Integrating Global Payroll with SAP SuccessFactors

Aug 20, 2020  | Topic: Integration

Deploying a global payroll system is a major undertaking for any business. With so many employees and departments to incorporate, and so much data to handle, any elements that can be integrated with other systems have the potential to generate efficiencies.

Human resources is a vital area for integration with payroll, and the opportunities for doing so with the SAP SuccessFactors Employee Central system are considerable. This blog covers the basics around payroll with SuccessFactors, how best to apply specific features in your business, and the key points to cover when integrating with a global payroll solution.

Getting started with SuccessFactors Employee Central Payroll

SAP SuccessFactors developed Employee Central Payroll (ECP) so that companies can run both their human resources and their payroll operations in the cloud. SAP hosts ECP itself, and provides support package releases and management so that your whole SuccessFactors platform is constantly kept up-to-date with the latest features, innovations and security measures.

Companies who use Employee Central for their HR functions find that it acts as the nerve centre for all their HR processes. So because of this, it makes sense to incorporate payroll and run all elements of both from one cloud-based platform, accessible to all your teams wherever they are in the world.

By putting HR and payroll together, employees can use the same platform to view their employment data, payslips, paid leave bookings and performance information. Managers, meanwhile, can use the system for hiring, terminating or transferring any employee in any location. All this can be coordinated with their payroll information, and the tax and social security requirements of the country in which they work.

Running global payroll with SuccessFactors Employee Central

When you adopt SuccessFactors Employee Central, deciding how you run your global payroll is not an all-or-nothing decision. There are a number of options available to you, and which one is most suitable will depend on the size of your workforce, and the scale and distribution of them around the world. 

In the main, ECP is designed for handling big, heavy-duty payroll workloads for multinational companies with headcounts in the thousands. These users will have four-figure work forces in several different countries, and so using ECP makes logistical and financial sense for them. However, when payroll functions are only needed for a small number of employees in a specific country (i.e. less than 1000), outsourcing the payroll for that territory to the third-party solution makes more sense.

Another factor to consider is where you do business specifically. ECP currently supports 43 countries, and while that includes most major and developed economies, there are many territories where ECP can’t be used, especially in Africa and Eastern Europe. If you operate in more developing nations, a third-party alternative to ECP will be necessary.

The SuccessFactors Employee Central Certified Global Payroll Connector

The issues mentioned above underline why an integrated global payroll solution can be so valuable. Integration means you can get the best of both worlds - getting the ease and efficiency of ECP where possible, while relying on your third-party solution to cover the areas ECP can’t.

However, making this an effective, practical reality requires a well-planned, successful integration. Without it, you’ll be unable to fully connect HR and payroll data to give managers and employees a clear, complete view of all relevant information. Furthermore, the lack of integration will mean that some data will still need inputting manually, taking up valuable HR and payroll staff time. A heavy element of manual input being retained would also largely defeat the objective of making such a transformational change to your global payroll operations.

To ensure successful integration and to help businesses exploit the potential of fully integrated global payroll, CloudPay has developed dynamic payroll solutions that incorporate up-to-date automation technologies. Our APIs, certified for use with SuccessFactors Employee Central, help join all the dots of HR and payroll, so that information gathering, handling and processing is more interconnected and intuitive than ever before. These solutions cover more than 100 countries, and so represent a reliable cloud-based option for every kind of international business.