Solutions for Human capital Management – SAP HCM

The working world is undergoing significant change. Issues around recruiting, retaining, and developing the best talents from different generations and cultural backgrounds continue to challenge HR.

The increasing diversity within the workforce as well as ongoing digitalization are leading to changes in the needs and expectations of employees.

Various SAP solutions – both on-premise and cloud-based – can help you reduce your administrative tasks by automating core processes, thereby allowing you to spend more time on strategically important issues.

SAP HCM (short for Human Capital Management) is the continuation of SAP HR (short for Human Resources) and facilitates the work of your company’s HR department by digitizing HR processes and supporting your employees in all their tasks.


What is SAP HCM?

SAP HCM is a digital solution from SAP which includes all functions necessary to enhance the employee experience.

What are the main SAP HCM modules?

The main components of the SAP HCM modules are as follows:

  • Personnel Administration (PA): the core of SAP HCM where all employee master data is located.
  • Time Management (PT): responsible for the recording of working time and the scheduling of absences. Likewise, work performance can be evaluated.
  • Payroll (PY): used to collect data and to at any time access and process salary-related information.
  • Organizational Management (OM): covers the entire organizational structure. It represents the basis of Talent Management and is used for employee career planning.
  • Personnel Development (Talent Management): divided into two different modules, SAP Performance Management (PEM) and Learning Solution (LSO).
  • Training and Event Management (PE): responsible for the recording of various events such as staff training and professional education. In addition, relevant information such as brochures, event location etc. can be stored here.
  • Recruitment (PB): where appointments for job interviews can be entered and tracked. Applicants can enter the master data themselves. If hired, this data can be transferred to the employee master data.



Experience Management – Inspire through personal experiences

SuccessFactors Human Experience Management HXM Suite is the cloud solution that is expected to replace SAP HCM and SAP HR around 2040. Due to multiple postponements – from 2030 to 2040, for example – this deadline is used for guidance only and is therefore not final. The core functions of SAP HCM can be seamlessly integrated into SAP SuccessFactors HXM Suite, whose strengths lie in its coverage of the entire employee lifecycle, and which is considered to be the recommended next-generation HR foundation for SAP S/4HANA.

It is possible to use both solutions as a standalone or to combine them in a hybrid model to get the best of both worlds. Currently, SuccessFactors does not yet fully and adequately cover the modules PT and PY in the same way as SAP HCM does. It is important to mention that SAP SuccessFactors is not the direct legal successor; the systems SAP HCM and SAP SuccessFactors HXM each have a different technical focus.

Switching from on-premise SAP Solutions to SAP SuccessFactors HXM Suite

The future lies in the cloud. For this reason, SAP acquired and further developed SAP SuccessFactors. Older on-premise SAP solutions such as SAP HR and SAP HCM are to be replaced by SAP SuccessFactors by 2030 and approximately 2040, respectively. A postponement of these final dates is possible.

Main functions of HXM Suite

  • Employee experience management
  • Core HR and payroll
  • Talent management
  • HR analytics and workforce planning

SAP HCM vs. SAP SuccessFactors

SAP SuccessFactors offers an advantage over SAP HCM in that it is a cloud solution and therefore future-oriented. SuccessFactors is definitely a sustainable solution when it comes to new implementations. It aligns the focus of HR solution needs with the issues and priorities of the 21st century. While classic SAP HCM still revolved around personnel administration issues, SAP SuccessFactors is clearly focused on the employee lifecycle and a holistic view of the employee.


SAP HCM for the cloud-based ERP system S/4HANA no longer exists as such.

During an S/4HANA migration, it is possible to take existing functions with you using compatibility packs; however, this only serves as a transitional solution until the company has switched to SuccessFactors.

H4S4 and H4S4, on-premise edition

SAP HCM for SAP S/4HANA On-Premise, also known as H4H4, is similar to SAP S/4HANA Private Cloud Edition (PCE) and is suitable for customers who want to invest in SAP ERP HCM.

