Hi!
I am interested to know why should companies go in for SAP-HR Module? What are its advantages and disadvantage and at what stage a company should go in for SAP-HR? (a well established co or even a new company???)
Hope to receive some good inputs.
Regards,
Sweta
From India, Kalyan
4I am interested to know why should companies go in for SAP-HR Module? What are its advantages and disadvantage and at what stage a company should go in for SAP-HR? (a well established co or even a new company???)
Hope to receive some good inputs.
Regards,
Sweta
From India, Kalyan
Hi Sweta,
Here are some of the advantages of SAP HR.
Advantages of SAP HR/Payroll
Saving time and money, and improving information for decision-making and planning.
Greater automation, ensuring greater accuracy and time savings.
SAP is built to automatically apply policies and rules to employees’ data. In HRMS, this sort of information would be entered as required, keyed in by an employee. This will invariably result in a certain amount of inaccuracy, either through interpretation or simple error. In fact, as SAP HR/Payroll was created, various instances were found of employees in HRMS who were receiving benefits they were not entitled to, or who had been eligible for shift premiums but had not received them. As well, the reduced data entry will allow time for more value-adding activities.
Improved reporting capability.
Reports are tools managers can use to analyze their operations and find opportunities for improvement. For example, attendance reports, or workload reports. HRMS provided a limited number of standard reports in a format which could not be manipulated for more precise analysis. Reports would be ordered, and would typically take two days to arrive. SAP provides users direct access to thousands of standard reports, plus the ability to easily create custom reports. Reports can be exported into Excel for further manipulation or filtering and then uploaded back to SAP.
Improved position control.
Information related to positions includes cost centre, “report to” and classification, for instance. SAP provides more position-related information than HRMS, and the information is presented in a much more user-friendly form yourself.
Automated compensation adjustment.
Prior to the introduction of SAP, compensation adjustments were calculated manually outside HRMS and then keyed in.
Improved employee history data.
This is essential planning information for various scenarios, for instance re-organization, or succession planning. SAP presents this information in a much more organized, user-friendly way.
Better management of CUPE time data.
CUPE employees’ time is tracked for payroll purposes, and is tracked against work centres. This has required entry of the same data into two different systems, but with SAP it will be entered once and then shared by the HR module and the Plant Maintenance module. In addition to eliminating duplicate effort, this integration also allows exact planning in situations where we have had to estimate.
Better budgeting.
Similarly to the CUPE time entry situation, budgeting will improve with exact planning information replacing estimates, as information on position requirements will be shared between HR and FI modules of SAP (more accurate FTE counts)
Accurate retroactive payment.
Today, any payment which was earned in the past can only be added to the total of the pay in which it is processed, which can sometimes result in a higher rate of deduction. In SAP, payments earned in the past show up as a separate item on the pay in which it is processed, and are linked to the period in which they are earned.
Management of leave quotas.
HRMS did not provide much ability to manage leave quotas. A common result of this was overspent quotas. For instance, if an employee went over his or her vacation allotment, this might not be noticed for some time (or ever). Once noticed, an arrangement would have to be made with the employee (if the individual was still an employee), and this arrangement would then have to be managed. SAP automates the management of leave quotas.
Hope this would satisfy you.
Santosh Iyer
From India, Pune
Here are some of the advantages of SAP HR.
Advantages of SAP HR/Payroll
Saving time and money, and improving information for decision-making and planning.
Greater automation, ensuring greater accuracy and time savings.
SAP is built to automatically apply policies and rules to employees’ data. In HRMS, this sort of information would be entered as required, keyed in by an employee. This will invariably result in a certain amount of inaccuracy, either through interpretation or simple error. In fact, as SAP HR/Payroll was created, various instances were found of employees in HRMS who were receiving benefits they were not entitled to, or who had been eligible for shift premiums but had not received them. As well, the reduced data entry will allow time for more value-adding activities.
Improved reporting capability.
Reports are tools managers can use to analyze their operations and find opportunities for improvement. For example, attendance reports, or workload reports. HRMS provided a limited number of standard reports in a format which could not be manipulated for more precise analysis. Reports would be ordered, and would typically take two days to arrive. SAP provides users direct access to thousands of standard reports, plus the ability to easily create custom reports. Reports can be exported into Excel for further manipulation or filtering and then uploaded back to SAP.
Improved position control.
Information related to positions includes cost centre, “report to” and classification, for instance. SAP provides more position-related information than HRMS, and the information is presented in a much more user-friendly form yourself.
Automated compensation adjustment.
Prior to the introduction of SAP, compensation adjustments were calculated manually outside HRMS and then keyed in.
Improved employee history data.
This is essential planning information for various scenarios, for instance re-organization, or succession planning. SAP presents this information in a much more organized, user-friendly way.
Better management of CUPE time data.
CUPE employees’ time is tracked for payroll purposes, and is tracked against work centres. This has required entry of the same data into two different systems, but with SAP it will be entered once and then shared by the HR module and the Plant Maintenance module. In addition to eliminating duplicate effort, this integration also allows exact planning in situations where we have had to estimate.
Better budgeting.
Similarly to the CUPE time entry situation, budgeting will improve with exact planning information replacing estimates, as information on position requirements will be shared between HR and FI modules of SAP (more accurate FTE counts)
Accurate retroactive payment.
Today, any payment which was earned in the past can only be added to the total of the pay in which it is processed, which can sometimes result in a higher rate of deduction. In SAP, payments earned in the past show up as a separate item on the pay in which it is processed, and are linked to the period in which they are earned.
Management of leave quotas.
HRMS did not provide much ability to manage leave quotas. A common result of this was overspent quotas. For instance, if an employee went over his or her vacation allotment, this might not be noticed for some time (or ever). Once noticed, an arrangement would have to be made with the employee (if the individual was still an employee), and this arrangement would then have to be managed. SAP automates the management of leave quotas.
Hope this would satisfy you.
Santosh Iyer
From India, Pune
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