Payroll Deployment Options

Imran Sajid
May 2021
PUBLIC
 SAP SuccessFactors Payroll
Key Statistics
100 Million
60% 8,000+ 1,000+
People consistently paid Global Fortune Customers in Certified global
from an SAP system per 1000 nearly every partner
month industry and size consultants

Localization
100 Locales 47 Cloud 42 Languages
56 On-Premise
650+ 200+ SAP + Partner 44+Partner 172 Currencies
Localized Legal and
COVID-19 localized
compliance changes
legal and compliance
delivered annually
changes delivered

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SAP Payroll Deployment Options
 *Please align with Solution Architect or appropriate
expert to determine level of customer complexity
and to provide guidance on the partner for Partner
Managed Cloud
Do you want to run payroll in
Yes house or control some of the No
process?

Do you have a
No
need/desire to invest in
and maintain on- Yes
premise Infrastructure? Core HR
transformation using
SAP SuccessFactors
Employee Central

Yes No Yes Do you have complex requirements

that can only be handled with SAP
ERP Time Management/Benefits?*

No

SAP S/4 HANA Private Cloud (Multiple SAP SuccessFactors Employee Central Partner Managed Cloud for Employee
SAP ERP HCM Payroll
Options) Payroll Central Payroll*

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SAP is uniquely positioned for payroll success
Our options allow us to align payroll to meet our customer’s unique needs
SAP ERP HCM Payroll
On-premise
• Employee Central Optional
• Integration with EC using middleware with pre-
packed content
 Requires customer to maintain infrastructure
 Perpetual License with annual maintenance
subscription
 Keep system exactly as-is (For existing
customer)
 Full scope of SAP ERP including LSO & eRec
 Mainstream maintenance until 2027 with
extended maintenance until 2030
 Must migrate to SAP S/4 HANA for HCM to
receive support beyond 2030
 100 locales (56 SAP + 44 Partner)
 Customers using existing SAP ERP HCM
functionality in S/4 HANA via Compatibility Packs
must move by 2025
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SAP S/4 HANA Private Cloud Edition (PCE) Employee Central Payroll
Deployment (Data Center)
Choice of Hyperscaler Handled by SAP SuccessFactors
Core HR Requirement
• Employee Central Optional
• Employee Central Required
• Integration with EC using middleware with pre-
• Optimized with Native Integration
packed content
Customer Profile
 Desire to move infrastructure to the cloud
 Desire to move infrastructure to the cloud
 Convert to a subscription license model
 Convert to a subscription license model
 Maintain investments by keeping existing
 Maintain investments by keeping existing
configuration & employee data (Some carve out
configuration & employee data
necessary
 Available Scope includes SAP ERP HCM,
 Time Management & Benefits functionality within
Benefits, Time, & Payroll (Additional SKU/Cost)
ECP not available/limited scope (See ECP Scope)
 Maintain flexibility and extensibility options
 Simplified and standardized operations
(customize, modify, extend)
 47 locales + certified partner versions
 100 locales (56 SAP + 44 Partner)
Partner Managed Cloud (PMC)
Service Delivery Options
 Hybrid Service delivery options for higher
level of support such as application
management or payroll outsourcing services
5
 SAP SuccessFactors Employee Central Payroll
What is Employee Central Payroll
 Private Cloud Payroll Solution
 Natively integrated to SAP SuccessFactors Employee Central
 Supports 47 locales, with an additional 9 on the roadmap
 Streamlined payroll processing via modern UI with continuous payroll
 Basic Application Management (AMS) delivered by SAP

Target Market Considerations Benefits

 Customer size greater than 1,000  Complex Time and Benefits requirements
 Global, scalable and proven solution
 Desire to run or own payroll offered via SAP Solution Extensions
 ECP Specific Innovations that continue to
 Available for existing SAP HCM Payroll, or  Higher degree of standardization to SAP
grow ever quarter
new payroll customer with complex multi- HCM and no core modifications are
allowed  Facilitates consolidation of payroll
country requirements
– Standard configuration cover most landscape and reduction of payroll
requirements (Schema, Rules, Custom complexity
Functions, Operations, BADIs)  Allows customer-specific mix of managed
 Accelerated data migration tools for payroll services
migration from on-premise to ECP (not a  Efficient payroll processing, and increased
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*Also available on premise and with other models
re-implementation) insight via our payroll control center* 6
Partner Managed Cloud for Employee Central Payroll