Unlike PCE, H4S4 allows continued use of SAP® Talent, including Learning and Recruiting (license required).

SAP Self-Services and SAP Fiori

Increased efficiency through self-services: Nowadays, employees expect modern, user-friendly solutions that are as flexible as they are. SAP HCM offers various self-service solutions to meet those expectations, both via the web browser and the app.

Employee and manager self-services allow you to maintain your own data and to conveniently call up overviews (e.g., of time accounts) whenever you need them. This not only shortens process cycle times but also ensures significantly greater transparency.

SAP Fiori provides the flexibility of self-services combined with the modern user interface of an app. With its responsive design, SAP Fiori can be accessed just as easily via a web browser as via the app on a smartphone or tablet. The role-based concept behind the menu structure reduces the content down to the essentials so that what is needed can be found at a glance.

Simplified Travel Management with SAP Concur

SAP Concur is a cloud-based software that provides businesses with travel and expense management services. Since it is not one of the functions of SAP SuccessFactors, travel and expense management is covered by SAP Concur.

Within SAP HCM, the component SAP FI-TV can be used by customers for travel management. In H4S4 HCM, this will be mapped in S/4HANA.

CNT is your Implementation Partner for SAP SuccessFactors Solutions!

Contact us regarding the SAP SuccessFactors implementation at your company!

CNT Management Consulting benefits from many years of professional experience and know-how in the field of SAP consulting and will help you find a custom solution for your HR management system.

Frequently asked questions about SAP HCM and SAP HXM

SAP HXM stands for SAP Human Experience Management and refers to SAP’s current software focus in the area of human resources, which sees the employee and the employee experience as a central component.

SAP HCM has become SAP HXM, with its core product being SAP SuccessFactors – a world-leading, high-performance HR software that offers a wide range of talent management solutions, comprehensive tools for both analysis and planning as well as solid solutions for core HR processes such as master data management, time management, and payroll.

Deployable as a standalone cloud solution or combined with your on-premise ERP system, SAP SuccessFactors HXM Suite gives you the flexibility that you need.

The modular architecture allows you to start with any individual module and expand as needed – start anywhere, go everywhere.

SAP SuccessFactors aims to digitally support and optimize every HR process within a company. The right employees need to be found, optimally deployed, promoted and further developed.

Human resource management is one of the most important cornerstones of your company. CNT Management Consulting is your implementation partner for SAP SuccessFactors and will help your HR management to become more efficient, cost-saving, and successful.

SAP HCM, short for Human Capital Management, is the human resources management system of the SAP ERP system. It is an HR software that maps all functions of personnel administration, management, and development.

SAP HR is the precursor of SAP HCM and is no longer implemented today.

SAP SuccessFactors aims to digitally support and optimize every HR process within a company. The right employees need to be found, optimally deployed, promoted and further developed.

The modular architecture allows you to start with any individual module and then expand as needed – start anywhere, go everywhere.

Deployable as a standalone cloud solution or combined with your on-premise ERP system, SAP SuccessFactors HXM Suite gives you the flexibility that you need.

  • Recruiting
  • OnBoarding 2.0
  • Employee Central
  • Employee Central Payroll
  • Compensation & Variable Pay
  • Performance & Goals
  • Learning
  • Succession & Development incl. Career Development Planning
  • SAP People Analytics & SAP Analytics Cloud

The modules are divided into four key areas:

  1. Employee Experience Management
  2. Core HR and payroll
  3. Talent management
  4. HR analytics and workforce planning

A HCM consultant is an SAP consultant specializing in HR-related processes and software.

Our specialists operate in ten locations worldwide and have over 20 years of consulting experience. Our industry expertise spans the life sciences, the pharmaceutical industry, plant engineering and mechanical engineering, manufacturing, commercial and consumer goods, the automotive industry, the construction industry as well as the energy and utilities sector.