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SAP HCM OverviewUNIXBusinessApplication

SAP HCM is the #4 ranked solution in our list of top Talent Management tools. It is most often compared to SAP SuccessFactors: SAP HCM vs SAP SuccessFactors

What is SAP HCM?

SAP HR (Human Resource Management), also known as "Human Capital Management" (HCM), is an important module in SAP ERP systems that supports all of the human resource management processes in the enterprise.

SAP HR records the data from the hiring of an employee to its final termination in the organization. It stores employee data such as designation, role, salary details, working shifts, address, etc.

SAP HCM is also known as SAP Human Capital Management.

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SAP HCM Customers

City of Cape Town, ADAMA Agricultural Solutions Ltd., TransAlta Corporation, Keolis, PT XL Axiata Tbk, National Football League (NFL), Plan International, Yoh, A Day & Zimmermann Company, China Talent Group (CTG TMO), Umicore S.A., Butterfield Bank, Skrill Group Ltd.

SAP HCM Video

Pricing Advice

What users are saying about SAP HCM pricing:
  • "You pay per license. There not any costs in addition to the standard licensing fees."
  • "SAP is expensive, but if you're using the product, then the expensive product becomes inexpensive. Considering its performance and features, I find it quite reasonable."
  • "SAP is extremely expensive. The integration costs and customization costs are also a lot."
  • "Licensing fees are paid yearly."

SAP HCM Reviews

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AhmedAbdelhady
Executive Manager & CO. Founder at Phoenix Consulting
Vendor
Top 5
Some capabilities are self-service for the employees which cuts down on administrative time

Pros and Cons

  • "HCM is a very important module that each organization should want to use. It will help any organization to calculate and control the cost of their human resources."
  • "SAP now does the most innovation for the cloud solution and less innovation for the on-premises client."

What is our primary use case?

I'm an SAP consultant and I have companies in Egypt and France that do SAP consultancy. We are specialists in SAP activities, SAP implementation, network building for HCM finance controlling, warehouse management, SAP retail plus migration of projects, BI, and strategic management. We have all these capabilities in our company and use them to help clients make the most of their SAP HCM implementations.  

Human Capital Management is a powerful tool for organization management. It helps to define the organizational structure and support the company. It helps with the administration of things like maintaining employee information, tracking education and learning, administering insurance and healthcare, and all other facets of human resources. It helps monitor a lot of things that would otherwise take a lot of time and effort to make them not just easier, but automated.  

One of the most powerful tools in SAP is its integration with finance and other modules. Some of the capabilities are self-service for the employees which cut down on administrative time. For example, scheduling vacation leaves is done by the employee directly and the notification process and approval are all automated.  

The most interesting change to SAP is that it is now all available on the cloud. Before it was only on-premises. Cloud offers a lot more opportunity as well as potential cost reduction.  

My partners in the company were already leading HR consultants in the market in the Middle East when we formed our company. They were working with HCM locally in the Gulf and the Middle East. Our company has around six to seven permanently employed HR consultants. We sometimes use freelancers depending on the volume of our work and commitments.  

What is most valuable?

The most valuable features have to do with finance and payroll. Some organizations — like banking, insurance, and the government — are regulated and can not or do not want to host their critical financial data and employee data on the cloud. What we are doing right now for clients of this sort is we split the implementation to their advantage. We put financial and personal information management on-premises and the other information which is not critical — like learning, performance and setting goals — goes on cloud and we integrate those solutions. We use the cloud when data is not critical for security purposes and when it is not confidential. This can save the client money.  

What needs improvement?

This product has a lot of features that are much improved and more advanced than other solutions. In our area of the Gulf region and the Middle East, a lot of organizations depend on it because it meets with regulation compliance and security concerns. So government and banking depend on the SAP HCM solution for administration on-premises.  

SAP had developed new screens for the latest release of SAP HANA for HR on the cloud. They are doing the most innovation for HR on the cloud. So, there are some screens right now for both on-premises and cloud but the company is focused mostly on cloud development. A lot of the clients who deal with regulations must currently stay with on-premises solutions for critical data. SAP needs to continue trying from time-to-time to develop and release some new screens and new tools for HR on-premise that facilitate the working and interaction with the interface. They should do this in parallel with the cloud. Instead, they are leaving the on-premises customers behind.  

