP HCM integration offers real-time, AI-powered insights and forecasts. This allows HR teams to align decisions with business objectives.
  • Hybrid workforce management: Allows organisations to optimise the whole workforce rather than just segments of it. This holistic approach is vital for any multinational organisation.
  • Compliance automation: The integration improves compliance management, reducing the risk of non-compliance and associated costs.
  • Succession planning: By using the talent management submodule, organisations can efficiently manage succession planning. Companies can identify potential talent within the organisation, enable career development opportunities, close talent gaps, and nurture future leaders.
  • Career path visualisation: SAP HCM integration enables the creation of development plans and present clear career paths. These can directly boost employee engagement and drive retention.

HCM SAP integration provides a wide range of benefits that drive business efficiency. Organisations can tailor their use of the system with their workforce in mind. This modular approach makes it easy to create a support system for any HR team — large or small.

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Overcoming challenges in SAP HCM integration

Before enjoying the advantages of integrating SAP HCM with your existing HCM systems, there are a few key considerations that can help ensure a smooth migration.

Data synchronisation and quality

Latency issues and data errors could lead to inaccuracies in critical HR processes such as payroll. The solution is to create robust error-handling mechanisms and conduct a thorough data assessment before migration. A phased integration can help identify potential pain points and resolve them early on.

Complexity of system integration

Integrating SAP human resources management with legacy systems or third-party systems can lead to data silos and inefficiencies. Organisations can avoid this by conducting a comprehensive system assessment and data mapping before implementation. Our SAP consultants understand the SAP architecture and the nuances of integration. This specific expertise enables a smooth integration experience.

Customisation and configuration

Customisation offers many benefits, but poor implementation can lead to misalignment of information types. Companies must leverage APIs and middleware to facilitate integration and ensure a deeper understanding of industry-specific requirements.

User adoption and change management

According to observational studies, there is a natural tendency to resist adopting new systems, which can slow the integration process. The solution is to invest in comprehensive training programs and opt for a phased approach to implementation. This can build user confidence and lead to improved user adoption.

Security and privacy concerns

HR systems handle sensitive employee information and organisational data, requiring robust security measures. To address security and privacy concerns, organisations must regularly audit and update security protocols. Integration should only occur with systems that have strict security measures in place and that comply with data protection regulations.

Unlocking the full potential of HR with HCM SAP integration

To overcome the challenges of integration within an organisation, the focus should be on the following steps. With these, HR teams and the wider organisation can unlock the full potential of HCM SAP:

Define clear objectives: Establishing specific goals that align with the organisation’s HR and business strategies smoothens the process.

Implement a phased approach: Starting with critical modules and gradually expanding to supplemental modules can minimise disruption.

Prioritise data quality: Standardising data before integration prevents inconsistencies and errors in downstream processes.

Enable real-time synchronisation: Implementing real-time data synchronisation between systems guarantees access to up-to-date information.

Use cross-module data: Using SAP HCM integration to integrate HR data across different modules generates a more comprehensive view of organisational operations.

Adhering to the steps above can help organisations leverage a integration of existing HCM solutions to SAP HCM, a superior solution.

Conclusion

HCM SAP integration has the power to revolutionise HR processes. It provides organisations with the tools to make strategic, data-driven decisions. At the same time, it enables companies to enhance their operational efficiency and drives workforce optimisation.

By automating tasks, improving data synchronisation, and offering AI-driven insights, integration supports HR teams in aligning their efforts with business goals and improving employee engagement.

While the integration process can present challenges, organisations can alleviate these with the right SAP HCM partner. In this regard, Zalaris can help with careful planning, phased implementation, and expert support.

Our tailored SAP HCM integration services, combining deep industry expertise, with proven methodologies, ensure seamless, secure, and effective integration. Organisations can opt for direct implementation or select specific modules that suit their needs.

At the heart of it all is our commitment to empowering businesses to reach their goals. Get in touch with our team today to learn more about how Zalaris can help you achieve more.

