SAP Solution Overview SAP ERP Human Capital Management

SAP® ERP HumAn CAPitAl mAnAgEmEntAt tHE HEARt of YouR oRgAnizAtion

OPtimizing PEOPlE mAnAgEmEntARE You MAking tHE MoSt of YouR PEoPlE?

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“our people are our most important asset.” nearly every company report contains a phrase like this – and for good reason. today, the last great source of competitive advantage is human capital.

the SAP® ERP Human Capital Management solution offers a complete and in­tegrated set of tools to help you effectively manage your people. the solution helps you hire, develop, reward, and retain talent. At the same time, you can automate your core HR processes to increase efficiency in your HR depart­ment, reduce HR costs, enable accessibility via mobile devices, and support compliance. And when you want to outsource HR processes or run an inter­nal shared service center, the solution supports these deployment models in ways that reduce risk and cost.

At SAP we know that at the heart of everything we do are our people. SAP ERP Human Capital Management helps us fulfill our people mission to make our employees the best at applying and developing their skills and potential, which is key for SAP to reach our organizational goals. the solution also allows our HR community to efficiently support 53,000 employees in more than 50 countries worldwide while helping to ensure consistency and providing us with global insight into our workforce.

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to meet the needs of an adaptable work force that is quick to change direc­tion, HR professionals need to think of themselves as strategic partners. the SAP® ERP Human Capital Management (SAP ERP HCM) solution supports them with this as well as with providing better HR service at lower cost. How­ever, the solution not only supports your HR department, it is built for the entire workforce. it helps your employ­

ees manage their careers, it helps your managers manage team performance, and it helps your executives plan for future business needs.

SAP supports more than 13,000 HCM customers in 110 countries in managing their people by letting them:• Plan and analyze the workforce • identify, develop, reward, and

retain talent

• Automate core HR processes and payroll

• Provide high­quality HR services to a globally distributed workforce – anytime and anywhere – at low cost

organizations in all industries are bene fiting from SAP’s extensive experience in developing, imple ment­ing, and sup porting HCM solutions for decades.

mAnAging tHE HumAn CAPitAl Of YOuR BuSinESSfACing CHAngE And nEw CHAllEngES

Talent Management

User Productivity

Workforce Planning and Analytics

Mobile Applications

Rapid Deployment

•Identifyandnurturetalents

•Payforperformance

•Next-generationuserexperience

•Flexibleinterfacechoices•HRsharedservices

•Workforcereadytoexe-cute business strategy

•Insightintoworkforceskills and weaknesses

•Accessfromanydevice•Secureandtimely

information

•Preconfiguredsoftware•Bestpractices

Figure 1: Global Trends and the Impact upon Human Capital Management

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SAP software provides unmatched global features with support for 48 coun tries. SAP ERP HCM provides a solution for organi za tions in all indus tries to support both their global and local reach. SAP understands the difference between globalization and localization and provides the solution to meet both.

SAP ERP HCM provides the technol ogy to enable HR leaders to demonstrate strategic value to their businesses (see figure 2). HR leaders recognize the need to evolve from a transactional and often silo­based HR function and become a more strategic, global busi­ness partner with integrated processes, and SAP is the technology partner to get you there.

SAP ERP HumAn CAPitAl mAnAgEmEntA CoMPREHEnSivE, intEgRAtEd Solution

Figure 2: SAP ERP Human Capital Management: Helping HR Create a Best-Run Business

Employee data organizational data Competency data

Performance and succession management

Scheduling and deployment

HCM service delivery

Planning & analytics

global HR and payroll

Recruiting learningTalent Management

SAP ERP HCM Supports Key Business Activities

Workforce planning and analytics – give your executives, HR profes sion als, and line managers real­time insight into workforce data. the solution supports:• workforce planning• workforce cost planning and

simulation• workforce benchmarking• workforce process analytics and

measurement• talent management analytics and

measurement

Talent management – Effectively find, develop, reward, and retain talent. the solution supports:• Competency management• Recruiting

• Employee performance management

• talent assessment and review • Succession management• Employee development• Enterprise learning management• Compensation management

Core HR and payroll – Automate and integrate core HR processes. the solution supports:• Employee administration• organizational management• global employment•Benefitsmanagement• time and attendance• Payroll and legal reporting• HCM processes and forms

HCM service delivery – give your workforce the tools to inform and serve themselves anywhere, anytime. the solution supports:• the framework for a shared

services center• Manager self­services• Employee self­services• dedicated support for key business

roles• Microsoft office integration

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Hire the Best Talent

SAP ERP HCM equips organizations to attract and hire the right people and quickly make new hires productive.