For the next release of HCM, I would like to see more interactive screens and parallel development for on-prem and cloud. SAP now does the most innovation for the cloud solution and less innovation for the on-premises client. In our experience and with our clients almost all customers depend on the on-premises solution for sensitive data — either by choice or regulation. It would be nice to see a mobile interface as well.  

For how long have I used the solution?

We have been using the solution collectively since before we opened our HR company in 2015. One of my partners started working in HR in 2003 and the other one started in 2006. We are all experienced in SAP HCM.  

What do I think about the stability of the solution?

We have never had any issues with the stability. We have no complaints as users and I have never heard any complaints from my customers.  

What do I think about the scalability of the solution?

It seems to me that it should be obvious that this product is very scalable just because it is made by SAP.  

How are customer service and technical support?

It is easy to contact technical support and get help. Within the license model, you are paying 22% of your license fees per year to SAP for their support. There is a marketplace for SAP that you will have access to. You will go to that marketplace with any issue to open your tickets. You can set the severity and urgency of the issue by selecting it on the form. Then you submit the ticket to SAP and according to the severity, SAP will contact you and try to solve the issue with you.  

How was the initial setup?

The initial setup is not just the installation. It is also the business process configuration. This is what will take more time. An expert is required to set up many things properly. Someone who expert in HR and knows the business of HR and the business processes, but also has to know the region. If the person doing the configuration knows the laws and how to perfect configuration for the user group, it will be easy for him and better for the company after implementation. But if the person doing the configuration is not an expert, does not know the laws and how the HR process works, it will be difficult for him, it will take longer, and the customer will not be happy with the results.  

To deploy HCM, getting the setup right depends on the organization and attention to detail. If it is an organization with 500 employees and the solution will be used for payroll, personal administration and organization management, it could take something like four months to install this and configure it properly. This is if the guys doing the installation are experts in HR and the configuration of SAP.  

What about the implementation team?

We are the people who do the implementation and consultation and that is because we have worked a long time in the field and have become experts. Almost every customer who is coming to this product without knowing it well and what the capabilities are needs to seek the help of an integrator or consultant.  

What's my experience with pricing, setup cost, and licensing?

The cost may differ from region to region, but here in the Middle East, you pay per license. There not any costs in addition to the standard licensing fees. 

SAP HCM is on-prem. SAP has another solution which is called SuccessFactors. It is on the cloud and by subscription only. So SAP has two solutions, the one on cloud is SuccessFactors and HCM on-prem. SAP is pushing for clients to go to SuccessFactors right now. The cloud solution may save some people money.  

What other advice do I have?

At this time in the competitive business world, HCM is a very important module that each organization should want to use. It will help any organization to calculate and control the cost of their human resources. Human capital management allows control of when you want employees to work when you don't want them to work and keeps you aware of when they will be on leave so that their responsibilities will be covered by someone else. Businesses have to plan for things like this. A lot of things affect human capital and that can affect the course of an organization.  

On a scale from one to ten where one is the worst and ten is the best, I would rate HCM around nine out of ten. It is not a ten because of the issues with the interface development.  

Which deployment model are you using for this solution?

On-premises
Disclosure: My company has a business relationship with this vendor other than being a customer: Partner
FI
IT PMO at a financial services firm with 10,001+ employees
Real User
Top 5
It simplifies everything for human capital management and is stable and scalable

Pros and Cons

  • "It simplifies everything for human capital management, and all users can do self-enrollment for leaves and those kinds of things. The employee self-service feature is quite a powerful feature for me. You can install it on your mobile phone or iPad and do your employee service activity there."
  • "I'm currently working for a state-owned government company, and we need to follow some standards and regulations. We also have a strategy to be followed. Sometimes the template and the format are not available in the SAP HCM, so we have to work around this limitation. The tax also sometimes changes in my country, and we have to redo everything to change the payroll calculations, benefits, and things like that. The talent management feature can be improved. It is currently very simple in SAP HCM. SAP is also very hard to integrate. In terms of monitoring, there are no monitoring tools, but as long as we take care of the disk capacity, there is no problem."

