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SAP Human Capital Management (SAP HCM)

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Support the HR department with SAP Human Capital Management (SAP HCM)

The shortage of specialists has long been a problem in companies in all sectors. HR departments need to work more efficiently to find the best people in the future as well. The prerequisite for this is an HR program such as SAP Human Capital Management (SAP HCM).

What is SAP Human Capital Management?

SAP HCM is a software solution for personnel management It allows all the matters concerning employees to be administered and managed digitally. For example, that includes the maintenance of master data and topic fields such as remuneration calculations, human resources development or approvals processes. Last but by no means least, SAP HCM is used for application management.

What can SAP HCM do for companies?

This depends on which constituent parts of SAP HCM are being used by the relevant company. Overall, SDAP HCM consists of seven modules, each having their own focus on HR work.

  • The master data of the employees and supplementary information can be maintained in digital folders with the Personnel Administration (PA) module.
  • The Payroll (PY) module digitizes all the processes concerning wages and salaries calculations.
  • Working time can be recorded and managed digitally with the Time Management (PT) module.
  • The Self Services module can be used to systematically extend the qualifications of the employees.
  • Training and instruction can be managed with theTraining and Events Management (PE) module.
  • The Organizational Management (OM) module brings the entire corporate structure into focus.
  • Last but not least, the search for suitable specialists can be supported by the E-Recruitment (PB) module.

How do companies profit from SAP HCM?

Although recruiting in particular and the legal requirements in HR are increasingly challenging, many HR departments stick to tried and true methods of working. That means large amounts of paper and manual work. Obviously, such routines entail difficulties.

SAP HCM as a digital solution for HR administration provides more efficiency in the first instance. Processes are optimized and slimmed down, the HR staff gain more time for essential tasks. The work goes more quickly on the one hand. Just two examples: personnel files on paper must be searched through by hand if required; on the other hand, digital files are accessible with a few mouse-clicks. In addition, it makes a difference whether or not reports of illness and applications for vacation are processed digitally, and in the best case through self-service.

In addition, the search for and development of employees can be made systematic with the Training and Events Management (PE) and Self Services modules. Even onboarding can be supported digitally with SAP HCM.

In total, SAP HCM automates numerous processes concerning HR matters and furthermore provides a uniform data basis. The staff in HR are relieved of a great deal of work as a result. Last but not least, valuable reporting and analyses can be carried out with SAP HCM.

How does SAP HCM differ from SAP HR, SAP HXM and SAP SuccessFactors?

At first glance the terms used in the SAP products for HR seem to be a little confusing. Often you find SAP HR as possible software. However, this is a synonym for SAP HCM and is not a solution of its own. On the other hand, SAP Human Experience Management (SAP HXM) is a further development of SAP HCM that puts the main focus on employee experiences, employee motivation and experience data.

The main difference to be emphasized here is that SAP SuccssFactors is SAP’s cloud-based solution for HR processes, while SAP HCM usually refers to the classic on-premise variant. Theoretically, both solutions can be integrated into SAP S/4HANA. In addition to SAP HR, SAP HCM, SAP HXM and SAP SuccessFactors, SAP’s new solution from HCM in S4 should also be mentioned. The solution “H4S4”, which stands for HCM for S4, is being launched by SAP this year as an interim solution for the transition from SAP HCM R3 to SAP SuccessFactors. For H4S4, SAP has promised support until the end of 2040, which gives users even more time before they move to a full cloud landscape with SAP SuccessFactors.


SAP HCM is of particular interest for those companies that continue to use on-premise solutions. The exciting thing about this HR suite is that the modules can not only be run all together but also individually. However, it is also clear that the support for SAP HCM should be set up with regard to the perspective. For this reason alone it is worthwhile for that the persons who are responsible to at least take a look at potential SAP Cloud solutions like SAP SuccessFactors and H4S4.

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