SAP Extends the HR Portfolio: 5 Insights into SAP HXM
(6 min read)
SAP is now providing an extended HR solution that goes beyond human capital management. What has been called SAP Human Capital Management (HCM) in the past is now becoming SAP Human Experience Management (HXM). But what is the new approach really about? Let’s take a closer look at this new development.
A common objective of many companies is empowering and motivating employees to become more successful in order to increase business performance. Research into the relationship between business success and employee satisfaction backs this up. In addition to increased employee happiness and reduced turnover, positive employee experiences also enhance business success.
Up to now, the actual user experience of traditional HR software has not done a good job of addressing enhanced employee expectations. Its main focus has been on administrative tasks: collecting data for hierarchical processes, doing standard operations and automation.
In contrast, SAP has built on the existing HR solution to create experiences that are beneficial for single employees, teams and whole organizational units. The SAP SuccessFactors HXM Suite enables people departments to contribute to their businesses’ success more than ever. So now you may be wondering: How can I change my human capital management to create Human Experience Management?
1. SAP HXM Aligns HR with End Users
Traditional HCM solutions are closely linked to HR operational models, focusing mainly on processes that are isolated from other departments. But humans don’t think and work in isolated categories, so SAP HXM focuses on the working methods and daily work being done. As an example, a store manager who needs to quickly build a new team during peak demand needs to do the following tasks quickly: plan the budget, create a job description, advertise the openings, select qualified applicants, onboard and so on. All of this can be done in one day.
The main focus of an HCM system would be on the requirements of the HR department and its support for individual activities. However, the focus of SAP HXM is first on the store manager and what he or she needs to be successful. What steps can be automated, and how can employees be hired and become productive as quickly as possible?
An HXM solution will provide networked tools to cover these tasks, accompanied by a closed loop in which those involved are asked about their experiences and suggestions for improvement.
2. You Need Both O Data and X Data
One of the key functions of traditional HCM systems is to collect data and process operations. This “O data” (operational data) is stored, and shows what has happened so far. For example, the relationship between contract offers and hiring, the training period and employee turnover. While this data can be useful for forecasting future developments and setting direction, it only represents one perspective.
The “O data” answers the “what,” but the “X data” (the “why”) is equally important. SAP Human Experience Management enables the business to record experience information that explains why something is happening. Using both types of data (O and X data) allows your business to improve the user experience for each individual, or more broadly, at the program level.
An HXM solution enables your business to collect feedback on a continual basis, when it matters most. For example, you can use a simple survey to ask new employees about their first impressions after their first 30 days working for the company.
X data can provide powerful insights about the experiences of applicants and new employees. You can learn how well recruiters react to applicants, whether new employees feel they are being integrated into their teams, the effectiveness of training, how much trust employees have in managers, and much more.
When X data is combined with typical O data – such as acceptance rates and initial performance – HR managers have the information they need to see which improvements should be prioritized.
3. SAP HXM Uses Intelligent Technologies
SAP HXM allows businesses to leverage new technologies to offer employees a more engaging experience. Examples include using an integrated chat function to help managers search for information or perform tasks more efficiently, or using machine learning to encourage employees to take an active role in improving their health or planning their careers.
These types of improvements can help employees feel valued in two ways. They are empowered to do their jobs faster and more easily, and they feel that their preferences and opinions are taken into account by the HR department.
4. SAP HXM Goes Beyond the HR Department
SAP Human Experience Management doesn’t stop with the human resources department. It extends to all activities involving employees – things like travel or procurement – and it does not end with the SAP application areas. You can also use it to measure perceptions beyond the boundaries of HR — for example, within the customer/employee relationship — in order to gain important insights for personnel development.
Within a comprehensive, open and networked platform, your business will have access to solutions and tools that work with SAP SuccessFactors. Examples of this would be using artificial intelligence to schedule job interviews or nominate colleagues for awards.
5. Introducing SAP HXM to Your Business
SAP HXM is the result of years of research into how people work and what they need to be successful. The vision is ambitious, but it does not mean that you need to make radical changes or replace your existing solution immediately. An iterative approach can get you to the same goal. In this way, your business can set up and develop its human experience strategy in a sustainable manner at a pace that matches your 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.