Hire to Retire: Enable leaders to align business objectives with all aspects of workforce
I worked on this project together with Andrea Domhardt and Nicole Schwalm.
Every business needs a workforce that’s ready to respond and when businesses are forced to re-evaluate and redefine everything about the way they work, most contingency plans are rendered meaningless. Organizations have had to face the need to quickly pull together business continuity plans and are under pressure to redeploy talent or even furlough employees, which has heightened the need to effectively communicate and collaborate.
Top priorities in the new world of work are:
- Talent displacement
- Business continuity plans
- Employee health and safety
- Supporting remote workers
- Managing communication
- Facilitating employee collaboration
SAP addresses these challenges by bringing together different systems onto a common platform with universal data models and user experiences as well as greater access to common functionalities such as machine learning and chatbots. By integrating HR, procurement, finance and line of business functions and systems together into a single, extensible, digital platform that is infused with intelligent technology, these teams can collaborate to:
- Improve adaptability, responsiveness, planning, and staffing with unified visibility
- Maximize performance by connecting people strategy with financial outcomes
- Increase engagement with cohesive experiences
This is coming to life with Recruit to Retire, one of SAP’s Intelligent Enterprise end-to-end processes, which helps businesses to understand, manage, and optimize all aspects of the workforce (employees and external workers) in line with business objectives, and with clear financial impact. Recruit to Retire consists of three sub-processes Hire to Retire, Travel to Reimburse, and External Workforce.
Focusing on the lifecycle of an employee, Hire to Retire enables the end-to-end experience of planning, sourcing, and managing employees while facilitating a holistic talent strategy. This strategy aims to improve agility and lead to game-changing business outcomes through exceptional people experiences that transform business results. Hire to Retire mainly covers integrations of SAP SuccessFactors and SAP S/4HANA Cloud in real-time and with single line-of-sight on employees:
- Improved compliance globally
- Increased productivity in operations
- Improved process efficiency of payroll and/or invoice payment
- Richer employee experience
- People strategies linked to business priorities: aligning goals for all workers across the organization
The Hire to Retire process spans across SAP SuccessFactors as the HR system and SAP S/4HANA Cloud as the finance system. Process integrations and master data integrations are first being built in a cloud landscape. SAP SuccessFactors is involved in planning, staffing, onboarding, time management and payroll, while all other parts are covered by SAP S/4HANA Cloud. Master data of cost center and employee is managed in the respective leading system and automatically distributed to the consuming system.
Although we started to build Hire to Retire in a full cloud environment, hybrid system landscapes are in focus as well. We will look at two major hybrid variants where SAP S/4HANA on–premise is used: Full HR Cloud and Core Hybrid.
H2R “Full HR Cloud” variant with SAP SuccessFactors as leading HCM system incl. integration via SAP Cloud Platform Master Data Integration (Workforce, Cost Center)
The Hire to Retire full HR cloud variant is an option where the SAP S/4HANA on–premise system is used for the same process parts as SAP S/4HANA Cloud. All HR parts of the Hire to Retire process run in SAP SuccessFactors, from planning to recruiting to onboarding to core HR with time management and payroll. The financials part is covered by SAP S/4HANA on–premise.
In the newly provided workforce integration scenario as part of the Recruit to Retire process, cost center information and workforce data is exchanged between SAP SuccessFactors Employee Central and SAP S/4HANA on-premise using SAP Cloud Platform Integration Suite, and in particular, Master Data Integration. With SAP Cloud Platform serving as a central hub, one set of data can be replicated to several target systems. Therefore, the workforce and cost center data can be used by any consumer – SAP and non-SAP – without point-to-point integration based on aligned data models.
Cost center data such as name/ID, validity, description, responsible person and blocking information is replicated from SAP S/4HANA on-premise to SAP Cloud Platform Master Data Integration and from there to SAP SuccessFactors Employee Central. The information is used in SAP SuccessFactors Employee Central to assign employees to cost centers.
Cost Center and workforce information are part of the SAP One Domain Model, which is used in this new integration scenario. SAP One Domain Model is a new way of simplifying SAP-to-SAP integrations and is explained by our colleague Rui Nogueira in this blog. The exchanged workforce data contains basic personal information such as name and ID, as well as more complex data, such as e-mail, telephone, and address details and is stored in personnel administration infotypes in SAP S/4HANA on-premise. Further information about the attributes of the SAP One Domain Model can be found on the SAP API Business Hub.
This workforce integration and cost center integration scenario is available with SAP S/4HANA on-premise release 2020.
Further information can be found also in this blog.
With regards to SAP SuccessFactors Employee Central Payroll, an integration to SAP S/4HANA on– premise financials was delivered in the first half of 2020 and allows businesses to post payroll results using web services. Web services for SAP S/4HANA on–premise are also used by payroll for validating cost centers, checking account assignments and displaying journal entries.
H2R “Core Hybrid” variant with Core HR in SAP SuccessFactors and Time, Payroll in SAP S/4HANA on-premise (available for all SAP S/4HANA on–premise releases with add–on PA_SE_IN)
Since the start of SAP S/4HANA on–premise, it is possible to replicate employee master data together with organizational assignments from SAP SuccessFactors Employee Central to SAP S/4HANA on-premise using the Business Integration Builder (BIB). This is the standard integration SAP provides for deep and rich employee master data such as personal, job, compensation, or payment information, and organizational information such as business units and departments (including organizational assignments), replicated from SAP SuccessFactors Employee Central.
This integration option is intended for the Core Hybrid deployment option where SAP SuccessFactors Employee Central is used as the system of record, holding the employee data and reporting lines of all employees. The other HR core processes such as payroll, time management and other custom HR processes run in SAP S/4HANA on-premise.
SAP Cloud Platform Integration is used in this scenario as the cloud-based middleware to interact between SAP SuccessFactors Employee Central and SAP S/4HANA on-premise.
For more information see SAP SuccessFactors Employee Central Integration to SAP Business Suite.
To learn more about our solution innovations, visit the SAP Roadmap Explorer.