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SAP Solution Brief


SAP ERP Human Capital Management WITH SAP® ERP HCM
Identifying, developing,
rewarding, and retaining talent
is critical to the success of
businesses in all industries.
With the talent management
functionality of the SAP® ERP The economic climate is forcing compa- Integrated Talent Management
nies to realign their workforces to Brings It All Together
Human Capital Management increase productivity while reducing
solution, you can optimize overall costs. To accomplish this, SAP ERP HCM offers talent management
well-developed strategies for managing functionality that’s fully integrated with
processes to make the most talent must be in place. However, many human capital management and other
of the people in your companies lack adequate talent man- business processes to help you more
agement processes, or those processes effectively manage your talent (see
organization. are not integrated into enterprise-wide Figure 1).
solutions, relying instead on islands of
talent data in offline documents and The solution allows you to compare
point solutions. employee profiles with actual positions.
You can identify skill and knowledge
The SAP® ERP Human Capital Manage- gaps and tie them directly to development
ment (SAP ERP HCM) solution offers a plans. You’ll be able to discern your
holistic approach to talent management high-potential employees and put them
that helps you remove barriers between on track to support seamless succession
traditional HR practices and integrate for important positions. You can moti-
processes across the organization. vate employees through individualized
objectives and compensation programs
tied to performance. By aligning individual
and team objectives with organizational
goals, you can contribute to consistent
achievement of corporate goals.

Co m
tion Mana pete Integration across talent
omp ge nc
me y management:
C n One organic solution with one
point of entry and one common

set of data


Integration with other HCM

Talent Management processes:
with SAP® ERP HCM Maximum reuse of the existing
a nc e
Le ar n

HR investment
in g


Integration with SAP Business


Suite software:

ev Cross-enterprise integration

e lo ew
pm evi to provide HR data throughout
ent Talent R business processes

Figure 1: Integrated, End-to-End Talent Management

Talent Management Processes processing of job applications and interface encourages collaboration
Supported by SAP ERP HCM monitor the effectiveness of the recruiting among employers, managers, mentors,
organization. A collaboration platform and other partners.
SAP ERP HCM supports a wide range lets you link to external applications,
of talent management processes. They such as job boards and recruiting ser- Talent Assessment and Review
are described in the following sections. vice providers, and to internal software. Through a structured and impartial
approach supported by the software,
Competency Management Employee Performance Management line managers across your organization
Organizations must be able to identify Employee performance management can assess talent, employee potential
the skills and competencies needed to with SAP ERP HCM helps you plan, and competencies, and what risk they
successfully align their workforce with assess, improve, and analyze the per- have of losing talent. Wizards allow you
their business strategy and develop formance of your workforce from end to define useful assessment templates.
those skills. Competency management to end. You can align individual objectives You can hold talent-review meetings
functionality forms the foundation for all with corporate goals by cascading your and support your higher level managers
your talent management processes. It enterprise strategy; assess and manage as they calibrate the performance and
enables you to compile a competency performance through feedback, devel- potential of the individuals nominated.
catalog, which all talent management opment, and appraisals; and reward
processes can leverage. your employees accordingly. The application helps you ensure high-
quality management decisions about
Competency management features let The solution is highly adaptable, allowing talent development, succession, and
you define and then link and assign you to tailor both the content of your career planning. The result for your
key competencies throughout your job performance feedback documents organization is greater employee
architecture – a job catalog with func- and processes to the needs of your motivation, which means your retention
tional areas, job families, jobs, and organization. A consistent, user-friendly level of key talent remains high.
positions – and cultivate corresponding
talent pools. You can compare an
employee’s qualifications with the
requirements of a certain position to
determine his or her suitability and
leverage profile matchup for automated
identification of potential successors.

