How to optimize your SAP HR ERP solution with SuccessFactors Employee Central and Employee Central Payroll?

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To our >clients who already have SAP ERP HR solution, we suggest that they complement it with SuccessFactors, in a hybrid implementation, that is, integrating SAP Cloud solutions, such as SSFF Employee Central, with SAP HCM or HANA ERP base, to maintain natural integration with other SAP ERP modules that require HR information.

¿Why?

Most leaders in human resource management have among their main concerns issues such as: organizational design, leadership, culture, learning, change in HR organization skills, people analytics, workforce management, change management, among others.

As companies grow and increase their workforce, it is increasingly imperative to strategically manage this area of the organization. Human resources must be seen as a living force, made up of a heterogeneous group of people who, while having different skills, belong to the same company and who, together, must achieve a common goal. Hence, the involvement of the employee with the company’s objectives is a fundamental issue.

However, reality tells a different story. On average, the workforce represents between 40% and 60% of operational expenses. Studies show that, of this universe, 95% of employees are unaware of the company’s objectives and strategic plan, 50% of the workforce’s capacity is lost in non-productive activities, and 84% of companies do not use or make the most of their employees’ potential. These figures lead us to think that something is not working properly, however, many are profitable and in their income statements the numbers are positive, therefore, they fail to take concrete actions in this regard. But even if they are doing a good job, investing in the workforce could lead to an even better result.

What solutions does SAP offer?

SAP has updated its HR Solutions offering, where Cloud tools strong presence stands out. Currently, SAP’s HR suite consists of:

• SAP HR ERP (or S4 HANA)
• SuccessFactors
• SuccessFactors Employee Central Payroll

SAP HR ERP is the set of SAP modules present in ERP, which are still positioned as the most used tool by clients who already have SAP ERP or SAP HANA. Although it does not have updates in the talent management area, the time evaluation and payroll execution processes are among the most robust in the market. It is presented as a good alternative for clients who have not made the decision to have Software as a Service (SaaS) tools.

SAP SuccessFactors has a robust and global solution, which positions the human resources manager as a strategic player within the company and allows for efficient management, which translates into a rapid return on investment. In addition, it facilitates the measurement of the strategic plan in personnel management, which has a direct impact on the business:

One of the fundamental things within a company is the creation of a strategic plan. If this is carried out as planned and, in addition, if you have a tool of this magnitude and qualified personnel in its implementation, success comes hand in hand.

Today, many companies around the world have invested in SAP Success Factors. In 177 countries, more than 3,500 customers have maintained it for six consecutive years as the best tool in offering human resources management solutions.

Its natural integration with SAP Fiori, the inclusion of payroll execution (Core HR and Payroll) and the growing reliance on cloud tools, make SSFF a competitor that is increasingly being implemented in the local environment.

SAP SuccessFactors Employee Central Payroll is a platform homologous to SAP ERP, but with a SAAS model, where the application is in the SAP cloud. In terms of architecture, it is like SAP EHP 8, with the latest payroll management updates. In this case, SAP is responsible for making updates associated with changes in the system (notes application). It also maintains a natural integration with SAP SuccessFactors Employee Central.

What is the best solution?

At Novis we suggest to our clients:

• If they already have HR solution in SAP ERP, we propose a hybrid implementation, that is, the implementation of SAP Cloud solutions, such as SuccessFactors employee central, with SAP HR ERP or HANA base, in order to maintain natural integration with other SAP modules that require HR information, such as MRS (Multi Resource Scheduling).

• In case you are a client that does not have SAP solutions implemented, our recommendation is to start with SuccessFactors Employee Central with SAP SuccessFactors Employee Central Payroll.

We have experience in both models, both in terms of implementation and continuous improvement.

Conclusion:

If you are looking for an SAP solution in Human Capital, we recommend performing the implementation of SAP SuccessFactors Employee Central, in conjunction with SAP SuccessFactors Employee Central Payroll.

If you already have SAP ERP HR we suggest that you complement it with SuccessFactors Employee Central, in a hybrid implementation, integrating SAP Cloud solutions, such as SSFF, with SAP HCM or HANA ERP base. This way your system can maintain natural integration with other SAP ERP modules.

We offer services designed for the optimal use of SAP Success Factors and to simplify workforce management processes and drive better business results. We can advise you and design the best solution for your company. Contact us.

Feedback/discussion with the author: Carlos Valdés, SAP HR Consulting Assistant Manager, carlos.valdes@noviscorp.com