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AI and cloud solutions for HR: Empowering mid-sized businesses in Australia

Jessie Zheng
4 min read
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Integrating AI into HR processes can significantly streamline operations by automating tasks such as identifying applicants who match job descriptions, scheduling interviews, shortlisting qualified candidates, and customising employee training programs.

AI technologies also enhance decision-making and enable greater automation, providing opportunities to accelerate processes and improve interactions with employees, ultimately boosting talent potential.

Surprisingly, most SMEs (60%) don’t use HR-related AI tools, according to a survey by Capterra. Only 21% of Australian small to medium-sized enterprises (SMEs) currently use AI in HR processes, leaving 79% not yet optimising the potential of AI in HR. Mid-sized organisations in Australia are facing a pivotal moment. With growing competition, rapidly advancing technology, and increasing pressure for agility, the decisions your business makes today will shape your tomorrow. By adopting cloud HR solutions and leveraging AI, businesses can streamline processes, make smarter decisions, and enhance the employee experience, transforming challenges into opportunities.

Why HR transformation is crucial?

The business landscape is evolving rapidly, and by 2025, organisations that fail to adopt HR transformation will find it increasingly difficult to stay competitive. Cloud-based solutions and AI technologies offer businesses the tools they need to modernise operations, meeting the demands of today’s workforce and marketplace.

AI is not just about automation, it redefines decision-making and employee engagement. Predictive analytics, AI-powered compliance tracking, and personalised support allow organisations to adapt quickly to trends and address HR needs effectively. Companies that resist these tools risk falling behind in both innovation and efficiency, creating long-term disadvantages.

Jessie Zheng, Senior Consultant at Zalaris APAC

Ethical considerations in AI for HR

As businesses explore the potential of AI in HR, it’s essential to consider its ethical implications. While AI brings incredible benefits, such as improved efficiency and enhanced decision-making, there are challenges to navigate. AI systems can inadvertently perpetuate biases, leading to discriminatory outcomes in recruitment and employee management. Ensuring that AI tools are designed to promote diversity, equity, and inclusion is vital to mitigate these risks.

By setting clear ethical guidelines, businesses can harness the power of AI while protecting the rights of their workforce and maintaining employee trust.

Boost operational efficiency

AI-driven automation of repetitive HR tasks, like payroll processing and data management, allows teams to focus on high-value initiatives, improving overall operational efficiency. With AI technologies in place, HR professionals can make more informed decisions faster, without the bottleneck of manual processes.

Strengthen workforce engagement

AI enables the creation of personalised HR experiences, offering self-service tools and AI-driven systems that empower employees to manage their interactions with HR more effectively. From updating personal information to requesting feedback, AI tools can enhance day-to-day engagement and ensure employees feel heard and supported.

Enhance decision-making capability

With AI, organisations can leverage real-time data and predictive analytics to make more informed, data-driven decisions that propel the business forward. AI systems can help identify trends, assess employee performance, and even predict future HR needs, giving businesses a competitive edge in managing their workforce.

Maintain competitive advantage

By embracing AI, mid-sized organisations can stay ahead of the curve with agile, innovative processes that evolve alongside the changing business landscape. This allows businesses to anticipate challenges, adapt quickly, and drive continuous improvement in HR practices.

AI in HR is not just about keeping pace with technology; it’s about unlocking unprecedented levels of efficiency and innovation. For mid-sized organisations, integrating AI into HR functions such as recruitment and talent development opens the door to building a future-ready workforce while streamlining daily operations.

– Jessie Zheng, Senior Consultant, Zalaris APAC

With cloud and AI-powered systems, mid-sized organisations are no longer limited by size. They are equipped to amplify their potential.

Key concepts and applications

Grasping the core concepts and applications of AI is essential. To begin, let’s clarify the fundamentals of business AI in the context of HR. Many discussions often blur the lines between different types of AI, yet each technology has unique strengths tailored to specific purposes. The table below outlines the various types of AI, highlighting their key functions and common use cases.

