SAP HCM (Human Capital Management) Introduction Guide

SAP HCM is one of the major components of the SAP ERP system that is designed to enhance and develop the human capital management in an organization.  SAP HCM full form is SAP Human Capital Management . SAP HCM is an application that can be used to integrate several HR activities for instance; data management, compensation, staffing, performance evaluation and others. SAP HCM Course integration not only facilitates the work of the HR but also ensures that all the activities of the human resource department are aligned with the strategic plan of the organization. SAP HCM provides a strong base for HR to work on, be it employee life cycle management, workforce planning, or compliance.

 

When organizations grow and evolve, the management of people becomes even more complex. This complexity is not well handled in traditional HR systems and this leads to poor performance and fragmented processes. SAP HCM solves these problems by offering a package that covers all the areas of human capital management. SAP HCM encompasses all the HR processes from the time an employee is recruited up to the time that employee retires from the company. SAP HCM not only enhances the employee experience but also enables the HR professionals to have the right tools to perform their tasks and not be overwhelmed by paperwork.

 

This article will provide a clear understanding of the aspects of SAP HCM by explaining the parts of SAP Human Capital Management, the advantages and disadvantages of using SAP HCM. In this article, we will talk about how each module of SAP Human Capital Management supports the overall HR strategy, why it is useful to apply it in an organization, and what actions should be taken to achieve successful implementation.

 

What is SAP HCM ?

SAP HCM is a good tool for the management of human capital in any organization. Its integrated modules address nearly all the areas of HRM including data processing, compensation, staffing, and development. SAP HCM is an application that consolidates the HR activities and provides the actual information that can improve the organizational productivity, adherence to the rules, and decision-making.

 

SAP HCM modules

 

SAP HCM has several sub-modules, which are as follows:

 

•    Organizational Management (OM):  This module helps in developing and sustaining the company’s organization structure, position, and accountability as well as the organizational structure map. It helps the company to have a physical layout of the structure of the organization which is important in planning.

•    Personnel Administration (PA): PA also processes employee data such as identification data and employment records. They help the various activities of the human resource department for instance recruitment, training and development, transfers, promotions, and dismissals among others by availing the right records.

•    Time Management (TM):  This module is applied to regulate working hours, attendance and absence of the employees in the organization. It has aspects of shift working, leave, and time rating which is in accordance with the labour relations and organizational requirements.

•    Payroll:  SAP HCM has a payroll module that assists in computation of the employees’ wages, taxes and other deductions. It links with the financial accounting systems to enable computation and reporting of payroll.

•    Personnel Development (PD):  PD is all about the development and promotion of the employees. It helps in identifying training needs, developing training strategies, and evaluating the workers, thus guaranteeing the achievement of individual and corporate objectives. 

•    Recruitment:  This module is concerned with the process of recruitment from the time the job is advertised to the time the candidates are selected. It is used in employment application, scheduling of interviews and storage of potential employees for future job openings.

•    Training and Event Management (TEM):  It is also involved in the training programs and the events such as course calendar, registration, and feedback. It ensures that the employees are trained sufficiently to enhance their performance in the organization.

•    Compensation Management:  This module comprises issues relating to employees’ pay for instance alterations in their salaries, bonuses and incentives. It is applied in the compensation strategy formulation and compensation analysis to establish and sustain fair and market appropriate compensation policies.

•    Employee Self-Service (ESS) and Manager Self-Service (MSS):  ESS and MSS assist the employees and managers by providing the information and the tasks concerning the HRM. The employees are able to update their details, apply for a leave, and view their payslips while the managers are able to approve the requests, view the performance of the employees, and manage the team details.

 

Benefits of SAP HCM 

Implementing SAP Human Capital Management  (HCM) offers numerous advantages for organizations: 

 

1.   Centralized Data Management:  SAP HCM is an integrated system that can handle all the data regarding the human resource department. This approach assists in minimizing the instances of data redundancy and mistakes, which leads to enhancement of the quality of data.

 

      2.    Improved Efficiency:  Services like payroll, time and recruitment when contracted out decreases the level of manual work which is done. This results in enhanced productivity and quality, which in turn frees the time of the HR professionals for more value-added activities.

 

     3.    Compliance and Risk Management:  SAP HCM is useful to the organization in the sense of legal and regulatory compliance with features like compliance check and reporting. It reduces the risk of legal consequences resulting from non-observance of the law.

 

     4.    Enhanced Decision-Making:  SAP HCM provides real information of the Human Capital Management and its trends that help in decision making. This makes the HR leaders able to determine the trends of the workforce, the deficiencies in skills, and the kind of decisions that will lead to the achievement of the business objectives.

 

     5.  Employee Engagement and Retention: SAP HCM also helps in increasing the level of the employee engagement and satisfaction by self-service and development. This makes the employees to work harder and are encouraged to remain with the company hence increasing their tenure with the company.

 

    6.   Scalability and Flexibility:  SAP HCM is very flexible and can easily accommodate the dynamic environment that is characteristic of organizations. It can be applied in the growth and development of firms and come up with new procedures and laws.

 

Implementation Considerations for SAP HCM

 

SAP HCM is a complex application and it has to be well implemented. 

 

Here are some key considerations: 

 

•    Project Planning and Management:  The project scope statement should be developed to include the goals of the project, the activities to be performed, and the duration of the project. In the process of implementation, it is essential to have project management to avoid the disruption of the business processes.

 
•    Stakeholder Engagement:  Go to other departments such as the human resource, information technology, and the finance department to get their needs. This makes the stakeholders to be on the same side since they are involved right from the start.

•    Data Migration and Integration:  SAP HCM implementation plan: data migration from the legacy systems. Make sure that the data is correct and is in the correct format after the migration process to prevent the introduction of errors. It is recommended that other business systems should be linked to SAP HCM so that the data circulates and the systems are live.

•    Customization and Configuration:  SAP HCM is versatile and can be implemented based on the requirement of the business since it has the capacity to be customized. Make sure that the system’s design is such that it integrates with the HR processes and activities as well as the policies that the organization has adopted to suit the system.

•    Training and Change Management:  Ensure that all the HR staff and the end-users have gone through a course on how to use SAP HCM. Another factor that has to be resolved is the change management plan that will assist in the process of change and deal with the problem of change resistance.

•    Testing and Validation: Conduct a trial on the SAP HCM system to determine the areas that may lead to a hitch on the actual run of the same. Ensure that all the processes and functionalities are in the right order as is required.

•    Continuous Improvement:  It is also necessary to know whether the system has met the intended goals once it has been implemented. Collect data from the users and improve the process to make it efficient.

 

Conclusion -  SAP HCM Human Capital Management

 

We are calling all the decision makers including but not limited to HR Manager , L&D manager ,  Procurement managers , Delivery Head , Technology consultants, solution architect, HRBP, CEO, CFO, CHO, CTO ,  Head HR , AVP HR  , VP HR of organizations that are planning to adopt or enhance SAP HCM, it is essential to work with a reliable training provider. Vinsys provides SAP HCM certification training courses that are tailored to meet the needs of the HR practitioners to enable them to fully utilize the system. Vinsys’ SAP HCM implementation services are delivered by experienced trainers and involve practical training to ensure a successful implementation of SAP HCM for your organization’s HR objectives. 

 

To achieve your HR transformation goals, invest in organisation workforce with SAP HCM corporate training with Vinsys to stay ahead of the competition in today’s business world.