Integrated strategy for human resources and pay: Progress update session, October 2025
Integrated strategy for human resources and pay
Progress update session, October 2025
Since the launch of the Phoenix Pay System in 2016, work to stabilize Pay Operations has been ongoing. Despite significant efforts by the Office of the Chief Human Resources Officer (OCHRO) at the Treasury Board of Canada Secretariat (TBS) and Public Services and Procurement Canada (PSPC), public servants continue to feel the impacts of its roll out eight years later.
The session informed public servants of the continued work being done to stabilize operations and the current status of the transformation project to integrate pay and human resources into a central system.
A commitment has been made to move forward transparently on this file through regular updates, a revitalized webpage and user engagement. This was the fifth of a series of quarterly updates that will be organized in the coming year.
This video is the recording of the event which held on October 29, 2025. Both an English and a French session took place separately. Most topics were covered equally during both sessions, except for the question-and-answer period at the end, which took questions from the different audience members. Below the video, you will find the list of all questions and answers addressed during the French session.
Transcript of: Progress update session, October 2025
Start of video
(Text on screen: Public Services and Procurement Canada)
[Video opens with Mathew Nepssy talking from a podium in front of a grey backdrop and a Canada flag to his right.]
Welcome to the fifth quarterly update on HR and Pay for the Government of Canada. This is the English event for all public servants.
(Text on screen: Mathew Nepssy, Director, Strategy and Governance, Data Modernization, Office of the Chief Data Officer, Human Capital Management, Public Services and Procurement Canada)
I’ll be moderating today’s session. My name is Mathew Nepssy, and I’m a Director in the Data Modernization Branch of the Human Capital Management portfolio at PSPC.
Before we begin, I would like to acknowledge that I’m joining you today from Ottawa, which is situated on the traditional unceded territory of the Algonquin Anishinaabe Nation. We’re grateful to gather on this land, which has been cared for by Indigenous Peoples for generations. We honour their enduring stewardship, and recognize the ongoing contributions of Indigenous communities to the fabric of our country.
I invite each of you to take a moment to learn about the Indigenous territory you’re joining from, and to reflect on how we can collectively support reconciliation and respectful relationships with Indigenous communities across Canada. Let this acknowledgement be more than words and instead, inspire us to learn, engage, and act in ways that honour Indigenous rights, histories, and futures. As public servants, we have a responsibility to ensure our systems reflect fairness, inclusion, and respect for all, including Indigenous employees.
(Text on screen: Moment of silence)
Thank you.
[Video changes to a graphic that takes up 60% of the screen and a small square with Mathew Nepssy still talking on the right.]
(Title text on graphic: The Government of Canada's Quarterly Update on HR and Pay)
So without further ado, let me introduce our panel:
[The small frame that Mathew Nepssy is talking in turns to a shot of the panel sitting at the table, from left to right, Alex Benay, Christiane Fox and Francis Trudel.]
Christiane Fox, Deputy Clerk of the Privy Council and Associate Secretary to the Cabinet; Francis Trudel, Associate Chief Human Resources Officer at the Treasury Board of Canada Secretariat; and Alex Benay, Associate Deputy Minister of Human Capital Management at Public Services and Procurement Canada.
[The video transitions to full screen of the panel sitting at a long table that then zooms into Christiane who is sitting in the middle as she speaks into a microphone.]
I’ll now turn it over to the Deputy Clerk to begin
(Text on screen: Christiane Fox, Deputy Clerk of the Privy Council and Associate Secretary to the Cabinet)
Thank you, Mathew Nepssy, and thanks to everyone for joining us from across the country, especially if you stayed up to watch the Jays game last night.
I want to acknowledge the important work being done to stabilize and modernize our HR and Pay systems. This work touches every public servant, and we all have a role to play. The Government of Canada, as well as the public service, continues to evolve. We’re balancing transformation, fiscal restraint and a changing global context. Public servants like you, remain at the heart of it all. Your adaptability and commitment keep us moving forward. I appreciate your dedication and service to Canadians from coast to coast to coast.
