SAP HR is more than just a software suite – it is a comprehensive solution that enables companies to handle the complexities of modern HR management while increasing efficiency.
In this blog post, we will explain what SAP HR includes, focusing on the central modules of the software solution and its benefits. We will also discuss the evolution of the software, its interfaces with other SAP products, and provide seven reasons why switching to SAP HR might be beneficial for your company.
What is SAP Human Resources (HR)?
SAP HR (Human Resources) – better known as SAP HCM (Human Capital Management) – is a comprehensive module of the SAP software suite designed specifically for the administration and optimisation of HR processes in companies.
SAP SuccessFactors HCM offers various functions divided into different modules that enable efficient management of human resources.
SAP HCM: The central modules of the software suite
SAP HCM is divided into various modules that can be implemented and used independently. The software distinguishes between three categories:
In SAP HCM, the process always begins with assigning employees to the corresponding structures to capture their master data. This assignment is necessary to utilise the other modules of the software.
An overview of the central modules of SAP SuccessFactors HCM:
SAP HCM: Organisational Management (OM)
The Organisational Management (OM) module supports the mapping and administration of the company’s structure. It allows for:
- The creation of organisational charts,
- The definition of jobs and positions, and
- The assignment of employees to these positions.
This ensures transparent and efficient organisational management.
SAP HCM: Personnel Administration (PA)
The Personnel Administration (PA) module focuses on managing personnel data. This includes:
- Capturing employee master data,
- Managing employment contracts,
- Handling personnel files, and
- Conducting personnel cost planning.
SAP HCM: Payroll (PY)
The Payroll (PY) module enables accurate and timely payroll processing. It considers all relevant legal and operational regulations to ensure correct payroll processing.
SAP HCM: Time Management (PT)
The Time Management (PT) module supports the recording and management of working hours, overtime, absences, and vacations. It offers extensive functions for planning and analysing working time data, leading to efficient workforce planning.
SAP HCM: Recruitment (PB)
The Recruitment (PB) module covers the entire recruitment process, from job posting to applicant management to hiring new employees. It helps companies find and hire qualified talent.
SAP HCM: Talent Management
The Talent Management module supports the planning and implementation of personnel development measures. It includes functions for:
- Performance evaluation,
- Career and succession planning, and
- Training and development.
SAP HCM: Event Management (PE)
The Event Management (PE) module provides tools for planning, organising, and conducting training and development events. It supports managing participants, resources, and event content.
The evolution: From SAP HCM to SAP HXM and back!
The introduction of SAP HXM (Human Experience Management) marked a strategic shift from merely managing human resources to improving the overall employee experience. HXM aimed to enhance employee well-being and satisfaction through personalised and engaging experiences.
Despite the growing importance of the individual employee experience in HR departments, the software category was still often referred to as Human Capital Management (HCM).
In response, SAP renamed the software suite back to SAP SuccessFactors HCM. This renaming met industry standards and emphasised the holistic management of HR processes while integrating valuable insights and innovations from the HXM phase.
Integration and extensions: What interfaces are available with other SAP products?
The seamless integration and extensive expansion possibilities of SAP HCM play a crucial role for companies aiming for efficient HR process management and optimised collaboration between various business areas.
SAP HCM is not just an isolated module but an integrated part of various business processes, allowing your company to make optimal use of HR departments and successfully tackle the challenges of the modern work environment.
SAP HCM can be seamlessly integrated with other SAP products and modules:
SAP ERP
Integrating SAP HCM with the SAP ERP system allows for the seamless exchange of data between HR and other central business areas such as finance, purchasing, and logistics. This ensures a consistent and up-to-date data basis, essential for precise planning and informed decision-making. For example, payroll and personnel costs can be directly transferred to finance, increasing accuracy and efficiency.
SAP SuccessFactors
SAP SuccessFactors is a cloud-based solution for comprehensive talent management and HR analytics. Integration with SAP HCM enables companies to use advanced functions in areas such as performance management, succession planning, and personnel development. This integration helps companies improve talent acquisition, better retain employees, and foster their development.
SAP Fiori
SAP Fiori offers a user-friendly and intuitive interface for SAP applications, including SAP HCM. Integration with SAP Fiori allows employees and managers to access important HR functions and data, whether they are in the office or working remotely. This significantly improves the user experience and simplifies daily work through simple, role-based applications.
 SAP S/4HANA
SAP S/4HANA is a modern, high-performance ERP suite from SAP that offers real-time data processing and analytics. Integrating SAP HCM with S/4HANA improves overall performance and scalability of HR processes. Companies benefit from faster and more accurate analyses, enabling better decision-making. Real-time data processing and analytics help HR employees identify trends and patterns and respond quickly to changes.
SAP HCM benefits: 7 reasons why switching is worthwhile!
Switching to SAP HCM offers many valuable possibilities and options that go beyond mere HR administration. Here are the seven main reasons why switching to this comprehensive HR solution is worthwhile:
1. Efficient and Central HR Administration
SAP HCM allows for central management of all personnel data, leading to more efficient and error-free HR processes. The central database ensures that all relevant information is easily accessible and up-to-date.
2. Automated Processes
SAP HCM offers extensive automation features that minimise manual processes and significantly increase efficiency. From automated payroll to time management and recruitment, automation saves time and reduces error potential.
3. Scalability and Flexibility
SAP HCM is a scalable solution that grows with your company. Regardless of company size or employee number, SAP HCM can be adapted to specific requirements, offering flexibility and ensuring that the solution meets your company’s needs in the future.
4. Compliance and Security
SAP HCM provides robust security features and ensures that all HR processes comply with legal and regulatory requirements. This is particularly important in times of increasing data protection requirements and stricter compliance regulations. SAP HCM ensures that HR data is managed securely and compliantly while meeting global standards.
5. Real-Time Data Analysis
With the integration of SAP S/4HANA, your company benefits from real-time data processing and analysis. This allows HR employees to gain current and accurate insights into HR metrics, recognise trends, and make informed decisions. Real-time data supports a proactive HR strategy and helps identify and resolve problems early.
6. Cost Savings
Automation and efficiency improvements in HR processes can save companies significant costs. Less manual work means fewer errors and lower correction costs. Furthermore, central data management allows for better resource utilisation and reduces the need for redundant systems.
7. Integration with Other SAP Modules
Seamless integration with other SAP products like SAP ERP, SAP SuccessFactors, and SAP Fiori enables companies to create comprehensive and integrated business processes. This integration enhances collaboration between different departments and ensures a harmonised data landscape.
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SAP HR – The complete solution for efficient HR management
The comprehensive software suite SAP Human Capital Management offers central modules such as organisational management, personnel administration, payroll, and talent management, covering all criteria of modern HR management.
With easy integration into other SAP products, companies can continue to use their existing HR systems while introducing the extended functions of SAP HCM. This leads to improved efficiency, cost savings, and increased employee satisfaction. With high security and compliance standards, SAP HCM is also a future-proof choice for companies looking to modernise and optimise their HR processes.
Do you have questions? Feel free to write to us. We are happy to answer them and assist you with successful integration.