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The Future for YourSAP HCM PayrollOptions to Keep Your Payroll Future-Proof
Live WebinarThis webinar gives you an understanding of the changes coming and the options available for your SAP HCM Payroll system.
1
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Welcome
2
Martin Brockett
Global HR Change and
Transformation Lead
Digital HR Services NGA HR
Andy Martin
Pre Sales Lead Specialist
15+ years experience in
HCM
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NGA HR by the Numbers
3m+employees served by NGA HR
100+
Working with
5,300employees globally
1,300+HR system implementations
£300m188
Providing HR &
Payroll services in
5HCM platforms
which NGA
can deliver HR
services on
25+1 out of 5of Fortune 500 companies
countries
languages
supported in
our HR service
centers
4business lines
HR Technology
Consulting
HR Application
Maintenance
Payroll
Outsourcing
HR Outsourcing
HR BPO &
BPaaS
clients
35Offices & centers in
countries
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Agenda
What Is the Industry Saying
Threats & Drivers for Your Payroll Strategy
How Does Technology Contribute?
Goals of Workplace Modernization by Importance
Marry HR and Technology to Engage Employees
Payroll Options
Conclusion
Digital HR Transformation Delivers Value for Everyone
in Your Organization
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SAP News January 9, 2018
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The Future of SAP HCM OnPremise
• Encourage ERP HCM customers to move
to SuccessFactors to accelerate digital
HR transformation.
• Non-disruptive transition. Short window to
switch between 2023 and 2025
• Extended support at least until 2030.
• What does this mean?
Changes ahead for SAP HCM clients.
https://news.sap.com/hcm-on-premise-s4hana/
• 14,000 On Premise SAP HCM
customers, of which 8,000 on Payroll
(September 2017)
• Including some of the world’s largest
employers
• Approx. 80 million employees paid
through SAP Payroll
• In 50+ countries
• Impact on payroll?
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SAP HCM Install Base
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Sierra-Cedar 2015–2016 HR Systems Survey
“People are very afraid
to move away from what
seem to be fairly stable
payroll solutions into a
cloud environment”
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Threats & Drivers for Your Payroll Strategy
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Staff attrition
in Payroll
department
Consolidated
reporting &
analytics
Compliance
guarantee &
GDPR
M&A’s Lower cost Capex vs Opex
2025 Carve out Innovation
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How Does Technology Contribute?
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HRMS User Experience Scores**
by Service Delivery Model
** With Self Service: Employee and manager self service applications serve 60% or more of employees and 50% or more of manager populations
** User experience scores based on a three point scale: 1 = Poor. 2 = Acceptable. 3 = Excellent
No or
Low Tech
With Self
Service*
With Self
Service*
and Help
Desk
With Self
Service*
Help Desk,
and Mobile
1.75 2.1 2.2 2.6
increase in user experience scores with combined self
service, help desk, and mobile technologies.49%
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Goals of Workplace Modernization by Importance
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Integrated design and service concept
Change management
SLA-based delivery
Strategy &
Organization
Mobile devices / wearables
UCC integration
Availability and performance of latest workplace applications
Design &
integration
End-to-end security
Global service desk
Unified endpoint management
Management
& support
HR and payroll cloud strategy
HR self-service access
Access to HR support services 61
HR-related
workplace
design &
mgmt.