Although we still don’t have all the answers right now, we’re navigating this change together, anchored in lessons from the past, as well as the values and ethics dialogue over the last few years.
The new clerk, Michael Sabia, has called on the public service to simplify our processes to be more efficient, to be focused, and stick to our priorities with discipline, and be accountable and own our work. That is how we are advancing the HR and Pay modernization, with focus, determination, accountability, and I would add, transparency.
It is vital that we have clear communication going forward, and we need to remember to lead with empathy and compassion, both for our colleagues and ourselves. Small acts of kindness and understanding make a big difference.
[A graphic takes up 60% of the screen and a small square still reminds of Christiane Fox on video on the right.]
(Title text on graphic: Recap: What We Said Last Time)
(Text on graphic;
In June 2025, we updated employees, unions, and the media on the HR and Pay.
Year end results for 2024-25:
- Completed Dayforce feasibility; 4,000+ requirements, 88% test success, 97% accessibility compliance
- 41% of Dayforce configured; full setup and testing by June 2026
- Rolled out 6 & 7 Unified Actions for Pay (UAP measures
Simplification and standardization of HR and pay
- Ongoing engagement with bargaining agents
Engagemetent Fiscal Year (FY) 2024-25
- 322 workshops held; 169 human resources (HR) and pay processes mapped for Dayforce
- “In the open” newsletter launched in June – subscribe for updates
- What we heard from you on the Pulse Check survey.
Introduced eight new commitments for April 2025 to June 2026
- Eight new commitments to reduce backlog, stabilize pay, and prepare for Dayforce.)
At our last transparency by design event in June, we shared how far we’ve come and what lies ahead. This included introducing eight new commitments to reduce the backlog of Pay cases and prepare for Dayforce. We highlighted key milestones from the 2024-2025 fiscal year, such as the completion of Dayforce feasibility testing, a status update on its configuration, and the rollout of six Unified Actions for Pay (UAP). Providing an update on the ongoing collaboration with bargaining agents to simplify and harmonize our Payrolls, prioritizing engagement through 322 workshops, and the launch of the In the Open newsletter. We shared results from our very first public opinion survey that was conducted between January and March of 2025. There was strong engagement at the event. We received over 300 questions from employees, reflecting your deep interests in this transformation. Responses to the most popular questions are posted on the integrated strategy for HR and pay website.
[Video returns to full screen with Christiane Fox.]
Today, we continue to make steady progress. Pay centres inventory and backlog of pay cases are now at their lowest level since the fall of 2021. I’d like to highlight the work done by the Pay Centre Compensation advisors, who are an integral part of this success and this entire transformation process. We would not be here if not for your efforts.
Over the past year, as of September 25, 2025, the Pay Centre inventory, also known as the queue, has dropped by roughly 105,000 cases. That’s a 27% reduction, while backlog cases which are older than a year, are down by about 52,000 or 28%. We’re also seeing fewer cases that are outside service standards but not yet one year old. So that’s a 40% decrease over the last 12 months.
So simply put, more employees are being pay accurately and on time. While we still have more work to do, I am encouraged about what I’ve seen so far.
As Alex will touch on shortly, progress also continues on the broader modernization of the HR and Pay system.
Over the summer, the deputy minister’s sponsoring group, the committee that’s responsible for the oversight of this transformation, focused much of its attention on change management and departmental readiness as we move closer to transformation, making sure every organization has the tools and training it needs for a smooth transition to Dayforce, and that is critical.
For employees, that means clear and frequent communication, hands-on training and support, which we are developing and putting in place. For departments, it means having readiness plans and resources in place, as well as testing capacity before any onboarding begins.
We know that the departmental readiness remains one of the most significant risks, which is why the committee has asked teams to identify readiness criteria to make sure every organization is prepared to onboard successfully. Managers and employees must be prepared to adjust to the new ways of working.