Optimize Use of Employee Talent to Achieve Business Objectives

using a holistic approach for all your talent­related processes can help you pinpoint where your talent lies, train and cultivate the skills of your work­force, and align employee goals with your overarching business objectives.

Streamline HR Processes and Compliance

Automation of all operational HR pro­cesses, such as employee administra­tion, time management, payroll, and legal reporting, increases efficiency

and supports compliance with changing global and local regulations.

Align to Corporate Objectives and Track KPIs

Byusingreal-timeinsightintothework-force and tracking your key performance indicators (kPis), your organization can benefit fully from human­capital strate­gies and programs – and measure your workforce’s contributions to the orga­nizational objectives.

On-the-Go Availability

the demands of a 24x7 mobile worker require that business must continue even when the employee is not in the office. frequent business processes, such as workflow items and alerts, time recording, and travel requests, require immediate action. with the acquisition

of Sybase, SAP now offers a complete enterprise mobility stack: business pro cesses, mobile platform, develop­ment tools, and mobile applications. delivering support for mission­critical capa bilities to core mobile users and instant value to occa sional users, SAP and Sybase offer a wide range of mobile applications and underlying infrastructure – with unmatched integration to SAP software systems – for secure access to busi ness pro­cesses anytime, anywhere, and on any device. direct interaction with the SAP software system speeds decision making and responsiveness on alerts, notifications, and approvals.

Benefit from Global SAP Resources

An unmatched global service offering and partner ecosystem complete the solution.

“To build a world-class energy utility com pa ny, we want to empower and retain our best talents. With an integrated SAP ERP Human Capital Management solu tion, we can now streamline end-to-end HR processes to improve produc tivity, provide more responsive employee service, and increase efficiency in the HR department.”

Lynn Loh, Head of Human Resources and Administration, Singapore Power

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Workforce Cost Planning and Simulation

SAP ERP HCM supports your HR profes sionals in all tasks involving cost planning for the workforce and helps HR executives develop effective strate­gies. the solution provides access to a broad range of workforce­related data for accurate planning, facilitates simu lated planning scenarios, and lets you continuously monitor actual versus planned performance.

WORkfORCE PlAnning And AnAlYtiCSAlign StRAtEgY And ExECution

the SAP ERP HCM solution offers a superior set of tools, content, and access channels to make HR data available to authorized employees in real time. for example, the solution provides more than 600 predefined reports and 90 kPis to help your organization identify important workforce issues and opportunities. Byprovidingyourexecutives,HRprofessionals, and line managers with real­time insight into your workforce, you can help them make better deci­sions faster – and transform your HR department from a service provider into a strategic business enabler.

Workforce Planning

SAP ERP HCM helps you understand current workforce trends and plan future needs using workforce demographic data. You can use predefined reports to analyze factors such as headcount development, turnover rates, and required workforce competencies. You can link the results of this analysis directly to headcount planning, budget­ing, and key talent processes such as recruiting and learning.

Figure 3: Talent Analytics with SAP® ERP Human Capital Management

Succession-planning monitor

Talent supply

Utilization of talents

Skills and competencies

Training activities of talents

Performance and potential

Compensation monitor

Risks and strength of the organization

HCM monitor(key perfor mance indicators)

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Workforce Benchmarking

with SAP ERP HCM, you can measure standard workforce processes and com pare these measurements with both external benchmarks and internal operating thresholds. the solution delivers extensive functions for salary benchmarking to help your compen ­sation professionals compare your company’s pay policy and pay structure

with the competition’s. it can also help them quickly and accurately determine the best possible revisions for your compensation strategy.

Workforce Process Analytics and Measurement

You can measure and analyze trans­actional HR processes such as payroll processing, employee administration,

time management, and benefits admin­istration. the software enables you to analyze organizational structures, relationships, and attributes of jobs and positions.

