Language selection

Government of Canada / Gouvernement du Canada

Search

Audit of Civilian Pay Management

Table of Contents

Alternate Formats

ADM(Fin)
Assistant Deputy Minister (Finance)
ADM(HR-Civ)
Assistant Deputy Minister (Human Resource - Civilian)
ADM(IM)
Assistant Deputy Minister (Information Management)
ADM(Mat)
Assistant Deputy Minister (Materiel)
ADM(PA) 
Assistant Deputy Minister (Public Affairs)
ADM(RS)
Assistant Deputy Minister (Review Services)
CFB 
Canadian Forces Base
DND
Department of National Defence
FCR 
Financial Controls and Reconciliation
FY
Fiscal Year
HR
Human Resources
HRMS
Human Resource Management System
HRSS
Human Resources Support System
L1
Level One
NCCS
National Civilian Compensation Support
OAG
Office of the Auditor General
OCI
Office of Collateral Interest
OPI
Office of Primary Interest
PSES
Public Service Employee Survey
PSPC
Public Services and Procurement Canada
QA 
Quality Assurance
SFT
Salary Forecasting Tool
Figure 1:. Pay Comparison.
Figure 1. Pay Comparison. This figure compares employees with basic pay and those with more complex pay transactions, based on collective agreements.

Figure 1 Details - Pay Comparison.

For example, financial analysts work in an office building, Monday through Friday, 37.5 hours per week; in another example, ship repair workers work 40 hours per week, have varying shift schedules, and are subject to fluctuating operational requirements and conditions. The result of these multiple elements is hundreds of unique pay rules ranging from membership fee entitlements to dirty work allowances, which are all processed through the Phoenix pay system.

In 2016, following the centralization of pay to Miramichi, and parallel reduction of compensation staff, DND had a capacity of 26 compensation advisors. As a result of the unforeseen pay issue crisis following the implementation of Phoenix, DND had to re-establish its compensation capacity, while concurrently working to improve services and identify strategies to address systemic issues. By August 2018, the National Civilian Compensation Services (NCCS) team had increased its capacity to 136 staff, to perform various issues resolution, communication and quality assurance activities.

At the beginning of the audit in April 2018, there were 77,539 cases in the Phoenix backlog. As of February 2019, this number had decreased by 31 percent (with 53,773 cases that remain outstanding). The most common types of transactions that make up the backlog are related to Collective Agreements and acting assignments.

1.1.1 Departmental Response

Issues with the Phoenix pay system and its implementation have been well-documented and reported. The Office of the Auditor General (OAG) conducted two engagements to examine Phoenix and its implementation. The Audit of Phoenix Pay Problems,Footnote 1 in Fall 2017, found that PSPC did not identify and resolve pay problems in a sustainable way to ensure that public service employees consistently receive their correct pay on time. Departments contributed to the problems; however, PSPC did not provide them with all the information and support to allow them to resolve pay problems to ensure that their employees consistently receive their correct pay on time. The second audit on implementing Phoenix,Footnote 2 in May 2018, focused on whether PSPC effectively and efficiently managed and oversaw the implementation of the new Phoenix pay system, and found that Phoenix has not met user needs, has cost the federal government hundreds of millions of dollars, and has financially affected tens of thousands of its employees. As a result, the Government of Canada, including DND, has developed numerous action plans and initiatives to address these issues and support the thousands of employees affected by pay issues.

In November 2017, the Clerk of the Privy Council requested that all Deputy Heads provide information on actions being taken within their respective departments to help stabilize the pay system and ensure employees are paid properly. To support its employees and in response to this request, DND developed its HR-to-Pay Integrated Action Plan, which focuses on three key pillars: People, Process and Technology.

This action plan includes some 84 initiatives ranging from improving existing compensation training programs to developing IT solutions to collaborating with PSPC on the Pay PodFootnote 3 approach implementation.

1.1.2 Roles and Responsibilities

The centralization of compensation services has led to a fundamental change in pay management and a transfer of pay responsibilities from compensation experts to managers and employees. This shift has caused concern and confusion, as employees and managers have had to take on greater responsibility and ownership of their, and their employees’, pay. Within DND, roles and responsibilities related to civilian pay are as follows:

Corporate stakeholders also have a role to support the management of civilian pay:

Within the Government of Canada, PSPC is responsible for administering the pay of public service employees and for operating and maintaining Phoenix and the Pay Centre.

1.2 Rationale

The pay issues resulting from Phoenix are widespread and negatively impact employees and the Department. Pay issues can cause undue stress for employees, managers and the employees charged with resolving these issues. This stress may affect morale and the achievement of operational objectives.

