In the SAP Human Capital Management (HCM) module, Employee Groups and Employee Subgroups play a crucial role in defining the structure and classification of the workforce within an organization. These organizational elements allow the system to differentiate between various types of employees and assign specific personnel actions, payroll procedures, and time management rules accordingly. This article provides an overview and step-by-step guide on configuring Employee Groups and Subgroups in SAP HCM.
Employee Group: It is a broad classification of employees based on their status or role in the organization. Common examples include Active Employees, Retirees, Applicants, and Former Employees. Employee groups are critical because they control the personnel structure and processes in SAP.
Employee Subgroup: This is a more detailed classification within an Employee Group. Subgroups further categorize employees based on finer criteria such as full-time or part-time status, salaried or hourly wages, or permanent vs. temporary employment. Employee subgroups determine specific rules like payroll area, absence quota, time evaluation, and personnel actions that are applicable to employees.
Go to SAP Easy Access screen.
Enter transaction code SPRO.
Navigate to:
SAP Reference IMG > Personnel Management > Personnel Administration > Customizing Procedures > Infotypes > Define Employee Group and Subgroup
Select Define Employee Group.
Here, you can create new employee groups or modify existing ones.
Assign a two-character key and a descriptive name.
Common examples:
1)2)3)Choose Define Employee Subgroup.
Select the employee group for which you want to define subgroups.
Create subgroups with unique two-digit keys and descriptive names.
Typical subgroups include:
01)02)03)Configuring Employee Groups and Subgroups is a foundational task in SAP HCM implementation. It provides the structural backbone for managing personnel data, payroll processing, and time evaluation. Proper configuration ensures compliance with company policies and smooth operational workflows in HR management. By following the outlined steps and best practices, SAP consultants and HR professionals can establish an effective employee classification system tailored to their organizational needs.