SAP is rethinking and reimagining human capital management (HCM), investing heavily in HR cloud solutions with SuccessFactors. Consequently, many SAP customers are moving their HR processes to the cloud. But how do you combine your SAP time management and payroll solutions with the cloud-based SuccessFactors solutions?
In previous blog posts, we talked about the challenges involved in moving your HR to the cloud and different options – big bang or step-by-step – for your transformation journey. In this post, we zoom in on the way forward for time management and payroll. Do you take time management and payroll to the cloud just like your talent management, organizational management and personnel administration? In other words: should you choose a hybrid or a full-blown cloud-based HCM solution?
SuccessFactors Employee Central + SAP Time & Payroll
In this first scenario, you keep your existing on-premise SAP time management and/or payroll solutions and combine these with the cloud-based SuccessFactors Employee Central modules. It’s a great way to leverage your existing on-premise investments while moving to the cloud at your own pace with minimal risk.
Transferring your core HR to SuccessFactors is a breeze, as the cloud solution seamlessly integrates with SAP ERP HCM. Your time management and payroll processes are not impacted by this move, and you keep benefiting from renewal enhancements that improve the usability of your on-premise SAP HCM solution.
SuccessFactors Employee Central + SuccessFactors Employee Central Time & Payroll
Another option is a fully integrated cloud-based time management and payroll solution hosted by SAP, which is completely embedded in SuccessFactors Employee Central. This allows you to leverage the latest innovations, such as the Payroll Control Center. This scenario is based on the proven SAP Payroll engine and encompasses standard point-to-point integration, with implementation and migration services available. As with the previous option, this implies that you have less IT infrastructure to manage, thus freeing up internal resources.
This is an ideal solution for companies who want to manage their time and payroll systems in-house, while at the same time minimizing the costs that come with it.
SuccessFactors Employee Central + third-party solution for time management and/or payroll systems
International companies with small local branches often choose to outsource their time management and/or payroll systems to third-party providers. However, they want to keep the master data in their own hands. Luckily, they can combine the best of both worlds by using SuccessFactors Employee Central and third-party solutions together. For Belgian customers, Flexso for People built standardized integration package with several payroll providers like SD Worx payroll, Acerta, Neeyamo, ADP FR/US, and others.
SAP and its partners provide many productized integrations with third-party solutions, but you can also set up a custom integration. The third-party provider takes care of maintenance, hosting and support of its application, and you get to make the most of SAP’s innovations in the cloud.
Curious how migrating to the cloud works in real life? Read the success story of Farys | TMVW and get inspired.
Is moving to the cloud one step too far for your business? Don’t worry: there’s a way to keep running your HR on-premise.