So FYI: this isn't a formal announcement! For some time we have been hearing about SAP SuccessFactors's next-generation cloud payroll, and it was mentioned recently at the 2021 annual SuccessConnect conference. Each time it was mentioned, it was made clear that it was not a formal announcement in any sense, but a reminder that there is ongoing development continuing in this space. These are the highlights you need to know.
Your current options
Today, SAP customers have three options for world-class SAP Payroll:
| Option | Payroll | Description | Learn more |
| 1 | SAP ERP HCM Payroll On-Premise | Business as usual SAP SuccessFactors has given a commitment to their approximately 10,000 on-premise SAP Payroll customers that they will not experience an interruption in their continuous world-class support, guaranteed until calendar year-end 2027 with extended support available until 2030. |
SAP Business Suite 7 Extension: What This Means for SAP ERP Human Capital Management Customers |
| 2 | SAP S/4HANA Private Cloud Edition (PCE) | Non disruptive pathway to digital transformation This offering, aligned with the HXM Move program, is part of SAP's continued commitment to helping customers continue to get ROI from their on-premise SAP investment, while creating a bridge to the cloud and the future. This is a non-disruptive way to keep your HR, Payroll Time and/or Benefits via a cost-effective pathway to the cloud, while retaining the functional richness of your existing systems. It involves migrating to an SAP S/4HANA Private Cloud Edition (S/4 PCE) license which moves your environment to SAP’s own data center or a hyperscalar (Azure, GCP, AWS). |
Migrate your HCM on-premise to S/4HANA Private Cloud Edition (PCE) with PRISM for HCM (PCE) |
| 3 | SAP SuccessFactors Employee Central Payroll | The current focus of innovation with approximately 850 customers and 48 local versions. SAP also allows partners to build their own with partner locales and EPI-USE is a leading Partner in this space. | Migrate on-premise Payroll to SuccessFactors' Employee Central with PRISM for ECP |
Next-Gen Payroll
The world-class SAP Payroll that we know and love is currently built on based upon SAP ERP technology and that same technology powers the cloud version of SAP SuccessFactors Employee Central Payroll. The next evolution of Payroll will not be tied to that SAP baseline, it will rather be developed natively for the cloud. This is a reimagining of Payroll based on the best practices learned from SAP’s thirty-plus years in this space, coupled with leading technologies and leveraging the latest in human experience management.
SAP has a team that has been working extensively on this solution. They have shared the core guiding principles as noted below, and a commitment to ensure it is developed from a global standpoint, with far-reaching capabilities into other technologies.
The value proposition for Next-Generation Payroll
- Low TCO
- Low Compliance Risk
- HXM
- Global Intelligence cross-suite
- Flexibility
Where does it stand today (November 2021)?
As I said at the start, SAP has been talking about this for a few years, and they have made it clear that they have not formally announced it yet. What they have shared is a beta offering planned in 2022 for customers in the UK.
What is clear is that they are taking their time to try to do it the right way and not rush a solution out to market. This is their opportunity to reimagine Payroll all over again. They already have three options for customers that are working well, all of which are leveraging the world's best global payroll, so they can take their time in building this.
Do you have to move to SAP SuccessFactors Employee Central Payroll?
As mentioned above, SAP has made it clear that customers have three options for Payroll today, and customers are welcome to use to satisfy their current requirements. The SAP HXM Move program strategy aligns with this sentiment.
For those customers who wish to keep what they have and move to SAP S/4HANA Private Cloud Edition or move to SAP SuccessFactors Employee Central Payroll, we have a free assessment that assists you in determining which of these options may be a better fit for you. Once you have decided, we also offer the transformation solution to assist you in your migration.
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