SAP Solution BriefSAP Business SuiteSAP ERP Human Capital ManagementEmployee Performance Management: Tap thePotential of Every EmployeeKey Features•• Goal setting – Align team and individualgoals with corporate goals•• Performance appraisal – Supportmanagers in calibrating teamperformance•• Development planning – Identify skillgaps to plan for employee developmentand training•• Pay for performance – Link performancemanagement with compensationmanagementBusiness Benefits•• Achieve corporate goals by monitoringworkforce progress toward broaderobjectives•• Increase workforce productivitythrough individual feedback and targeteddevelopment•• Improve execution of enterprisestrategy by helping every employeeunderstand and act upon organizationalobjectives•• Support employee developmentthrough consistent and efficientobjective-setting and appraisal processes•• Increase employee morale andretention through individualdevelopment plans, fair and consistentfeedback, and performance-basedcompensation•• Develop deeper talent bench strengththrough identification, management,and cultivation of high-potential andtop performers•• Speed time to value by implementinga streamlined process based on bestpractices enabled by a configurationwizardFor More InformationCall your SAP representative, or visit usat www.sap.com/talentmanagement.SummaryEmployee performance managementwith the SAP® ERP Human Capital Man-agement solution helps you effectivelyplan, assess, optimize, and analyze theperformance of your workforce. You canset individual objectives by cascadingyour enterprise strategy, assess perfor-mance through appraisals and feedback,and reward your employees accordingly.The solution is highly adaptable, allowingyou to tailor the content of performancefeedback documents and processes tothe needs of your organization.Business Challenges•• Maintain agility during corporaterealignments•• Retain skilled employees•• Identify top performers and those withhigh potential•• Increase employee productivityQuick Facts
The SAP® ERP Human Capital Manage-ment (SAP ERP HCM) solution can helpyou address these challenges by stream-lining and automating your performancemanagement processes. You can setindividual objectives by cascading yourenterprise strategy; assess and manageperformance through feedback, develop-ment, and appraisals; and reward youremployees accordingly.The solution supports many differenttypes of assessments, including 360-degree assessments and self-assessments.It allows measurable comparisons, sup-ports performance-based compensation,and promotes personnel development thatis in line with corporate objectives.The solu-tion is highly adaptable, allowing you totailor both the content of the performancefeedback documents and processes tothe needs of your organization.Workflowsstreamline the processes,and reports helpyou measure and optimize the processes.Managers and other decision makers canmonitor objectives using key figures andappropriate benchmarking.Performance PlanningThe solution helps you cascade corpo-rate goals and core values across theorganization. Line managers can easilycreate team goals and cascade these totheir direct reports. Individual objectivesagreed upon between employees and man-agers, along with appropriate dates andtimelines for meeting the objectives, areeasily entered into the software. You canuse free-form objectives and notes, pre-defined objectives, competencies, or keybehaviors and allow managers to modifythem as required. The solution providesstrong linkage with other talent manage-ment solutions, allowing you to activelyexecute a profile match between positionrequirements and the employees’ com-petencies to derive development needs.In addition, you can include trainingcourses and developmental activities inthe performance-planning agreement.Younow have a direct link between personnelobjectives and development needs.Performance Review andAppraisalPerformance calibration functions supportyour line managers in assessing and rank-ing the performance of their teams in aneffective visual way.Additional appraisers,such as dual-reporting managers, peers,project leaders,and employees themselves,can be integrated into the appraisal pro-cess.As soon as the appraisal is completed,compensation adjustment proposals canbe generated and the employee’s qualifi-cation profile can be updated.Ongoing Feedback and CoachingEmployee reviews enable you to monitorobjectives continuously throughout theyear. You can schedule reviews and acti-vate timely reminders for all participants.Review meetings help you check the rele-vance of objectives you set in the past; ifnecessary,you can remove obsolete objec-tives from the performance-planning doc-ument. Continuous monitoring helps youkeep employee goals in sync with yourenterprise strategy.Highly Adaptable Solution, QuickImplementationWhen it comes to performance manage-ment, every organization has differentneeds. You may be automating a perfor-mance management process for the firsttime and want to get up and runningquickly.You will appreciate a streamlined,preconfigured process that is based onindustry best practices, is optimized forquick implementation, and requires littleor no customization. You can use a wiz-ard to generate a template and timelineWhether your company is addressing the economic climatewith corporate realignments or by becoming more competitive,you’ll have to create a performance-driven environment by devel-oping employee skills and maximizing productivity – while savingcosts.You need an employee performance management solutionthat can help you effectively plan, assess, optimize, and analyzethe performance of your workforce from end to end.
configuration to specify dates and textto display in the process road map.You may have a complex performancemanagement process or need more flexi-bility to adapt the process to the individ-ual needs of departments or businessunits.Taking advantage of a broad rangeof functionality, you can customize theuser interface by specifying the type andlayout of process guidance, identify inte-gration points, and define workflows basedon handling status.Tight Integration SupportsFlexibilityBecause employee performance man-agement functionality is tightly integratedwithin SAP ERP HCM and with otherSAP software (see table),your HR depart-ment can tailor the performance feed-back processes to the needs of yourenterprise. The solution is quite flexibleand supports your business – from asimple appraisal to a comprehensive per-formance-planning and performance-feedback process that includes multiraterThe solution allows measurable comparisons, supportsperformance-based compensation, and promotes per-sonnel development.Because performance managementfunctionality is integrated into SAP ERP HCM,you can tailorprocesses to the needs of your company.Integration Points Within SAP® ERPHuman Capital Management (SAP ERPHCM)User ActivityCompetency management framework Match existing skills of your workforce with the skills required for a specific position.After an appraisal is completed,obtained qualifications can be transferred automaticallyto an employee’s qualifications profile, helping ensure high data quality.Talent review and calibration features Nominate talent for talent review meetingsOrganizational management features Route performance feedback documents through the organizational hierarchy, thuseliminating manual, paper-based approval processesCompensation management features formanagers and compensation administratorsGenerate compensation adjustment proposals and easily tie performance ratingswith performance-based pay, reducing manual data-maintenance effortsHR standard authorizations Restrict access to appraisal documents and help ensure a secure system in which onlylegitimate users can access sensitive dataIntegration Points with SAP Software Enable You to Do the FollowingSAP Enterprise Learning environment andthe employee development features of theSAP ERP HCM solutionMonitor employees’individual training and development progress throughout the yearSAP NetWeaver® Business WarehousecomponentKeep track of the data you need to compare appraisal results, monitor the status ofappraisals, and perform average calculations. Analytical functions provide decisionsupport for succession management and individual promotions.SAP Strategic Enterprise Management(SAP SEM®) applicationCommunicate your organizational strategy and cascade business goals downto department, team, and individual goals