--- title: 10 Things you Need to Know About SAP’s HRMS description: HRMS systems have 10 essential functional capabilities including advanced SAP BW analytics. We can help you improve your SAP HRMS system performance. image: https://www.sapbwconsulting.com/hubfs/Stock%20images/Businesspeople%20sitting%20at%20the%20table%20on%20a%20meeting.jpeg --- ![SAP HRMS Consultant](https://www.sapbwconsulting.com/hubfs/Stock%20images/Businesspeople%20sitting%20at%20the%20table%20on%20a%20meeting.jpeg) # 10 Things you Need to Know About SAP’s HRMS Table of Contents ## What is an **Human Resource Management System**? Whether you are a 1 man operation or 2 million person operation like Russian Railways, you need an **HRMS system**.      [![Get SAP HRMS Consulting Support](https://no-cache.hubspot.com/cta/default/118735/186a95d8-3cb0-436e-95ba-6ace15ddc920.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/186a95d8-3cb0-436e-95ba-6ace15ddc920)   ## What's an HRMS System?   It stands for [**Human Resources Management System**](https://www.sapbwconsulting.com/consulting-rate-calculator-whats-your-rate), and in earlier times, it was simply called HR or [Human Resources](https://www.sapbwconsulting.com/fully-loaded-cost-calculator).  [SAP](https://www.sapbwconsulting.com/blog/what-is-sap-consulting) currently [calls it](https://www.sapbwconsulting.com/blog/inbound-marketing/learn-7-key-approaches-to-developing-buyer-personas) HCM or [SAP **Human Capital Management**](https://www.sapbwconsulting.com/sap-hcm-consulting-support-request). ![SAP HRMS - Human Resources Management System](https://www.sapbwconsulting.com/hs-fs/hubfs/Stock%20images/Businesspeople%20sitting%20at%20the%20table%20on%20a%20meeting.jpeg?width=669&name=Businesspeople%20sitting%20at%20the%20table%20on%20a%20meeting.jpeg "SAP HRMS - Human Resources Management System") Human Resources are Your Number One Resource   ## What do you **need to know** about about how a **HRMS system works**?    From a [business process](https://www.sapbwconsulting.com/blog/inbound-marketing/does-pci-dss-compliance-affect-you) standpoint, it must provide support for the complete **Hire-to-Retire [business process](https://www.sapbwconsulting.com/blog/how-to-improve-sap-profitability-management-p2-the-ultimate-guide)**.    To do that, it must provide the following 10 HR [business process](https://www.sapbwconsulting.com/blog/10-secret-tips-to-choosing-sap-consulting-companies) capabilities to be considered a complete, world-class [HRMS  system](https://www.sapbwconsulting.com/blog/how-to-understand-sap-supply-chain-management-and-bw):   - An HRMS system must provide the capability for HR specialist to design and develop an [**organizational structure**](https://www.sapbwconsulting.com/blog/sap-grants-management) for the [enterprise](https://www.sapbwconsulting.com/sap-partner-advisory-services). - It must [provide the ability](https://www.sapbwconsulting.com/blog/cots-vs-custom-development-decision-tree-analysis) to **process payroll** for all types of employees, whether salaried, hourly, external or internal and be fully [integrated with the financial system](https://www.sapbwconsulting.com/blog/inbound-marketing/42-essential-hubspot-integrations-b2b-marketers-need-to-start-using). The SAP payroll module is how SAP handles this [requirement](https://www.sapbwconsulting.com/blog/sap-support-companies).  It normally also requires the Banking Integration within the finance module. - It must provide the ability to [post job requirements](https://www.mapertunity.com/) on the internet and other [mediums](https://www.sapbwconsulting.com/blog/inbound-marketing/10-ways-internet-marketing-reveals-inventory-problems). - It must be able to [**interface**](https://www.sapbwconsulting.com/blog/how-to-get-the-webi-universe-data-source-connection-setup) with [web based](https://www.sapbwconsulting.com/blog/inbound-marketing/12-sap-crm-content-management-system-requirements) HR [portals](https://www.sapbwconsulting.com/inbound-marketing-services/hubspot-crm-implementation), like dice, LinkedIN, [mapertunity](https://www.mapertunity.com/) or sapfans. - Be able to monitor and ensure **compliance** with all **[legal requirements.](https://www.sapbwconsulting.com/improve-your-sap-bw-project-requirements-gathering) **It should also be able to track skills and [certifications](https://www.sapbwconsulting.com/blog/how-sap-certification-ought-to-work), such as SAP Certifications.  