Given these risks, and the importance of the health and well-being of our people as highlighted in Canada’s defence policy: Strong, Secure, Engaged, this audit was included in the ADM(RS) Risk-based Audit Plan for FYs 2018-2021.

1.3 Objective

The objective of the audit is to provide assurance that departmental pay management practices and processes support:

1.4 Scope

The scope of the audit included an examination of Compensation and Finance data and reports and activities pertaining to Departmental initiatives to support civilian pay management. While there is a relationship between compensation and staffing, as well as with information systems, the focus of this audit was on compensation-led action items within the HR-to-Pay Stabilization action plan.

The audit excluded an examination of PSPC and the Pay Centre’s role in pay issues or the relationship between the Pay Centre and the NCCS group. The Phoenix pay system and its capabilities, implementation and effectiveness were not examined nor was accuracy of payments to employees generated by Phoenix, as these areas have been covered by recent OAG engagements and are included in yearly Public Accounts audits.

Additionally, existing IT implementation challenges in trying to put IT solutions in place, as well as departmental technology were deemed outside the scope of this audit.

The audit work was performed during the period of May 2018 to March 2019, and included civilian compensation data and documentation from February 2016 to February 2019.

1.5 Methodology

The audit results are based on evidence from the following sources:

The audit team would like to express their sincere appreciation to all the employees, including the compensation team, who shared their pay issues and experiences through interviews in support of this audit work.

1.6 Audit Criteria

The assessment against the audit criteria can be found at Annex B.

1.7 Statement of Conformance

The audit findings and conclusions contained in this report are based on sufficient and appropriate audit evidence gathered in accordance with procedures that meet the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing. The audit thus conforms to the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing as supported by the results of the quality assurance and improvement program. The opinions expressed in this report are based on conditions as they existed at the time of the audit, and apply only to the entity examined.


Back to Table of Contents

2.0 Findings and Recommendations

2.1 Capacity and Training

NCCS does not have the capacity to respond to the current workload requirements; further, departmental training does not always meet manager or employee needs.

We expected to find:

2.1.1 NCCS Team

To effectively respond to employee pay issues, the Department has committed to increase its compensation capacity. At the time of the audit, NCCS was comprised of two sections: Compensation Services and HR-to-Pay Stabilization. The former interacts directly with employees and assists in solving pay issues. There are 158 positions within Compensation Services across three teams: the Contact team; the Consultation team; and the Resolution team.

The HR-to-Pay Stabilization section looks at systemic issues regarding pay issues to help employees, managers and the Compensation Services section. This section includes 68 positions across four teams: Governance; Quality Assurance; Business Improvement; and Integration. As of August 2018, 136 positions were staffed (61 percent).

Figure 2: Organizational Structure of NCCS.
Figure 2. Organizational Structure of NCCS. This chart shows the organizational structure and design of the compensation team (NCCS) at the time of the audit.
Figure 2 Details - Organizational Structure of NCCS.

The current workload facing the NCCS team is immense, as each pay period contains tens of thousands of pay transactions and thousands of approvals, in addition to the backlog of unresolved issues. To manage this workload, employees are authorized to work up to 10 hours of overtime per week. The overtime report for February 2019 indicates overtime was recorded for 24 of 56 employees. Of those 24 employees, 15 worked 511 hours for an average of 34.1 hours of overtime per month. These 15 employees were predominately those with supervisory responsibilities in the compensation services group. The on-going use of overtime is not sustainable, and poses several risks to the organization including decreased employee well-being, work quality, productivity and turnover. Without adequate capacity, NCCS will not be able to provide the required level of support to L1s to meet the needs of the department.

During the audit, some turnover at the staff and management level was noted and attributed to fatigue from changing priorities; resourcing constraints; and finding similar positions within other government departments with lighter workloads.

2.1.2 Training and guidance

NCCS staff receive standard training, developed by PSPC, on specific compensation-related job functions and systems (depending on the role) before beginning their work. They are then trained through job shadowing and on-the-job training, which, as indicated through interviews, can take up to two years for a compensation advisor to become a subject matter expert. Staff reported they receive adequate training to perform their compensation-related duties. Given the customer service nature of these positions, and the stress and sensitivity associated with pay issues, consideration should be given to provide NCCS with specialized training to deal with difficult situations and stress management.