What is Partner Managed Cloud

 Employee Central and Employee Central Payroll offered via certified partner including
additional services as needed
 Allows customer increased flexibility based upon their business needs.
– From application management to full payroll business process outsourcing (BPO)
 Partner provides application management, implementation, configuration, and
customer support

Target Market Considerations Benefits

 Customer size starting at 250 employees  Supported in SAP’s data centers  SAP SuccessFactors solutions with
 General Business companies base HCM  Flexibility with Employee Central increased value based on partner’s local
decisions starting with payroll Payroll or extend to the entire knowledge and industry expertise

 Customers who desire a high level of SuccessFactors HXM Suite  Fully managed BPO service for one or
payroll support, i.e. Business Process  AMS and BPO services offered by more functions
Outsourcing SAP certified partners  Single vendor for subscription license,
 Customer who do not want to invest in SAP services, and support
Payroll expertise in house or via
contractors
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 Partner Managed Cloud for Employee Central Payroll
Align payroll with your HR operating model

MEE and EMEA

North America Global

APJ
MENA

What is partner managed cloud for SAP SuccessFactors solutions

 SAP SuccessFactors Employee Central and SAP SuccessFactors Employee Central Payroll are offered
through certified partners, including dedicated payroll Business Process Outsourcing (BPO) services.
 Partner provides application management, implementation, and configuration.
 Partner provides 1st and 2nd level customer support.
 Cost-efficient offering for customers starting with 250 employees
 Available for EC customers to manage smaller country populations
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Companies shown here are a sample and not a complete list. Some partners support multiple geographies
SAP HCM for S/4 HANA, Private Cloud Edition (PCE)
Motivation
 Move to the cloud at your own pace with a “concierge service”
 Safeguarding prior investments by converting their existing system/s
 Transition from capital expenditure (CAPEX) to operating expenses (OPEX) with a
subscription model
 Existing customers can keep HR, time, benefits, and payroll as-is
 Full SAP country scope (56 SAP locales & 44 partner)
 Full SAP ERP HCM & Payroll scope (Ex: code changes/implicit enhancement)

Solution Scope Commercial Transition

 Running on hyper-scaler infrastructure  General available  Controlled cloud migration path for
and provides full SAP S/4HANA (ERP on customers at their own pace with a
 Cloud subscription SKUs
an exceptional basis) functionality smooth transition into a cloud model
 SAP Core Human Capital Management
 Offering highest flexibility and extensibility Cloud, private Edition
 Supporting system conversions and
options (customize, modify, extend) brownfield migrations into the cloud
 SAP Time Tracking Cloud, private Edition
 Providing full Core HR, Time and Payroll
 SAP Payroll Cloud, private Edition
functional scope comparable to ECC

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 Ro
ad
M
ap
SAP HCM for S4 HANA on-premise edition (H4S4)

What is SAP HCM H4S4 on-premise edition?

 On-premise offering extending support to 2040
 Available Q3 2022 for existing SAP HCM Payroll Customers
 Matches the scope of the SAP HCM for SAP S/4HANA (on-premise edition)
compatibility packs: SAP HCM incl. payroll, time and attendance, personal
administration, talent, and more, but excluding e-recruiting
 Can be in the same instance as S/4 HANA or a separate instance

Target market Considerations Benefits

 Customers who are not ready to fully
move their HCM deployment to the cloud
with SAP SuccessFactors or who are
working multiple cloud projects and want
to keep payroll in place until all other
conversions are completed
 Only available for on-premise deployment
 Based on SAP ERP HCM, supplemented
with SAP HANA-based capabilities
 Required to migrate to SAP HANA database
 Planned license conversion to be offered
 Long-term commitment – maintained
until 2040: 19 years of planning security
 Nondisruptive migration from SAP ERP
HCM to SAP S/4HANA through planned
migration solutions