This is a key risk [mitigation strategy](https://www.sapbwconsulting.com/blog/12-risk-management-considerations-to-measure-wricef-a) for companies that work in highly regulated [industries](https://www.sapbwconsulting.com/sap-consulting-support), such as aerospace & defense, pharmaceutical, food services and nuclear.** ** - Be integrated into the **production management function** such that you can not only [model process capacity](https://www.sapbwconsulting.com/blog/tdabc-simplified-time-driven-activity-based-costing-explained) but also [manpower required](https://www.sapbwconsulting.com/estimate-your-sap-bw-consulting-resource-needs-calculator-timer)/consumed by each such process. SAP time management provides fully integrated services to both of these business process requirements. - **Provide Kiosk** [self-service](https://www.sapbwconsulting.com/blog/inbound-marketing/3-multi-channel-marketing-lessons-learned-catching-the-big-one) capability. SAP HCM, as well as SAP SuccessFactors, are both SAP cloud based human resources software that provides this and [much more](https://www.sapbwconsulting.com/blog/understanding-the-most-common-sap-data-warehousing-concepts).  It also provides time management capabilities as well as deep [integration with 3rd party systems](https://www.sapbwconsulting.com/hubspot-integrations-sales-sap-chat) like Kronos. - Offer the possibility of having part or all of the system operated on an **[outsourced basis](https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-nail-sap-partnership-management). **[SAP HR Employee](https://www.sapbwconsulting.com/blog/inbound-marketing/what-do-sap-consultancies-do) Management Software is specifically optimized for this scenario.** ** - **Support Mobilization** of [people for](https://www.sapbwconsulting.com/blog/inbound-marketing/how-important-is-data-governance-to-internet-marketing) international work. Obviously, there are many other required functionalities for an **HRMS system**.    ## HR Modules in SAP There are eight primary modules in SAP HR that provide comprehensive support for all of these functional requirements.   ## SAP HRMS [Analytic Capability](https://www.sapbwconsulting.com/blog/how-to-understand-sap-modules-in-5-minutes)   The most important of which may be a highly **evolved [analytic capability](https://www.sapbwconsulting.com/blog/10-xcelsius-2008-dashboard-best-practices)**.    Our experience across multiple [SAP projects](https://www.sapbwconsulting.com/blog/12-warning-signs-your-epm-system-is-in-trouble) tells us the most important aspect of the [SAP HRMS](https://www.sapbwconsulting.com/sap-hcm-consulting-support-request) may well be ‘**flexibility**’ and ‘**simplicity**’ in terms of the ability of HR departments to effectively use the system and help a company [achieve higher profitability](https://www.sapbwconsulting.com/blog/how-to-improve-sap-profitability-management-the-ultimate-guide).   Their main [analysis requirement](https://www.sapbwconsulting.com/sap-sem-cpm-risk-register-design-template) is often the [**cost of acquisition of a new employee**](https://www.sapbwconsulting.com/business-ratio-formulas-financial-formulas).    ## [Key Performance Indicators](https://www.sapbwconsulting.com/blog/5-kpi-design-best-practice-guidelines) are Unique   However, we have found that each company has slightly different [analytical needs](https://www.sapbwconsulting.com/blog/what-is-the-tco-of-that-shinny-new-system-youre-about-to-buy) and thus, each [KPI](https://www.sapbwconsulting.com/business-ratio-kpi-formulas-financial-formulas) ([Key Performance Indicator](https://www.sapbwconsulting.com/blog/10-things-you-need-to-know-about-sap-s-hrms)) is usually unique for each company.  We often find that our SAP HCM Framework for developing [high performance teams](https://www.sapbwconsulting.com/blog/12-warning-signs-your-epm-system-is-in-trouble) is critical for our clients to [achieve success](https://www.sapbwconsulting.com/sap-asap-project-review). Perhaps we can help you build a more [effective HRMS system](https://www.sapbwconsulting.com/blog/9-epm-sap-strategy-management-how-to-best-practices-to-implement-now) for your company.   [![Get SAP HRMS Consulting Support](https://no-cache.hubspot.com/cta/default/118735/186a95d8-3cb0-436e-95ba-6ace15ddc920.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/186a95d8-3cb0-436e-95ba-6ace15ddc920)   We appreciate all comments and links!        Thanks  Topics from this blog: [Best Practices](https://www.sapbwconsulting.com/blog/topic/best-practices) [Consulting](https://www.sapbwconsulting.com/blog/topic/consulting) [How-To](https://www.sapbwconsulting.com/blog/topic/how-to) [HRMS](https://www.sapbwconsulting.com/blog/topic/hrms) [SAP HCM](https://www.sapbwconsulting.com/blog/topic/sap-hcm) ### Download SAP BW Mindmap Learn what SAP Business Warehouse is and what it does in under five minutes [![Get this Mindmap](https://no-cache.hubspot.com/cta/default/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b) [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ### Lonnie D. Ayers, PMP About the Author: Lonnie Ayers is a Hubspot Certified Inbound Marketing consultant, with additional certifications in Hubspot Content Optimization, Hubspot Contextual Marketing, and is a Hubspot Certified Partner. Specialized in demand generation and sales execution, especially in the SAP, Oracle and Microsoft Partner space, he has unique insight into the tough challenges Service Providers face with generating leads and closing sales using the latest digital tools. With 15 years of SAP Program Management experience, and dozens of complex sales engagements under his belt, he helps partners develop and communicate their unique sales proposition. Frequently sought as a public speaker in various events, he is available for both inhouse engagements and ** remote coaching. ** ![Balanced Scorecard Consultant](https://www.sapbwconsulting.com/hubfs/social-suggested-images/Balanced%20Scorecard%20Certified%20Graduate.jpg) He also recently released a book **"How to Dominate Any Market - Turbocharging Your Digital Marketing and Sales Results",** which is available on [ Amazon.](https://www.amazon.com/Dominate-Turbocharging-Digital-Marketing-Results/dp/1728357950/ref=sr_1_1?dchild=1&qid=1589182458&refinements=p_27%3ALonnie+D.+Ayers&s=books&sr=1-1&text=Lonnie+D.+Ayers)**** [View All Articles by Lonnie D. Ayers, PMP](https://www.sapbwconsulting.com/blog/author/lonnie-d-ayers-pmp) ## The SAP Blog Subscribe to our blog and receive SAP BW Updates, demand generation, inbound marketing, sales enablement, technology and revenue generation insights and ideas delivered right to your email. [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ![SAP](https://googleads.g.doubleclick.net/pagead/viewthroughconversion/960101754/?value=0&guid=ON&script=0) ![](https://www.facebook.com/tr?id=199270410761059&ev=PageView&noscript=1) ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/blog/10-things-you-need-to-know-about-sap-s-hrms#blogposting", "@type" : "BlogPosting", "author" : { "@id" : "/#", "@type" : "Person", "name" : "Lonnie D. Ayers, PMP" }, "dateModified" : "February 9, 2026, 4:06:55 PM", "datePublished" : "2012-03-05 15:38:00", "description" : "HRMS systems have 10 essential functional capabilities including advanced SAP BW analytics. 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