As previously noted, the centralization of compensation services has shifted pay responsibilities to the employees and managers. To support this transition, NCCS conducted a department-wide on-line training campaign to deliver the HR-to-Pay Stabilization Training. This mandatory training was developed by the Office of the Chief Human Resources OfficerFootnote 4 and the Canada School of Public Service. While the campaign was successful in that it achieved its completion rate goal of over 90 percent, the majority of employees and managers interviewed indicated that the training was not sufficient to support them in the performance of their pay-related accountabilities. Interviews also revealed that managers and employees remain unsure of their responsibilities and accountabilities and require additional, user-friendly guidance and direction. This guidance is especially important for those managers and employees who have varying schedules and complicated pay rules and entitlements, such as firefighters and ship repair workers.

In the absence of clear guidance, some managers are developing ad hoc strategies to perform these duties, such as using incorrect entitlement and allowance codes to enter employee pay. These ad hoc approaches increase the risk of pay errors and could impact information used for planning exercises and decision making.

NCCS has reported that they are developing a compensation guide, which should provide employees and managers with the information they need to perform their pay-related duties.

2.1.3 Workplace Well-Being

Figure 3. NCCS C.A.R.E. Program - Appreciation Board. This images displays notes of appreciation from clients.
Figure 3. NCSS C.A.R.E. Program – Appreciation Board. This images displays notes of appreciation from clients.
Figure 3 Details - NCSS C.A.R.E. Program – Appreciation Board.

Phoenix pay issues vary in degree of severity, causing worry and stress which impact the morale and well-being for both NCCS employees and affected employees. As of February 2019, 61  percent of civilian employees had pay issues. DND and NCCS have taken measures to support employees with pay issues and to promote work-place well-being. Almost all employees interviewed were aware of the Employee Assistance Program, which provides support to civilian employees and their immediate family members when dealing with personal or professional issues that are affecting their personal well-being. NCCS has implemented its C.A.R.E. Program (Clarity, Assistance, Recognition, Elevation) to help improve the work environment and mental health of compensation employees. This program includes both formal and informal activities. One such example is the Appreciation Board, which highlights positive issue resolutions and messages of thanks received from clients.

Although efforts have been made to improve work-place well-being within NCCS, some employees have been hesitant to participate in C.A.R.E program events and other activities, such as training, due to their workload. Event participation should be actively encouraged by leadership to ensure the success of this important initiative.

2.1.4 Conclusion

NCCS is responsible for responding to and resolving thousands of pay issues and pay-related enquiries. The professionalization of the compensation function, through training, talent management and career planning, will enable NCCS to continue to enhance its capacity to respond to pay-related issues and enquiries. Enhanced guidance will support the employees and managers, execute their new pay-related accountabilities and help the Department reduce the number of new pay issues being generated.


Back to Table of Contents

ADM(RS) Recommendation
ADM(RS) Recommendation

2.2 Communication

We expected to find:

  • Regional/national communications in place to support employees with pay issues.

2.2.1 Communications Initiatives

NCCS provides frequent, ongoing communications on pay issues, in a variety of formats, to employees and managers of the Department. Some examples include the Civilian HR Matters newsletter, Defence Team News bulletins, information sessions and town halls. A dedicated communications team and intranet page are in place to provide employees and managers with access to relevant and important information.

Noteworthy Practice

Assistant Deputy Minister (Materiel) (ADM(Mat)) has a dedicated page on the intranet to provide its staff with pay issue related information including:

  • Phoenix Tiger Team divisional Offices of Primary Interest (OPI) and contact information;
  • instructional video on how to approve Section 34 pay transactions; and
  • priority issues and the escalation process.

According to interviews, these communications have not been fully effective at supporting employees with their pay issues. L1 audit survey results indicate that communications offered by NCCS are generic and do not provide specific information that meets employee needs. While a review of L1 intranet sites found that approximately half contained prominent and relevant Phoenix information readily available on their home pages; of those, most only provided links to NCCS or PSPC information.

As part of the 2018 Public Service Employee Survey (PSES), employees were asked if they were ‘satisfied with the support received from [their] department or agency to help resolve pay or other compensation issues.’ Results for DND indicate that employees were generally not satisfied with the support received from the Department (refer to Annex C for further information on PSES pay-related results). This sentiment was mirrored in interview results. When managers and employees were asked what would most help them deal with pay issues, the overwhelming response was on-site support from a compensation advisor.

NCCS has made several advances to improve communications within the Department. For example, in October 2018, NCCS hired an Engagement and Governance Manager to lead a newly established communications team and develop and implement a national communication strategy.

The HR-to-Pay Stabilization Committee was established to provide the opportunity for NCCS to work with L1 organizations to determine information needs, discuss emerging issues and share good practices amongst organizations. While this committee’s membership includes 10 L1s, consideration could be given to the sharing of notable practices and other information with all L1s.

