SAP Human Capital Management (HCM)

Introduction

SAP HCM is one of the major modules in SAP that plays an important role in building an organized enterprise management. SAP HCM consultants are some of the most in-demand professionals in the global market.

It is advisable to gain an overview of SAP basics, SAP NetWeaver, and SAP Solution Manager before starting with the SAP HCM module. Candidates need to fulfill certain eligibility criteria to become eligible to opt for the SAP HCM exam.

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The eligibility criteria are determined based on the SAP AG Education Policies and vary from continent to continent. In general, candidates should have a year or two of experience in the SAP HCM module before attempting the exam. Let’s have an overview of the SAP Human Capital Management (HCM) module.

HCM is one of the most important processes in organizations across industries. The general idea of HR is related only to recruiting. But HR is much beyond just recruiting. In an organization, HR not just hires employees but also segregates employees based on various factors such as department level, payment days, payment details, designations, and more. Besides, various other works such as promotions, employee engagement and team motivation tasks are taken care of by the HR. These works might sound very simple; however, working out all these for people of an entire organization is not an easy task at all. To streamline all such HR processes, SAP ERP operations are widely used. SAP HCM ERP is one of the most flexible software solutions for HR processes, widely used across industries.

What is SAP Human Resources?

The SAP human capital management (HCM) solution suite offers a range of innovative, strategic solutions for core human resources and payroll, time and attendance, talent management, employee experience management, and analytics solutions to help you transform your workforce.

Advantages of SAP Implementation

There are many advantages of SAP implementation, and SAP ERP operations are no exception. SAP HCM training helps one gain better hands-on experience using the SAP HCM module. SAP HCM ERP allows one to organize an HR process system in a workstation. Many tasks can be automated, thus reducing manual work and increasing productivity. SAP HCM configuration allows one to maximize the recruitment process, such as organizations can hire permanent but also on a contractual, part-time, and daily wage basis.

Also, implementing the SAP HCM module doesn’t require redesigning the entire process. SAP HCM User is a flexible software that allows one to adjust the new SAP developments within the existing process. SAP has various models for different processes in HR management. For example: Every employee has a name, employee ID, designation etc., that needs to be recorded by the HR team of every organization. These data can be created and stored automatically using SAP HCM tools and methods. Similarly, data can be recorded based on time management, payroll details, work schedules, etc.

There are various sub-models in SAP HCM for different processes.

SAP HCM Modules

• Organizational Management
• Personnel Administration
• E-Recruitment
• Time Management
• Payroll
• ESS and MSS
• Reporting

Organizational Management: This process defines an organized way for different people to work together on a common platform to achieve a pre-defined goal. It ensures a smart management of time and resources in the workstation.

Personal Administration: This process defines how an organization manages its human resources. From recruiting to compensation, benefits, new employee orientation, performance appraisal, and more, everything can be recorded and tracked through this process.

E-Recruitment is an automated web-based recruiting process that assists HR professionals in hiring appropriate talent. It opens up innovative recruitment processes in an organization.

Time Management: This process assists in planning, recording, and valuing an employee’s performance over a certain period of time. It evaluates the impact of an employee’s presence and absence on the organization. Also, attendance management, calculation of wages, log-in and log-out reports, etc., are included in this process.

Payroll: This process, as the term defines, is all about the pay scale and compensation given to employees. From salary to overtime pay, comp-off pay, and compensation programs, everything is calculated in this process.

ESS and MSS: Employee Self-Service helps employees individually track various data about their tenure in an organization. On the other hand, Management Self-Service is a vital process for managers to create and maintain employee data.

Reporting: Finally, reporting allows the HR team to deliver comprehensive and up-to-date information about all its employees. The reporting tool also enables one to track an organization's hierarchical structure.

These are the SAP HCM modules that allow the HR team to work efficiently to manage employee profiles and data within an organization.