What Is an SAP HR Module?

SAP integration and training often require substantial resources over an extended period.
SAP integration and training often require substantial resources over an extended period. (Image: Sean Gallup/Getty Images News/Getty Images)

SAP is a Walldorf, Germany-based international company founded in 1972. SAP stands for "systems, applications and products in data processing." The company develops enterprise resource planning software that helps automate business processes. SAP solutions support various business functions, such as manufacturing, finance and human resources. The SAP Enterprises Resource Planning Human Capital Management solution lets businesses plan and align human resource objectives in the context of an overall corporate strategy.


The SAP Human Capital Management module helps companies reap certain benefits, such as recruiting and retaining key talent, improving decision making and reducing risk. Businesses can consistently achieve corporate objectives by recruiting, training and retaining talented people. Clearly defined career plans and linking pay to performance are some of the ways to retain key talent. Identifying and managing human resource trends improve decision making. Adapting human resource processes quickly to changing business needs reduces operational risk. The four key functions of the SAP human resources solution are service delivery, talent management, core function support and workforce analytics.

Service Delivery

SAP's human resources module lets businesses provide support services to managers and employees. Managers use the manager portal to actively participate in recruiting, employee development, compensation planning, budgeting and other human resource processes. Employees use the employee portal for information, tools and services to do their jobs more efficiently. The shared-service framework component of the module allows the deployment of uniform architecture to support human resources, finance, information technology and other business functions.

Talent Management

The SAP Human Capital Management module supports several talent management processes, including competency management, recruitment and performance management. Competency management involves identifying and optimizing short- and long-term skills requirements, building a competency catalog and defining key competency requirements. The SAP E-Recruiting tool supports end-to-end recruitment management and streamlines the recruitment process. It supports comprehensive applicant tracking, links together internal and external job boards, and reduces recruiting and sourcing costs. Performance management includes aligning individual and corporate goals, and standardized appraisals.

Core Functions

Businesses can use the SAP Human Capital Management module to integrate their workforce planning and administration functions onto a single platform. Core human resource functions include employee management, benefits management and payroll. Employee management involves information management, global relocation management and the implementation of organizational policies. Benefits management includes tracking various plan definitions and preparing tailored benefit plans for individual employees. Payroll management involves managing payroll processes in multiple countries using different currencies, regulations and languages.

Workforce Analytics

Businesses can take advantage of SAP's comprehensive analytics tools to plan and measure objectives within the human resources department and other business units. SAP supports several human resource analytical activities, including workforce planning and talent analytics. Workforce planning includes planning for demographic trends, headcount planning and budgeting. Talent analytics include evaluating the efficiency of recruiting programs and the effectiveness of internal training programs.

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