5 Insights into SAP HXM – SAP Extends HR-Portfolio
(6 min read)
SAP Human Capital Management (SAP HCM) is becoming SAP Human Experience Management (SAP HXM). From now on, SAP will provide an extended HR solution – which goes beyond Human Capital Management. But what is the new HXM approach really about? And for who is it interesting to take a closer look at this development?
Empowering and motivating employees to become more successful and increase business performance – this is an everyday objective of companies. Research about the relationship of business success and employee satisfaction proves that positive experiences not only increase employee happiness and reduce employee turnover but also enhance business results.
Nevertheless, traditional SAP HCM-systems mainly focus on the administrative tasks: Collecting data of hierarchical processes, doing standard operations – and automating them, at best. Up to now, the actual user experience of HR software has received less attention – and this in turn does not correspond to the enhanced employee’s expectations.
Building on already existing solutions, cloud-based SAP SuccessFactors HXM Suite creates experiences, which are beneficial for single employees, teams, and whole organizational units. It enables people departments to contribute to their businesses’ success more than ever. With that idea in mind, you’ll probably ask yourself: How can I develop my Human Capital Management in order to create a Human Experience Management?
1. How Does SAP HXM Align HR with the End Users?
What is SAP HXM really about? Previous HCM-systems were closely connected to the HR operation models, which contain mainly processes that are isolated from other departments. SAP HXM focuses mainly on the working method and daily work of humans. And humans don’t think and work in isolated categories. A store manager for example, who has a short timeframe in which to build up a new team for the high season, has to do the following steps quickly: Budget planning, creating a job description, advertising the description, applicant selection, onboarding, and more.
This can be done in one day. With SAP HCM systems, the requirements of the HR department and its support for the individual activities would have been the main focus here. With SAP HXM, the focus is first on the store manager. What does he or she need to be successful? Where and how can steps be automated that do not directly add value? How can employees be hired and become productive as quickly as possible?
HXM provides networked tools for these tasks. And this is accompanied by the initiation of a loop, in which those involved are promptly asked about their experiences and suggestions for improvement.
2. What is O Data and X Data?
A key function of traditional HCM solutions: Collect data and process operations. Operational data (O data) – for example the relationship between contract offers and hiring, the training period, and employee turnover – is stored. This data shows what has happened so far. It is useful for forecasting future developments and setting the course. However, this is only one perspective.
Besides the «what», the «why» is also important. With SAP Human Experience Management, companies, employees, and customers are able to record experience data (X data). These data provide information about why something is happening. The combination of both types of data (O and X data) allows your company to improve the user experience – for each individual colleague or more broadly at the program level.
Your company can collect feedback on a continuous basis and when it matters most. For example, it is possible to ask new employees about their first impressions after the first 30 working days with a simple survey.
With X data, companies gain insight into the experiences of applicants and new employees. They can assess how well their recruiters react, whether new colleagues feel optimally integrated into the teams, how effective training is, how much trust employees have in managers and much more.
By combining this data with typical O data such as acceptance rates and initial performance, HR managers can see which improvements they should prioritize.
3. How Does SAP HXM Use Intelligent Technologies?
With SAP HXM, companies can offer their employees a more engaging experience by leveraging new technologies. For example, machine learning can be used to encourage employees to take an active role in improving their health and planning their careers. An integrated chat function helps managers to perform tasks more efficiently or to search for information.
Ideally, these improvements help employees feel valued in two ways: they can do their jobs faster and easier – and their opinions and preferences are taken into account by the HR department.
4. What is SAP HXM’s Range of Application?
SAP Human Experience Management goes far beyond the human resources department. HXM extends to all activities involving employees, such as travel or procurement. And SAP HXM does not end with the SAP application areas. It can also measure the perception of both groups beyond the boundaries of HR, for example within the customer/employee relationship, in order to gain important insights for personnel development.
With a comprehensive, open, and networked platform, companies have access to solutions and tools that work within SAP SuccessFactors software. For example, companies can use artificial intelligence to schedule job interviews or nominate colleagues for awards.
5. How can I Implement SAP HXM to My Business?
SAP HXM is the result of years of research into how people work and what they need from their employers in order to be fully engaged and do the best job possible.
SAP’s HXM vision is ambitious. But that doesn’t mean existing things have to be radically replaced. An iterative approach can lead to the same goal. In this way, every company can set up and develop its human experience work in a sustainable manner at a pace that matches its priorities.
Dive Deeper into People Management
Want more information on how to best manage the human experience in your business? Visit our Line of Business page about how to optimize Human Capital Management using smart software or take a look at the SAP SuccessFactors product page and discover how Human Experience Management (HXM) can take place in your company. In order to manage your HR master data more efficiently and increase data quality, you can also discover our own solution – it.data guardian.