Yes, depending on your definition of 'fully automate', it is possible. Depending on how you have your dynamic actions set up, you can fully automate the creation, change and termination of employees on you predefined conditions. You can also use SAP's Workflow to automate these processes. With both methods, clear processes must be defined prior to implementation. Once implemented, they will greatly reduce the amount of time typically necessary to manually perform the tasks. Tracking down issues will be much easier with Workflow rather than with dynamic actions. This may not be an issue either if you turn on and utilize the log functionality for tracking the process.
I would personnaly recommend the Workflow process due to the extended functionality, logging, deadline monitoring and extended controls available.
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