Another important way to manage risk is through strong oversight. Throughout the execution of the project, we have included formal audit trails, progress tracking, and oversight mechanisms designed to flag issues early and keep implementation on track. Regular reporting is being built into this process, and we’ll continue to share those updates as part of our commitment to transparency.
Speaking of commitment to transparency, since we last met in June, we’ve released and additional 100 documents on the Open Government Portal, bringing the total to 150.
Beyond the technical progress, we’ve kept one thing front and centre: engaging with employees on this modernization journey. Since June, we’ve held 11 pilot sessions with employees, departments, to familiarize them with Dayforce, and we’re not stopping there. In the coming weeks, the Dayforce road show is ramping back up. We’ll be able to get more information about what to expect from HR and Pay’s transformation, right from your department’s lobby. If you haven’t seen Dayforce in action yet, this is your chance. Bring your questions and see how it’s going to make sure that your HR and Pay experience is smoother and more transparent.
I’m also excited to announce the launch of our second pulse check survey. This is designed to get your honest feedback on how modernization is going so far. If you’ve ever wondered whether your feedback makes a difference, it does. Every insight helps us shape what comes next.
I want to extend my sincere thanks to everyone involved in this transformation, for modernizing not only our systems, but also how we serve, how we listen, and how we lead. Your dedication, feedback and patience, are helping us shape and equip a public service that’s ready for the future. So I thank you all for what you do.
[The video transitions to full screen of the panel sitting at a long table.]
And now I’ll pass it over to Francis, who will provide you with an update on the simplification of the HR and Pay landscape. Francis, over to you.
[Video transitions to Franics Trudel who is sitting on the right of Christiane as he starts to speak.]
(Text on Screen: Francis Trudel, Associate Chief Human Resources Officer, Treasury Board of Canada Secretariat)
Thank you, Chris. Hello everybody. A pleasure to be here with you for another update. Always a pleasure to do so with you, Chris and Alex.
Through the last four updates that we gave through this transparency by design initiative, we spoke of the importance of the proximity we have with the project being led by Alex and his team and the OCHRO, the employer, who has all the requirements that needs to be put in place in the new solutions we’re designing. Happy to report that that proximity continues in this work, that the close relationship is continuing to be the foundation of the great work and the progress that we’re seeing unfolding.
We also spoke of the specific role of OCHRO that plays within this project. We spoke of the policy ownership role that we have with the HR policy suites that we have in public service, of course. The famous condition of employments that needs to be accommodated by that system that we negotiate through mostly collective bargaining, almost exclusively, in fact, through collective bargaining process, and the overall general oversights that OCHRO has over the HR regimes. And of course, at the core of this is the basic principle that when employees do work for the employer, we pay them for the work that they perform, and that’s at the core of our HR regime. So simply put, all of these things are what needs to be accommodated in the current HR environment, but also in the future solution that we’re designing with Alex which reinforces the point about the proximity of the solution and the requirements that we’re trying to bring together between Alex and I.
In my updates in the past, I’ve used the frame of using simplification and standardization as kind of a frame to report on this. I think it continues to be pertinent and useful, so I’ll use that as well. Continues to be useful because in particular, it continues to remain what we need to now for the current environment, and as pertinent to actually transit to the new environment we’re moving towards.
So just quickly, on the simplification aspect of things, it covers a large, large array of activities, some of which actually might appear a little bit small for the audience when you’re listening to the things we’re working on, but these small things accumulate. And as we have talked here in the past, the pay function is actually the end state of a much longer process that starts upstream, and every work that we do upstream, to simplify things, really does accumulate to an impact at the end for the people at the Pay Centre.
Happy to report that as part of the simplification progress, we now have a new directive on union dues. Great collaborations with bargaining agents. Again, something that can appear a little small, but now that we’re standardizing how we collect every single union dues through the pay system, it actually simplified things quite a bit.
