Oracle cloud / Oracle Licensing

Oracle Fusion Human Capital Management Base Cloud Service

Oracle Fusion Human Capital Management Base Cloud Service

  • Core HR capabilities for managing employees
  • Includes payroll, benefits, and workforce directory
  • Licensed per hosted employee (full-time, part-time, contract)
  • $15 per user per month, minimum 1,000 employees
  • Provides essential HR modules like Global HR, Absence Management, and Benefits

Oracle Fusion Human Capital Management Base Cloud Service

Oracle Fusion Human Capital Management Base Cloud Service

The Oracle Fusion Human Capital Management (HCM) Base Cloud Service is the foundation for all HCM functionalities. This base service includes a set of core modules that provide essential HR capabilities for managing employee records, payroll, and benefits.

It is a powerful solution to streamline HR processes and improve workforce management efficiency. Below are the core features included in the Oracle HCM Base Cloud Service:

Oracle Fusion Global Human Resources
  • This module is the backbone of the HCM suite. It manages employee information and HR processes. It is the central hub for handling all employee data, ensuring that HR professionals have comprehensive control over the workforce.
Oracle Fusion Global Absence Management
  • This module provides tools to efficiently manage employee leave and absence requests. It simplifies the process of tracking, approving, and managing leave, helping organizations maintain productivity while ensuring compliance with leave policies.
Oracle Fusion Benefits
  • Oracle Fusion Benefits offers solutions for managing employee benefit programs, including enrollment and eligibility tracking. It provides a seamless way for employees to understand and enroll in benefits while allowing HR teams to oversee and optimize benefit offerings.
Oracle Fusion Payroll Interface
  • The Payroll Interface provides integration capabilities to connect payroll providers with Oracle HCM. It enables smooth data transfer between the HCM system and payroll processors, ensuring accurate and timely payroll operations.
Oracle Fusion Workforce Directory Management
  • This module is a centralized directory for managing organizational hierarchy and employee roles. It helps HR departments manage reporting structures, update role changes, and maintain an accurate and up-to-date workforce directory.
Oracle Fusion HCM Journeys
  • Oracle Fusion HCM Journeys guides employees through various HR processes, such as onboarding, learning, and career development. It helps employees navigate key milestones in their career journeys and ensures they receive the necessary support and resources.
Oracle Fusion Onboarding
  • The Onboarding module supports a structured and efficient onboarding experience for new employees. It streamlines the onboarding process by providing new hires with step-by-step guidance, reducing time to productivity, and enhancing the overall onboarding experience.
Oracle Fusion Workforce Predictions
  • Workforce Predictions offers analytical tools that help organizations predict workforce trends and assist in planning. This module can forecast employee turnover, skill shortages, and other workforce dynamics by analyzing historical data, allowing HR teams to make proactive decisions.
Oracle Fusion Work Life Solutions
  • This module offers solutions for improving work-life balance and supporting employee engagement. It helps organizations create a positive work environment by focusing on wellness, employee satisfaction, and initiatives that enhance the overall quality of work life.
Oracle Fusion Transactional Business Intelligence for HCM Cloud
  • Oracle Fusion Transactional Business Intelligence (OTBI) for HCM Cloud provides robust reporting and analytics for all HCM activities. It enables HR teams to generate real-time reports and gain insights into various aspects of workforce management, helping them make data-driven decisions.

Licensing Model for Oracle Fusion HCM Base Cloud Service

The Oracle Fusion HCM Base Cloud Service is licensed based on the Hosted Employee metric. This means that all employees tracked or managed using the HCM system must be licensed, regardless of their level of interaction with the system.

The hosted employee metric includes full-time, part-time, contract, and outsourced employees, ensuring that everyone in the workforce who interacts with the HCM system is covered.

Hosted Employee Metric: What It Includes
  • Full-Time Employees: All employees managed using the Oracle HCM system must be licensed.
  • Part-Time and Temporary Employees: If their information is tracked within the HCM system, part-time and temporary workers must also be licensed.
  • Contract Workers: The licensing count must include contractors and consultants who have access to or are tracked by the Oracle HCM system.
  • Outsourced Employees: If a business outsources HR functions, the employees of the outsourced service provider who interact with the system must also be licensed.
Example of Licensing

Suppose a company has:

  • 500 full-time employees
  • 200 part-time employees
  • 100 contractors
  • 50 outsourced staff

These individuals must be counted towards the Hosted Employee metric, resulting in 850 licensed Hosted Employees. Even if only a portion of these individuals actively use the HCM system, they must all be licensed if their data is managed or tracked by Oracle HCM. This approach ensures that the organization complies with Oracle’s licensing requirements and avoids potential penalties.

Oracle Fusion Human Capital Management Base Cloud Service FAQ

What is the Oracle Fusion HCM Base Cloud Service? It is a foundational HR solution that provides essential functionalities such as employee records management, payroll, and benefits.

How is the Oracle Fusion HCM Base Cloud Service licensed? It is licensed on a per-hosted-employee basis. This includes all full-time, part-time, contract, and outsourced employees tracked by the system.

What are the core features of Oracle Fusion HCM Base Cloud? It includes Global HR, Absence Management, Benefits, Payroll Interface, Workforce Directory Management, HCM Journeys, Onboarding, and more.

Does the license cover contract and outsourced workers? Yes, all contractors, consultants, and outsourced employees tracked or accessing the system must be licensed under the Hosted Employee metric.

Is there a minimum purchase requirement for Oracle HCM Base Cloud? Yes, a minimum of 1,000 employee licenses is required, even if fewer employees are needed. The contract must cover at least three years.

What is Oracle Fusion Global Human Resources? It is the core module managing employee information and HR processes. It acts as a centralized system for all employee data.

What modules are included in the HCM Base Cloud Service? The base service includes Global HR, Absence Management, Benefits, Payroll Interface, Workforce Directory, HCM Journeys, Workforce Predictions, and Work-Life Solutions.

What does Oracle Fusion Benefits provide? It offers solutions for managing employee benefit programs, tracking eligibility, and providing seamless enrollment options for employees.

How does the Payroll Interface work? It integrates payroll providers with Oracle HCM, allowing smooth data exchange to ensure accurate and timely payroll processing.

How can Oracle Workforce Predictions help my organization? Workforce Predictions uses analytics to forecast workforce trends like turnover, skill shortages, and productivity, helping HR teams make informed decisions.

What are Oracle HCM Journeys? They guide employees through various HR processes, such as onboarding, skills development, and other career milestones.

Is the Onboarding module included in the base service? Oracle Fusion Onboarding is included to support a structured and efficient onboarding experience for new employees.

Do I need additional licenses for test environments? Depending on the number of hosted employees, additional non-production environments are required. Larger organizations need more environments for testing and customization.

What is the cost of Oracle HCM Base Cloud Service per year? The cost is $15 per user per month, with a minimum of 1,000 users, totaling $180,000 annually before adding any other modules.

Can I buy add-ons separately from the base service? Yes, add-ons can be purchased based on specific organizational needs and do not need to match the base service user count, providing flexibility.

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Author
  • Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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