The Web-enabled SAP E-Recruiting
application accelerates and streamlines
the recruiting process, enabling you to
build up and source from a qualified,
global pool of internal and external
talent. Recruiters can take advantage
of this talent pool to find the staff they
need quickly and collaborate closely
with hiring managers throughout the
hiring process. Applicant-tracking and
reporting functions help organize the Figure 2: Talent Assessment
Employee Development Succession Management Learn More
Functionality for employee development SAP ERP HCM lets you avoid business
supports you in creating short- and long- disruption when key positions are For more information on how SAP ERP
term development plans for employees vacated by helping you proactively HCM can support your business, call
identify, develop, and track high-potential your SAP representative today or visit
employees best suited to fill those us on the Web at
SAP ERP HCM offers talent positions. You can prepare future leaders
for new positions from within. You can
management functionality identify successors for key positions
that’s fully integrated with before the positions are vacated. In Day & Zimmermann, a top contractor
addition, the SAP Talent Visualization serving governments and commercial
human capital management application by Nakisa helps you make customers worldwide, credits the
and other business pro- better-informed decisions about your SAP® E-Recruiting application for
talent pipeline and successor rankings. meeting challenging staffing require-
cesses to help you more ments. In the past, each business
effectively manage your Compensation Management unit recruited independently – sourcing
The software supports line managers, 94% of candidates from external job
talent. higher level managers, and HR staff in boards instead of using the company
carrying out compensation-related tasks. Web site. Hiring managers used
as well as tracking and monitoring their You can implement innovative reward Microsoft Outlook as the primary tool
progress. Profile matchups with posi- strategies such as pay-for-performance, for storing resumes and had limited
tions allow you to pinpoint skill and variable pay, and long-term incentive visibility into the number and status
knowledge gaps, which in turn can be programs. You’ll have support for of candidates.
tied directly to training plans to address setting up guidelines for the enterprise’s
the individual development need. compensation policy so that it conforms Today SAP E-Recruiting integrates with
to overall corporate strategy. the SAP ERP Human Capital Manage-
Learning ment (SAP ERP HCM) solution, which
The SAP Enterprise Learning environ- Analytics feeds positions into SAP E-Recruiting
ment provides training participants with Talent management analytics helps you: as vacancies are created. As candi-
Web-based, virtual, and classroom • Analyze employee skills and dates submit resumes, the solution
training. It includes a learning portal, an qualifications automatically parses them to internal
instructor portal, learning management • Evaluate the efficiency of recruiting assessment, reducing data entry time
software, a test author, tools for struc- processes by 75%. When a candidate accepts a
turing e-content, and support for • Measure the effectiveness of position, SAP E-Recruiting feeds the
content management and collaboration. learning programs appropriate data back into SAP ERP
You can tailor learning paths to individual • Assess how well succession HCM to complete the process.
educational needs and learning styles. programs prepare employees to
The virtual learning tool is powered by assume key positions Day & Zimmermann now enjoys a
SAP Acrobat Connect Professional • Monitor the progress of aligning streamlined, end-to-end, enterprise-
applications by Adobe. Analytical employee goals with corporate goals wide process for talent management
functionality lets you plan, track, and • Analyze the cost-effectiveness of – one that speeds the time-to-fill
measure training impact. employee compensation programs process for open positions, powers
collaboration, and reduces recruitment
QUICK FACTS /contactsap

SAP® solutions can fully support your talent management activities, helping you identify,
develop, reward, and retain your key contributors through maintaining the right mix of
assessment, compensation, benefits, and career development programs. You can align
individual and team goals with corporate strategies and transform HR into a strategic
partner in the organization. The software supports full integration of talent management
processes both with each other and with other processes supported by the SAP ERP
Human Capital Management solution.

Business Challenges
• Meet needs of a global, mobile, multigenerational workforce
• Increase organizational performance
• Cut costs and downsize
• Satisfy demand for greater insight into workforce skills, performance, and potential

Key Features
• Competency management – Identify and develop the skills needed to achieve
organizational goals
• Recruiting – Identify and hire the right talent promptly
• Performance management – Align workforce with organizational goals
• Talent assessment and review – Identify and cultivate your key contributors
• Employee development – Create individual development plans and monitor progress
• Learning – Deliver custom training to close individual knowledge gaps
• Succession management – Identify, develop, and track high-potential employees
• Compensation management – Implement innovative reward strategies and link pay to

Business Benefits
• Improved organizational performance by aligning individual and team goals with
organizational goals
• Motivated employees through individualized objectives, clearly defined career and
development plans, and compensation programs tied to performance
• Improved decisions about talent development 50 079 373 (10/04)
• Strong global talent pool across the entire organization through effective retention and ©2010 SAP AG. All rights reserved.

employee development efforts SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign,
Clear Enterprise, SAP BusinessObjects Explorer, and other SAP
• Reduced maintenance and upgrade cost and effort, thanks to an integrated solution products and services mentioned herein as well as their respective
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For More Information Germany and other countries.

Call your SAP representative, or visit us online at Business Objects and the Business Objects logo, BusinessObjects,
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other Business Objects products and services mentioned herein
as well as their respective logos are trademarks or registered
trademarks of SAP France in the United States and in other countries.

All other product and service names mentioned are the trademarks of
their respective companies. Data contained in this document serves
informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials

are provided by SAP AG and its affiliated companies (“SAP Group”)
for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions
with respect to the materials. The only warranties for SAP Group
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