Employee Life Cycle and SAP HCM: An Introduction
Recently I happened to meet a few newbies aspiring their career in SAP HCM. However, because of lack of background and knowledge in HR field they faced difficulties in understanding the HR business processes.
I hereby present a blog providing an overview of Human Resource processes and SAP HCM modules. This will be most helpful for those who are absolutely new in field of SAP HCM.
The employee life cycle integrated with SAP HCM modules can be presented in the following manner.
Well I believe this will be easy to relate, being employees ourselves we will be familiar with many of the above mentioned terminologies like recruitment, hiring, training, performance management, Compensation and benefits etc.
Recruitment: Refers to the process of attracting potential candidates from within or outside the organization to fill in the vacancies. Nowadays, most of the companies make use of online job advertising and E-recruitment to reach to the larger audience.
Hiring: The selected candidate is engaged in the services based on the job and position for defined wages/salary. The employee agrees to the policies of the organization. Once the employee is assigned to the position, he will become part of the organization and reporting structure. Below mentioned modules will cover the processes between the hiring and retiring of the employee.
Training & Events Management (SAP Learning Solutions) : Training as we know helps in extending and updating the skills and knowledge of the employees. SAP HCM helps in managing the training events from booking attendees to providing feedback such that the courses provided are of high quality.
Qualifications & Requirements: The qualifications required by a position can be maintained in the form of qualification catalog in SAP. These positions can be filled by the existing persons if the required qualifications match with those of the employee. This is most helpful in career and succession planning.
Performance Management: Employee performance management system includes setting goals, monitoring performance, developing the capability to perform the set expectations and providing feedback. Employee performance is evaluated and rewarded based on the contribution. SAP HCM application provides tools for appraisals, evaluations and feedback with user friendly interface.
Career & Succession Planning (SAP Talent Planning & Development): Career & Succession Planning enables the organizations to groom their employees to take up key positions in future. Career planning helps organizations in identifying goals for employees and setting career plan. Succession planning helps in finding appropriate people from within the organization to fill in the unoccupied positions. In SAP HCM, Talent Planning & Development is integrated with Qualifications & Requirements.
Time Management: Employees work performed and the absence times can be recorded with use of time management. It acts as a time recording system and helps in planning the workforce requirement. This module is closely integrated with Payroll.
Shift Planning: Shift planning ensures that the organizations human resource is used to it full extent in an efficient manner. It includes planning shift time, shift location and number of required employees. Shift planning is a component of time management.
Compensation & Benefits: The remuneration system is responsible for devising the pay grade structure for employees in line with the market trend and providing access to benefits and performance based pay. Compensation and benefits needs to consider the country specific policies and regulations as well.
Payroll Administration: Payroll Administration includes all the tasks related to payment of wages/salary to employees of the organization considering the commissions, bonuses, taxes, loans and other deductions.
Travel Management: Travel management module in SAP HCM helps in maintaining different types of travel expenses of employees such as air fare, food bills, local conveyance, parking fees etc. The travel requests for employees needs approvals based on the workflow processes.
ESS/MSS: Employee Self-service helps employees to access and modify the data related to their personal details, employment, payments, benefits, leave details, etc. Manager Self-service helps the managers to maintain and approve employee related data.
I hope it was helpful, you can reach me anytime for any doubts or queries.