We’ve done other work, for example, on the executive community. Again, you might think the executive community is only kind of 2-3% of the overall public service. That is actually true, but Alex and his team would tell you that what we do for executives has almost been exclusively been done through manual transactions, so we needed to do things about this. So we’ve simplified things there as well. So we standardized the pay administration for executives, similarly in the way that we have done it for the other groups, in simple things like how we establish and we’re rounding up numbers of their salaries, how we’re transitioning the excessive leave and all these small things that we took away.
We’re also working on bigger things. You’ve heard me talk about the PA conversion effort that we’re doing with the alliance of PSAC. This I have a lot of hope for. These are 10 different classification groups that resides under the PA classification group of the public service. Doing any work on this to simplify the 10 different classification groups that we have will have a significant impact. Of course, this has a little bit of a longer tale. It takes a little bit of time to do that work, but that work is continuing in partnership with bargaining agents.
You’ve also heard me speak in the last sessions about an agreement or memorandum of understanding (MoU) that we came up with and signed with every single bargaining agent—almost every single bargaining agent—through the last round of collective agreements. The spirit of that, you’ll remember was that we could allow ourselves to reopen collective agreements and resolve issues quickly, and change conditions of employment that would be of mutual interest to facilitate the proper payment of pay for our employees and the members of the bargaining agents. Unfortunately, so far, we have not been successful in these negotiations. What you don’t see as part of this briefing of transparency by design is that we also have a session with bargaining agents that is actually part of this. This actually happened earlier in the week, and we raised that point with the bargaining agents and suggested that we should really pay attention to this and double down. The idea of those MoU’s were actually to avoid including some of those measures inside a very long negotiated process of collective bargaining and doing it outside of that. So we gave ourselves an extra five weeks to try to come up with some solutions or else we’ll have to bring these negotiations to a close because of course, the project needs to move forward.
Quickly on standardization, this is where we worked very closely with PSPC, of course, consolidated a number of HR systems. It has been a team that I brought to these briefings, often. I think we started at 70 way back when. The first briefing we had was probably around 32. We had 30 in the last briefing. We have 29 now. Yes, it’s not as fast as we would like, but the trajectory and the direction is going in the right direction, and this is promoting the adoption of standardized technology, of course.
As part of the standardization, also we include efforts that we are doing on the training front, being mandatory training for employees and for supervisors, which are now available. We’re refining the timeliness standards. This is also something you might have heard about, and guidance on leave, “code age”, and all the small things that affects and applied to 400,000 people in the public service. So they quickly, again, Alex and I are co-managing governance as well, certain governance, including some at OCHRO that speaks to the investments in systems to make sure that there’s alignments, and also transitioning to what we call the interim solution, until we move to the new solution, which is MyGCHR.
Maybe the last thing I’d bring up, because you have heard that terminology quite a bit as well, it’s the Unified Action Plan (UAP). Those are pragmatic measures that we’re putting to the system and reinforcing standardized behaviour across the public service on things as simple as maximizing the self-service that exists, standardizing the way we administer term administration across the system. Acting situation in executive positions, for example, is another topic that came up. Anyway, there’s a formal action plan there. Those are slowly getting ourselves acting in a similar way throughout the transactions we’re doing, again, with the objective to simplify and to standardize what actually ends up in the Pay Centre.
And I’ll stop here and maybe to say that it’ll probably be proper that in that same spirit of future updates that we will give, that we start migrating to talk about some of the change management readiness issues and some of the standardization of our business process to make this real for people.
So I’ll stop here, and I’ll pass the floor to Alex.
[The video transitions to full screen of the panel sitting at a long table.]
[Video transitions to Alex Benay who is sitting to the left of Christiane as he starts to speak.]
(Text on Screen: Alex Benay, Associate Deputy Minister of Public Services and Procurement Canada for Human Capital Management)
[Video changes to a graphic that takes up 60% of the screen and a small square with Alex Benay still talking on the right.]
[Graphic on screen.]
