Learn All About SAP SuccessFactors Employee Central Payroll: Integrations, Technology, and Implementations

  • by Satish Badgi, HCM Consultant
  • March 16, 2017
Gain an overview of the benefits—and any potential drawbacks—of making the transition from SAP and non-SAP payroll platforms to SAP SuccessFactors Employee Central Payroll.
Learning Objectives

Reading this article, you will learn about:

  • The options for moving an on-premise payroll system to SAP SuccessFactors Employee Central Payroll
  • Key points to consider before and during the payroll-system transition
  • How to handle the challenges that arise when making the switch from on-premise payroll to the SuccessFactors Employee Central Payroll module
  • The integration options for making this transition
Key Concept

In addition to using SAP SuccessFactors Employee Central as their core HR platform, companies are now faced with the decision of whether to switch to Employee Central Payroll as their payroll platform. The decision-making scenarios may be different for different companies—some are already using SAP ERP HCM on-premise payroll, while others want to transition from non-SAP payroll platforms to Employee Central Payroll. In both the scenarios, key factors of integrations, technology transitions, and implementation parameters need to be considered.

On-premise payroll systems typically carry many years of legacy maintenance outcomes and, sometimes, excessive customizations with them. Therefore, payroll managers are often wary of transitioning to a new platform because of concerns about accuracy and timeliness issues that can occur with the new system. The “if it ain’t broke, don’t fix it,” attitude is common in this kind of scenario. SAP SuccessFactors Employee Central Payroll’s cost and simplicity advantages therefore can be overshadowed by perceived transition risks.  I help you understand the different aspects of SAP SuccessFactors Employee Central Payroll and explain the details of this transition.

I discuss the key concepts around transitioning to SAP SuccessFactors Employee Central Payroll, including different scenarios that payroll managers are likely to face. I begin with an explanation of the differences between SAP ERP HCM on-premise payroll and SAP SuccessFactors Employee Central Payroll, and then discuss the integration challenges that come with making this transition.

As more companies are considering making the transition to SAP SuccessFactors Employee Central Payroll to reduce costs and increase operational efficiency, more questions and concerns arise. The key points that these companies and projects are leveraging are:

  • Simplify payroll processes: When evaluating this goal, it is also a good time for payroll departments to take a fresh look at service delivery and optimizing resources.
  • Simplify payroll policies: This should be done only where possible and changes should only be made that do not affect regulatory requirements. Not considering the regulatory requirements at the outset has often caused complex payroll rules issues on other projects of this type.
  • Evaluate and standardize the wage type and pay components catalogues: By doing this, it makes it easier to complete the data entry to data posting processes.
  • Simplify integrations as well as identifying consolidation opportunities: When doing this, make sure you include upstream as well as downstream interfaces.
  • Leverage the Employee Central–Core HR implementation to simplify the HR administrative processes that typically go together with payroll. Some examples include:
    • Termination action and final payments from payroll
    • Workflow approval for pay changes and impact on payroll
    • Retroactive data changes in Employee Central

Satish Badgi

Satish Badgi has been helping clients implement SAP ERP HCM and payroll for more than 15 years. He has been involved with large full-scale SAP ERP HCM and payroll implementations using the breadth and depth of SAP modules. Satish works for a large management and systems integration consulting firm and handles global payroll for clients. He has published two books on SAP payroll, Configuring US Benefits with SAP and Practical SAP US Payroll.

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