SAP ECP: Employee Central Payroll for future-proof HR

SAP SuccessFactors Employee Central Payroll (ECP) is the modern answer to the increasing demands on payroll accounting in a globalized and digitized world of work. Errors in payroll not only lead to dissatisfaction and loss of trust among employees, but also harbor considerable legal and financial risks. With ECP, companies can minimize these risks while managing the increasing complexity of international workforces, flexible employment models, and strict compliance requirements.

The solution is based on the established SAP HCM Payroll Engine, but has been consistently transferred to a modern cloud architecture. ECP thus combines decades of payroll expertise with the advantages of a cloud-based HR suite: continuous updates, adaptability, seamless integration, and global standardization. Companies thus receive a platform that views payroll not as an isolated accounting function, but as a strategic component of overall HR IT.

The most important driver for the switch is the end of maintenance for classic SAP HCM Payroll on December 31, 2027. Companies that still rely on on-premise solutions should therefore take action by then at the latest. SAP does offer an optional extension of maintenance until the end of 2030 – but with a 2% maintenance surcharge and without any sustainable future prospects. This extension merely postpones the problem rather than solving it.

Furthermore, experience shows that on-premise systems are expensive and inflexible. Every legal change requires manual adjustments, integration into modern cloud environments is complicated and expensive, and scalability quickly reaches its limits in internationally growing organizations.

SAP provides a solution that addresses these issues. As a fully cloud-based payroll system, it offers:

• Scalability: growing workforces and international expansion can be mapped without significant additional effort.
• Efficiency: system-supported processes and standardization reduce manual intervention.
• Compliance: SAP provides continuously updated country versions so that legal changes are implemented globally.
• Cost reduction: Infrastructure and maintenance costs are eliminated, and updates are installed centrally.
• Integration: ECP is seamlessly connected to Employee Central and other modules in the SuccessFactors suite.

This means that switching to ECP is not just a technical migration, but a strategic investment in the future viability of the entire HR landscape.

Why should companies switch to SAP SuccessFactors Employee Central Payroll (ECP)? The following six reasons highlight the most important advantages.

1. System modernization – With ECP, companies can replace outdated on-premise architectures and lay the foundation for future-proof, standardized payroll accounting.
2. Future-proofing – Full support from SAP beyond 2027 makes ECP a reliable long-term solution for payroll and personnel administration.
3. Optimized payroll processes – Automated workflows, proactive monitoring, and integrated control mechanisms simplify HR management processes and improve quality and efficiency.
4. Improved user experience – ECP offers modern interfaces, intuitive operation, and self-services for employees and managers.
5. Cost reduction – The move to the cloud reduces infrastructure and operating costs and eliminates the high cost of legal updates.
6. Digital transformation – Payroll becomes an integral part of the SuccessFactors suite and contributes to a consistent digital employee experience.

The best way to describe how ECP works is as a combination of the tried and tested with the innovative. At its heart remains the robust SAP HCM payroll system with its extensive functionality, which has been in reliable use worldwide for decades. What is new, however, is the cloud architecture, which enables a completely different form of flexibility, standardization, and global adaptability.

ECP is closely linked to SAP SuccessFactors Employee Central. Changes to master data – such as new hires, contract changes, or promotions – are automatically incorporated into the payroll processes. This eliminates the need for manual maintenance in parallel systems, reduces sources of error, and makes EC Payroll an integral part of the entire HR lifecycle.

Another key advantage is the more than 50 country versions that SAP provides for ECP. These include all relevant legal requirements and are automatically kept up to date through regular updates. For internationally active companies, this means less local adaptation effort, greater legal certainty, and a uniform payroll strategy with simultaneous local flexibility.

SAP ECP offers a wide range of features that transform payroll from a pure accounting machine into a strategic management tool:

• Legally compliant solutions for over 50 countries – regular updates ensure compliance with local regulations and support human resources management.
• Payroll Control Center – a central platform for monitoring, analysis, and proactive error correction that enables data validation and performance management decisions.
• Cloud-based payroll engine – stable, proven, and embedded in a modern system architecture that allows for smooth management of employer benefits.
• Easy integration – seamless interaction with time management, talent management, and financial accounting, supported by experienced implementation partners who facilitate implementation.
• Standardized interfaces to financial accounting systems – for automatic postings, reconciliations, and transparent financial processes.

ECP thus offers not only secure, efficient payroll accounting, but also a platform that globally connects HR processes, personnel administration, benefits management, and financial control.

