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Employee data management – best practices for your HR team

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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

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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.

Boosting employee experience: Strategies for business leaders

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Attracting top talent isn't just about providing the biggest payslip to employees. Today's employees are looking for a positive employee experience. They want an organisation that prioritises workplace culture, growth, and wellbeing.

Having a strong employee experience strategy can improve employee engagement and retention. It can also boost productivity and deliver tangible benefits, including higher profitability. In this blog, we’ll examine key strategies for enhancing employee experience, the role of technology in transforming the workplace, and how organisations can measure and optimise their approach to create a thriving workforce.

What is employee experience?

Employee experience refers to the cumulative sum of an employee’s interactions, perceptions, and emotional responses throughout their employment journey within an organisation. This covers everything from pre-recruitment to recruitment and post-exit engagements. Employee experience is determined by aspects like workplace culture, management interactions, physical work environment, and professional growth opportunities.

To gain more insight into the true value of a positive employee experience, I shared a poll on LinkedIn asking my network which of the following factors would push them to leave their current organisation:

Linkedin - Poll
A whopping 52% of respondents chose ‘Poor culture or leadership’ as the main reason that would make them quit their job. This personal anecdote highlights how integral an effective employee experience strategy is for organisations in 2025.

The importance of a strong employee experience strategy

A strong employment experience is critical for organisational success. It directly impacts talent retention, productivity, and financial performance. Here are some benefits to convince organisations to improve employee experience:

  • CIPD estimates the average cost to hire in the UK is £6,125. With strong strategies, organisations can attract higher-quality candidates, reducing hiring frequency and cost.
  • Organisations investing in employee experience solutions improve their potential to earn more and improve customer satisfaction.
  • Access to wellness resources and work-life balance reduces stress, lowering absenteeism.
  • Companies recognised for strong team member experience can reduce the need for recruitment by 47%.

A strong employee experience strategy is imperative for business success. Organisations prioritising employee-centric practices see measurable gains in retention, innovation, and profitability. They also future-proof their workforce with robust strategies that answer changing workplace needs.

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Key strategies to improve employee experience

Crafting a strong employee experience requires careful attention and organisations must prioritise creating a positive and encouraging work environment. Strategic initiatives that foster engagement, growth, and trust can improve the overall employment experience.

Prioritise transparent communication

Organisations should use multi-platform tools to nurture communication. Through these tools, businesses can create a sense of community, sharing updates, celebrating milestones, and reinforcing company values.

Communication should not be a one-way street. Strengthening employee experience requires robust real-time feedback mechanisms that capture employee sentiment. Any concerns that arise from pulse surveys should be addressed promptly and appropriately.

Invest in professional development

44% of employees feel their employers don’t provide adequate growth opportunities. By offering training programs and clearly defined career advancement paths, companies can drastically enhance employee motivation and satisfaction.

Investing in professional development isn’t only beneficial in terms of employee experience. If aligned with organisational goals, these strategies can boost retention, growth, and productivity. By maintaining a skilled workforce, organisations can reduce costs associated with recruitment and skill gaps.

Cultivate trust and recognition

A focus on improving organisational culture and leadership enhances employee loyalty and satisfaction. Training managers with emotional intelligence skills can improve employee experience, creating a workplace built on trust. Formal recognition programs validate contributions and create a broader sense of accomplishment.

Optimise workplace flexibility

In the workplace, both the physical environment and the way workflows are structured impact how employees feel about their contribution and work situations. First, it is evident that even when employees don’t prefer working from home, they tend to like having the option to do so. Hybrid and remote work models as well as flexible hours can meet diverse workplace needs. Ergonomic workspaces and digital tools can improve employee wellbeing.

Leverage technology

Finally, employee experience strategies should explore digital tools that help with centralising communication, and feedback, and improving productivity through simplified workflows. For organisations, these tools can be a cost-effective solution to enhancing productivity and cultivating a better sense of community.

Measuring and optimising employee experience

Organisations that combine employee experience strategies with robust measurement frameworks to track progress see greater impact.

Measure and optimise strategies by:

Tracking quantitative KPIs:

  • Retention metrics, including turnover rates, especially voluntary exits, reflect the quality of employee experience.
  • Productivity indicators such as sales growth, customer complaint trends, and project completion rates.
  • Development engagement, such as the percentage of employees with formal training plans.

Conducting targeted surveys:

  • Pulse surveys that frequently gauge real-time sentiment.
  • Employee Net Promoter Score (eNPS) that measures the likelihood of employees recommending the company.
  • Exit interviews to identify systemic issues causing turnover.

Analysing qualitative feedback:

  • Use focus groups to explore the experiences of specific employee cohorts, like remote workers.
  • Map the entire employee lifecycle to identify pain points in recruitment, onboarding and daily workflows.

Optimising through data-driven adjustments:

  • Address feedback trends with targeted initiatives like tool upgrades.
  • Benchmark employee experience metrics against industry standards to prioritise improvements.

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Driving business success through enhanced employee experience

Organisations with a strong employee experience strategy reap measurable benefits. Research shows that satisfied employees invest up to 40% higher discretionary efforts into their work. Evidence also suggests that these strategies improve retention in competitive labour markets, particularly when addressing flexibility and purpose.

By designing employee experience solutions that address employee concerns holistically, companies can cultivate environments where employees thrive and drive organisational success.

Embracing the importance of creating an excellent employee experience is key to success. Organisations need to prioritise communication, career development opportunities and employee wellbeing to create a workforce that feels valued, engaged and motivated.

The good news is that organisations don’t have to do it all by themselves. They can leverage technology by investing in expert HR solutions to drive data-driven strategies and cultivate a culture of productivity. Partnering with us gives you access to extensive expertise and ready to deploy HR solutions to optimise your employee experience strategy. From simplified payroll frameworks to talent management hubs, our solutions can help organisations create workplaces where employees don’t just work, but thrive. Learn more by connecting with our team.

The future of HR: Trends shaping Human Resources

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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.

SAP HCM vs SAP SuccessFactors: Choosing the right HR solution

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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.