46%
46%
54%
49%
59%
63%
51%
55%
57%
46%
46%
61%
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Marry HR and Technology to Engage Employees
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Local point
solutions
with limited
local view
Antiquated
processes
Low
workforce
adoption
Incompatible
data, difficult
to analyze
Fragmented
processes
Rigid
structures
Disparate
systems
Lack of
actionable
insights and
transparency
HR relationships
are largely
transactional
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Options to Consider
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Solutions
• Payroll Control
Center & New UX
(Fiori)
• Application
Management
Solutions
• Move to new platform
• Application
Management
Solutions
• SAP SuccessFactors
Managed Payroll
• Transition & Transform
• Application
Management
Respect earlier investments, stable
Difficult to embed innovation
Sustainability: cost, compliance, skills, maintenance
Modern user interface by moving HCM to SuccessFactors
Compliance covered by Payroll provider, predictable costs
No payroll disruption, maintain what works
Modern user interface and best practices by moving HCM to SuccessFactors
Compliance covered by Payroll provider, predictable costs
Supports rapid international expansion plans
Do Nothing
New
Platform
Move
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Option 1: Do Nothing
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+ Leverage historical investment
+ Stability: no disruption (for now), risk-free
+ History kept for all employee data and payroll
calculations
+ Adequate SAP Time Management Solution when
integrated with SAP Payroll
- No access to modern user interface
- Hard to embed innovation on a legacy platform
- Ongoing cost, compliance, skills
and maintenance burden
- Long term SAP HCM support
- 2023 migration to HANA
- ‘Opportunity cost’ of doing nothing
Do Nothing
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Solution: Payroll Control Center & New UX (Fiori)
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For organizations with:
• Complex payroll with excellent in-house
SAP skills
• Complex time
• Complex integrations
• Difficulty to adapt today to ‘Cloud
standards’
Payroll Operations
Ongoing ConfigurationPayroll Operations
Legal Changes
Version Updates
Implementation
Customer
NGA HR
NGA HR (one-off))
SAP
Infrastructure, Hosting,
Backup, Disaster Recovery
Application Maintenance
Services
• Risk level: low risk and optimize cost of running payroll, does not require to re-implement payroll
• Time: months
• Investment: limited
• Impact organization: no change
Summary
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Solution: Application Maintenance Services (AMS)
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For organizations with:
• Complex payroll with excellent in-house
SAP skills
• Complex time
• Complex integrations
• Difficulty to adapt today to ‘Cloud
standards’
• A maintenance operating model that is
too expensive
Payroll Operations
Ongoing ConfigurationPayroll Operations
Legal Changes
Version Updates
Implementation
Customer
NGA HR
NGA HR (one-off))
SAP
Infrastructure, Hosting,
Backup, Disaster Recovery
Application Maintenance
Services
• Risk level: low risk and optimize cost of running payroll, does not require to re-implement payroll
• Time: weeks
• Investment: limited – variable pricing units (employee/ticket/fee)
• Impact organization: limited
Summary
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SAP Payroll & Cloud Application Maintenance
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Cloud Application Management Services
Application Maintenance
• Corrective, adaptive and
preventive
• All configuration; provisioning,
XML, advanced reporting tools,
Boomi, SCP
• ITIL processes framework
Release Management
• Management, implementation
and testing of new releases
and enhancements
• Refresh management
• Yearly roadmap plan
Processing Support
• Support and management of
automated processes
• Execution of agreed mass data
updates
• Execution of agreed routine
reports
User Support
• Technical and operational
support
• Navigation support
Configuration Changes
• Minor changes included - 4h
• Catalogue of change requests
• Ad-hoc change requests
Integration and Performance
Monitoring
• Monitoring and troubleshooting
data mapping and 3rd party
integration issues
• Web performance monitoring
and reporting
Security Management
• Management of application
security
• Role based permissions
Business Continuity Management
• Continuity planning and disaster
recovery support in
line with approved plans
Documentation Maintenance
• Technical and configuration
document updates
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Option 2: Move to a New Platform
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+ Access to innovation: UX, Payroll Control Center,
Mobile…
+ Integration with core HRIS (EC)
+ Hosting by SAP or NGA (ECP)
+ More predictable cost model compared
to OnPremise
- Cost associated with implementation and risk of
disruption
-
Move to EC Payroll
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Solution: Employee Central Payroll (ECP)
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For net new payroll clients or for
SAP OnPremise customers who wish
to move to a more standardized and
optimized payroll solution
• Choose 2 options for deployment, customer
managed or partner managed
• Purchase a SFSF EC license
• Purchase a SFSF EC Payroll license
• Re-implement and simplify (remove
customizations) in their existing SAP Payroll
• Build integrations to partners for time or
benefits processing
Ongoing Configuration Payroll Operations
Legal Changes
Version Updates
Implementation / Migration
Customer
NGA HR
NGA HR (one-off))
SAP
Infrastructure, Hosting,
Backup, Disaster Recovery
Application Maintenance
Services
• Risk level: new payroll implementation
• Time: Can be achieved in 9 months but less than moving to a new non-SAP platform and can be
accelerated with NGA FastTrack Products
• Investment: depending on company size may be a better CAPEX option
• Impact organization: same internal payroll operational cost but outsourced application
and legal maintenance
Summary
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SAP Payroll & Cloud Application Maintenance
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Cloud Application Management Services
Application Maintenance
• Corrective, adaptive and
preventive
• All configuration; provisioning,
XML, advanced reporting tools,
Boomi, SCP
• ITIL processes framework
Release Management
• Management, implementation
and testing of new releases
and enhancements
• Refresh management
• Yearly roadmap plan
Processing Support
• Support and management of
automated processes
• Execution of agreed mass data
updates
• Execution of agreed routine
reports
User Support
• Technical and operational
support
• Navigation support
Configuration Changes
• Minor changes included - 4h
• Catalogue of change requests
• Ad-hoc change requests
Integration and Performance
Monitoring
• Monitoring and troubleshooting
data mapping and 3rd party
integration issues
• Web performance monitoring
and reporting
Security Management
• Management of application
security
• Role based permissions
Business Continuity Management
• Continuity planning and disaster
recovery support in
line with approved plans
Documentation Maintenance
• Technical and configuration
document updates
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Option 3: Transition Payroll
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+ Access to experienced payroll knowledge
+ Compliance and quality covered by payroll
provider through SLAs
+ Predictable cost model
+ Various integration options/platforms
+ No payroll disruption, maintain what works
+ Opportunity for simplification and best
practice standardization of processes
+ Closing possible gap of internal resources/skills
- Less direct control over your payroll system
- Change in process controls
- Impact on processes depending on level of
outsourcing
Move Payroll
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Solution: SAP SuccessFactors Managed Payroll
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For organizations that have made a
significant investment in SAP Payroll
(and Time) and do not wish to change.
