SAP Solution Brief
SAP ERP
SAP ERP Human Capital Management
Identifying, developing,
rewarding, and retaining talent
is critical to the success of
businesses in all industries.
With the talent management
functionality of the SAP® ERP
Human Capital Management
solution, you can optimize
processes to make the most
of the people in your
organization.
INTEGRATED TALENT MANAGEMENT
WITH SAP® ERP HCM
EFFECTIVELY IDENTIFY, DEVELOP,
REWARD, AND RETAIN TALENT
The economic climate is forcing compa-
nies to realign their workforces to
increase productivity while reducing
overall costs. To accomplish this,
well-developed strategies for managing
talent must be in place. However, many
companies lack adequate talent man-
agement processes, or those processes
are not integrated into enterprise-wide
solutions, relying instead on islands of
talent data in offline documents and
point solutions.
The SAP® ERP Human Capital Manage-
ment (SAP ERP HCM) solution offers a
holistic approach to talent management
that helps you remove barriers between
traditional HR practices and integrate
processes across the organization.
tion
ensa
omp
C n
ion
ess
Succ
Talent Management
with SAP® ERP HCM
Le ar n
in g
ev
D
e lo
pm
ent Talent R
Figure 1: Integrated, End-to-End Talent Management
Integrated Talent Management
Brings It All Together
SAP ERP HCM offers talent management
functionality that’s fully integrated with
human capital management and other
business processes to help you more
effectively manage your talent (see
Figure 1).
The solution allows you to compare
employee profiles with actual positions.
You can identify skill and knowledge
gaps and tie them directly to development
plans. You’ll be able to discern your
high-potential employees and put them
on track to support seamless succession
for important positions. You can moti-
vate employees through individualized
objectives and compensation programs
tied to performance. By aligning individual
and team objectives with organizational
goals, you can contribute to consistent
achievement of corporate goals.
Co m
Mana pete Integration across talent
ge nc
me y management:
One organic solution with one
point of entry and one common
t
set of data
Rec
ruiting
Integration with other HCM
processes:
Maximum reuse of the existing
a nc e
HR investment
m
for
Integration with SAP Business
r
Suite software:
Pe
Cross-enterprise integration
ew
evi to provide HR data throughout
business processes
Talent Management Processes
Supported by SAP ERP HCM
SAP ERP HCM supports a wide range
of talent management processes. They
are described in the following sections.
Competency Management
Organizations must be able to identify
the skills and competencies needed to
successfully align their workforce with
their business strategy and develop
those skills. Competency management
functionality forms the foundation for all
your talent management processes. It
enables you to compile a competency
catalog, which all talent management
processes can leverage.
Competency management features let
you define and then link and assign
key competencies throughout your job
architecture – a job catalog with func-
tional areas, job families, jobs, and
positions – and cultivate corresponding
talent pools. You can compare an
employee’s qualifications with the
requirements of a certain position to
determine his or her suitability and
leverage profile matchup for automated
identification of potential successors.
processing of job applications and
monitor the effectiveness of the recruiting
organization. A collaboration platform
lets you link to external applications,
such as job boards and recruiting ser-
vice providers, and to internal software.
Employee Performance Management
Employee performance management
with SAP ERP HCM helps you plan,
assess, improve, and analyze the per-
formance of your workforce from end
to end. You can align individual objectives
with corporate goals by cascading your
enterprise strategy; assess and manage
performance through feedback, devel-
opment, and appraisals; and reward
your employees accordingly.
The solution is highly adaptable, allowing
you to tailor both the content of your
performance feedback documents
and processes to the needs of your
organization. A consistent, user-friendly
interface encourages collaboration
among employers, managers, mentors,
and other partners.
Talent Assessment and Review
Through a structured and impartial
approach supported by the software,
line managers across your organization
can assess talent, employee potential
and competencies, and what risk they
have of losing talent. Wizards allow you
to define useful assessment templates.
You can hold talent-review meetings
and support your higher level managers
as they calibrate the performance and
potential of the individuals nominated.
The application helps you ensure high-
quality management decisions about
talent development, succession, and
career planning. The result for your
organization is greater employee
motivation, which means your retention
level of key talent remains high.