What is our primary use case?

I used it for learning and talent management, employee self-service, and the n2n process for HRIS.

What is most valuable?

It simplifies everything for human capital management, and all users can do self-enrollment for leaves and those kinds of things. The employee self-service feature is quite a powerful feature for me.

You can install it on your mobile phone or iPad and do your employee service activity there.

What needs improvement?

I'm currently working for a state-owned government company, and we need to follow some standards and regulations. We also have a strategy to be followed. Sometimes the template and the format are not available in the SAP HCM, so we have to work around this limitation. The tax also sometimes changes in my country, and we have to redo everything to change the payroll calculations, benefits, and things like that.

The talent management feature can be improved. It is currently very simple in SAP HCM. 
SAP is also very hard to integrate. In terms of monitoring, there are no monitoring tools, but as long as we take care of the disk capacity, there is no problem. 

For how long have I used the solution?

I have been using this solution since 2014. 

What do I think about the stability of the solution?

It is quite stable because we run it on the IBM AIX platform, which is quite powerful. The CPU allocation is maintained by us. We use the DB2 database. In terms of power, machine performance, and availability, it is quite stable.

What do I think about the scalability of the solution?

It is definitely scalable because we have an on-premises solution. It is very simple to add memory, processor, or disk capacity.

How are customer service and technical support?

We got the principal support from SAP. We also have support from a business partner to do all the implementation and maintenance. We don't have any issues related to support.

Which solution did I use previously and why did I switch?

I am also using SuccessFactors. SAP HCM has got talent management, but it is not as detailed as in SuccessFactors. In terms of HR management, SAP HCM has got more features and more details than SuccessFactors.

How was the initial setup?

It is totally customized. The full deployment or rolling it out fully takes one to two years.

What's my experience with pricing, setup cost, and licensing?

SAP is expensive, but if you're using the product, then the expensive product becomes inexpensive. Considering its performance and features, I find it quite reasonable.

What other advice do I have?

The best thing to do is to identify whether you will need integration with other applications or solutions. If you don't look at this aspect in terms of future implementation, it will give you a hard time later on while doing the integration.

I would rate SAP HCM an eight out of ten.

Which deployment model are you using for this solution?

On-premises
Disclosure: My company has a business relationship with this vendor other than being a customer: partner
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DB
Owner & Founder at a tech services company with 1-10 employees
Real User
Top 10
Provides talent, recruitment, and learning features, but needs a single integration point and modern architecture

Pros and Cons

  • "I like the talent, recruitment, and learning features the most."
  • "I would like it to move more towards a single data space, a single data source. SAP as a platform relies on multiple data sources because traditionally, it's been bolted together by the acquisition of other products rather than a single database. That's why there are lots of points of failure and lots of required points of integration. They need a single integration point."

What is most valuable?

I like the talent, recruitment, and learning features the most.

What needs improvement?

I would like it to move more towards a single data space or a single data source. SAP as a platform relies on multiple data sources because traditionally, it has been bolted together by the acquisition of other products rather than a single database. That's why there are a lot of points of failure and a lot of required points of integration. They need a single integration point.

For how long have I used the solution?

We are using SAP SuccessFactors. I know of and have been exposed to SAP for about 10 years.

I work with companies to determine whether SAP needs to be replaced or not. I do transformation programs. These transformation programs determine whether the existing system is SAP, whether it's fit for the purpose, and whether it should be changed to something like Workday because of the features Workday has. I don't physically use the product.

What do I think about the stability of the solution?

I wouldn't say so. We, as a company, experience regular problems with it.

What do I think about the scalability of the solution?

It is scalable.

How are customer service and technical support?

I have not personally dealt with them.

What's my experience with pricing, setup cost, and licensing?

SAP is extremely expensive. The integration costs and customization costs are also a lot.

What other advice do I have?

I would recommend a more modern version of it. My experience of SAP is with earlier versions. SAP is an aging system, so it doesn't stack up against tools like Workday.

I would rate SAP HCM a seven out of ten, but it really depends on the use cases. It depends on why and for what a company is implementing SAP. There are many elements of SAP.