Additional communications support has also been made available with the implementation of the Human Resources Support System (HRSS) in October 2018. This system provides employees and managers with a centralized approach to requesting assistance with pay issues. Feedback received during site visits about the HRSS was generally positive, though it was noted the on-line system could only be accessed within the Department; a toll-free number allows employees without computers to access the system.

Lastly, subsequent to the audit, NCCS reported that a strategy to embed additional compensation resources on-site at various locations across the Department was under development. This strategy would help employees and managers deal with pay issues, as well as understand and apply their new pay-related responsibilities and accountabilities.

2.2.2 Former and Inactive Employees

As of June 2018, 30 percent of individuals with pay issues were inactive employees, which includes former employees. Former and inactive employees, such as retirees and casuals, are not able to access DND information or services as they cannot access their DND email, leave system or the HRSS. It was reported that often a former employee’s only recourse is to rely on contacts within the Department to act as liaisons to assist with resolving pay issues. As such, there is a risk the Department may not be fully aware of the impact of Phoenix pay issues on former and inactive employees. This may create issues related to the monitoring of over and underpayments, which are discussed in section 2.3.1.

2.2.3 Conclusion

While there are frequent internal communications regarding employee pay issues, these communications do not always address employee needs. In addition, coordinated communications between NCCS and the L1s in developing and providing communications to support employees could be improved.

A national communications strategy that provides DND and job-specific information to targeted audiences will ensure civilian employees are properly informed of the resources and services available to them, and that managers have the information they need to support timely approvals and decision making.

ADM(RS) Recommendation

2.3 Timeliness

We expected to find:

  • Timely entry and approval of Section 34 pay transactions into Phoenix; and
  • Controls in place to ensure timely approval of pay transactions.

Within Phoenix, basic bi-weekly pay is approved automatically and does not require employees or managers to manually input or approve transactions in the system. For pay transactions beyond basic pay, such as overtime, employees are responsible for entering their time and managers are responsible for the Section 34 approval of these entries. The implementation of Phoenix has resulted in the roles and responsibilities that used to belong to compensation advisors now being in the hands of employees and managers. This is an organizational and cultural change that has not been fully accepted within the Department. In order to improve timeliness and mitigate pay issues, L1s, employees and managers must accept and take accountability for these critical responsibilities related to pay. NCCS has the role of functional oversight and guidance for compensation and timeliness.


Back to Table of Contents

2.3.1 Timely Entry of Pay Transactions

As Phoenix has fixed deadlines within each pay period, the timely entry and approval of pay transactions is critical. A pay transaction is considered timely if it is entered into Phoenix before the effective date, the date on which the action is to take effect. For example, Figure 4 depicts the timeframe to ensure timely entry and approval for an employee who worked overtime on the 11th of the month. The overtime entry is considered timely up until the 11th, and is deemed untimely after this date. While there is a Phoenix expectation that overtime be approved and entered into the system in advance, this may not be feasible for various occupational groups given the nature of operational requirements.

Figure 4. Section 34 Timeliness Schedule.
Figure 4. Section 34 Timeliness Schedule. This calendar shows cutoff dates for timely entry and Section 34 approval for civilian employees.
Figure 4 Details - Section 34 Timeliness Schedule.

As of December 2018, internal reporting shows:

  • 24 percent of pay transactions are submitted prior to the effective date (timely);
  • 8 percent of transactions are received after the effective date but before the pay cut off date; and
  • 68 percent of pay transactions are submitted after the pay cut off date.

If transactions such as overtime, allowances and acting are not entered by employees in a timely manner, the risk of impact to employee pay increases. Timely pay entries by employees and the subsequent timely approval by managers reduces the possibility of delays, limits the need for manual interventions and mitigates pay issues that could require escalation, adding to the backlog of unresolved cases.

2.3.2 Timely Approval of Pay Transactions

Within DND, the volume of pay transactions approved each pay period is significant. In December 2018, approximately 36,000 pay transactions were approved. Conversely, during this same month, there were 26,459 outstanding transactions awaiting approval, 19,679 of which were greater than 30 days old and were, in some cases, years old.

There are several causes for these untimely approvals, which include, but are not limited to:

  • employees who do not have the correct Section 34 manager assigned in Phoenix;
  • managers who are hesitant to approve entries which may impact their employee’s pay or because multiple transactions must be solved concurrently (for example, approving acting before approving overtime, so overtime is paid at the correct acting rate of pay); and
  • DND operations, which require employees to work on short notice, unusual hours or without access to Phoenix.