This model allows customers to keep
the functionality of their system. They
simply allow a certified partner to host it
and integrate with SF Employee Central
• Purchase a SFSF Employee Central license
over time
• Single support experience
• Lift and shift the Payroll – without re-
implementation and/or simplification
Ongoing Configuration &
maintenance Payroll Operations
Legal Changes
Version Updates
Implementation / Migration
Customer
NGA HR
NGA HR (one-off))
SAP
Infrastructure, Hosting,
Backup, Disaster Recovery
Application Maintenance
Services
• Risk level: low risk and optimize cost of running payroll, does not require the customer to re-implement payroll
• Time: transfer to provider happens with 3 to 6 month depending on complexity
• Investment: take advantage from a flexible cost model and SLA –governed support, full history of payroll kept
• Impact organization: hosting and application maintenance are with provider, You continue to run payroll operations
• Benefit: provider is responsible to keep payroll legally updated, various level of services can be added up to full
process outsourcing on request, enabling SuccessFactors Employee Central provides up-to-date access and self
service for end-users
Summary
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SAP Payroll & Cloud Application Maintenance
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Cloud Application Management Services
Application Maintenance
• Corrective, adaptive and
preventive
• All configuration; provisioning,
XML, advanced reporting tools,
Boomi, SCP
• ITIL processes framework
Release Management
• Management, implementation
and testing of new releases
and enhancements
• Refresh management
• Yearly roadmap plan
Processing Support
• Support and management of
automated processes
• Execution of agreed mass data
updates
• Execution of agreed routine
reports
User Support
• Technical and operational
support
• Navigation support
Configuration Changes
• Minor changes included - 4h
• Catalogue of change requests
• Ad-hoc change requests
Integration and Performance
Monitoring
• Monitoring and troubleshooting
data mapping and 3rd party
integration issues
• Web performance monitoring
and reporting
Security Management
• Management of application
security
• Role based permissions
Business Continuity Management
• Continuity planning and disaster
recovery support in
line with approved plans
Documentation Maintenance
• Technical and configuration
document updates
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Conclusion
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1. What are your current costs?
2. How are you performing against others?
3. Do you have a robust rationale or vision?
4. What are your quick wins?
5. How will you measure benefits and ensure these are realized?
5 Key Questions to
Prepare Your
Business Case
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Digital HR Transformation Delivers Value for Everyone in Your Organization
Keep pace with
technology innovations
Make Payroll as agile as
your business
Free up IT resources
Change the way Payroll
serves the business
Rethink and simplify
Payroll
Engage your workforce
PY
IT
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Copyright NGA Human Resources. All rights reserved.
Find Out More
Learn more, visit: www.ngahr.com
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Which Way
Now with
SAP HCM?
Download the definite guide:
https://resources.ngahr.com/
which-way-now-sap-hcm
What Next
with SAP HCM
Payroll?
Read the blog:
https://www.ngahr.com/blog/wh
at-next-sap-hcm-payroll
5 Key Considerations
for the Future of SAP
HCM Payroll
Read the blog:
https://www.ngahr.com/blog/5-
key-considerations-future-sap-
hcm-payroll
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www.ngahr.com
Thank You
More Questions? Contact us.
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Martin Brockett
Global HR Change and Transformation Lead
Digital HR Services NGA HR
+44 (0)7796 831901
Andy Martin
Pre Sales Lead Specialist
+44 (0)7766 187947