I don't think it would ever get to a ten in my view because there are other products that are better than this and work in a much easier, simpler fashion. As a product, SAP is very complicated and complex to use. The only thing to do is to move towards a more modern architecture for SAP. I don't think that's ever going to happen, so I wouldn't ever give it a 10.

Which deployment model are you using for this solution?

Private Cloud
Disclosure: My company has a business relationship with this vendor other than being a customer: Partner
KK
Manager Finance at a tech services company with 1,001-5,000 employees
Real User
Top 5Leaderboard
Stable and scalable but is fairly expensive

Pros and Cons

  • "We've found that the solution has the capability to scale."
  • "The solution is rather expensive."

What is our primary use case?

We primarily use the solution for automating HR processes.

What is most valuable?

The product has been very stable overall.

We've found that the solution has the capability to scale. 

What needs improvement?

The solution is rather expensive.

I'd like to see the solution offer even more stability in future releases.

For how long have I used the solution?

We have been on the solution for many years. We started using it originally in 2013. 

What do I think about the stability of the solution?

The stability of the solution is pretty good overall. It's reliable and the performance is good. It doesn't crash or freeze. There are no bugs or glitches. It's good.

That said, stability is an area that can be constantly improved upon.

What do I think about the scalability of the solution?

The scalability of the solution is okay. It's possible to expand it. that's not a problem.

We have about 20 to 30 people using the product within our organization.

We do not plan to increase usage. We are not planning to continue to use it at all. We are moving away from it entirely.

How are customer service and technical support?

I've never been in touch with technical support at all. I have no idea if they respond quickly or if they are knowledgeable enough about the product. I can't give any insights due to my lack of experience dealing with them directly.

Which solution did I use previously and why did I switch?

While we are currently using SAP HCM, we are in the process of scrapping it and moving over to SAP SuccessFactors.

What's my experience with pricing, setup cost, and licensing?

I do not have very good knowledge of the pricing itself. It's not an aspect of the solution I directly deal with. However, it's my understanding that the cost is quite high.

What other advice do I have?

I would rate the solution at a six out of ten. 

We're actually moving away from it currently, and are in the process of doing so right now.

I would not necessarily recommend the solution to other users or organizations. There are other options on the market that may be more suitable.

Which deployment model are you using for this solution?

Public Cloud
Disclosure: I am a real user, and this review is based on my own experience and opinions.
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BM
Interface Developer at a energy/utilities company with 10,001+ employees
Real User
Top 10
Good organizational management functionality and technical support

Pros and Cons

  • "The most valuable feature is Organizational Management (OM)."
  • "This solution needs to be more configurable and user-friendly."

What is our primary use case?

We use SAP HCM to store and manage organizational data such as OM data, job profile data, solution data, HC data, and call center data.

Currently, we are in the process of migrating our SAP HR system to Workday. This is the process that I am involved in at the moment.

What is most valuable?

The most valuable feature is Organizational Management (OM).

What needs improvement?

This solution needs to be more configurable and user-friendly.

People who work with HCM need to have the proper knowledge of coding.

For how long have I used the solution?

I have been using SAP HCM for more than two years.

What do I think about the scalability of the solution?

The scalability is good. We have between 1,000 and 3,000 users.

How are customer service and technical support?

I have been in touch with technical support once or twice. Our problems were resolved very fast so I would say that the support is good.

Which solution did I use previously and why did I switch?

We are currently in the process of migrating to Workday, which is more user-friendly.

The two solutions are similar; Workday has improved on some of the things that SAP can do, whereas SAP can do some things more efficiently. Also, SAP can do some things that Workday cannot. One example is the address formatting. For example, in India, the format of addresses is different than in the US and some other countries. We have had challenges mapping the addresses to Workday from SAP.

With Workday, you do not need to be a program developer.

What other advice do I have?

SAP HCM is a solution that I recommend. It is a good product, but if it were more configurable and you did not need to develop as much code then it would be better.

I would rate this solution an eight out of ten.

Which deployment model are you using for this solution?

On-premises
Disclosure: My company has a business relationship with this vendor other than being a customer: Partner
RV
Director & CHRO at a computer software company with 11-50 employees
Real User
Top 5Leaderboard
Easy to install, scales well, reliable, and has interesting features for learning

Pros and Cons

  • "They have some interesting features in the learning space."
  • "The extensibility of the integration could be improved."