AI for HR

PeopleHub: The ultimate cloud HR solution for Australia’s mid-sized organisations

When it comes to HR transformations, mid-sized organisations need solutions specifically tailored to meet their unique challenges. That’s where PeopleHub, powered by SAP SuccessFactors and offered by Zalaris, comes in. This comprehensive cloud HR solution, certified as an SAP Qualified Partner Package Solution, integrates seamlessly into your workflows, streamlining Human Capital Management (HCM) processes for smarter, more efficient operations. Additionally, PeopleHub leverages AI-powered insights to enhance decision-making and drive continuous improvement, ensuring your HR processes evolve alongside your business needs.

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What makes PeopleHub stand out?

  • End-to-end employee lifecycle management: From recruitment to retirement, PeopleHub provides intuitive role-based portals and mobile access, simplifying processes at every stage.
  • Agile and scalable design: Start with what you need now and scale as your business grows. PeopleHub’s modular structure ensures adaptability while delivering immediate value.
  • Rapid implementation: With a potential implementation time as short as nine weeks, PeopleHub minimises disruptions and accelerates your return on investment.
  • Smooth integration: Designed to blend effortlessly with your existing IT infrastructure, PeopleHub optimises workflows without adding unnecessary complexity.

Get started with PeopleHub today

Your organisation’s future is built on the choices you make today. With PeopleHub, powered by SAP SuccessFactors, you gain the tools you need to unlock the full potential of HR transformation. Designed specifically for the needs of mid-sized organisations in Australia, PeopleHub is your strategic partner in staying ahead of the curve.

Download the PeopleHub brochure today and learn more how Zalaris can enhance your HR processes and drive transformative change with confidence, backed by our certification as an SAP Qualified Partner Package Solution provider.

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Why Is People Analytics Important?

5 min read
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Often, it's the small details that make a decisive difference, especially in HR management. An organisation can create a work environment where every individual feels empowered to thrive only by truly understanding their employees' needs and motivators.

People analytics enables organisations to make strategic decisions that positively impact employees, and thereby boost efficiency. Through targeted analysis, companies can identify the workforce’s needs and potential areas of growth. It supports employee development and fosters a culture built on transparency and engagement.

According to a recent survey, only 22% of HR professionals believe their organisation is effectively using people analytics. The global data analytics market is continuously growing at an annual rate of 28.9%, and HR analytics is likely to be a key part of this growth. Read on to learn more about becoming an early adopter of people analytics:

What exactly does people analytics mean?

People analytics is the targeted collection and analysis of data about employees. It addresses questions such as “What boosts performance and satisfaction within the team?” and “What does the age distribution and skill set look like?”

Specialised analyses, like workforce structure analysis, provide a clear overview of the workforce – from age, to qualifications, to skill gaps – and help with workforce planning. By employing data-driven HR strategy, organisations can create strategic value by streamlining employee development and resource deployment.

Is it gut feeling or data? – Quality and collection are key to people analytics

In many departments, like finance or marketing, the use of data-based analysis tools is well established. However, HR departments often lack digital analysis, meaning that crucial decisions regarding employee development and retention are frequently based on experience and intuition.

This ‘gap’ is particularly noticeable in strategic decisions such as succession planning or analysing the causes of high absenteeism.

A valid and up-to-date data foundation is therefore the first step toward robust analysis and strategic HR management. For an impactful analysis, it is not only large volumes of data that matter but, above all, high-quality, well-structured data. Information about the workforce must be reliable, relevant, and well-maintained to yield actionable insights. Analysis tools like SAP SuccessFactors help centralise, update, and connect data through its various functional modules.

Why effective people analytics is worthwhile

Employing people analysis to gain insights into the workforce offers a range of tangible benefits:

  • Making informed decisions: People analytics provides insights into employee behaviour and needs. This data allows decisions to be based on facts rather than assumptions.
  • Boosting productivity: By identifying common blockers to productivity such as skill gaps and time spent on non-productive work like meetings, organisations can streamline processes and increase productivity.
  • Minimising risks: Early warning signs, such as declining satisfaction and rising turnover rates, can be proactively identified and addressed before they negatively impact the organisation’s performance.
  • Attracting and retaining talent: By strategically deploying people analytics, organisation’s can provide tailored support to employees, including employee development and learning programs, incentives for high performers, and defined career lattices. A continuous focus on their growth strengthens employee retention.
  • Insights into organisational culture: People analytics can reveal how the workforce perceives the organisation, and gauge their satisfaction with the organisation.

