SAP is one of the most widely used enterprise resource planning software packages in the world, which is used by businesses to enhance the efficiency of various processes and operations. Numerous companies use the different modules of SAP, such as SAP Payroll solutions, to gain a competitive advantage and optimise their operations in Hungary as well.
Why is SAP Payroll critical for businesses?
SAP Payroll is a complex system solution that not only facilitates monthly payments, but also plays a key role in managing employee data, social security reports and compliance with tax and legal obligations. For it to function properly, it is essential that the system is kept up to date with current tax laws, contributions and other labour regulations.
The most common challenges involving SAP Payroll
Legal compliance and system upgrades
SAP Payroll may involve several challenges, but the biggest ones include ensuring and continuously monitoring legal compliance and employing properly trained professionals.
This means that the payroll system must always remain up-to-date with tax laws, contributions, labour law requirements and other local regulations, which, in today’s world, change very frequently.
Integration with other SAP modules
SAP Payroll is often integrated with other SAP modules, such as HCM (Human Capital Management),FI (Finance) or Time Management. The accuracy of the data exchange between modules is crucial for error-free payroll processing.
Data cleansing and data quality
Incorrect or incomplete data can cause significant problems in payroll processing.
Testing and handling upgrades
Testing during system upgrades is key to ensuring the accuracy of payroll processing.
Privacy and GDPR
SAP Payroll involves processing sensitive personal data. Compliance with GDPR and other privacy regulations is critical, both in terms of software configurations and data processing procedures.
SAP Payroll experts – Why are they so hard to find?
Handling special rules and the specific requirements of customers
- The system must be capable of handling custom elements such as cafeteria benefits, bonus schemes and allowances for multiple shifts. These rules are often company-specific, requiring appropriate configuration and flexibility.
- Finding and employing payroll professionals with SAP expertise poses a significant challenge in Hungary due to several factors:
A narrow market for experts
- Knowledge of the SAP HCM/PY (Human Capital Management/Payroll) module requires specialised skills which few people acquire in depth. Because of how they operate, many companies prevent professionals from gaining an overall understanding of operations, making them experts only in single, specific processes.
- Few payroll professionals learn SAP at a system administrator or consultant level. Due to the lack of this holistic perspective, there is a shortage of experts who understand the entire process and even have an understanding of tasks that span HR, social security and payroll processes.
Complexity
- SAP Payroll isn't just about data entry; it also involves system configuration, setting up rules and managing reports and interfaces. Accurate and precise testing requires a high level of technical expertise and system knowledge.
- It is often the case that the same person must understand legislation, system operation and process management.
Experienced SAP Payroll professionals are in high demand
- Demand for experienced SAP Payroll professionals far exceeds supply. Consulting firms and multinational companies recruit them quickly, while smaller businesses are often unable to retain them in the long term.
- In addition to competitive salaries, professionals nowadays expect to be able to work remotely and have flexibility as well.
Lengthy onboarding process
- Learning the specifics of a company's processes and system configurations can be time-consuming, even for experienced SAP users. Onboarding may often take months or even years.
How to address the shortage of SAP Payroll experts
There are several ways that can help your company operate SAP Payroll in a sustainable manner:
- Upskilling internal employees to the level of an SAP user or configurator, perhaps with the support of an external partner.
- Involving external consultants or SAP partners on a temporary or long-term basis.
- Funding targeted training programs related to the SAP PY module.
- Offering remote work options, which provides access to talent from a broader geography.
The key to successful SAP payroll processing is expertise and flexibility
SAP payroll is a business-critical area that requires not only a technical system, but also comprehensive professional knowledge and strategic thinking to function well. Despite the challenges, if your company builds its resources strategically, whether for internal training, external support or agile operations, you will be able to establish reliable and efficient SAP payroll processes in the long term.
