SAP HCM for S/4HANA (H4S4)
SAP HCM for S/4HANA (H4S4)
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All companies that use SAP HCM (SAP ERP HCM) need to act now. SAP is discontinuing the on-premise solution and by 2027 it will no longer be available. Anyone who doesn’t switch to SAP SuccessFactors – whether out of choice or because they are not able to, for example because it doesn’t include the required features – needs to migrate to SAP HCM for S/4HANA or H4S4. This solution guarantees HCM operation away from the cloud until at least the end of 2040.
This migration is also a sensible option for those using the SAP Extended Maintenance Service and who want to carry on using their HCM until 2030. This is because the extra three years of usage leads to additional costs.
The interruption in service will be particularly difficult for those using the SAP S/4HANA Compatibility Pack (HCM). Both the support and the user rights are due to expire in 2025. In other words, from 1st January 2026, it will no longer be possible to use the SAP HCM in this format.
Here is an overview of the timeline from SAP:
What does this mean for me as an SAP HCM user?
As the name suggests, the SAP HCM is migrating to the new H4S4 product and, with it, to the SAP HANA database. The concept is to create a unified system to prepare for migration to the cloud. It is available on-premise or on the private cloud, albeit with a reduced level of functionality.
What does this mean in practice? You will need to migrate your software – the licensing model is changing and some SAP HCM modules will no longer be supported.
The SAP HCM for SAP S/4HANA On-Premise Edition has the following modules:
- Personnel Management:
- Personnel Management
- Organization Management
- Benefits
- Enterprise Compensation Management
- Personnel Cost Planning and Simulation
- Pension scheme
- MSS / ESS (WDA and Fiori)*
- Payroll:
- Payroll
- SAP Travel Management (part of SAP S/4HANA)
- Talent Management:
- SAP Learning Solution*
- SAP E-Recruiting
- Talent Management und -development
- Objective Settings and Appraisals
- Time Management:
- Time
- Shift Planning
- CATS
- Public Sector:
- Position Budgeting and -control
- HR Funds and Position Management
- Shift Planning for Public Sector
*without JAVA Component
Is SAP SuccessFactors a valid alternative?
Some tried-and-tested HCM modules that have been in use for many years are no longer available in H4S4. The following information from SAP contains a detailed description of these specific modules: 3091160 – SAP HCM for SAP S/4HANA – General Approach and Strategy (go to SAP Login).
The missing features can be replaced by using other SAP or third-party solutions. The best solution depends on the processes in question.
Here’s an example: The Training and Event Management (PE) module is no longer available. It can currently be replaced with the SAP Learning Solution (LSO) and will soon be able to be replaced with the SAP SuccessFactors Learning. Some third-party tools can also be used with a few customizations.
How long does migration to H4S4 take?
As the software was only released in the last quarter of 2022, there isn’t currently much data. Depending on the complexity of the SAP landscape in question, the likely time frame is around 12 to 18 months.
How to migrate to SAP HCM for S/4HANA
Firstly, it is important to note that almost all HCM modules can continue to be used without any modifications. Despite this, migrating to S/4HANA is more than just a simple update. As such, we recommend making a start in good time and drawing up a roadmap for the migration process.
You need to clarify two key points:
1. How much of my current SAP system landscape can I retain?
2. Which changes are required to optimise my processes?
The specialist department and/or your SAP consultant will carry out the SAP Readiness Check to determine point 1. The result of this then leads on to point 2 and can be used to adapt outdated data models and obsolete organizational structures. The migration process provides an opportunity to restructure and simplify your data and processes so they are more efficient. This process takes place in workshops involving IT and other specialist departments.
Summary: Migration is unavoidable if you are currently using SAP HCM. But the migration process does offer a number of opportunities if it is well planned out.