Talent Management Analytics and Measurement

the basis for all talent processes sup­ported by SAP ERP HCM is a common set of integrated data that you can use to assess employee skills and qualifi ca­tions, evaluate the efficiency and cost­effectiveness of recruiting pro cesses and learning programs, and analyze the cost­effectiveness of employee com­pen sation programs. You can measure the effectiveness of succession pro­grams to prepare employees to assume key positions as well as monitor how well employee goals are aligned with corporate goals.

dashboards give an overview of the most important key figures, such as headcount or turnover (voluntary and total), strengths and risks of the orga­nization, successor bench strength, performance and potential of the work­force, skills and competencies, and so on (see figure 3 and 4).

Figure 4: An Example of the Succession Planning Monitor

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SAP solutions can fully support your talent management activities, helping you identify, develop, reward, and retain your key contributors through main tain­ing the right mix of assessment, compen­sation, benefits, and career development programs. You can align individual and team goals with corpo rate strategies. the software sup ports full integration of talent manage ment processes both with each other and with other pro­cesses supported by SAP ERP HCM (see figure 5).

Competency Management

organizations must be able to identify the skills and competencies needed to successfully align their workforce with their business strategy and develop those skills. Competency management functionality forms the foundation for all your talent management processes. it enables you to compile a competency catalog that all talent management pro­cesses can leverage.

Competency management features let you define and then link and assign com­petencies throughout your job archi tec­ture – a job catalog with functional areas, job families, jobs, and positions – and cultivate corresponding talent pools. You can compare an employee’s quali ­fica tions with the requirements of a cer tain position to determine his or her suit ability and leverage profile matchup for automated identification of potential successors.

Recruiting

the web­enabled SAP E­Recruiting application accelerates and streamlines the recruiting process, enabling you to build up and source from a qualified, global pool of internal and external talent. Recruiters can take advantage of this talent pool to find the staff they need quickly and collaborate closely with hiring managers throughout the hiring process. Applicant tracking and report ing functions help organize the process ing of job applications and moni tor the effectiveness of the recruit ing organization. A collaboration plat form lets you link to external applica tions, such as job boards and recruiting ser vice providers, and to internal software.

tAlEnt mAnAgEmEntoPtiMizE tAlEnt ASSEtS ACRoSS tHE EntERPRiSE

Figure 5: Integrated, Complete Talent Management

Succ

essi

on

Compensation Competency

Recruiting

management

Learning

Employee Talent review

Per

form

ance

talent management with SAP® ERP HCm

Integration across talent management:one organic solution with one point of entry and one common set of data

Integration with other HCM processes:Maximum reuse of the existing HR investment

Integration with SAP Business Suite software:Cross­enterprise integration to provide HR data throughout business processes

development

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Employee Performance Management

Employee performance management with SAP ERP HCM helps you plan, assess, improve, and analyze the per for mance of your workforce from end to end. You can align indi vidual objec tives with corporate goals by cascading your enterprise strategy; assess and manage perfor mance

through feed back, development, and appraisals; and reward your employ ees accordingly (see figure 6). the solu ­tion is highly adaptable, allowing you to tailor both the content of your per­formance feed back documents and pro cesses to the needs of your orga­niza tion. A con sis tent, user­friendly interface encourages collaboration among employees, man agers, mentors, and other partners.

Talent Assessment and Review

through a structured and impartial approach supported by the software, line managers across your organization can assess talent, employee potential and competencies, and what risk they have of losing talent. wizards allow you to define useful assessment templates. You can hold talent­review meetings and support your higher­level managers as they calibrate the performance and potential of the individuals nominated. the application helps you ensure high­quality management decisions about talent development, succession, and career planning. the result for your orga­nization is greater employee motivation, which means your retention level of key talent remains high.

Succession Management

SAP ERP HCM lets you avoid business disruption when key positions are vacat­ed by helping you proactively iden tify, develop, and track high­potential em ploy­ees best suited to fill those positions.

You can prepare future leaders for new positions from within and identify suc­ces sors for key positions before they are vacated. in addition, the SAP talent visualization application by nakisa helps you make better­informed decisions about your talent pipeline and succes sor rankings.