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The three pillars of people analytics

An effective people analytics strategy is built on three essential pillars:

1. Employee data

In addition to personal data, this includes performance and development metrics, turnover rates, satisfaction, and engagement scores. These data points provide insights into what is working well in the organisation, and where there is a need for action.

2. Analytical tools

Reporting and analytical tools, including tools that are built into your HRM solution, enable large-scale collection and analysis of people data. Such tools make it easier to consistently capture data and make it centrally accessible.

3.Culture of people analytics

Successful companies foster a culture that values transparency and accountability. Leaders and employees alike should be encouraged to learn from data-driven findings and use it for improvement. Achievements and errors must both be viewed as opportunities for growth and development.

The process of people analytics: Five steps to success

A systematic approach to implementing people analytics boosts efficiency and fuels data-driven decision making:

1. Collect data: Data from HR systems, feedback tools, and performance evaluations are consolidated in a central location. Systems like SAP SuccessFactors Workforce Analytics play a role here, collecting and connecting data.

2. Clean data: The collected information is cleared of errors and duplicates and formatted uniformly. This lays the foundation for reliable analysis.

3. Develop analytical models: Statistical and data science methods help identify patterns and analyse relationships – for instance, between motivation and turnover or performance and engagement.

4. Interpret results: Results are prepared in reports and dashboards, providing leaders with a basis for decision-making, highlighting key concerns and opportunities.

5. Implement and monitor actions: These insights are used to inform actions, and continuously monitor their impact. Further analyses allow for adjustments and help identify new challenges early on.

Types of people analytics

Diagnostic analysis

This type of analysis investigates the causes behind certain phenomena, such as high turnover rates within specific departments or age groups. It examines the impact of background, motivations, and other influential factors on employee behaviour, aiding in the development of appropriate countermeasures.

Descriptive analysis

Descriptive analysis outlines the current situation and key metrics of the workforce, capturing aspects like turnover rates, age distribution, and the ratio of full-time to part-time employees. This provides the organisation with an overview of the status quo and ongoing trends within the workforce.

Predictive analysis

Using historical data and forecasting models, predictive analysis aims to anticipate future developments. This allows companies to detect trends early, such as skills shortages in specific areas, and take proactive steps, like implementing targeted training programs.

Prescriptive analysis

Prescriptive analysis goes a step further by deriving specific recommendations for action from the insights gained. Based on the analyses, suggestions are developed on how to improve employee performance, motivation, and satisfaction—such as adjusting compensation, enhancing leadership culture, or implementing tailored employee development programs.

Workforce structure analysis

This analysis provides insights into the composition of the workforce—such as age, gender, departmental affiliation, or salary levels. It helps companies identify potential imbalances and implement measures to promote diversity and equal opportunities.

SAP SuccessFactors: The tool of choice for people analytics

To fully harness the potential of people analytics, companies need not only valid data, but also powerful tools that can analyse this data and provide clear insights. SAP SuccessFactors offers a central solution to capture, structure, and utilise complex HR data as a foundation for strategic decisions. Unlike isolated systems, SAP SuccessFactors integrates all relevant HR data on a single platform.

SAP SuccessFactors provides a central solution to capture, structure, and uses complex HR data as a basis for strategic decisions. Unlike isolated systems, SAP SuccessFactors centralises all relevant HR data in a single platform.

  • Interactive dashboards and reports: SAP SuccessFactors offers personalised reports and dashboards that allow managers and HR professionals to view key metrics at a glance. This helps in making quick, informed decisions.
  • Drill-down function: This feature enables data filtering by specific categories or dimensions to gain detailed insights. For example, decision-makers can examine turnover rates by department or age to uncover deeper patterns.
  • Standardised HR metrics: SuccessFactors provides over 2,000 HR metrics that companies can use as a foundation for their analyses. The standardised definitions create a unified data foundation, enabling various management levels to interpret and utilise data accurately.
  • Talent and competency management: SuccessFactors not only assists in filling vacant positions with the right talents – it also supports strategic succession planning. Pre-configured profiles and a competency catalogue show, at the push of a button, the distribution of skills and qualifications in the workforce and how these can be further developed.

