SAP Human Capital Management: Top Business Solution for Your Enterprise

We can’t help but agree with the fact that the business environment is changing rapidly. Along with it, ideas about the goals and objectives of HR departments, and their role in the company’s business management system are undergoing global changes as well. 

Today, the functions of HR departments include not only personnel accounting and administration as they used to be earlier. Modern HR departments are being transformed into personnel management services with an extensive range of tasks for finding and selecting the most qualified employees as well as developing and motivating the company’s human resources potential. All in all, human capital is considered a strategic force that works to increase the economic value of the company. 

The SAP Human Capital Management Solution offers automation of HR management processes based on the SAP HCM system, which implies human capital management. The use of modern technologies allows you to reduce HR management costs and improve management efficiency. In addition, The SAP HCM system helps to create a comprehensive HR management system, including:

1. Talent management, that covers such strategically important areas of activity as:

• Recruitment, working with candidates, and hiring;
• Personnel assessment and certification;
• Setting goals and assessing performance;
• Personnel motivation and compensation management;
• Defining key positions and forming a personnel reserve;
• Development and training of employees based on short-term and long-term plans, tracking employee progress.

2. Basic HR management processes that allow you to optimize and integrate such processes as:

• Personnel administration;

• Salary calculation;
• Time tracking;
• Management of compensation packages and benefits.

The SAP HCM solution offers innovative information services that can significantly improve the productivity of the enterprise and personnel. Let’s delve into detail on how it works in practice. In three months, company X needs to assess the competencies and efficiency of employees to calculate bonuses. The original system allowed setting individual and team goals, assessing efficiency and competencies by process depending on the job level, assessing and coordinating results, and calculating bonus coefficients. All these processes are necessary for achieving corporate goals. This means that the new HCM system should have ready-made functionality for this enterprise, which will include HR Solutions and SAP Human Capital Management.

SAP Functionality for HR: The Practical Application 

Due to the functions of information services, which are implemented as “self-service,” employees and managers can independently manage many operations and processes previously under HR departments’ control. This allows reducing material and labor costs for each operation in the field of HR management. In companies with a strict HR policy and high demands on employees, a full questionnaire of employee activity is used (Reflection of penalties and incentives, Training, Personal characteristics, Family composition, Awards, Special marks, etc.)

Personnel cost planning is the most labor-intensive process, which takes up a fair amount of time in large companies. Budget campaigns can last for several months with a lot of “what if” options. We do, we redo, we send it down from the top, and we raise it from the bottom. This process is complex both in its process components and in its mathematical form. However, we can be convinced that the backbone can easily transfer to the system.

So, why do you need SAP for structuring your human capital? First and foremost, the SAP HCP system will allow you to take a fresh look at established things. In addition, the system will give you a good reason to involve all employees in working with it. It is no secret that people will always reject everything new because it is unusual. For this purpose, management groups need to be organized into projects that prepare people for changes long before the first user opens the SAP window.

How can the SAP HCP system provide your employees with a consistent and positive experience? The special feature is that system users will no longer have to monitor employees’ benefits, working hours, or social status. The program has a special database in which all information about each employee is concentrated, so when calculating payments, all data is pulled up automatically. Using this module for settlements with employees and personnel management minimizes errors due to human factors. 

SAP HCM vs SAP Success Factors 

In general, SAP Success Factors provides the same HR management capabilities as HCM. It should be mentioned that SAP SF performs HR management functions and systematizes employee data for use in subsequent payment calculations.

SAP Success Factors offers a set of lucrative perks: 

• Manage working hours (weekends, vacations, sick leaves are taken into account);
• Calculate and pay wages;
• Select and train personnel;
• Plan labor resources;
• Use the program for HR analytics.

The SAP HCM system and SAP SF functionality are practically the same. The modules will cope with their tasks perfectly, but everyone who has worked with them knows that SAP SF and HCM work on different principles: the HCM module information is stored on the personal or corporate servers of clients, and SF data is stored on the private SAP cloud.