"Understanding SAP HCM: A Comprehensive Guide to Human Capital Management”
Tags: cloud, blockchain, software, performance
Published: 2024-04-17 16:58:47

What is the difference between HCM & HR. Well, they're the same, as SAP HCM (which stands for Human Capital Management) is one of the key modules in SAP. And is also called SAP Human Resource (that is, SAP HR) or SAP Human Resource Management System (that is, SAP HRMS) and that's why I will be using these terms interchangeably throughout this video and explain you what is SAP HCM, its submodules, key features, and overall benefits so let's get started!
SAP Human Capital Management is an integrated ERP solution designed to manage and optimize human resource processes and operations. SAP [HCM Solutions](https://www.integritty.com/human-resource-management-technology/) streamlines HR processes, enhances workforce management, and maximizes employee engagement and productivity. The module provides end-to-end support for HR processes, starting from employee recruitment to performance management, payroll processing, and talent management. Further, SAP HCM contains many submodules and all these modules are integrated with each other. Each submodule has unique features and capabilities that support different aspects of HR management. In essence, some of the key SAP HR submodules include:
Organizational Management: Now, this submodule is used to define and manage an organization's structure, including positions, jobs, and departments. Organizational management helps organizations understand their workforce, visualize their hierarchy, and track employee movements. The key features of this submodule include creation and maintenance of organizational units, positions, and jobs, mapping of the organization's structure, support for multiple organizational structures, integration with other SAP HCM submodules, visualization of organizational structures using charts and diagrams.


Time Management: This submodule is used to track employee attendance, absences, and leaves, and calculate employee working hours. Time management integrates with other SAP HCM submodules such as payroll to ensure accurate and timely payments. The key features of this submodule are automated attendance tracking using time clocks, recording of absences and leaves, calculation of employee working hours, overtime, and premium pay, integration with other SAP HCM submodules such as PA and Payroll, support for time and attendance policies, such as shift differentials, flextime, and overtime rules.
Payroll: It is used to manage employee compensation, including salary, benefits, and deductions. [Payroll Control Center](https://www.integritty.com/payroll-control-center-pcc/) (PCC) submodule of SAP HCM integrates with other submodules such as PA and TM to ensure accurate and timely payments. The key features of this submodule include automated calculation of employee salaries, taxes, benefits, and deductions, generation of pay statements and payroll reports, integration with other SAP HCM submodules such as PA and TM, support for multiple payment methods, such as direct deposit, checks, and wire transfers, compliance with local tax laws and regulations.


Benefits: This SAP HCM submodule is used to manage employee benefits, including health insurance, retirement plans, and other employee benefits. Benefits management is integrated with payroll and PA to ensure accurate benefits calculations and tracking. The key features of this submodule include management of employee benefits enrollment and eligibility, calculation of employee contributions and employer matching, integration with other SAP HCM submodules such as PA and Payroll, support for multiple benefit plans and providers, compliance with local benefit laws and regulations.


Talent Management: It provides tools for recruiting, onboarding, training, and developing employees. Talent management integrates with other SAP HCM submodules such as PA and Payroll to provide a comprehensive talent management solution. The key features of this submodule are it offers tools for job posting, resume screening, and candidate tracking, automated onboarding and orientation workflows, performance management features such as goal setting, performance evaluations, and development planning, succession planning and career development tools, integration with other SAP HCM submodules such as PA and Payroll.


Travel Management: It provides tools for managing employee travel expenses, including expenses related to business trips such as transportation, accommodation, and meals. The key features of this submodule are as follows, allows to create and manage trip data, calculation of meal allowance, maintain receipts claim & advance payment, representation of internal company rules, trip-specific account assignment.


Learning Solutions: The Learning Solutions submodule in SAP HCM provides tools for managing employee training and development programs. The key features of this submodule are as follows, creation and management of a catalog of training courses available to employees, course registration and enrollment, creation and management of training curriculum and learning paths for employees, evaluating employee learning and development progress.
Employee and Manager Self-Service: This submodule in SAP HCM enables employees and managers to access and manage their HR data, such as personal information, benefits, and payroll information. The key features of this submodule are as follows, view & update their personal information, manage benefits information, view & manage their payroll information, manage time & attendance information.