The great debate: SAP SuccessFactors managed payroll

by Michael Custers

When SAP announced its SAP SuccessFactors Managed Payroll solution at SAP SuccessConnect 2016 in Las Vegas end of August, little could we know that it would trigger such a passionate debate in the SAP HCM community, and on social media, about where to go next with SAP HCM payroll.

In this blog post we provide some background as to why we joined SAP to co-innovate and deliver SAP SuccessFactors Managed Payroll to organizations around the globe.

Roll back 2 years: as Employee Central started to get significant traction in the market place, NGA HR was approached by SAP HCM payroll clients globally about how best they could move core HR to the cloud, and faster.

Doing nothing (aka ‘wait and see’) wasn’t considered to be an option. Too many SAP HCM clients felt they were missing out on the latest SuccessFactors innovations. The migration options at the time – Employee Central Payroll and the BPO route – are both great solutions, but both require reimplementation, extending the time taken when moving to the cloud.

It is for this reason, that NGA HR joined up with SAP, T-Systems, and other partners late last year to co-innovate the best route to ‘cloudify’ SAP HCM payroll, while avoiding reimplementation, offering a streamlined migration path for both core HR and payroll, and, as such accelerating time to value.

All debate on this subject is good and should be encouraged. As we always say, the best solution for one organization might not be for another.

It’s for this reason that we’ve brought together the current conversations into an easy to digest blog so you can view the options and decide for yourself which options are the best to explore for your business.

Here’s what’s been said so far:

  • SAP Managed Payroll is announced by SAP SuccessFactors at SuccessConnect Las Vegas in August, during SAP SuccessFactors president Mike Ettling’s keynote
  • NGA HR announces SAP SuccessFactors, powered by NGA Human Resources
  • Sherryanne Meyer blog post looks for answers to the frequently asked questions from ASUG (American SAP User Group) members
  • Jarret Pazahanik, SAP Mentor, joins the debate, based on his experience with various payroll projects: Why SAP Managed Payroll is NOT a Good Option for Most Customers
  • Rob Hill, HR Transformation Leader @ SAP SuccessFactors, was the first to respond from the SAP SuccessFactors side: Why SAP Managed Payroll is a Good Option for Most Customers!
  • Danielle Larocca joins the debate, wondering Is SAP SuccessFactors Managed Payroll a Good Fit for my Organization?
  • Mary Sidlauskas,HR Solution Management, Employee Central Payroll, responds to the questions from Jarrett and Sherryanne in the following two blog posts:
    • 10 minutes with SAP SuccessFactors Resident Payroll Guru Mary Sidlauskas: Q&A on the Why, What, and Who of Managed Payroll
    • 10 minutes with SAP SuccessFactors Resident Payroll Guru Mary Sidlauskas Take Two: Q&A on the Migration Process of Managed Payroll
  • And finally, NGA HR’s own Aitor Vinos, contributed with a perspective on how to best migrate SAP HCM payroll: A Step-by-Step Guide to Payroll Migration

This debate will continue. HR processes and payroll-as-a-service will continue to play a significant role in the future of work. Core HR IS moving to the Cloud, and HR and payroll platforms are naturally suited to the always available, self-service infrastructure this enables.

We look forward to the expansion of this great debate, and we look forward to hearing from you and being part of the debate.

— Michael