What is SAP Human Capital Management

SAP Human Capital Management (HCM) is the integrated software package from SAP for efficient personnel management. It includes a variety of features that facilitate the management of human resources, hiring, development, training, compensation and recruitment. SAP HCM provides full management of employees and their pay. It includes features such as payroll, time management, performance monitoring, and personnel records management. With talent management solutions from SAP HCM, companies can even track the performance and development of their employees.

The comprehensive functions of SAP Human Capital Management include:


  • Human resources:
    This includes the planning, administration and control of human resources as well as the development and implementation of HR strategies.
  • Human Resources Management:
    The scope of people management includes the development and implementation of HR strategies, monitoring of performance data, creation of development plans, advising employees on their careers and selecting the right people for specific tasks.
  • Personnel diagnostics:
    With SAP Human Capital Management, the process of systematically collecting, analyzing, and evaluating data about people and organizations can be streamlined to improve workforce performance.
  • Compensation:
    This includes the development and implementation of compensation programs, rewarding employees based on performance, monitoring the wage and salary structure and reviewing compensation practices.
  • Legal/Compliance:
    SAP HCM supports compliance with laws and regulations that apply to companies and employees.
  • Recruitment:
    With SAP HCM, companies can manage the entire recruitment process from ad creation to hiring.

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SAP Wiki – SAP Human Capital Management