(Title text on graphic: Commitments: Tracking our progress. Progress against phase 1 commitments (April 2025 – June 2026)*
(Text on graphic;
Current operations
- Process Backlog Cases: 102,600 Cases, at 43% and up 22%
- Eliminate SSC Priority and Backlog cases – 19,900 Cases, at 55% and up 21%
- Leverage AI and Automation to Help Case Processing: 160,000 Cases, at 6% and up 5%
- Consolidate HR systems across the GC under PSPC: 21 new GC Departments, at 9% and up 4%
Transformation (2024-25)
- Build and Validate Dayforce System (Year 2): Build of HR and Pay System Completed, at 50% and up 9%
- HR & Pay Standardization: 50% of GC Departments Reviewed Standardized Processes for Dayforce, at 7% and up 7%
- Data Hub Procurement: Completed and Build Started, at 33% and up 19%
- Date Readiness for Onboarding to Dayforce: 3 GC Departments, at 30% and up 11%
*Data as of September 25, 2025
**Data compared to previous quarter (June 2025)
Thank you, Francis. Like Chris said, we had a lot of progress on a lot of fronts, and I’m actually going to take you folks through the commitment tracker that’s on the screen now. And we shared these commitments back in June, and today we’re going to do a check-in. So we’re going to talk about what’s working, what’s stalling, and where we need to push a little bit harder.
So our current commitments, I just want to reiterate our plan from April, last April to June 2026 because that matches our project schedule. So it’s not just a fiscal year, it’s another quarter past this fiscal year. So let’s start with what’s going well because that’s always easier.
As Chris mentioned, backlog cases are advancing quite well. We are at 43% of the 102,000 cases we said we would process in this time period. At the end of Q2—these are cases that are older than one year, to be clear—at the end of Q2, you’ll all see on the tracker that we’re at 55% of the 19,000 PSPC priority cases, and that matters for two reasons. First of all, we want to get to a very stable point for public servants, obviously deserve to get paid accurately and on time, that’s not negotiable. So it’s important that we get through these cases, but it’s also equally important from a Vanguard Department perspective, so to refresh your memory, that’s PSPC, SSC and the Canadian Nuclear Safety Commission. That transition’s going to start in June. So our Vanguard pilot departments start in June and their backlog needs to be clear.
As far as on the transformation side, I’m happy to say that the build of Dayforce itself, technically speaking, is 50% complete. So it’s not just about coding or setup, it’s about also making sure that every departmental requirement that we’ve collected over the last 18 months is tested, that every gap of the feasibility report that we released last year, that those gaps are closed, and that we’re ready for enterprise testing in June as well.
Looking at the bottom of the tracker, we continue to make progress on data readiness to onboard the first three Vanguard departments. Overall preparedness of data sits at about 30%, but we have 96% of SSC, PSPC data that was successfully processed during the initial onboarding to Dayforce during our test. That’s a promising result because those of you that remember the history of Phoenix, this was a major issue in the past. There was no data cleaning, and the data that was transferred was faulty. So this data readiness is what’s going to get us to parallel testing in June.
Some of the commitments that have lower results, because they’re not all moving at the same pace, and these are areas that we will be pushing harder over the next few quarters. Our commitment to use of AI and automation to help process pay cases, it’s a bit slower of a start than we wanted. As of Q2 on the report, only about 6% of the 160,000 cases have been processed, either partially or completely with the help of AI and automation, but as of October, because we missed the cut-off for reporting by a week, but so be it, but as of October what I want to report is with our AI virtual assistant, we’ve been able to automate five work types, which are now live: membership fees, leave without income, averaging, and others. And that represents about 50,000 additional cases per year. So we’re still tracking orange on our AI and automation, but we missed the reporting period by a week. Happy to also say that we are green as far as this quarter is concerned. So by the end of December, AI and automation is going to be leveraged to help compensation advisors process four more case types for a total of 80,000 additional cases, so that’ll get us to about 135 of our 160,000 target this year. So we have a plan to accelerate and to get this back to green.
