Describing the Principle of Shared Services

You can use standardized and automated shared services processes and self-services for employees and managers to structure Human Resources processes more efficiently. Throughout your enterprise, you can implement uniform processes and services that reduce the lead times of operations and ensure a continuous high level of service.

Employee Self Service (ESS) is often used and is a system or platform that allows employees to access and manage certain HR-related information and administrative tasks independently, without the need for direct assistance from HR. Changing one's permanent residence or accessing one's salary statement reduces HR workload and increases data quality.

The tasks of an HR specialist can include maintaining an employee's master data. The following process is required for this:

1. Login

   The HR specialist logs into the system as a dialog user. License costs are incurred and the user must be integrated into the company's security concept. Not everyone should be granted access to an HCM system with sensitive data so easily

2. Transaction PA30

   The HR specialist opens a power user interface via transaction PA30 to be able to display and change a wide variety of master data.

3. The special requirement for changing the permanent residence is implemented as follows:
   1. Infotype 0006 Subtype 1 Permanent residence
   2. Create button (F5)
   3. New entries
   4. Save

If a "normal" employee wants to maintain his own data, such as his permanent residence, this poses a problem. On the one hand, the individual employee is usually overwhelmed by the functionality of the power user interface, and on the other hand, adapting the security concept for sensitive HCM data is usually complex. An alternative shared service solution is required.

If a "normal" employee wants to maintain his data, such as his permanent residence, himself, a shared service solution such as Employee Self Service is helpful.

1. Login

   The employee logs in to a frontend with his user and uses the My Addresses service implemented there.

2. Navigation to My Addresses

   The My Addresses application offers an intuitive interface that only shows his own data and is easy to use without the need for transaction knowledge.

3. Intuitive

   The employee can intuitively change his own data or create new ones, so changing his permanent place of residence is no problem, for example.

4. Synchronization

   After entering a new permanent place of residence, the frontend system enters into a dialog with the backend system to transfer the new values ​​to the HCM system. The data recorded in the frontend is synchronized with the data in the backend.

The use of shared services includes the following three components:

1. Roles
   • Employee Self Services (ESS)
   • Manager Self Services (MSS)
   • HR specialist
   • Other roles such as trainers, talent management specialists, and so on.
2. Frontend system

   SAP currently offers two different deployment options:

   • SAP Enterprise Portal (classic)
   • SAP Fiori (with apps)

   In older SAP versions, SAP NetWeaver Business Client and HR Renewal could also be used. However, these are no longer being developed and will expire according to the SAP release cycles.

3. Backend system

   The source data of the HCM S/4HANA system, including personnel administration (PA), personnel time management (PT), Payroll (PY) and other modules, are located in the backend system and must be connected and synchronized with the frontend system via interfaces.

The focus of this lesson is on implementing self-services based on the Fiori framework, but the current HCM and Fiori release strategies must be taken into account.

SAP offers continuity and investment protection for HCM on-premise customers in the following way:

• The solution will be based on SAP ERP HCM with selected SAP HANA database related enhancements.
• This option is intended to serve those customers who are not yet ready to partially or fully transform their HR processes into a cloud-based model.

Customers who desire to keep HCM on-premise have two options – they can stay on SAP Business Suite 7.0 or move to S/4HANA on premise, by leveraging the S/4HANA Compatibility Pack for SAP HCM.

Current dilemma – mainstream maintenance for the Business Suite / SAP ERP HCM ends in 2025. In addition, the usage rights for S/4HANA Compatibility Pack will expire in 2025.

As the rest of the Business Suite does not have the same customer demand as HCM, and as a prolongation of the S/4HANA compatibility packs is not an option, we have defined a new option that assures our customers extended support for HCM on premise independently of the Business Suite.

SAP decided to support these customers’ needs, by offering a new HCM on-premise option.

Currently, you can use the apps based on Add On: HCM Fiori 2.0 in all on-premise variants. Maintenance ends in 2027. At the same time, all new Fiori apps are developed based on the SAP HCM for S/4HANA release.