Figure 6: Team Calibration

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Employee Development

functionality for employee develop ment supports you in creating short­ and long­term development plans for employ­ees as well as tracking and monitoring their progress. Profile match ups with posi tions allow you to pinpoint skill and knowledge gaps, which in turn can be tied directly to training plans to address the individual development need.

Learning

the SAP Enterprise learning environ­ment provides training participants with web­based, virtual, and classroom train ing. it includes a learning portal, an instructor portal, learning manage­ment software, a test author, tools for structuring e­content, and support for

content management and collaboration. You can tailor learning paths to individual educational needs and learning styles. the virtual learning tool is powered by SAP Acrobat Connect Professional applications by Adobe. Analytical func tionality lets you plan, track, and measure training impact.

Compensation Management

the software supports line managers, higher­level managers, and HR staff in carrying out compensation­related tasks. You can implement innovative reward strategies, such as pay­for­performance, variable pay, and long­term incentive programs. You’ll have support for setting up guidelines for the enterprise’s com­pensation policy so that it conforms to overall corporate strategy.

“The use of SAP Learning Solution has provided a common platform to drive best practices in the areas of regulatory training, engineering develop ment, and our certification and recerti fication processes required in our operational excellence standards.”

Gary Jones,SeniorCorporateGlobalQualityManager,LyondellBasellIndustries

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HR SERviCE dElivERYiMPRovE SERviCE QuAlitY wHilE REduCing CoStS

Your employees may not always have internet access. As a result, you need to provide multiple ways to access HR services, including kiosks, telephony, mobile devices, a centralized help desk, and more. SAP ERP HCM supports all these service delivery requirements. Everyone in your organization can readily access the data, applications, and analytical tools they need to perform their work as efficiently as possible.

Shared Service Framework

SAP ERP HCM provides the trans ­actional backbone to enable HR depart­ments to streamline and automate key administrative business processes and improve efficiency. Standardized pro cess definitions, business rules, and data structures complement one another and provide an ideal framework for effi ciency and excellence. SAP Shared Service

framework software consists of a com­munication and dispatching and routing front end (based on an interaction center operating with the SAP Customer Relationship Management application) and integration points to the most fre­quently used finance and HR business applications. organizations are able to operate shared service centers lever­aging their existing SAP software land­scape for service delivery.

“We are not only proud of the team and the millions of dollars of cost savings for the HR and IT organizations, but also of our ability to make employees’ and managers’ jobs easier. With the implementation of this solution, we have truly been able to move the needle on our goal of self-service in the HR space.”

Kurt Twining, Senior vP of Human Resources, and Jill Butler, director of HR operations, freescale Semiconductor inc.

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SAP Shared Service framework reduces the time spent per transaction passing the shared service center. this in turn reduces the headcount required by reducing the efforts spent on ticket creation, information collection, and navigation to the business object that needs further processing. these three effects can total up to 50% of total time spent per transaction.

Manager Self-Services

SAP ERP HCM supports your man­agers in effectively accomplishing their key tasks and helps ensure alignment with strategic business objectives. from a user­friendly interface, man agers can identify, retain, and reward top per­form ers and hire the right employees, and control costs by putting the central departments at the center of all cost­cutting initiatives. with quick access via their mobile device or computer, man­agers can achieve greater effi ciency and productivity.Byleveraginganalyticalinformation and flexible report ing options, they can plan, measure, and communi­cate the effects of their strate gies on overall business results.

Employee Self-Services

SAP ERP HCM automates paper­based processes and enables your employees to manage and access important life and work events via kiosks, telephony, mobile devices, a centralized help desk, and more. Avail able in multiple languages, self­service functions sup port more than

80 employee activities – from employee search and benefits management to travel management and procurement – in ways that improve productivity and efficiency by simplify ing tasks, reducing paperwork, and optimizing workflows. the software increases HR staff moti va tion and morale by automating routine tasks, freeing them up to focus on strate gic, high­value efforts.

Dedicated Support for Key Business Roles

different people play different roles in the execution of your organization’s business processes. SAP ERP HCM can make your employees more produc­tive by providing role­based access via the SAP netweaver® Portal component orthroughSAPNetWeaverBusiness

Clientsoftware.Bothenableeasieraccess to precisely the services and content your employees need to fulfill their roles in the organization’s business processes.

