SAP SuccessFactors Employee Central

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1 SAP Statement of Direction Employee Central SAP SuccessFactors Employee Central

2 Table of Contents 3 The Way We Work and Lead is in a Constant State of Change 4 What is Preventing Core HR From Driving Strategic Business Impact 6 Our Vision 7 What that Means For You 2 / 9 vq117

3 The Way We Work and Lead is in a Constant State of Change Businesses are grappling with incredible technology advancements. There are five generations in the workplace for the first time in world history, along with a growing number of women in the workforce, and an increasingly large population of non-traditional workers. Globalization is having an impact not only on where businesses operate but also on how they recruit and source their talent. The contexts of how we enable people to lead and execute on business strategies will continue to evolve and revolutionize every people-based decision. For HR, all these factors pose not only challenges but also opportunities. Core HR systems must stay ahead of business changes, helping organizations operate and act quickly and wisely in this agile environment. Now is the time to redefine how HR contributes to the business and advises senior leaders. The new HR drives change and strategic initiatives around diversity and compliance, supports digital transformation, and provides the talent, the insight and the structures for successful business execution. 34% of labor force are independent contractors 92% of organizations cite nontraditional labor as key 5 generations at work soon with 50% of them millennials 46% of the Forbes Global 500 will be from emerging markets by / 9

4 What is Preventing Core HR From Driving Strategic Business Impact Unfortunately many HR departments struggle to have a voice in key strategic and business decisions. Often they are informed only after decisions are made and face the difficult task of defining and executing people strategies for which they don t have the tools, support, or talent. Why is it so difficult for HR departments to take a more active role in formulating business strategy? It s certainly not because they don t want to. Here are the main reasons: NEGATIVE PERCEPTION HR is often seen as old-fashioned, operational, and restrictive. Instead of initiating and facilitating change, the perception is that HR departments want to retain the status quo, are afraid of compliance problems, and don t really understand the needs of the business and how it operates. People throughout the organization, from individual contributors to managers and business leaders, fail to see value in HR services and processes and regard them as cumbersome. As a result, the adoption of these services can be low, hindering efficiency and increasing costs. UNFIT SYSTEMS AND INFRASTRUCTURE For various reasons, core HR systems are frequently more of a hindrance than an enabler of business success. Many are not capable of supporting strategic initiatives and managing areas such as diversity and inclusion. Often they can t support an integrated approach to managing an organization s talent, thus making it difficult for HR to break down silos between departments, HR disciplines, and business units. Rigid HR systems pose another major issue for growing and expanding organizations. Often these systems support neither global business nor global talent; their global capabilities begin and end with multi-language and multicurrency features. HR departments are then on their own to navigate local best practices, legal requirements and cultural expectations. Failure to do so is not only costly but also puts compliance at risk. 4 / 9

5 FOCUS ON THE WRONG TOPICS Last but not least, HR may still be bogged down with focusing on automation and efficient operations. This can result in neglecting the need to initiate change and to formulate and implement the right people strategies for economic impact. A very important factor for business success is to successfully manage the growing number of external workers together with payroll employees. Organizations that feel they are stuck with rigid organizational charts and reporting lines seek the chance to implement flexible and agile structures so they can better support business needs and proactively manage the total workforce. To overcome the obstacles mentioned above and truly become enablers of business success, HR professionals need a flexible and reliable core HR system that helps them to meet both the expectations of the people and the needs of the business. It s time to rethink Core HR In a diverse and agile environment, HR needs to transform relationships and build structures for success. Advise Senior Leaders Advise management on workforce composition, structures, talent Facilitate better business outcomes Consult on compensation, ethics, global compliance Transform HR Strategy Bring visibility to strategic planning Ensure you have the right data for better workforce decisions Accommodate emerging workforce strategy and evolving localization requirements Rethink Core HR Operations Define flexible Core HR, for today and tomorrow, in a changing environment Identify metrics that matter Implement Core HR for speed, agility, efficiency, engagement and success 5 / 9

6 Our Vision PROVIDING ORGANIZATIONS WITH A CORE HR SYSTEM THAT PEOPLE LOVE AND HR PROFESSIONALS VALUE ACROSS THE GLOBE The guiding principles we apply in the design and continuous innovation of the SAP SuccessFactors Employee Central solution are: Enabling and engaging all users to participate in and contribute to HR and business processes Facilitating global governance together with local design and compliance for all the countries our customers operate in Focusing on the needs of all people in an organization, not just payroll employees Providing the intuitive center for all people data, HR processes, and HR-related questions We see it as our mission to provide HR professionals with the transactional foundation and the transformational capabilities to foster people s engagement and growth and to drive business success. SAP SuccessFactors Employee Central: Core HR for the Total Workforce Transactional - HR as a service provider Focus on system One system-of-record for payroll employees Transactional efficiency in silos Automated processes Global: language, currency IT lens on user engagement Reacting on reports and gut feeling Transformational - HR as a business driver Focus on relationships One Core HR hub for entire workforce Smart process execution across silos Increased people productivity Global: compliance, culture Focus on peoples whole experience at work Guided decisions based on data 6 / 9