On the transformation side, the tech is only a part of it, as we’ve been saying from the beginning. We’re also engaging departments and agencies to make sure that they review the standardized HR and Pay processes for Dayforce.
As of Q2, only three departments had reviewed the standardized process for about 7%. Since then, though, again with the reporting period, we’ve had another seven departments review and bringing us to a total of 10. It’s steady progress. It needs to go faster, and we’re going to be working closely with partner departments to keep the momentum going on that front.
It’s important to note that standardizing HR is as important as getting modern technology in place, and standardization work, it takes time, especially when we look at the 189 processes that we’ve identified for standardization to date. So I just want to be clear. In the new system, we will have standardized 189 new processes that are currently. And we know it’s critical that we do all of this right, because Vanguard, the three departments, are going to set the standard for all of the Government of Canada HR.
You heard Chris mention on change management and readiness, we’ve seen some really good progress on our operational and transformational commitments, but obviously, we want to focus on the change management side.
[Video transitions back to Alex full screen]
As we move closer to implementation, change management isn’t just important, it’s critical. Departmental and employee readiness is going to be at the core of our measures of success. For those of you, again, that remember some of our Phoenix lessons learned, change management was the first thing that was cut out of the budget. We will not do that this time. And to be clear, by change management, I’m not only talking about preparing for a new pay system or cleaning up data, even though that’s important, I’m also talking about departments being active participants and frankly, responsible actors in this transformation. We’ve come a long way since the launch of the Phoenix pay system. Our pay accuracy now sits at 98.4%, which is an increase from 98.1% from the last period. And most remaining errors don’t come from the system itself, as Francis mentioned, but often from HR actions that are delayed or entered incorrectly.
So what does that mean for change in this transformation? Well departments and managers have to be accountable for HR practices. So for example, if a manager fails to input data into the HR system on time and it results in an overpayment, that’s not necessarily a pay system issue. That’s a failure in HR accountability. So that HR practice cannot be blamed on the pay system, which is, if I’m being truthful, something we have done historically.
So here’s the bottom line: no system, no matter how advanced, is going to fix bad practices. And if managers and employees don’t understand their roles in the end-to-end HR and Pay process, the mistakes are going to continue. So what does that mean for you? If you’re a manager, it’s important to know that your actions, or in some cases inactions, have direct consequences on employee pay. If you don’t input something on time, that’s not a pay issue. That is an HR issue, and we’re going to start treating them as such moving forward. So if you’re an employee, you also have a role to play. Make sure you stay informed. Make sure you attend user sessions. Flag issues early. Make sure you submit your requests on time. If something doesn’t look right with your pay or HR information, let us know. Make sure your section 34 manager is also in the system by the way, because we have a lot of departments where that’s not the case. And these are not necessarily optional steps. They have to be part of your responsibility.
So this transformation is a team sport. It’s not a solo game. Every department and every agency, readiness, engagement, leadership, is going to shape our success as we move into a Dayforce era, together.
So to ensure we’re all ready for the change, we’ll keep tracking readiness across departments and agencies with a very strong focus on accountability and we’ll do so transparently, like we’ve done with everything else with this project.
One way we’ll do this is by launching a departmental readiness dashboard, and as I mentioned, we will be making the results available for everyone. This will give every department and agency a clear view on where they stand and obviously, what still needs to get done to be ready for Dayforce.
That readiness is going to take many forms: process alignment, engagement with new tools, active participation in change activities. Every step of the way, we’ll continue to test, configure, and validate Dayforce following Vanguard onboarding to be sure it meets our complex needs. And all of the testing results will be made public.
So as we continue these quarterly updates, we’ll introduce more change management content, so tackling questions like what does onboarding actually mean, and sharing lessons learned from Vanguard departments. These insights will help us refine and smooth the path for the next wave of departments.
