What is SAP HR

Wed, 17 Sep 2010 20:04:58 +0000

SAP HR now called SAP HCM is a well integrated ERP system. There are various functions that a HR department carries out in a organization like Employee Administration, Benefits, Compensation, Payroll, Recruitment, Performance Appraisal, Time Administration etc. All of these functions are built as modules in the SAP HCM system.

These modules in the SAP HCM system are Organization Management which takes care of your organization structure, positions, jobs, cost center, etc. Personnel Administration which takes care of your employee data like address, date of birth, social security number etc. Benefits module which takes care of employee benefits and usually interfaced with an external benefit provider. Enterprise Compensation Management (ECM), which takes care of making sure employees are paid fair market value. Performance Management, which records employee's performance appraisal during a given year. Recruitment module is used to hire the right applicant into the organization. Time Management which records and calculate employee working time through work schedules and Payroll module ensures that employees are paid correctly and on time.

All these modules are so integrated that in layman terms we say they speak to each other. This is why many organizations prefer the SAP HCM system. It provides excellent reporting through standard and custom built reports. The latest version is ERP 6.0 and one of the benefit of version 6.0 over the older version is, if the organization has offices in different countries, they can all be configured in one HCM box under different country groupings.

SAP HR is the best paying job of all SAP modules. To be a SAP HR functional consultant, you need to have some understanding of HR domain, have excellent client facing skills, need to know the end user processes well, need to know one or two modules from configuration perspective and be ready to travel.

Right now SAP stocks are doing very well. At the time of writing this, the stock prices as of today is well positioned at $63.73. There is very little competition to SAP HCM module and as long as there are employees in a organization, SAP HCM module will always be needed.



Stephen Sequeira
Founder & CEO
Perfect Resources
www.perfectresource.net