As mentioned in our previous blog post, SAP recently confirmed that it will plan to offer a new on-premise HCM option based on SAP ERP HCM with maintenance planned at least through 2030. But that doesn’t stop many SAP customers from already moving their HR processes – talent management, time management, payroll or core HR – to the cloud. You shouldn’t wait either! Afraid of a big bang? Don’t worry: you don’t have to move everything all at once. Discover the different options for your HR transformation journey.
Moving your HR processes to the cloud is a big leap. After all, it entails a change in the way you think about your HR systems, how they’re built and how they can and should be used. While cloud platforms in a way dictate how processes and operational methods are organized, they’re still flexible enough to fit your company’s needs in the best possible way. To smooth out your journey to the cloud, you can choose for yourself which processes you want to ‘go to the cloud’ with, and which you want to keep in your on-premise SAP Business Suite solution.
With Talent Hybrid, all your talent processes – like learning, goals, performance and succession planning – are managed in the cloud, while you keep your core HR, time management and payroll processes in your SAP on-premise solution. Talent Hybrid has been the clear go-forward solution for talent management since 2014: a lot of companies have already taken this step. With this first step, you’re good to go until at least 2025.
The go-to solution for core HR is more recent. Still, SAP’s cloud-based SuccessFactors Employee Central is a mature platform, convincing more and more firms to hop on board. In a first phase, companies tend to move only organizational management and personnel administration to the cloud, while keeping time management and payroll processes on-premise. In this way, they benefit from the advantages that cloud systems offer, while the impact on more critical processes stays minimal.
Typically, as time management and payroll functionalities mature, companies decide to move these processes to the cloud as well to attain a full cloud solution. Time management is integrated into SAP SuccessFactors Employee Central or – in case of very specific company needs – in Workforce Software. Payroll processes can be integrated into Employee Central Payroll or into the payroll provider’s system (i.e. SD Worx, NGA, ADP).
Not sure which option fits your company best? Combinations of the abovementioned choices are possible, too. These are particularly interesting for international companies in which some regional branches still have an on-premise core HR solution, while others are already moving to the cloud. The option to consolidate employee data from different solutions in the cloud is a handy asset in these situations.
Not quite sure what to do with your time management and payroll solutions as you move to the cloud? Dig deep into the possibilities in our next blog.
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.