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Just so that you know: this is not a formal announcement! We have been hearing buzz about SAP SuccessFactors's next-generation cloud payroll for a while now, and it was mentioned a few times at the 2021 annual SuccessConnect conference in October. Each time it was mentioned, it was noted that it was not a formal announcement in any sense, but rather a reminder that there is ongoing development that continues in this area. Here are the highlights of what you need to know.
Today, SAP customers have 3 options for world-class SAP Payroll as detailed in the table below.
The world-class SAP Payroll that we know and love is currently built on based upon SAP ERP technology and that same technology powers the cloud version of SAP SuccessFactors Employee Central Payroll. The next evolution of Payroll will not be tied to that SAP baseline, it will rather be developed natively for the cloud. This is a reimagining of Payroll based on the best practices learned from SAP’s thirty-plus years in this space, coupled with leading technologies and leveraging the latest in human experience management.
SAP has a team that has been working extensively on this solution. They have shared the core guiding principles as noted below, and a commitment to ensure it is developed from a global standpoint, with far-reaching capabilities into other technologies.
As I said at the start, SAP has been talking about this for a few years, and they have made it clear that they have not formally announced it yet. What they have shared is that there are approximately 20 customers participating in the development, with a planned beta site in 2022 for a customer in the UK, and plans to expand to North America.
They have emphasized that they are taking their time to try to do it the right way and not rush a solution out to market. This is their opportunity to reimagine Payroll all over again. They already have three options for customers that are working well, all of which are leveraging the world's best global payroll, so they can take their time in building this. If you are interested in learning about additional options to be added in 2022 please see the blog titled What is SAP HCM for S/4HANA On-Premise (H4S4)?
As mentioned above, SAP has made it clear that customers have three options for Payroll today, and customers are welcome to use any of them to satisfy their current requirements. The SAP HXM Move program strategy aligns with this sentiment.
For those customers who wish to keep what they have and move to SAP S/4HANA Private Cloud Edition or move to SAP SuccessFactors Employee Central Payroll, we have a free assessment that assists you in determining which of these options may be a better fit for you. Once you have decided, we also offer the transformation solution to assist you in your migration. Learn more here.
Your current options for Payroll
Today, SAP customers have 3 options for world-class SAP Payroll as detailed in the table below.
| Option | Payroll | Description | Learn more |
| 1 | SAP ERP HCM Payroll On-Premise | Business as usual SAP SuccessFactors has given a commitment to their approximately 10,000 on-premise SAP Payroll customers that they will not experience an interruption in their continuous world class support, guaranteed until calendar year end 2027 with extended support available until 2030. | SAP Business Suite 7 Extension: What This Means for SAP ERP Human Capital Management Customers |
| 2 | SAP S/4HANA Private Cloud Edition (PCE) | Non disruptive pathway to digital transformation This offering, aligned with the HXM Move program is part of SAP's continued commitment to helping customers continue to get ROI from their on-premise SAP investment, while creating a bridge to the cloud and the future. This is a non-disruptive way to keep your HR, Payroll Time and/or Benefits via a cost-effective pathway to the cloud, while retaining the functional richness of your existing systems. which involves migrating to an SAP S/4HANA Private Cloud Edition (S/4 PCE) license which moves your environment to SAP’s own data center or in a hyperscalar (Azure, GCP, AWS). | Migrate your HCM on-premise to S/4HANA Private Cloud Edition (PCE) |
| 3 | SAP SuccessFactors Employee Central Payroll | Innovation The current focus of innovation with approximately 850 customers and 48 local versions. SAP also allows partners to build their own with partner locales. Customers on SAP ECC on-premise Payroll who wish to move to SuccessFactors Employee Central Payroll can do so using tools provided by SAP and partners. | Migrate on-premise Payroll to SuccessFactors' Employee Central with PRISM for ECP |
Next-Gen Payroll
The world-class SAP Payroll that we know and love is currently built on based upon SAP ERP technology and that same technology powers the cloud version of SAP SuccessFactors Employee Central Payroll. The next evolution of Payroll will not be tied to that SAP baseline, it will rather be developed natively for the cloud. This is a reimagining of Payroll based on the best practices learned from SAP’s thirty-plus years in this space, coupled with leading technologies and leveraging the latest in human experience management.
SAP has a team that has been working extensively on this solution. They have shared the core guiding principles as noted below, and a commitment to ensure it is developed from a global standpoint, with far-reaching capabilities into other technologies.
The Value Proposition for next-generation Payroll
- Low TCO
- Low Compliance Risk
- HXM
- Global Intelligence cross-suite
- Flexibility
Where does it stand today (October 2021)?
As I said at the start, SAP has been talking about this for a few years, and they have made it clear that they have not formally announced it yet. What they have shared is that there are approximately 20 customers participating in the development, with a planned beta site in 2022 for a customer in the UK, and plans to expand to North America.
They have emphasized that they are taking their time to try to do it the right way and not rush a solution out to market. This is their opportunity to reimagine Payroll all over again. They already have three options for customers that are working well, all of which are leveraging the world's best global payroll, so they can take their time in building this. If you are interested in learning about additional options to be added in 2022 please see the blog titled What is SAP HCM for S/4HANA On-Premise (H4S4)?
Do you have to move to SAP SuccessFactors Employee Central Payroll?
As mentioned above, SAP has made it clear that customers have three options for Payroll today, and customers are welcome to use any of them to satisfy their current requirements. The SAP HXM Move program strategy aligns with this sentiment.
For those customers who wish to keep what they have and move to SAP S/4HANA Private Cloud Edition or move to SAP SuccessFactors Employee Central Payroll, we have a free assessment that assists you in determining which of these options may be a better fit for you. Once you have decided, we also offer the transformation solution to assist you in your migration. Learn more here.
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