Targeted, data-driven people analytics provide valuable insights into employee satisfaction and performance, among many other areas. This helps to base business decisions on a reliable foundation. Data-driven analyses strengthen HR strategy and contribute to developing a long-term successful and motivating organisation culture.

Zalaris can help you supercharge your HR strategy

As an Expert SAP Partner with over 25 years of experience with SAP implementation, we support your efforts to modernise your HR analytics. We can help you accelerate your digital transformation with a pre-configured, ready-to-implement solution: PeopleHub powered by SAP SuccessFactors, boasts impressive reporting and analytical functions. Reach out to us for a free consultation and start your HR transformation journey today.

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What is SAP Performance Management?

4 min read
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What is SAP Performance Management
Measuring and actively enhancing performance is one of the most critical tasks for companies of all sizes and industries.

Traditional HR approaches often fall short of meeting today’s demands for transparency, agility, and long-term employee retention.

What businesses need instead is a modern, comprehensive system that connects organisational goals, employee development, and a healthy workplace culture.

This is exactly what SAP Performance Management offers. In this guide, discover how SAP technology can help you create a platform that motivates, supports, and empowers your teams to achieve your company’s objectives.

What is SAP performance management?

SAP Performance Management is a software solution designed for the structured evaluation and development of employee performance. It enables the establishment of clear, measurable goals, making each individual’s contribution to the company’s success visible. This approach aligns personal development with the overarching corporate strategy.

Companies using SAP Performance Management benefit from continuous, constructive feedback and a transparent evaluation culture. This not only boosts employee motivation but also strengthens their trust in the system’s objectivity.

A key feature of SAP Performance Management is the integration of clear assessment criteria and Key Performance Indicators (KPIs). These provide a fair and transparent foundation for evaluations. Additionally, the system allows businesses to easily set their own KPIs.

The SAP performance management system

The SAP Performance Management System provides the ideal platform for goal setting and performance evaluation.

Key features include:

  • SMART goal assistant: Supports managers in setting precise and measurable goals that align with the company’s strategy.
  • Continuous feedback and coaching: Regular feedback helps improve employee satisfaction and performance.
  • Performance analytics and evaluations: The platform provides managers with detailed analyses to objectively assess performance and identify areas for improvement.

Thanks to its cloud architecture, SAP disseminates regular updates, reducing the internal IT maintenance workload.

What is a performance management system?

A performance management system, in general, is a strategic tool that structures the process of setting goals, monitoring performance, and evaluation. These systems form the basis for systematic performance management and foster the development and assessment of employees.

Modern systems are not confined to traditional annual appraisals but establish a culture of continuous development and feedback loops that support dynamic business requirements.

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Finding the right performance goals

Performance goals are precise objectives set for the company or employees, made measurable through specific Key Performance Indicators (KPIs).

1. Strategic alignment

Performance goals should directly support corporate objectives. For instance, if the goal is annual revenue growth, sales employees might be assigned a target such as “Increase close rates by 15% by the end of the year.” Clear connections like these motivate employees and channel their efforts toward key goals.

2. SMART criteria

Effective goals follow the SMART criteria – Specific, Measurable, Achievable, Relevant, and Time-bound. A SMART goal like “Increase customer satisfaction by 20% by Q3” is both clear and motivating.

3. KPIs as success metrics

KPIs such as “Quarterly Revenue” or “Net Promoter Score” provide measurable benchmarks to track progress. They enable objective monitoring and adjustments when needed.

4. Customisable goal types

Tailored performance goals for different roles enhance overall performance:

  • Quantitative goals: Targets tied to measurable metrics, such as “Increase sales by 10%.”
  • Qualitative goals: Objectives like improving customer satisfaction, measured through customer feedback ratings.
  • Development goals: Aimed at personal growth, such as conducting regular team feedback sessions

5. Dynamic goals

Performance goals are adaptable. With SAP SuccessFactors, goals are regularly reviewed and adjusted as needed to reflect changing conditions.