What is our primary use case?

We use this solution for all of the organization's HR needs.

What is most valuable?

Most of it is similar to Oracle HCM. 

They have some interesting features in the learning space.

What needs improvement?

The extensibility that SuccessFactors talks about is when we are required to create an add-on solution or a small application, that could be developed within the ecosystem of the Oracle HCM itself, and then integrate it easily. 

This is a feature that we can look forward to seeing in  SAP as well.

The extensibility of the integration could be improved.

For how long have I used the solution?

I have a lot of experience with SAP. I have been working with SAP for nine years.

We are using the latest version.

What do I think about the stability of the solution?

I have no issues with the stability of SAP HCM.

What do I think about the scalability of the solution?

SAP HCM is a scalable product.

We have approximately 32,000 users in our organization who use this solution.

How are customer service and technical support?

Technical support is a strong team.

How was the initial setup?

The initial setup was straightforward. It was good.

What's my experience with pricing, setup cost, and licensing?

Licensing fees are paid yearly.

What other advice do I have?

I would rate SAP HCM an eight out of ten.

Which deployment model are you using for this solution?

Public Cloud
Disclosure: I am a real user, and this review is based on my own experience and opinions.
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GP
Executive Director at a tech services company with 201-500 employees
Real User
Top 20
A scalable solution with good technical support

Pros and Cons

  • "The technical support is quite good."
  • "It would be nice if the solution migrated to S/4HANA."

What is most valuable?

We find all the features to suit our needs. 

What needs improvement?

It would be nice if the solution migrated to S/4HANA, although this is not an immediate need of ours.

For how long have I used the solution?

I have been using SAP HCM for five or six years. 

What do I think about the scalability of the solution?

The solution is quite scalable.

How are customer service and technical support?

The technical support is quite good.

Which solution did I use previously and why did I switch?

We did not work with other products prior to going with the solution. 

How was the initial setup?

As with all solutions, we found the initial setup to be complex but, with time and use, it became easy. 

What about the implementation team?

We have an internal team that is responsible for maintenance. 

What's my experience with pricing, setup cost, and licensing?

I cannot comment on pricing, as this is not within my purview. 

What other advice do I have?

The solution is quite good as a business product, useful.

We are satisfied with the solution. 

There are 300 people utilizing the solution in our company. 

We are talking about a very friendly product, which sets an industry standard. 

The interface with biometrics is good. It works well. 

I rate SAP HCM as a seven or eight out of ten.

Which deployment model are you using for this solution?

On-premises
Disclosure: I am a real user, and this review is based on my own experience and opinions.
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IK
Consultant Application Manager at a energy/utilities company with 5,001-10,000 employees
Consultant
Top 5
Sellers have no product knowledge, and there's poor licensing in the Middle East that leads to product delays

Pros and Cons

  • "The stability of the solution is good."
  • "SAP is not ready to sell the license on time and delays the progress of projects. It's better to work with a competitor like Oracle. Those that are selling the product just go through powerpoints and don't have the knowledge necessary to sell. They can't answer any questions."

What is most valuable?

The product overall is very good.

What needs improvement?

SAP is not ready to sell any licenses in the Middle East.

SAP is not ready to sell the license on time and delays the progress of projects. It's better to work with a competitor like Oracle. Those that are selling the product just go through powerpoints and don't have the knowledge necessary to sell. They can't answer any questions.

For how long have I used the solution?

I've been using the solution since 2013.

What do I think about the stability of the solution?

The stability of the solution is good.

What do I think about the scalability of the solution?

The scalability of the solution is good.

What other advice do I have?

We use the on-premises deployment model. We don't extensively use the solution in our organization. It's not a core module for us.

I'd rate the solution one out of ten. It doesn't allow licensing in our region, and they need people on the ground here. Product-wise, I'd rate it good, but in general, SAP needs to work with the customers to sell licenses and sell according to the customer's requirements.

I wouldn't recommend anyone implement SAP at this time.

Disclosure: I am a real user, and this review is based on my own experience and opinions.
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