Noteworthy Practice

At CFB Halifax, the fire department holds monthly town halls to discuss pay issues, including timeliness. Presentations on Phoenix have been customized to support the complexities of the firefighter classification.

While employees and managers have little to no control of DND operational context, it is their responsibility to understand and perform their roles and responsibilities with regard to the pay system and its deadlines, as outlined in the first two examples.

NCCS posts L1 timeliness dashboards for HR Transactions and outstanding Section 34 approvals on a monthly basis. Subsequent to the audit conduct phase, it was reported that L1s will be developing action plans to address the issue of timeliness within their respective organizations. Additional monitoring activities will be discussed in section 2.4.

2.3.3 Conclusion

Compensation transactions require a multi-layered entry and approval process involving several stakeholders. Greater collaboration between employees, managers, NCCS and L1s is required to improve the timeliness of these transactions. The understanding of roles and responsibilities is key to mitigating employee pay issues.

ADM(RS) Recommendation


Back to Table of Contents

2.4 Monitoring

We expected to find:

  • Overpayments and underpayments are managed to ensure sound stewardship; and
  • Data analysis is used to support initiatives and decision making.

2.4.1 Overpayments and Underpayments

Salary Forecasting Tool (SFT)

is a customized application that allows management to forecast and assign employee salary dollars to their operational budgets.

Within ADM(FIN)/CFO, the FCR group is responsible for monitoring overpayments and underpayments. On a quarterly basis, FCR requests financial information from the L1s, via a template with instructions for completion. The process for gathering this information varies between L1s, as managers track and report over/underpayments using various methods and tools, such as the Salary Forecasting Tool (SFT), black books, Defence Resource Management Information System, HRMS, or a combination of these sources. L1s return the completed templates to the FCR group, where the data is compiled and submitted to the Office of the Comptroller General.

FCR has documented deficiencies in the information received from L1s, such as: limited to no quality assurance prior to submission; little explanation for reporting variances from the previous reporting period; and incomplete data. In addition, a number of L1s were late with their submission, or were required to resubmit, given their deficiencies. For example, in the first quarter of FY 2018/2019, 27 percent were submitted late and 38 percent required resubmission.

Survey and interview responses revealed that there was a lack of comfort with using the SFT; others questioned the validity and currency of the data in the application. The inconsistent use of the SFT could affect the accuracy of over/underpayment data used for reporting purposes. There were also multiple instances where this has led to budgeted salary wage envelope implications with potential impacts on operations.

2.4.2 Compensation Information for Decision Making

In addition to the Section 34 monitoring reports and activities previously reported in section 2.3.2, NCCS presents timeliness dashboards to the Defence Team Human Resources Committee and other governance bodies, as required.

NCCS has a quality assurance (QA) program in place to verify data integrity, through supervisor approvals, peer-to-peer discussion and the reconciliation of HRMS/Phoenix data. NCCS currently performs these QA functions on 300 transactions per quarter, selected on a risk-based approach. Given the thousands of transactions per pay period, this level of sampling cannot provide NCCS with sufficient information to provide assurance that compensation work is being done correctly and efficiently. The current QA program is currently being assessed, in conjunction with ADM(Fin), to determine what enhancements are required. Greater monitoring and data analysis will enable NCCS to more readily detect systemic issues and to develop work plans to mitigate these issues. This analysis could further alleviate work load pressures by allowing work to be prioritized in a more efficient and proactive nature.

2.4.3 Conclusion

While FCR is tracking and reporting overpayments and underpayments, additional controls are required to ensure data collected across L1s is consistent and accurate. Establishing detailed SFT guidance and training will promote the consistent use of the application across the Department.

NCCS has limited QA and data analysis to ensure accuracy of data and to identify trends in compensation issues. Enhancing QA and data analytics will promote the accuracy of data and enable better trend analysis to focus resources on areas requiring improvement.

ADM(RS) Recommendation
ADM(RS) Recommendation


Back to Table of Contents

3.0 General Conclusion

The implementation of Phoenix has resulted in a significant organizational and cultural change with HR being the functional authority and compensation responsibilities and accountabilities now residing with L1s, employees and managers. While DND has implemented numerous initiatives to support employees and reduce pay issues, the challenges surrounding compensation are expected to continue for the foreseeable future. NCCS has made progress in the areas of reducing the number of pay issues and increasing the capacity of the compensation team. With increased recognition of L1 accountability, additional progress can be made in the areas of timeliness, communication and monitoring.