Microsoft Office Integration

duet® software is a jointly developed product from SAP and Microsoft Cor­poration that enables users to interact with SAP ERP transactions, processes, and data through the familiar Microsoft Officeenvironment.ByusingDuetsoft-ware, you can increase compliance with corporate policies, improve decision making, and reduce time and cost associated with coordinating resources and searching for information, all of which leads to swift adoption of SAP ERP among your employees.

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You can use SAP ERP HCM to auto mate administrative HR tasks and reduce the time and costs associated with those tasks. this frees your HR staff to focus on activities that generate real business value and improves the productivity of your HR and line man agers. At the same time, you can stan dardize and consoli­date all workforce­related core process­es and data onto a single platform while adhering to local regulations and laws. SAP ERP HCM also provides a single, accurate source of employee data that is available in real time throughout your organization.

Employee Administration

SAP ERP HCM supports all of the basic processes for managing personnel and handling employee information. this information is stored and maintained in a central database that is the core of

the solution; all functions access, lever­age, and update this data in real time. the software automatically checks and dates all data as it is entered. As a result, your employees and managers have access to information that is up­to­date and consistent for HR­ and business­related decisions. there is also support for data and document archiving.

Organizational Management

with SAP ERP HCM, you can manage and disseminate your organizational structure and policy information. Access to the reporting structure lets you more easily establish authorizations and enables more effective management of workflow. organizational management functionality is the backbone of SAP ERP HCM, providing for effective man age­ment of information about organiza tional units, jobs, positions, and employees.

Organizational Charts

with the SAP organizational visualiza­tion application by nakisa, the work force engages with the right SAP ERP HCM information based on roles. Employees connect and collaborate with colleagues by navigating dynamic organizational charts and managing communities that integrate with popular social media sites. talent planners and managers prepare for organizational transformation by build­ing and sharing scenarios that fore cast the impact of change with key metrics.

Global Employment

SAP ERP HCM supports all processes involved in international employee assign­ments – from planning and executing global assignments to personnel admin­istration and payroll for global employees.

Benefits Management

SAP ERP HCM provides a flexible framework for creating and managing tailor­made benefits packages. versatile configuration options let you offer a diverse range of benefits to accom­modate even complex plan definitions. there is powerful support for all administrative benefits­related tasks, and standard and flexible reports let you summarize and analyze benefits data. Support for self­services enables your employees to view and change their benefit selections online.

CORE HR And PAYROllinCREASE HR EffiCiEnCY tHRougH PRoCESS AutoMAtion

“With the SAP solution, we’ve dramatically improved the way we handle pay roll and HR processes. We’ve moved from a disparate, often dysfunctional system to a state-of-the-art, integrated platform.”

Lars Crotwell, vice President, InformationTechnology,BasicEnergyServicesInc.

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Time and Attendance

with SAP ERP HCM, you can record, track, monitor, and evaluate your employees’ working times and activities. there are state­of­the­art planning and data­entry technologies as well as mechanisms for monitoring time man­agement tasks. working times are recorded once and reused across your enterprise in fully integrated business processes. intuitive user interfaces are tailored to the individual needs of your HR professionals, time administrators, shop­floor supervisors, secretaries, team leaders, and team members.

Payroll and Legal Reporting

SAP ERP HCM can handle complex payroll processes in compliance with current legal regulations in 48 countries.

Predefined reports help you address various legal and compliance issues, increase the visibility and transparency of your HR processes, and simplify overall management of compliance­related concerns.

HCM Processes and Forms

SAP ERP HCM offers an efficient way to manage cross­role processes that involve HR master data. A flexible framework lets you more easily tailor HR processes to your specific needs. with its code­free design and simple, cost­effective implementation environ­ment, the solution makes HR­related workflows more efficient. the result is huge time savings for your it team. SAP interactive forms software by Adobe transforms paper­based HR tasks into streamlined, automated

processes – while maintaining a familiar look and feel for managers, executives, and other casual users.

Employee File Management

All organizations that manage employee processes, such as paying employees or contractors, are required to manage documents related to those people. the SAP Employee file Management application by opentext provides HR departments with a complete solution for managing paper documents and digital information, such as e­mail, within the SAP ERP HCM personnel file and making them instantly acces sible to the SAP software user.