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 Quick Guide on Recommended Payroll Options
Customer Profile – A Customer Profile – B Customer Profile – C Customer Profile – D
 Net new or SAP HCM Payroll  Net new or SAP HCM Payroll  Existing SAP HCM Payroll  Existing SAP HCM Payroll
customers customers customers
customers
 Little intention to invest in SAP  Want to move infrastructure to  Want to stay on premise (SAP
 Desire to run payroll in one or many the cloud but keep payroll as-is
Payroll expertise HCM), keeping payroll as is
countries or want data ownership
 Want to outsource Payroll  Heavy usage of SAP HCM Time
 Already using or want to use Management and/or Benefits
Employee Central

Employee Central Payroll Partner Managed Cloud for
Net new or install-base customer SAP SuccessFactors
wanting to streamline / standardize solutions
current payroll solution Accelerated implementation plus
managed services for payroll
SAP S/4 HANA Private Cloud
Edition (PCE)
Accelerated implementation
while moving infrastructure to
the cloud
SAP HCM for S/4 HANA, on-
premise
Available in 2022, maintenance
until 2040

Cloud Contract with SAP Contract with Partner
“Streamline & being in charge” “Payroll BPO – hosted by
SAP, managed by partner”
Contract with Partner
Contract with SAP
“Continuity with cloud”
“Continuity”

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Migrating from On-premise Payroll to the
Cloud
Migrating On-premise Payroll to Employee Central Payroll
System transformation & migration, not a payroll re-implementation

On-Premise Employee Central

Payroll Payroll

Steps Tools Considerations

 Analyze  Predefined methodology: Prepare,  Cloud strategy defined?
 Data Migration including customer specific Document, Realize, Deploy  Quick ROI
data, rules, customizing, payroll history… – SAP System Landscape
 Agreement on scope
 Interfaces Optimization (carve out)
– Partner developed migration tools  Eliminating core modifications
 Regression Testing – Many customers don’t have true
 Implementing new innovations  HXM Move Program
core modifications
 Plan on historical data
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Migrating on-premise payroll to SAP SuccessFactors Employee Central Payroll
Why should I move to Employee Central Payroll? Reimplementation is not necessary

Maintain Investment in SAP Payroll

 Solve immediate need without a large-scale rip / replace. Keep existing Payroll investments. For example, no need to
re-do payroll calculations and configuration, and ability to move existing data including employee data and payroll
results

Reduce Long-Term Total Cost of Ownership (TCO)

 Smoother and less expensive upgrades; reduced change management; no physical infrastructure cost; reduction
of technical (Basis) costs; improved integration with Employee Central that results in less maintenance and better
system performance;

Future-Proof
 Ensure all the latest SAP functionality is available to you (Many ECP Specific functionality released
every quarter) with quarterly innovations. Dedicated payroll landscape which allows updates to new
functionality at your discretion. No timeline limits on maintenance;

Simplify & Innovate

 Revisit outdated processes to standardize, improve, and automate; Leverage newer functionality
such as our Payroll Control Center; remove unnecessary and expensive customizations;

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 UK Post Office

“The new self-serve system has also reduced pay queries by

70 percent, and removed a whole range of paper-based
processes and lengthy control checks”
“This has given us the opportunity to put those in through
configuration and that is more accurate, so we are saving
money that way as it is paying people correctly”

“We found 400 wage types in the system, so this gave us the
opportunity to reduce that by 60 percent”

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Source: https://www.computerworlduk.com/applications/how-post-office-finally-moved-off-19-year-old-sap-hr-system-3686844/ 15
 Coles Group
“We had a lot of separate systems that were interconnected and
sort of plugged together rather than a seamless or deep
integration [of systems]”

“It's 125,000 team members at Coles, which is one percent of the

Australian working population," Ryder said .

"I will admit freely that first payroll [cycle being] executed ... when
I knew that one percent of Australia's working population were
going to get paid on time, that was a key deliverable and a key
milestone."

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Source: https://www.itnews.com.au/digitalnation/coles-finalises-wall-to-wall-hr-transformation-566425 16
Thank you.
Contact information:
Imran Sajid
Director HXM Solution Marketing
Imran.Sajid@sap.com