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Introduction and deployment tips for Management of Global Employees functionality

by The Tip Doctor

October 29, 2010

This tip was taken from the session “Strategies and Technologies to Manage Your Global Workforce Effectively and Efficiently” presented at HR 2010 in Barcelona by Manimala Kanagavel of Deloitte Consulting, India. 

For companies operating and running SAP ERP HCM in several countries and employing a significant number of expatriates, Management of Global Employee (MGE) functionality can be a helpful tool.Image and video hosting by TinyPic

MGE integrates and exchanges data with SAP ERP HCM modules such as PA, OM, payroll, benefits, and succession planning.  Some key integration points include:   

  • It rests very heavily on Personnel Administration which, along with Concurrent Employment, forms the base over which MGE is implemented
  • Positions (Object S) and organizational units (Object O) in Organizational Management are required to plan the assignment and move the employee to a new assignment
  • Succession Planning and Career Planning can lead to MGE for a particular position
  • Data from MGE gets picked up for Benefits Administration and for Payroll

 Introducing the MGE functionality and framework 

MGE is used by multinational companies to help manage their employees who move between countries for business reasons

  • Helps manage employee data and processes involved in global mobility of employees
  • Provides a solution that supports and manages an employee working abroad
  • Defines processes for planning, expatriation, and repatriation
    • Each assignment for an expatriate is represented as a Personnel Assignment in SAP. Multiple personnel assignments are tied to a single Person ID.

To fully understand MGE, it is critical to understand global assignment types.  4 typical global assignment types are: 

  • Long Term Assignment (more than 1 year)
  • Short Term Assignment (less than 1 year)
  • International Commuting (works on assignment and commutes to home country often)
  • Extended Business Travel (no relocation; but travels regularly to location of assignment) 

The following diagram illustrates the premise of global employees in SAP 

Key concepts of the concurrent employment framework 

  • Person ID: Remains the same throughout the employee’s association with an enterprise, wherever he/she moves within the enterprise. It is stored in infotype 0709. 
  • Personnel Number: New personnel numbers(employee numbers are generated every time the employee gets a new assignment in a different country. 
  • Central Person Object: Central Person (CP) object is generated during each hiring in the background in OM. CP object is linked to P object using the relationship 209.  

 

Overview of and insight into typical roles in the MGE process

  • Employee: The employee proposed for the expatriate assignment is the central role in the MGE process.  
  • Host HR Manager: The HR manager in the host country is typically the initiator in the MGE process, where the manager identifies the need for an expatriate and publishes it. The manager is also responsible for the administration of the expatriate’s data during the assignment period.
  • Home HR Manager: The HR manager in the home country is responsible for coordinating the preparation for relocation and the transfer itself for the Employee who is going on an assignment. 
  • International HR: Typically the international HR department takes care of coordinating between the home and host countries and is responsible for preparing the compensation package details. 

Steps to activate MGE in the SAP ERP HCM system

 

NOTE:  You can have MGE switched on without Concurrent Employment on in the SAP system. 

Configuring system table settings

Activation of Management of Global Employees

Path: SPRO →  Personnel Management → Management of Global Employees → Activate Management of Global Employees

 

The Person ID generation rule is determined by the CCURE PIDGN switch in table T77S0

Path: SPRO → Personnel Management → Personnel Administration → Customizing Procedures →  Settings for Concurrent Employment → Activate External Person ID

Settings for person ID generation 

  • 1 - uses the number of the system object Central Person (CP): Typically, this setting is used by most companies
  • 2 - uses the number of the first personnel assignment (PERNR): Some  companies prefer this option since the change from the employee perspective is minimal
  • 3 - uses the person ID stored in the Personal Data IT0002, field P0002 PERID: May not be feasible for all countries
  • 4 - uses a customer-specific implementation. The system calls the HR_CE_PERSONID_EXT BAdI to determine the person ID.  This is the most flexible solution.

DON’T FORGET: The rule for generating the pe rson ID must not be changed after going live. 

To learn more about this and other sessions being presented at HR 2010, 10-12 November in Barcelona, please visit www.sapinsiderhr2010.com

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