SAP HCM Overview

SAP HCM is the #5 ranked solution in our list of top Benefits Administration 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.

SAP HCM Buyer's Guide

Download the SAP HCM Buyer's Guide including reviews and more. Updated: May 2021

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."
  • "In my view, this product is a waste of money for SMB because there are much better products available and licensing is an issue."
  • "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."

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

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… more »

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 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…
DT
Consultant at a consultancy
Real User
Good exception messages, reporting capability, and integration, but the interface needs to be modernized

What is our primary use case?

We have an on-premises deployment.

Pros and Cons

  • "The most valuable feature, in my view, is the level of exceptions or error messages that come back when something goes wrong."
  • "It takes a long time to apply an update patch to the system."

What other advice do I have?

The performance is based on the user's knowledge of the system. It has to do with making sure that all of the features are enabled and all of the patches are there. There were quite a few defects that were patched by the IT team, and it was a lengthy process. This solution is for an enterprise-level business, and I would never recommend SAP for SMB. SAP ByDesign, which is a different product, is better for small business. Suitability of this system depends on a lot of variables. You would have to ask about ten thousand questions to consider the entire system and what is required. It comes down…
Learn what your peers think about SAP HCM. Get advice and tips from experienced pros sharing their opinions. Updated: May 2021.
511,307 professionals have used our research since 2012.
FI
IT PMO at a financial services firm with 10,001+ employees
Real User
Top 10
It simplifies everything for human capital management and is stable and scalable

What is our primary use case?

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

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 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.
Porsche D'Oliveira
Specialist SAP Division at a tech services company with 1,001-5,000 employees
Real User
Has user-friendly dashboards but it is very difficult to do custom development

What is our primary use case?

Our primary use case of SAP HCM is for administration benefits and talent management.

Pros and Cons

  • "The integration between the different models like personnel administration, work management, payroll, and time management are the most valuable and key features."
  • "On the personnel administration side, it's very difficult to do custom development."

What other advice do I have?

I would rate it a seven out of ten. The biggest lesson I have learned from using this solution is that integration is so important. You must understand integration, even within HCM between the different module.
DB
Owner & Founder at a tech services company with 1-10 employees
Real User
Top 20
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 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…
LM
Owner at Simply HR
Real User
Easy to scale out to three different regions and pull reports based on those regions

What is our primary use case?

I was using it mostly to keep the employee data and employee qualifications. We were using the on-premise version.

Pros and Cons

  • "The master data where most of the reports were run from was the most valuable. We were quite satisfied with this module."
  • "It is a bit tedious and manual to work with."

What other advice do I have?

It can be used for personnel demonstration, time management, and business development. Without systems nowadays, especially in HR, I've a problem because most decisions in HR are made based on data. If you don't have data to report on, that means the business' success will not be supported by data.
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

What is our primary use case?

We primarily use the solution for automating HR processes.

Pros and Cons

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

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.
SK
SAP HCM/FICO Team lead at a transportation company with 1,001-5,000 employees
Real User
An all-round good solution for HR related processes that's stable and offers good technical support

What is our primary use case?

The solution is primarily used for managing all the HR related processes including personnel, administration, employees, master data, organizational structure, and payroll.

Pros and Cons

  • "All of the core processes are very valuable aspects of the solution. These include personnel, administration, organizational structure, and payroll."
  • "The organizational structure visualization could be improved in future releases. The solution has a very poor interface."

What other advice do I have?

I used to be an HCM consultant. In terms of advice I would give to others considering the product, I'd say that implementation needs dedication from the customers. They need to share their requirements from the beginning. Key requirements shared at the beginning will ensure a smooth implementation. I would rate the solution eight out of ten. With better visualization and a better interface, I would rate the solution higher.
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