Ferdinando Mulas, it Manager, Ministry of Justice for italy

“The SAP ERP Human Capital Management solu tion has helped us stream line the entire personnel management lifecycle from initial employee inter views and applications through termination or retirement.”

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BuSinESS ExPAnSiOn And gROWtHgRowing witH You

Support for Global Operations

SAP ERP HCM supports languages, currencies, best practices, and regu­latory requirements for 48 countries. this means that you can deploy solu­tions specific to the countries you are operating in today – and in the future – while reducing the cost and effort of complying with local regulations.

Flexible Deployment Options

Many organizations are outsourcing parts of their HR processes to external providers – for some, a cost­effective alternative to handling them internally. You can leverage numerous SAP relation ships with business process outsourcing(BPO)providersforHR.SAP ERP HCM enables delivery against BPOgoalsofimprovedriskmanage-ment, quality, and business value through dedicated partner services across solu­tion design, delivery, and management. the solution has many alternative approaches for multiclient deployments withinaBPOorinformationtechnologyoutsourcing (ito) environment.

Regardless of your delivery strategy – beitonpremise,ondemand,orBPO–SAP has the software, platform, part ners, and experience necessary to support your deployment choices. EnablingBPOproviderstocontinuouslyleverage technological advances for your business processes, you can

con tinually realize greater business results. SAP ERP HCM already sup­ports many varied deployments, and SAP is the solution provider of choice for shared service centers worldwide.

SAP NetWeaver Technology Platform

SAP ERP is powered by the SAP netweaver technology platform, a composition platform that enables you to rapidly build composite applications while realizing more business value from your existing it investments. SAP netweaver supports new, cross­functional business processes and lowers your total cost of ownership by reducing the need for custom integra­tion. it is also the foundation for a service­oriented architecture (SoA).

together, SAP netweaver and SoA enable you to swiftly refine your busi­ness processes in response to new opportunities and challenges.

Innovation Without Disruption

the SAP enhancement package stra tegy provides you with a more economical and less disruptive way of adopting and managing software releases. You can selectively imple ment software innova­tions from SAP and activate discrete functions and enhancements as busi ness opportu nities and demands dictate. this unique delivery and deployment method for enterprise software enables you to take advantage of new software functionality while meeting your need to maintain the stability and integrity of your core SAP ERP HCM solution.

ability to fluidly allocate resources is essential for competitive differen ­tiation in today’s tumultuous envi ron­ment. SAP ERP draws from almost 40 years of expe rience. it delivers the powerful function ality, global orien ta tion, and flexible enhancement­package options you need to gain a sustainable, com petitive advantage and position your organi za tion for profitable growth.

the SAP® ERP Human Capital Management solution is part of the SAP ERP application – the soft ware foundation that enterprises trust to achieve business excel lence and innovation. leveraging this founda­tion, you can provide fast, adaptive workforce solutions to meet the requirements of a quickly changing marketplace. A responsive human resources organization with the

SAP ERP: The Trusted Foun da tion for Business Excellence and Innovation

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to learn more about how SAP ERP HCM can help your organization increase organizational performance, call your local SAP representative or visit our web site at www.sap.com/hcm.

tHE BEnEfitS Of SAP ERP HCmSuPPoRting YouR EntiRE oRgAnizAtion

Activity Benefit

workforce planning and analytics • Enable better decision making through real­time insight into workforce data• Help ensure that talent supply meets needs by proactively identifying and filling talent gaps• Consistently achieve corporate objectives

talent management • improve retention of key talent• improve employee satisfaction and engagement through personalized development

programs• increase organizational performance

Core HR and payroll • Mitigate any risk imposed from new regulations and legislation, locally and globally• improve operational efficiency of HR department and lower cost of compliance and

employee administration• Reduce HR and payroll cost per employee• Reduce total cost of ownership with single instance for multiple countries

HR service delivery • offer better HR services and cut HR­related costs• free HR employees to concentrate on value­generating activities

Mobility • Enable quick decision making and responsiveness on alerts, notifications, and approvals• Have access, anywhere and anytime, to business content, applications, and services

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