So in closing, I’m confident we’ll be ready for June 2026. We’re green. We’re on track for launching Dayforce in our Vanguard departments in the beginning of the process and for parallel payroll testing. It’s not just what we’re doing, because our success, not on our end in PSPC, our success is very much tied to all of you and your departments and it’s a shared accountability. So I hope you continue to be invested in the solution. Ask us. Ask your managers, and I’m encouraging you to hold us to account.
So before we go to questions and answers, I’d like to point out that on our webpage, we’ve complied and answered your questions from the last event, especially questions that we didn’t get a chance to get to. So I encourage you to consult the Q&A. Any questions left unanswered today will undergo the same treatment, so with an updated Q&A page by the time of our next event.
[The video transitions to full screen of the panel sitting at a long table.]
Before I turn it back to Mathew Nepssy, I’ve been made aware that there’s quite a few questions that are not pay-related right now. We’ll take a couple and check in with Chris because it’s not every day you have an opportunity to have Chris on the stage. No, I’m kidding. We will collectively answer non-pay questions, but we will prioritize HR and Pay questions, just in fairness for those that want to get answers to the questions. So please, do try to keep your questions related to the topic, if possible.
So at this point, Mathew, I’ll turn the floor back over to you.
[Mathew Nepssy talking at podium]
[Video transitions to full screen of Mathew Nepssy.]
Alright. Now it’s time for our Q&A.
Okay. And I see we’ve got our first question now.
Can you please speak on this information about staffing at the Pay Centre potentially going from 3,845 to 749 employees?
[Video changes to Alex Benay talking at the table.]
Yeah. Not quite sure where those numbers come from. They’re news to me. I’ll start by saying that. We have certain amounts of budgets that are allocated to us until the end of next fiscal year, at which point we have to make another financial request to the government to continue the program. We’ll have a better understanding of the amount of people needed to do the amount of work that we have before us as part of transformation by then, and then at that point we’ll be looking at staffing decisions. Until then, there is no plan of going from 3,800 to 749. I just want to be very clear that that is not the plan. So happy for you to reach out and we can have a further detailed conversation on that because I’m suspecting that might come from my gang, frankly. But the plan is not to go from 3,800 to 750. We have budget until the end of next fiscal, and at that point we’ll make decisions with the government as to what our staffing needs are going to be.
[Video changes to Mathew Nepssy talking from podium.]
Our next question has to do with Thoma Bravo, headquartered in Chicago, who acquired Dayforce in August.
Given the powers granted under the USA Patriot Act of 2001, what safeguards does the Government of Canada have in its contract with Dayforce to protect data sovereignty?
[Video changes to Alex Benay talking at the table.]
Okay. That’s another one for me. Two things I would say. Thing one is there are technical things we could do with regards to what we do with the data that Dayforce and the cloud provider and how they manage it. So we’re going to be looking at technical solutions, whether that’s encryption of data or other things. Obviously, that’s something we’re talking with Dayforce actively. The Patriot Act is okay. The Cloud Act is more important and FISA court orders are more important. So there’s a whole series of legislation in the United States that we have to manage and administer as the Government of Canada, and we do that.
The second thing that I would say is we’re also—and I can’t speak too, too much about this—but we do have an open tender currently for our data hub, which our intention is to make that very sovereign. As sovereign as humanly possible, specifically for the reason of protecting Canadian data and having Government of Canada employees located in a sovereign, secure, centralized location, for which the system can interact with. So we’re looking at different technical issues, different technical answers, and various sovereignty answers with an ITQ that’s on the street as we speak.
[Video changes to Christiane Fox talking at the table.]
Maybe I would just add that, you know, when we sign a contract with Dayforce, like they have to adhere to Canada’s privacy legislation, and that’s important for all of you to know that there are safeguards in place, and in addition to that, they’ve got to follow what our cyber security strategies of the Government of Canada represents. So this is something that Alex and team are focused on. Obviously, the privacy and data sovereignty has to be at the core of this project moving forward, but the Canadian privacy legislation applies.
[Video changes to Mathew Nepssy talking from podium.]
Next.