While ADM(HR-Civ) is rebuilding capacity within the compensation team, the current compensation staffing complement is unable to support the current demands and workload. A formal approach to professionalize and stabilize compensation capacity is needed to support the on-going and long-term needs of the Department. In addition, enhanced data quality assurance, analytics and trend analysis will support effective work planning, the identification of systemic issues and the efficient use of resources to target issue areas requiring attention.

The nature and variety of DND’s civilian workforce, which includes a diverse range of classifications and collective agreements, adds significant complexity to pay transactions. A comprehensive guide, that is specific to employee and manager needs, and clearly details employee and manager roles and responsibilities, will help support the timely execution of pay transactions. Furthermore, issue specific and targeted communications will allow the Department to reach affected employees, including those who have retired or work in remote locations.

Finally, the tracking and reporting of overpayments and underpayments is occurring. Additional controls would help to ensure pay-related data is complete and collected consistently across L1s to inform decision making.

The Department has made the well-being of its employees, including the resolution of Phoenix pay issues one of its top priorities. It has developed numerous action plans to address these issues and support the thousands of employees affected by pay issues. The implementation of the recommendations in this report will further strengthen the Department’s ability to respond to employee pay issues in a timely and effective manner.


Back to Table of Contents

Annex A—Management Action Plan

ADM(RS) uses recommendation significance criteria as follows:

Very High—Controls are not in place. Important issues have been identified and will have a significant negative impact on operations.

High—Controls are inadequate. Important issues are identified that could negatively impact the achievement of program/operational objectives.

Moderate—Controls are in place but are not being sufficiently complied with. Issues are identified that could negatively impact the efficiency and effectiveness of operations.

Low—Controls are in place but the level of compliance varies.

Very Low—Controls are in place with no level of variance.

Capacity

ADM(RS) Recommendation – Moderate

Management Action

Agreed.

1.1 ADM(HR-Civ) to develop an HR community management strategy to enhance and professionalize the compensation group, complemented with formalized learning, targeted training and talent management activities.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: March 2020

1.2 Additional funding secured and a phased staffing plan has been initiated to increase compensation capacity nationally and provide managers and employees with additional support on Bases and Wings.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: December 2019

ADM(RS) Recommendation – Moderate

Management Action

Agreed. Targeted communications and supporting material will continue to be developed and shared with managers and employees to better understand the impact and their responsibilities. Material will be aligned with Treasury Board Secretariat and PSPC guidance and products.

ADM(HR-Civ) has produced numerous tools, communications and resources in order to support managers and employees in executing correct and timely pay and HR transactions, including those 11 Corporate Commitments as identified by Treasury Board Secretariat for Management Accountability Framework reporting requirements.

2.1.1 Timeliness tools created and shared with the Defence team, clearly identifying employee and manager roles and responsibilities with respect to timeliness, as well as the appropriate resources to support positive pay outcomes.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: Completed April 2019

2.1.2 Additionally, the HR Go App will provide easily accessible compensation to managers with the click of an icon. These and other service offerings support the Department’s efforts in enhancing accurate and timely pay outcomes, and are dependent on enabling capacity within ADM(HR-Civ) as well as the provision of technology and system support from key players such as Assistant Deputy Minister (Information Management) (ADM(IM)).

OPI: ADM(HR-Civ), NCCS Unit
Target Date: June 2019

2.2.1 In collaboration with the PSPC Pay Pod, ADM(HR-Civ) will develop tailored strategies to address specific classifications groups (e.g., Firefighters, Heating, Power and Stationary Plant Operations) which require manual intervention and/or advanced planning to avoid pay errors.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: September 2019

2.2.2 Tailored guides, instructions and communications will continue to be developed and shared with the firefighter community. ADM(HR-Civ) will continue to engage management on firefighter-related issues and in collaboration with PSPC, tailored pay processing practices will continue until a Phoenix solution is found.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: September 2019

2.2.3 Tailored instructions, communications and any required pay process changes will be developed for the Heating, Power and Stationary Plant Operations community due to their complex processing requirements.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: December 2019

2.3 The help lines, HRSS, increased support on bases/wings and the ability to remote access clients’ computers will help managers and employees to address recurring pay issues and life events in real time.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: September 2019

Communication

ADM(RS) Recommendation – Moderate

Management Action

Agreed. Strong collaboration with ADM(PA) will remain a priority for the effective communication of materials, resources, tools and training, as well as working with ADM(IM) and Director General Workforce Development to ensure effective online materials and portals to support learning and educational platforms.

