SAP SuccessFactors EC-Payroll in the Cloud: 1H2024 Release

Things are happening in payroll, too! Despite all the enthusiasm for innovations in artificial intelligence and skills management, we don't want to forget the hard core of HR. The current 1H2024 release brings some innovations for SAP SuccessFactors Employee Central Payroll (ECP). We will briefly discuss the most interesting ones here.

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What is SuccessFactors Employee Central Payroll anyway?

But first, let's briefly clarify the terminology and differentiate ECP from other SAP payroll solutions.

Employee Central Payroll (ECP) is basically a component of the SAP SuccessFactors HCM solution. ECP is designed to be used integrated with SuccessFactors Employee Central as a core HR system. "Stand-alone" operation with 3rd party HR solutions is therefore not intended, though theoretically possible.

Employee Central Payroll is using the globally proven SAP HCM payroll solution to take it to the cloud:

• PY-GB for the UK
• PY-IE for Ireland
• PY-US for the USA
• ...and around 70 other country versions, most of which are also available in the ECP

SuccessFactors ECP is the cloud version of the tried-and-tested solution. This means that it essentially has the same functionalities based on the same coding. However, it is limited to the pure payroll scope. Time recording, cost planning and other modules are not included. It is therefore ideal for new SAP customers or customers who use SAP SuccessFactors and possibly other cloud solutions for core HR, time management and workforce planning. It should also be noted that other that typical SaaS solutions, every customer has their own ECP system. So, it doesn't use the multi-tenancy design.

The benefits of SAP SuccessFactors Employee Central Payroll include

• simple integration with Employee Central without middleware
• the elimination of infrastructure costs for customers
• moving away from purchase towards subscription (rental) and therefore improved scalability (from CapEx to OpEx).

The following SAP solutions should be distinguished from ECP:

• The classic on-premise payroll SAP HCM PY and its almost identical successor in SAP HCM for S/4HANA
• The Private Cloud Editions (PCE) of the above solutions
• The new SuccessFactors Payroll, often referred to as "Next Generation Payroll" (NGP). It has been developed from scratch recently and is not yet available for countries, but being piloted in the UK

Innovations for SAP SuccessFactors Employee Central Payroll in the current release

The 1H2024 release has brought some innovations for EC-Payroll. For many customers, the small, country-specific additions are the most important. Others focus on a better user experience or simpler administration. There is something for everyone in this SuccessFactors release. I will briefly present the 4 most interesting topics from my point of view.

1) User generation in Employee Central Payroll with IPS

As of the current release, ECP users can be generated via the IPS (Identity Provisioning Service) just like "normal" SuccessFactors users. Previously, a separate report had to be used. With the new process, SAP is further harmonising user generation across its entire cloud offering. This also reduces complexity and admin effort for customers.

It should be noted that existing users cannot currently be migrated to the new concept. The solution based on the Identity Provisioning Service is therefore only recommended for new ECP customers. In addition, the procedure is currently only approved for test and development environments. For production from the November 2024 release. If you go live with Employee Central Payroll around this time, you should find out the exact date, so you can go live with the IPS variant if possible.

2) Improved user experience for Employee Central Payroll

• Mash-ups could previously only be used through a UI embedded in the existing SuccessFactors window. Many customers wanted the option of opening mash-ups in new windows. This is now possible with the 1H2024 release.
• Artificial intelligence does not stop at payroll either. If Joule is activated for SuccessFactors, employees will also be able to access overview information on the payslip or the complete document via the SAP Joule digital assistant.

3) Improved integration of EC-Payroll with SuccessFactors Time Management

• Planned working time from the time management master data in Employee Central can now be replicated to ECP for 400 days. Previously, this was limited to 60 days.
• The "Shift Classification" from the master data in Employee Central can now be replicated by default into infotype 2003 on ECP The target field in the substitutions infotype is the daily work schedule class.

4) New ECP country version for payroll Slovenia

A completely new country has also been added: Slovenian payroll will also be offered in SAP SuccessFactors Employee Central Payroll in future.

The availability of the Slovenian country version actually makes me particularly happy. In January 2000, I was responsible for the first go-live of SAP payroll in Slovenia - at that time still as a customer extension in the on-premise SAP HCM system. A lot has happened in HR IT since then.

Further innovations for Employee Central Payroll

There many more small improvements in the current release of ECP. Most of these relate to the specifics of the various country versions and others are purely technical innovations. Find out more in this What's New article from SAP with links to the details.

What innovations can we expect for SAP SuccessFactors Employee Central Payroll in the future? With the announcement of a completely new SuccessFactors Payroll developed for the cloud, many feared that ECP would be neglected. However, the current release proves the opposite. For most countries, it will take another five years or more for the new solution to reach a sufficient level of maturity. SAP therefore want to offer customers a reliable payroll in the cloud today.

AI applications that make processes more efficient for ESS users and payroll admins are an obvious choice for further innovations in ECP. The Payroll Control Centre certainly offers room for improvement through artificial intelligence. Just think of alerts, compliance checks, process control or analytics.