7 What that Means For You PROVIDING THE FRAMEWORK FOR A GLOBAL BUSINESS AND GLOBAL TALENT The growing number of local regulatory changes increases the burden on HR to address related statutory and compliance changes. Building on our strong global capabilities, we continue to put HR localization at the center of our offering so our customers don t have to carry that burden. Therefore, we will continue to invest in localization efforts across the globe. In addition, we ll help our customers to stay ahead of government electronification strategies, which are driving a move away from paper-based statutory reports toward real-time electronic communication. Beyond legal compliance, we believe in the importance of global governance with local design and best practices, and we make that the standard of everything we do. Global Capabilities The ability to use the HR core solution in any country Localization Capabilities Creating and maintaining local legal requirements on behalf of our customers and delivering it as part of the solution Translation Internationalization Initial Localization On-Going Maintenance Application language is translated so it can be accessed by users in their native language Application is configured to support different country specifications for time zones, currencies and some configurable fields (addresses, phone) Local regulations and local business best practices are researched and analyzed to create unique specifications in the software for each country Legal changes are monitored and legislations are interpreted using a network of legal advisors, government authorities and local officials to translate changes into the software via defined product mgmt. and development process Features offered by most HCM vendors, including SAP SuccessFactors Features offered by SAP SuccessFactors 7 / 9

8 INCREASE THE REACH OF HR PROCESSES, BREAK DOWN SILOS, AND FOSTER ENGAGEMENT With SAP SuccessFactors Employee Central we are providing the basis for all people processes and orchestrating smart execution. We will continue to deliver additional intelligent services with each release, enabling our customers to automate and seamlessly execute HR or people events across geographies, departments, and solutions. Taking into consideration that a part of your talent may not be on your payroll, we have broadened our definition of employees to also include external workers. We plan to expand our capabilities for that group of contributors and also further integrate with SAP Fieldglass solutions to streamline the procurement and management of the contingent workforce. We are fully committed to providing a core HR system that all people in the organization will love and use, regardless of their role and position. Our investments in usability, user interaction, and mobile technology in recent releases have brought us closer to realizing that vision. Also going forward we will not waver in our goal to increase the reach of HR processes to everyone in the organization and to make HR services a ubiquitous and highly valued part of everyday work life. DEFINE AND SUPPORT STRATEGIC INITIATIVES We are committed to enabling our customers to harness all the best available talent. Part of this commitment is an investment in designing SAP SuccessFactors solutions to embed leading practices for diversity and inclusion across all HR functions. Going forward, we will also continue to lay the foundation in SAP SuccessFactors Employee Central for eliminating bias in people and business decisions. SAP SuccessFactors Employee Central Enables Core HR to define the strategy, provide the structure and engage the people for business success Strategy Structure Core HR People 8 / 9

9 As the role of the CHRO continues to change, the topic of digitalization in HR continues to grow. Through digitalization, the core HR function will continue to evolve toward that of a strategic adviser and voice of the workforce across the business. Breaking down the silos of information and processes and providing engaging tools to the workforce, digitalization enables leaders to find common ground on core HR topics related to deployment and organization of human resources. SAP SuccessFactors Employee Central incorporates leading HR digital practices including reporting and analytics, resulting in dynamic insights into the business needs of strategic initiatives and helping to define solutions that scale from concept into mainstream. Aligning strategic initiatives with operations, SAP SuccessFactors Employee Central optimizes and breaks down the silos in core HR processes, technology, and analytics. Through a consumer-grade user experience that goes beyond look-and-feel, people in the workforce and those who lead them are provided with tools that shift the mind-set around HR technology from adoption toward addiction. With emerging technologies such as artificial intelligence and machine learning, smart core HR capabilities will inform people strategy and organizational structure decisions. ESTABLISH THE STRUCTURE FOR EXECUTION An agile organizational structure is imperative to operating in a volatile world, where speed and the ability to adapt and support teams in diverse compositions make the difference between failure and success. Enhancing the ability to visualize the organizational structure, apply different views, and actively manage organizational elements are among our focus areas for the next releases. Combined with already available capabilities such as presentations, job profiles, and action cards, this will even better support strategic conversations and on-the-spot execution of decisions. SAP SuccessFactors Employee Central helps the HR organization to drive strategic initiatives such as diversity and inclusion, and shifts the focus from reactional and transactional to an HR discipline that proactively manages change, enables business transformation, and executes people initiatives that drive the business forward. We are fully committed to providing our customers with continued innovation in additional functionality that creates value for people, HR professionals, and the leaders in your business. With SAP SuccessFactors Employee Central we give you a core HR system that lets you grow beyond automation and compliance and focus on getting the human back into HR. 9 / 9

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