To understand if these components cover most of the HR processes, let’s first see what are the common HR processes used by today’s businesses and then compare these with SAP coverage.
We could, for understanding purposes, classify these activities in 3 main groups; Activities which are performed
- Only once, in terms of HR cycle, such as Recruiting, Selection and Hiring.
- Periodically, for example, Salaries
- On ad-hoc basis, employee administration and development, for instance.
The activities in first group which are performed once in an employment cycle of an employee, are basically also iterative, in sense that it’s a process where existing employees leave and new are hired. From the recruitment till selection of a candidate and ultimately hiring him as an employee, there are list of processes which need to be taken care of. When we see the process from solution perspective, we notice one of the HR component of SAP Solutions – Recruitment fully support the scenario, where you could mark your positions as vacant, advertise the vacancies, manage the candidates’ data, execute the processes, generate automated correspondence with candidates and potential employees. Another component Personnel Administration helps you in storing and maintaining all of the employee data in system and this making the administrative tasks easy.
The activities which are performed periodically within HR domain are also supported by various SAP HR components. To manage employees time at work, you’ve a thorough Time Management component where you could assign each employee a work schedule and can monitor and control his availability for work. To pay your employees for the work they do, based on their organizational details, you could adjust the salaries using Payrollcomponent which is flexible enough to allow you to incorporate the salary related policies and pay employees accordingly. If you want to make sure your employees work according to the corporate directions and that you reward them for their efforts, you implement a detailed performance management system. SAP HR component, Appraisal System, helps you here as well. You can measure the progress of your employees through appraisal and can links the performance with monetary outcome using another component Compensation Management. If you’re thinking to allocate a budget for next year changes, you could simulate different scenarios using the Personnel Cost Planning component. These all processes, mostly, are performed on periodic basis, some monthly while some other twice a year or just annually. SAP HR components anyways help you.
Even the 3rd category processes which are performed on need-basis are also supported by SAP HR solutions. Such as you arrange to provide necessary trainings to your employees where needed. You may have a separate department taking care of your training & development activities and SAP assist you with its HR “Training & Event Management” component. The component allow you to set-up your complete training catalog, as well it helps you in performing day-to-day training administration activities.
So when I look at the suite of HR applications (some of which I mentioned here), I’m convinced SAP HR components cover MOST of the HR processes, if not all.