SAP and Workday HCM are both prominent players in the field of Human Capital Management (HCM) software. Here’s a breakdown of their features, strengths, and considerations when choosing between them:

What is HCM?

• Human Capital Management (HCM) encompasses the software systems and processes used by organizations to manage their workforce. This includes core HR functions like payroll and benefits administration, but also talent management, recruiting, time tracking, performance management, and more.

SAP HCM

• Legacy and Maturity: SAP HCM is an on-premise or private cloud solution from one of the world’s largest enterprise software companies. It has a long history and offers a deep set of features.
• Global Reach: Particularly strong in global payroll capabilities for large, multinational companies.
• Integration with SAP Ecosystem: SAP HCM integrates tightly with other SAP modules like finance and supply chain management, providing a unified view for businesses heavily invested in SAP products.
• Customization: Due to the on-premise/private cloud nature, SAP HCM offers greater customization potential.

Workday HCM

• Cloud-Native and User-Friendliness: Workday is a pure cloud-based software-as-a-service (SaaS) solution known for its intuitive interface and modern user experience.
• Unified Data Model: Workday’s key strength is its single, unified data model for both HR and financials. This enables better insights and analytics across different parts of the business.
• Regular Updates: The cloud-based nature means frequent feature updates and innovations.
• Focus on Talent Management: Workday leans towards robust talent management features, including recruitment, performance reviews, and learning and development.

Choosing Between SAP HCM and Workday HCM

Here are some factors to consider:

• Company Size: Workday often fits well for mid-size to large companies, while SAP HCM can be scaled to very large, complex organizations.
• Global Needs: SAP HCM has a stronger track record with multinational payroll requirements.
• Existing Tech Stack: If a company is extensively using other SAP products, SAP HCM provides a smoother integration path.
• Flexibility vs Customization: Workday offers streamlined processes and regular updates. SAP HCM allows for deeper customization but might come with more complexity.
• Talent Focus: Businesses prioritizing talent management functions might find Workday’s features more fitting.

Integration

It’s important to note that there are integration solutions available to connect SAP and Workday systems. This allows companies to use the best aspects of both systems, for instance, Workday for talent management and SAP for in-depth financials or payroll in specific countries.