Best Practice Design for HCM Personnel Structure and Employee Status Fields

  • by Danielle Larocca, Senior Vice President, Human Capital Management, EPI-USE Labs
  • March 30, 2010
Learn to use personnel structure status fields such as customer-specific status to appropriately capture employee status. Understand the options available for the classification of associates and avoid misusing the employee group and subgroup fields.
Key Concept
The personnel structure in an SAP system defines the organization from an employee’s point of view. It is designed to segregate and delineate different types of employees into categories for uses such as reporting, payroll, benefits, time management, and shift planning.

One of the key foundational components of an SAP system is the personnel structure design. This structure drives the core HR and payroll functionality of each related SAP ERP HCM module. I will explain the design and benefits of developing your personnel structure in conjunction with the SAP-delivered status fields. Note that there are some drawbacks you’ll need to consider, which I describe in the sidebar “Consequences of Changing Personnel Structure.”

Throughout the last 15 years, I have seen many different methods for configuring the key elements of personnel structure. In the past few years, a new method (that differs quite significantly from how it was done previously) has been considered the new best practice as it allows for greater classification options and flexibility in using the personnel structure. There are three main components to the personnel structure.

Danielle Larocca

Danielle Larocca is currently the Senior Vice President of Human Capital Management for EPI-USE Labs. Previously she was the Executive Vice President of Operations/Chief Knowledge Officer at a technology start-up. She has more than 20 years of strategic leadership experience in multi-national business, business process re-engineering, and project and people management. Danielle is an expert on SAP Human Resources (HR) and reporting and has authored four best-selling books on SAP. She is a regular speaker at numerous conferences around the world on topics such as HR, technology, change management, and leadership. She is an official SAP Mentor, a global designation assigned to less than 160 professionals worldwide, who serve as influential community participants in the SAP ecosystem. This group is nominated by the community and selected by the SAP Mentors’ Advisory Board to keep SAP relevant. Danielle also serves as an expert advisor for SAP Professional Journal.

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