The introduction of SAP is not purely an IT project, but rather a strategic transformation process. Companies are faced with a choice between two approaches:

• Lift-and-shift: Existing payroll processes are transferred to the cloud with virtually no changes.
• Advantage: Fast conversion, lower risk.
• Disadvantage: Suboptimal processes are transferred one-to-one.
• Reimplementation: Processes are redesigned and adapted to modern HR strategies.
• Advantage: Sustainable increase in efficiency and process quality.
• Disadvantage: Higher costs and longer project duration.

SAP provides powerful tools such as the Infoporter and special migration tools to transfer data and secure the transition. Even non-SAP customers can successfully switch to ECP using standardized methods.

The transition to SAP SuccessFactors Employee Central Payroll (ECP) takes place in clearly defined phases, ensuring a structured and risk-minimized transformation.

1. Preparation & analysis – Definition of the target architecture, evaluation of existing processes and data quality.
2. Design & process optimization – Development of new target processes and alignment with established standards.
3. Testing & validation – comprehensive testing, simulations, and error corrections to minimize risks.
4. Go-live & change management – gradual introduction, user training, and accompanying change management.

A key success factor is to prepare for the payroll transformation not only technically, but also organizationally.

Migration to ECP is complex and involves typical stumbling blocks:

• Master data migration – high data quality is crucial, as errors in payroll accounting have a direct impact.
• Minimization of operational disruptions – parallel testing and clearly predefined migration scenarios reduce risks.
• Acceptance and change management – SuccessFactors Employee Central Payroll is a highly sensitive area. Managers and employees must be involved at an early stage to ensure an optimal user experience.
• Integration with time tracking – accurate working time data flows seamlessly into payroll processes and supports the accuracy of payroll accounting.

This is where the value of an experienced implementation partner comes in, one who not only understands the technology, but also the processes and culture within the company. After all, an inefficient approach remains inefficient, even if it is digitized.

SAP is continuously developing ECP. The 1H2025 release will include the following:

• Identity Provisioning Service (IPS) for automated user generation
• Improved user experience through mashups and the integration of SAP Joule (AI)
• Extended integration with time management – e.g., 400-day planning and shift classification
• New country versions, including Slovenia

These innovations illustrate that ECP is not only a stable core process, but also a field of innovation that is undergoing dynamic development.

The roadmap for payroll is clear: SAP is pursuing consistent further development toward greater automation, intelligence, and user-friendliness.

• AI-supported payroll processes will detect errors early on and suggest corrections.
• The Payroll Control Center will be further expanded and more closely integrated with analytics.
• SAP is discussing further innovations under the heading of Next Generation Payroll (NGP) – ECP provides a stable basis for this.

For companies, this means that those who opt for ECP now will create a stable basis and at the same time be prepared for the next stage of development.

ECP can be expanded in a targeted manner with add-ons and enhancements:

• Migration tools for accelerated conversion
• Enhancements for the Payroll Control Center for error prevention and automation
• Reporting and analysis add-ons that provide deeper insights into payroll data

This allows every company to optimally adapt the payroll solution to its own needs.

The introduction of SAP ECP is a milestone for every company. For payroll transformation to succeed, you need a partner who takes technology, processes, and people into account in equal measure.

As tts digital HR experts, we provide companies with comprehensive support – from strategic planning and conceptualization to implementation and ongoing operation (HR application management). Our aim is to provide holistic HR IT knowledge from a single source.

We don't just implement software, we also ensure that the background processes are right. Because only optimized processes can deliver their full added value in digitalization.

In addition, we are an SAP Gold Partner and have the highest certification level (“Expert”) in the area of HCM (Human Capital Management). This seal of approval underscores our experience and quality in the implementation of demanding HR transformation projects.

With practical training, proven methods, and acceleration tools, we ensure that companies migrate successfully not only technically but also organizationally—and operate their payroll efficiently, transparently, and compliantly in the long term.

SAP SuccessFactors Employee Central Payroll (ECP) is much more than just a technical alternative to classic SAP HCM Payroll. It is a strategic investment in the future of HR IT that boosts efficiency, compliance, and competitiveness in equal measure. With predefined functions, ECP supports key areas of human resources and optimizes payroll accounting in a modern payroll system.

Companies that act in a timely manner secure advantages in terms of costs, transparency, and employee experience. The recommendation is therefore: Plan the changeover early on—and rely on a strong partner such as tts GmbH, which combines technology, processes, and culture to achieve holistic success.