SAP users: Hybrid scenarios continue to dominate HR's daily routine

The modernization of HR software is progressing in SAP user companies. However, users are taking their time switching to cloud services.

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3 min. read

The modernization towards the cloud is in full swing at SAP. For Human Resources (HR), this means: SuccessFactors is replacing the traditional HR software SAP ECC HCM. A current survey among members of the DSAG (German-speaking SAP User Group) shows that cloud software has apparently found its way into the HR IT roadmaps of many companies.

The survey on the occasion of the DSAG HR Days event planned for June also reveals that, almost two years before the end of mainstream maintenance, the operational day-to-day business in companies is still determined by traditional on-premises software. The answers also suggest that many users are initially migrating to H4S4 – i.e. SAP HCM for S/4HANA.

The solution, conceived at the DSAG's urging, has the advantage of securing the existing HR process landscape. It is a pure migration that is generally technically manageable. Modernization of processes and functions – for example, via SuccessFactors – can therefore be carried out at a later stage.

Specifically, 71 percent of respondents stated that they are still working with ECC HCM (on-premises). 39 percent use SuccessFactors, 23 percent S/4HANA HCM (H4S4) on-premises, and nine percent SAP S/4HANA HCM in the private cloud. Multiple answers were possible for this question.

Looking at the role of SuccessFactors in a company's HR IT roadmap, just under four percent indicated that they had fully implemented the cloud service. Around 40 percent have introduced it at least partially. Another eleven percent intend to do so. However, 28 percent of respondents are not planning to introduce the Walldorf-based cloud HCM software. 17 percent are still in the evaluation phase.

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The rather heterogeneous transformation strategy in companies can also be seen in the module usage of SuccessFactors. Services that offer quick, tangible added value in operational HR are particularly in demand – for example, for Recruiting (41 percent), Employee Central (39 percent), Learning (37 percent), or Performance & Goals (34 percent). Central services such as the payroll-related modules Employee Central Payroll (8 percent) or Time Tracking (9 percent), despite their strategic importance, are used comparatively sparingly – partly because some functions or industry-specific features are still missing.

When asked directly about the relevance of selected topics in the HR IT context, users rated tasks such as digital HR processes & self-services (74 percent) and migration to H4S4 (64 percent). Along with data protection and compliance (55 percent) and HR analytics and reporting (52 percent) as very relevant/relevant. For the migration from SAP HCM to SuccessFactors, this was only the case for 36 percent of the surveyed users. More than half (52 percent) described such a project as of little relevance or currently irrelevant.

(mma)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.