SAP HCM (formerly SAP HR) and its business functionality

How can SAP HCM (formerly SAP HR) help improve your company's human capital? In this article, you will learn about the solutions it offers.

SAP HCM, originally named SAP HR, is an option that SAP provides for human capital management in your company and helps with employee efficiency and performance. We explain how.

SAP Human Capital Management (HCM) is a human resources management system that can be used to map a company's hierarchical structures and to manage and develop your workforce.

The SAP HCM module, with the help of an SAP consultant, supports your HR department in operational and strategic tasks. In this article, learn about all the solutions that SAP HCM offers in the area of human resources and its management in SAP Human Resource (SAP HR).

 What is SAP Human Capital Management?

SAP HCM is the human resources management system of the SAP ERP system. As part of the SAP infrastructure, this HR software includes all functions of personnel administration, management, and development and maps the entire hierarchical structure of a company.

In addition, SAP HCM allows for the administration of master accounts and data and ensures a well-structured management. By creating an organizational structure, it guarantees the constant updating of data records and the handling of automated processes with total security.

Submodules of SAP HCM

In SAP HCM, there is a distinction between the corporate structure of the company, the organizational structure, and the personnel structure.

When we talk about corporate structure, we talk about all the legal and financial structures of a company. The organizational structure is defined by the model of the organizational structure of a company.

And the personnel structure is less hierarchical and structures workers into groups. The classification of workers into the structures of a company represents the first step in human capital management when registering personnel master data and is fundamental for the use of other submodules.

The most important submodules are the following:

 Personnel administration

This subcomponent is the solution for hiring and managing personnel; it supports personnel cost planning, candidate selection, and job provisioning. Information such as the number of personnel, the name and address of personnel, is stored in the master record of each employee. On the one hand, this ensures transparency in the course of operations and, on the other hand, reduces the effort involved in administrative activities with efficient automation.

Payroll

This component records all information related to the salary of people working in the company, such as working hours, rates, special payments, and absences. It also provides the necessary functions to carry out payroll accounting in accordance with applicable laws and regulations.

Personnel time management

This component supports the execution of all human resources processes, such as planning, record keeping, performance evaluation, employee absence times (internal and external).

Event Management

This component supports the individual development of personnel in the planning, implementation, and evaluation of events, and implementation strategies.

Recruiting

The SAP HCM recruiting module supports companies in the central management of vacancies and job advertisements. Interview appointments or deadlines can be tracked and automatically created according to the individual recruitment process type.

Candidates themselves can be managed in their own master data update and, if hired, transferred to the personnel master record in just a few steps.

Personnel Development (Talent Management)

Talent management includes the SAP Performance Management (PEM) and SAP Learning Solution (LSO) submodules. These are used to compare vacancies with existing human resources and to find the best possible person to fill the position.

Organizational Management

Organizational management is used to map the entire corporate structure and the module supports process organization and personnel analysis for efficient planning.

 

More Functions

Each of the aforementioned SAP HCM components contains several submodules that handle specific tasks in the human resources environment.

The most important subareas are:

• Employee Self-Services and Manager Self-Services (SAP ESS/MSS)
• Structural Authorization Assignment
• Personnel Evaluations

 

SAP HCM Benefits

In business practice, many human resources departments are primarily concerned with administrative activities.

 With the help of SAP HCM, many tasks can be digitized and automated.
Administrative processes can be simplified, for example, with the following HCM features:

• Possibility of digital vacation requests.
• Centralized maintenance of all relevant personnel master data.
• Employee history for traceable data changes.
• Partially automated payroll accounting.
• Integration of another SAP module.

Another advantage of SAP HCM is that the different submodules access the central master data and can be used independently of each other. There is a range of training options in SAP SuccessFactors solutions for SAP customers to explore and the company has good management of human capital.

The most important core modules, such as personnel administration, payroll accounting, and organizational management, can be introduced first, and other submodules can be updated later if necessary.

Human Experience Management (HXM).

HXM, the next stage in the development of HCM, empowers individuals to reach their full potential at work while strengthening the connection between Human Resources and business operations, thus contributing to the creation of a sustainable workforce and a profitable business.

The SAP SuccessFactors Human Experience Management (HXM) suite is built on the foundations of HCM, expanding them to create truly dynamic, engaging, and employee-centric experiences. This suite is designed with the needs of people in mind, how they work, and what motivates them, offering support throughout their career journeys and enabling Human Resources and leaders to drive business growth.

Implementing SAP SuccessFactors solutions can facilitate the assignment of the right talent to the right positions, provide meaningful experiences for employees, and cultivate a highly motivated workforce aligned with corporate objectives. This allows your Human Resources department, managers, and employees to leverage the power of data-driven insights. Furthermore, analysts consistently recognize SAP SuccessFactors solutions as leaders in our industry.

Xamai in your company.

Our consultants specialized in SAP and your company is a winning combination when it comes to maximizing SAP HCM and its functionality to drive your business. Let us explain a little:

Experience in SAP:

We have highly trained and experienced consultants in the SAP ecosystem. This means they thoroughly understand how SAP HCM works and how it can be adapted to the specific needs of your company.

Process Optimization:

The consultants at Xamai have all the necessary experience to optimize your company's human resources processes using SAP HCM. Identifying areas for improvement, eliminating redundancies, and automating tasks, thereby increasing operational efficiency and reducing costs.

Customization:

Every business is unique, and at Xamai we understand that. We will work shoulder to shoulder with you to customize SAP HCM according to the particularities of your company, ensuring that it perfectly adapts to your needs and processes.

Compliance with regulations and legislation:

With Xamai by your side, you can be sure that your SAP HCM system will be up to date with labor and human resources regulations. We are constantly updated on changes in legislation and ensure that your company complies with all relevant regulations.

Soporte continuo:

Xamai no solo implementa SAP HCM, sino que también ofrecemos un soporte continuo para garantizar que tu sistema funcione sin problemas a lo largo del tiempo. Ya sea que necesites resolver problemas técnicos en la nube o bien on premise, capacitar a tu personal o realizar actualizaciones, en Xamai estaremos allí para ayudarte.

La combinación de la experiencia de Xamai en SAP y su enfoque centrado en el cliente hacen que seamos el socio ideal para ayudarte a aprovechar al máximo SAP HCM y potenciar tu negocio. Ahora ya sabes un poco más sobre las funcionalidades de SAP HCM, no te olvides de compartir este contenido y seguirnos en redes sociales.