How to Design SAP HR Structures to Work Best for Your Company

  • by Mark S. Jackson, HCM Senior Manager, Accenture
  • February 17, 2010
/Project Management
Learn the key concepts and implementation considerations in building an enterprise and personnel structure for your SAP ERP HCM implementation, upgrade, or global rollout. Use this article as a guide during design workshops to help project teams start in the right direction by learning how HR structures can work for their projects and how they integrate across the different functions of SAP ERP HCM.
Key Concept
HR structures within SAP ERP HCM are comprised of the enterprise structure and the personnel structure. The enterprise structure includes the key fields of company code, personnel area, and personnel subarea. It typically defines a company’s legal entities, locations, and operations of business. The personnel structure includes the employee group and employee subgroup fields and defines how a company views its people in the form of hourly, salary, full-time, and part time. During the design of SAP ERP HCM implementations, both the personnel and enterprise structures should be examined carefully as they are the foundation of an SAP ERP HCM system.
When performing SAP ERP HCM implementations, upgrades, or expansions, one of the major hurdles is defining the HR structures to use within SAP ERP HCM. How you define the HR structure has a big effect on transactions, reporting (both legal and transactional), interfaces, payroll/time processing, talent management, and training. In addition, many projects don’t always take into consideration how the enterprise and personnel structures could affect an SAP ERP HCM global template, local country rollouts, and configuration dependencies for payroll, time, benefits, and legal reporting. Therefore, it is important to know how to define the HR structure and know its effect while in the blueprint phase of a project. Not properly designing and thinking through the integration points of the HR structures could potentially lead to major rework and additional costs to the implementation.

Mark S. Jackson

Mark Jackson has been working with SAP ERP HCM for more than 12 years and specializes in SuccessFactors Employee Central and the SAP ERP HCM Personnel Administration and Organizational Management modules. He has had numerous experiences with implementing and leading SAP ERP HCM and SuccessFactors globally and is a subject-matter expert in defining global templates for SAP/SuccessFactors implementations.

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