Key elements of an effective performance management system

A robust performance management system, such as SAP SuccessFactors, is built on the following components:

1. Goal management

Clear, measurable goals cascaded through all levels—from the organisation to individual employees – create transparency about how each person contributes to success.

2. Regular feedback and coaching

SAP SuccessFactors Performance & Goals fosters a structured feedback culture, promoting regular communication, employee development, and trust between managers and their teams.

3. Transparent performance evaluations

Fair and motivating workplace cultures require objective and understandable evaluations. SAP SuccessFactors Performance & Goals supports a transparent assessment methodology through predefined criteria and Key Performance Indicators (KPIs).

4. Development and training

By integrating training and learning programmes into the evaluation process, employees can enhance their skills effectively and purposefully, benefiting both their careers and the company.

5. Mobile access and user-friendliness

With flexibility and mobile working being the norm, any modern performance management system should be cross-platform and accessible on all devices. Mobile access enables employees to review and adjust their goals and progress anytime, anywhere.

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Who are performance management systems suitable for?

Performance management systems offer competitive advantages for businesses of all types and sizes:

  • Large Enterprises: Benefit from standardised processes that ensure consistency across multiple locations.
  • Medium-Sized Businesses: Use the system to efficiently organise teams and establish clear communication channels.
  • Small Businesses: Enhance employee satisfaction, efficiency, and retention through structured performance management.

Best practices for performance management

Even the best performance management tool delivers optimal results only when applied correctly. To ensure success in your performance management efforts, focus on:

1. Cascading goals

Goals should be clearly and consistently communicated from leadership to individual employees. With the SAP “Goals” module, you can set objectives that link individual goals with overarching company targets.

2. Regular feedback and coaching

Providing frequent feedback fosters trust and clarity while helping teams achieve their objectives.

3. Learning content

A performance management strategy should foster a culture of learning and development. Training and upskilling programmes benefit both personal growth and the agility and efficiency of the organisation.

4. User-friendliness and mobility

A user-friendly platform enhances adoption across the company. SAP SuccessFactors ensures satisfaction for all users with its intuitive interface and mobile-accessible features.

The path to a successful performance management system

A modern performance management system aligns with the overall business strategy while boosting employee motivation and performance. By setting clear objectives, providing regular feedback, and fostering a culture of learning, companies can empower their teams and enhance collaboration.

Looking to modernise your performance management processes and unlock your teams’ full potential? Contact us for a no-obligation consultation and discover how SAP can elevate your performance management!

 

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The ultimate guide to SAP ECP: On-Prem to cloud migration

1 min read
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Is your mid-size organisation ready to embark on a digital transformation by transitioning from outdated on-premises software to advanced cloud-based HR solutions?

If so, now is the perfect time! Recent studies show that 40% of mid-size organisations plan to modernise their payroll systems by moving to the cloud.

Explore the benefits of SAP SuccessFactors and see how cloud adoption can streamline IT operations, reduce costs, and boost operational agility.

In this whitepaper, you will learn:

  • Why make the switch from on-premises to the cloud?
    Understand the compelling reasons for migrating to cloud-based solutions, including SAP SuccessFactors and ECP (Employee Central Payroll), and how this transition can significantly reduce costs and IT complexity.
  • Lifecycle analysis and future-proofing
    Explore the lifecycle analysis of various SAP products and why SAP SuccessFactors is the most future-proof choice with support well beyond 2040.
  • Advantages of moving payroll and time to SAP SuccessFactors
    Delve into the operational agility, automated processes, compliance benefits, and enhanced employee experience offered by cloud-based payroll solutions.
  • Navigating your upgrade journey
    Learn about the different deployment options – Greenfield, Brownfield, and Hybrid – and how to choose the best approach for your mid-size organisation.
  • Tools for streamlining migration and maintenance
    Discover specialised tools like SFCodebot, SAP Infoporter, and SpinifexIT that simplify migration tasks and ensure efficiency and accuracy.

Download now and take the first step towards a more efficient, agile, and innovative HR future. Stay competitive and future ready, go cloud with SAP SuccessFactors today!

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