3.1 In collaboration with ADM(PA), develop and implement a National Communication Strategy to include use of different mediums (e.g., kiosks, TV messaging, direct emails) to ensure messaging gets to those who are hard to reach across all L1s.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: September 2019

3.2 In collaboration with ADM(PA), a National Communication Strategy will be developed to influence improved pay outcome (e.g., timeliness of Section 34 and HR Transactions, mandatory Phoenix training) is regularly communicated across all L1s.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: September 2019

Timeliness

ADM(RS) Recommendation – High

Management Action

Agreed. In addition to the on-going monitoring occurring, ADM(HR Civ) will:

4.1 Provide cyclical updates on L0/L1 timeliness progress at the Defence Team Human Resources Committee.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: Completed November 2018

4.2 Provide monthly Section 34 and HR Transactions Timeliness Reports to L1s.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: Completed January 2019

4.3 Measure timeliness on 11 Corporate Commitments through Executives’ performance management agreements.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: October 2019

Monitoring

ADM(RS) Recommendation – Moderate

Management Action

5.1 ADM(Fin) agrees with the recommendation and will improve salary reconciliation and reporting of Phoenix overpayments and underpayments by providing end-users with the tools and training needed to accurately and effectively plan, forecast, maintain, reconcile and report on salary expenditures and Phoenix pay issues.

In support of this objective and the Deputy Minister’s direction for the mandatory use of SFT, ADM(Fin) has launched the Salary Management Strengthening Initiative to improve civilian salary management and increase SFT adoption and proficiency. To ensure over and under reporting, salary data integrity and accuracy, ADM(Fin) will engage Comptrollers, Budget Managers and SFT Coordinators at all levels of the organization in FY 2019/20 to: identify best practices and efficiency opportunities; standardize salary management business processes; and develop system enhancements, reference guides and training materials for the financial community.

Following the conclusion of stakeholder engagement in March 2020, ADM(Fin) will deliver a draft Salary Management procedural guide by March 2020 and the final guide completed by June 2020 with clear roles and responsibilities for individuals involved in the salary management process, as well an updated SFT Reference Guide with detailed Defence Resource Management Information System instructions. This timeline is required to engage with the group of seven L1s to ensure that their pain points are addressed and strategies incorporated into the guide. By December 2019, ADM(Fin) will develop and deliver on-site, on-demand SFT training for business units that can be delivered virtually, remotely and locally.

OPI: ADM(Fin)
Target Date: June 2020

ADM(RS) Recommendation – Moderate

Management Action

Agreed.

6.1 The QA program will implement different strategies and software options to provide increased data sampling and to identify critical areas requiring attention.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: September 2019

6.2 In collaboration with ADM(Fin), revise the QA program, its methodology and results to align with ADM(Fin) observations.

OPI: ADM(HR-Civ), NCCS Unit
Target Date: September 2019


Back to Table of Contents

Annex B—Audit Criteria

Criteria Assessment

The audit criteria were assessed using the following levels:

Assessment Level and Description

Level 1—Satisfactory
Level 2—Needs Minor Improvement
Level 3—Needs Moderate Improvement
Level 4—Needs Significant Improvement
Level 5—Unsatisfactory

Timeliness

1.         Section 34 pay transactions were entered and approved into Phoenix on a timely basis. Controls are in place to ensure timely approval of pay actions.

Assessment Level [Level 5] – Although some L1s are implementing strategies to improve the timeliness of pay transactions, the majority of pay transactions are not entered or approved in a timely manner, thus increasing the number of pay issues within DND.

Communication

2.         Regional or national communication strategies are in place to support employees with pay issues.

Assessment Level [Level 3] – Ongoing communications are sent to DND employees regionally via a variety of formats, but no formal, national compensation communication strategy exists to adequately support employees and former employees with pay issues.

Monitoring

3.         Overpayments and underpayments are managed to ensure sound stewardship. Data analysis is used to support initiatives and decision making.

Assessment Level [Level 3] – Although tracking and reporting of overpayments and underpayments is supported through monitoring activities, expanded controls, data analysis and quality assurance are required to improve data quality.

Capacity

4.         NCCS is ensuring that they can respond to compensation needs of the Department through recruitment, retention and turnover management. Compensation training is offered to, completed by, understood by and useful to Compensation staff and DND employees.

Assessment Level [Level 4] – NCCS does not have the capacity to respond to their current workload. Departmental compensation training is offered but does not meet the needs of all managers or employees.

Sources of Criteria

Timeliness:

Communication:

Monitoring:

Capacity:


Back to Table of Contents

Annex C—2018 PSES Compensation Question Results

Table C- 1. Results of PSES Questions.
Question 67. To what extent has your pay or other compensation been affected by issues with the Phoenix pay system?