Recruitment
The Web-enabled SAP E-Recruiting
application accelerates and streamlines
the recruiting process, enabling you to
build up and source from a qualified,
global pool of internal and external
talent. Recruiters can take advantage
of this talent pool to find the staff they
need quickly and collaborate closely
with hiring managers throughout the
hiring process. Applicant-tracking and
reporting functions help organize the Figure 2: Talent Assessment
Employee Development
Functionality for employee development
supports you in creating short- and long-
term development plans for employees
SAP ERP HCM offers talent
management functionality
that’s fully integrated with
human capital management
and other business pro-
cesses to help you more
effectively manage your
talent.
as well as tracking and monitoring their
progress. Profile matchups with posi-
tions allow you to pinpoint skill and
knowledge gaps, which in turn can be
tied directly to training plans to address
the individual development need.
Learning
The SAP Enterprise Learning environ-
ment provides training participants with
Web-based, virtual, and classroom
training. It includes a learning portal, an
instructor portal, learning management
software, a test author, tools for struc-
turing e-content, and support for
content management and collaboration.
You can tailor learning paths to individual
educational needs and learning styles.
The virtual learning tool is powered by
SAP Acrobat Connect Professional
applications by Adobe. Analytical
functionality lets you plan, track, and
measure training impact.
Succession Management
SAP ERP HCM lets you avoid business
disruption when key positions are
vacated by helping you proactively
identify, develop, and track high-potential
employees best suited to fill those
positions. You can prepare future leaders
for new positions from within. You can
identify successors for key positions
before the positions are vacated. In
addition, the SAP Talent Visualization
application by Nakisa helps you make
better-informed decisions about your
talent pipeline and successor rankings.
Compensation Management
The software supports line managers,
higher level managers, and HR staff in
carrying out compensation-related tasks.
You can implement innovative reward
strategies such as pay-for-performance,
variable pay, and long-term incentive
programs. You’ll have support for
setting up guidelines for the enterprise’s
compensation policy so that it conforms
to overall corporate strategy.
Analytics
Talent management analytics helps you:
• Analyze employee skills and
qualifications
• Evaluate the efficiency of recruiting
processes
• Measure the effectiveness of
learning programs
• Assess how well succession
programs prepare employees to
assume key positions
• Monitor the progress of aligning
employee goals with corporate goals
• Analyze the cost-effectiveness of
employee compensation programs
Learn More
For more information on how SAP ERP
HCM can support your business, call
your SAP representative today or visit
us on the Web at
www.sap.com/talentmanagement.
Day & Zimmermann, a top contractor
serving governments and commercial
customers worldwide, credits the
SAP® E-Recruiting application for
meeting challenging staffing require-
ments. In the past, each business
unit recruited independently – sourcing
94% of candidates from external job
boards instead of using the company
Web site. Hiring managers used
Microsoft Outlook as the primary tool
for storing resumes and had limited
visibility into the number and status
of candidates.
Today SAP E-Recruiting integrates with
the SAP ERP Human Capital Manage-
ment (SAP ERP HCM) solution, which
feeds positions into SAP E-Recruiting
as vacancies are created. As candi-
dates submit resumes, the solution
automatically parses them to internal
assessment, reducing data entry time
by 75%. When a candidate accepts a
position, SAP E-Recruiting feeds the
appropriate data back into SAP ERP
HCM to complete the process.
Day & Zimmermann now enjoys a
streamlined, end-to-end, enterprise-
wide process for talent management
– one that speeds the time-to-fill
process for open positions, powers
collaboration, and reduces recruitment
costs.
QUICK FACTS www.sap.com /contactsap

Summary
SAP® solutions can fully support your talent management activities, helping you identify,
develop, reward, and retain your key contributors through maintaining the right mix of
assessment, compensation, benefits, and career development programs. You can align
individual and team goals with corporate strategies and transform HR into a strategic
partner in the organization. The software supports full integration of talent management
processes both with each other and with other processes supported by the SAP ERP
Human Capital Management solution.

Business Challenges
• Meet needs of a global, mobile, multigenerational workforce
• Increase organizational performance
• Cut costs and downsize
• Satisfy demand for greater insight into workforce skills, performance, and potential

Key Features
• Competency management – Identify and develop the skills needed to achieve
organizational goals
• Recruiting – Identify and hire the right talent promptly
• Performance management – Align workforce with organizational goals
• Talent assessment and review – Identify and cultivate your key contributors
• Employee development – Create individual development plans and monitor progress
• Learning – Deliver custom training to close individual knowledge gaps
• Succession management – Identify, develop, and track high-potential employees
• Compensation management – Implement innovative reward strategies and link pay to
performance

Business Benefits
• Improved organizational performance by aligning individual and team goals with
organizational goals
• Motivated employees through individualized objectives, clearly defined career and
development plans, and compensation programs tied to performance
• Improved decisions about talent development 50 079 373 (10/04)
• Strong global talent pool across the entire organization through effective retention and ©2010 SAP AG. All rights reserved.

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• Reduced maintenance and upgrade cost and effort, thanks to an integrated solution products and services mentioned herein as well as their respective
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