From SAP HCM to HCM on S4HANA, how do we move forward? Last updated : November 10, 2023
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HCM on S4HANA along with SuccessFactors are poised to become the premier SAP-powered human capital management system, combining the processing and computing power of S4HANA with a new user experience based on employee self-management and talent management through SuccessFactors.
One of the most pressing challenges on the horizon is the migration from SAP HCM to the robust world of HCM on S4HANA. As organizations look to optimize their operations and maximize efficiency, this transition has become unavoidable. In this article, as part of the journey to S4HANA as it relates to SAP HCM, we describe four essential elements that should be taken into consideration to make the flight to HCM on S4HANA less turbulent, and how Novis is here to help you along the way:
- In the new version of HCM in S4HANA, hereafter H4S4, no transactions, programs or tables related to Core-HR are changed or deleted. Unlike, for example, financial and logistics components whose structural changes are significant, H4S4 keeps its info type structure in Personnel and Organizational Management and cluster structure in Time Evaluation and Payroll unchanged.
- Some functionality will no longer be available in H4S4. The old SAP HCM talent management modules called Workforce Development, Event Management, Performance and Recruitment, as well as the Webdynpro Java-based self-service applications must be replaced. The recommendation is that, for both employee self-service and talent management, SAP SuccessFactors should be used, a tool that will allow you to fill these gaps and further empower your company.
- The implementation of a Localized Payroll, i.e., based on legal and fiscal requirements specific to a particular country or region, provides considerable advantages in the transition to H4S4, either having the localization in SAP HCM or thinking of implementing the localization within the S4HANA conversion project. Some of these advantages include having standard reports and interfaces to comply with legal requirements, having accurate calculations of payments, taxes, and other benefits specific to each country, in addition to providing constant updates for legislative changes that are included as part of the support, through the release of notes.
- Project to a new and renewed user experience. SAP SuccessFactors integrated with H4S4 is the solution you should be targeting within the SAP HCM ecosystem today. On the one hand, the backbone of HCM processes with Employee Central along with Talent Management solutions help identify, develop, and retain talent in the company, through an intuitive interface, with access from multiple devices and locations, especially being a Cloud solution and with the option of self-service for the collaborator. On the other hand, the power of S4HANA’s processing and calculation engine, which uses in-memory database technology to accelerate operations and queries, added to the benefits of localization already described, make it the solution for human capital management.
If you are planning to migrate to SAP S/4HANA, or if you have already started your journey, we can advise and accompany you in the process. Do not hesitate to contact us.
Feedback/discussion with the author: Pablo Teuber Henríquez, SAP HR Consulting Assistant Manager, firstname.lastname@example.org