Survey year

Organization

Not at all

To a small extent

To a moderate extent

To a large extent

To a very large extent

Don't know

Not applicable

Positive answers

Negative answers

Total responses

(%)

(%)

(%)

(%)

(%)

(%)

(%)

(%)

(%)

2018

Public Service

29

26

20

11

11

2

1

30

70

161,576

2018

Department of National Defence

24

25

22

13

14

1

0

25

75

10,594

Question 69. Please estimate the number of hours you have spent, at work or outside of work, attempting to resolve your pay or other compensation issue(s).

Survey year

Organization

0 hours

1 to 9 hours

10 to 19 hours

20 to 29 hours

30 to 39 hours

40 hours or more

Total responses

 -

(%)

(%)

(%)

(%)

(%)

(%)

2018

Public Service

6

41

19

11

5

19

104,045

2018

Department of National Defence

5

35

18

12

5

26

7,401

Question 71. I am satisfied with the support (e.g., regular information, follow-up, making enquiries on my behalf, offering emergency or priority pay) I received from my department or agency to help resolve my pay or other compensation issues.

Survey year

Organization

Strongly agree

Somewhat agree

Neither agree nor disagree

Somewhat disagree

Strongly disagree

Don't know

Not applicable

Positive answers

Negative answers

Total responses

(%)

(%)

(%)

(%)

(%)

(%)

(%)

(%)

(%)

2018

Public Service

11

22

18

18

23

2

6

36

44

108,900

2018

Department of National Defence

11

22

19

18

24

1

5

35

44

7,654

Question 72. I am satisfied with the support I received from the Pay Centre to help resolve my pay or other compensation issues.

Survey year

Organization

Strongly agree

Somewhat agree

Neither agree nor disagree

Somewhat disagree

Strongly disagree

Don't know

Not applicable

Positive answers

Negative answers

Total responses

(%)

(%)

(%)

(%)

(%)

(%)

(%)

(%)

(%)

2018

Public Service

5

13

16

19

39

2

7

19

63

108,928

2018

Department of National Defence

4

12

17

19

43

2

4

17

66

7,655

Question 73. To what extent have issues with the Phoenix pay system affected your decision to seek or accept another position (e.g., deployment, promotion, secondment, assignment, acting assignment) within your organization or the federal public service?

Survey year

Organization

Not at all

To a small extent

To a moderate extent

To a large extent

To a very large extent

Don't know

Not applicable

Positive answers

Negative answers

Total responses

(%)

(%)

(%)

(%)

(%)

(%)

(%)

(%)

(%)

2018

Public Service

42

16

13

9

11

1

8

63

22

161,026

2018

Department of National Defence

40

15

14

10

13

1

7

60

25

10,528

Table C-1. Results of PSES Questions. This table shows the results for the 2019 Public Service Employee Survey for questions regarding compensation.

Table C-1 Details - Results of PSES Questions.


Back to Table of Contents

Annex D—Pay Rule Examples

Table D-1. Pay Rule Examples.
Classification Collective Agreement Pay/Allowance Notes

FI

Financial Management

Basic Pay

  

FI

Financial Management

Overtime

  

FI

Financial Management

Professional Allowance

Employee will receive, upon proof of payment, reimbursement of annual membership fees paid to a professional designation.

SC

Operational Services

Basic Pay

  

SC

Operational Services

Overtime

  

SC

Operational Services

Dirty Work Allowance

Clean or work in bilges and spaces below the bottom floor plates for periods in excess of 15 minutes. Clean boiler tubes or repair and maintain ships’ sewage disposal tanks. Come in physical contact with the pollutant while cleaning up oil spills in excess of 200 litres. Repair or maintain the ships’ grey water system and valves provided the employee is required to come in direct contact with grey water.

SC

Operational Services

Diving Duty Allowance

Performing underwater work with the aid of a self-contained air supply.

SC

Operational Services

Fisheries Enforcement Allowance

Payable for each month that the employee maintains certification and is assigned to a sea going position where the employee may be required by the Employer to participate in enforcement duties.

SC

Operational Services

Meals and Quarters

Vessel away from Home port where Meals and/or Quarters are normally provided, but not available or not provided. Actual costs incurred for meals and/or lodging

SC

Operational Services

Security Duty

This is a non-automated entitlement that is reported in the same manner as Overtime for 3/10 of the straight time hourly rate

SC

Operational Services

Trade Certification Fees

This is a non-automated entitlement that is paid out manually by a Compensation Advisor for registration, licensing or certification fees.

Table D-1. Pay Rule Examples. This table shows a more detailed breakdown of Figure 1.

Table D-1 Details - Pay Rule Examples.


Back to Table of Contents

Page details

Date modified: