Hiring, Transfers, Promotions, and Terminations in SAP HCM

SAP HCM (Human Capital Management) is a module used to manage various HR processes within an organization. Some key processes include employee hiring, transfers, promotions, and terminations. Each of these actions is tracked and managed using Personnel Administration (PA) and Organizational Management (OM) components in SAP. This tutorial will walk you through the process of managing these HR actions in SAP HCM, with real-world examples to illustrate each step.

1. Introduction to HR Actions in SAP HCM

HR actions are events or processes that change an employee's status or organizational position. In SAP HCM, these actions are represented as personnel actions, which are logged in Infotype 0000 (Actions). The four key HR actions we'll cover are:

• Hiring: Onboarding a new employee into the organization.
• Transfers: Moving an employee from one position, department, or location to another.
• Promotions: Advancing an employee to a higher position or role with added responsibilities.
• Terminations: Ending the employment relationship with an employee.

2. Hiring an Employee in SAP HCM

Hiring an employee involves recording the employee's personal information, organizational details, and job assignments. In SAP, this process is executed using the PA40 (Personnel Actions) transaction.

2.1. Step-by-Step Guide for Hiring

1. Log in to the SAP system with your credentials.
2. Enter the transaction code PA40 in the command field and press Enter. This will open the "Personnel Actions" screen.
3. In the "Personnel Action" field, select "Hiring" (Action type 01) from the drop-down list.
4. Enter the employee's personal details such as name, date of birth, and nationality.
5. Click "Save" to record the hiring action.

Real-World Example: An HR assistant hires a new employee for the marketing department. They perform the hiring action in PA40, entering the new employee’s details, such as name, job title (Marketing Specialist), and department, and save the action. The employee is now recorded in the system.

2.2. Additional Information for Hiring

During the hiring process, you will also need to update various infotypes such as:

• Infotype 0001 (Organizational Assignment): Assign the employee to a specific department, position, and location.
• Infotype 0002 (Personal Data): Enter personal details like date of birth, marital status, etc.
• Infotype 0006 (Addresses): Record the employee's home address.

3. Transferring an Employee in SAP HCM

Transfers in SAP HCM are used to move employees between different positions, departments, or locations within the same company. To manage a transfer, you use the PA40 (Personnel Actions) transaction again but select the "Transfer" action (Action type 30).

3.1. Step-by-Step Guide for Employee Transfer

1. Navigate to the "Personnel Actions" screen using the transaction code PA40.
2. In the "Personnel Action" field, select "Transfer" (Action type 30) from the drop-down list.
3. Enter the employee's personnel number and select the action.
4. Update the organizational details, such as the new department, position, and location.
5. Click "Save" to confirm the transfer.

Real-World Example: A senior analyst in the marketing department is transferred to the sales department. The HR manager performs a transfer action in SAP, updating the employee’s position and department. The transfer is recorded, and the employee’s record is updated accordingly.

3.2. Additional Information for Transfer

For a successful transfer, update the following infotypes:

• Infotype 0001 (Organizational Assignment): Update the employee’s position and department information.
• Infotype 0007 (Planned Working Time): If the transfer involves a change in working hours or schedule, update the working time infotype.

4. Promoting an Employee in SAP HCM

Promotions are actions that move an employee to a higher position within the organization, often accompanied by a salary increase. The promotion process is handled through the PA40 (Personnel Actions) transaction, where you select the "Promotion" action (Action type 20).

4.1. Step-by-Step Guide for Promotion

1. Access the "Personnel Actions" screen using PA40.
2. Choose "Promotion" (Action type 20) in the "Personnel Action" field.
3. Enter the employee’s personnel number.
4. Update the employee’s position, salary, and job responsibilities to reflect the promotion.
5. Click "Save" to confirm the promotion action.

Real-World Example: A junior developer is promoted to a senior developer role. The HR assistant executes the promotion action, updates the employee’s position and salary, and saves the action. The employee’s record is updated with the new job title and pay scale.

4.2. Additional Information for Promotion

When promoting an employee, you may need to update the following infotypes:

• Infotype 0001 (Organizational Assignment): Update the employee’s new position and department.
• Infotype 0008 (Basic Pay): Adjust the employee’s salary according to the new position.

5. Terminating an Employee in SAP HCM

Terminating an employee involves ending their employment with the organization. This process is managed through the PA40 (Personnel Actions) transaction, where you select the "Termination" action (Action type 40).

5.1. Step-by-Step Guide for Employee Termination

1. Navigate to the "Personnel Actions" screen using the transaction code PA40.
2. Select "Termination" (Action type 40) from the drop-down list in the "Personnel Action" field.
3. Enter the employee’s personnel number.
4. Specify the reason for termination and the termination date.
5. Click "Save" to confirm the termination action.

Real-World Example: An employee resigns from their position, and the HR manager executes the termination action in SAP. The employee’s record is updated to reflect the resignation, and their last working day is recorded as the termination date.

5.2. Additional Information for Termination

When terminating an employee, the following infotypes may need to be updated:

• Infotype 0000 (Actions): Record the termination action with the reason (e.g., resignation, retirement, dismissal).
• Infotype 0001 (Organizational Assignment): Update the organizational assignment to reflect the employee’s end date.

6. Conclusion

Managing employee hiring, transfers, promotions, and terminations in SAP HCM is essential for maintaining accurate employee records. By using the Personnel Actions functionality (PA40), HR professionals can execute these actions and update employee data accordingly. This tutorial has provided you with step-by-step instructions and real-world examples for each of these key HR processes. By mastering these processes, organizations can ensure that employee records are up to date, accurate, and compliant with HR policies.