The number of processing errors continues to grow as advisors focus more on productivity than the quality of their processing. How are you planning on stopping this from continuing?
[Video changes to Alex Benay talking at the table.]
I have to admit, I’m a bit confused, because our numbers are actually showing that things are going better. They’re not great. Like I have to admit, like we would all like to be at zero, but we’re anticipating having one year backlog closer to 80,000 cases, which will be the first time it’s ever below 100,000 by the month of June. We’re about 130,000 now, and for the last, I’d say, three to four months, anything that’s one year or older, has been steadily going down. Our overall queue and what’s in service standard has also been going—well the queue has been going down, but what’s inside service standard has been going up. So this is not a challenge back, it’s just whoever asked this question, please send me an email, information with where you’re getting the numbers from because if we’re missing something, we obviously want to fix it. Again, I’m not going to profess a win here. Things are getting better, and things are trending positively. So at this point, I’m going to need a little bit more help on those numbers, because if those numbers that we are operating under are wrong, obviously, I want to know.
[Video changes to Christiane Fox talking at the table.]
And I think this is obviously an important point for sort of all of public service to focus on in the context of client service, accuracy of information, the timeliness of responses. It is kind of that balance between sort of the productivity and time management of the employees that are responsible for providing the work and the data required. But we saw it in the most recent AG report, we’ve got a focus on accuracy. We’ve got a focus on ensuring that productivity in the context of time management does not get in the way of accuracy and our ability to deliver results for the clients that we serve. And so that’s not a pay issue exclusively. It’s actually across government organizations as we think about that balance of productivity and accuracy.
[Video changes to Francis Trudel talking at the table.]
Yeah, I was going to make a similar point. This is a whole enterprise approach. The question seems to be very focused about who is actually doing the transaction, but one of the statements at the beginning—one of the things we said at the beginning of our intervention is that pay centres at the tail end of this, every single employee, submitting information has a role to play. Every manager who transacts this information has a role to play. Every delegated manager needs to do this properly. Every advice given by practitioners in the HR community needs to be standardized. So all of these small points actually helps out—like I can’t comment on the current accuracy in the number, Alex—but our focus is to improve, so that’s how you get to improvement.
[Video changes to Mathew Nepssy talking from podium.]
What is the progress on negotiations with various unions to simplify classification and pay tables?
[Video changes to Francis Trudel talking at the table.]
So I’ll separate this. I’ll give two components of an answer to that question. So negotiations, in theory, takes place through the collective bargaining process. That’s where the collective bargaining process covers conditions of employment. And between the employer and the unions, this is where it’s being negotiated. This process has an average, I would suggest, is between two to three years of length. The reason for this is because it’s complicated. There’s a lot of conditions of employment. We cover a lot of things. We only talk about—we often talked about salary, but there’s so much more to negotiate. So if we want to actually simplify and have an impact on pay, because I’m going to bring this back to pay, we needed to find a different way to negotiate conditions of employment that were impacting pay. That’s the spirit of the MoU we have signed in the last round of collective bargaining, and I would suggest that the bargaining agents, equally to the employer, have the same interests there. The bargaining agent wants to have their people paid properly, which they should, and the manager has the same interest. So that’s the spirit of it. As I said earlier in my introduction remarks, we haven’t landed where we needed to land on those negotiations. We’re going to try to do another push, but again, the project needs to move on. So we might have to walk out of—both of us might have to walk out of that specific negotiation.
Now, the second part of that answer is simplification is now at the core of everything we do. It’s at the core of how we think about our policy. It’s at the core of how we negotiate anything that relates to condition of employment. There’s nothing that we think about that we don’t have a call in to Alex and his team to understand the impact it has on pay. So that will continue. That component will continue to the collective bargaining process. It’s not a do or die thing, currently. It’s going to be ongoing, but the MoU component has not landed success yet.
[Video changes to Alex Benay talking at the table.]
Maybe I’ll just compliment Francis’ answer with when we started this project, we said that we would design the new system against the complexity of our current environment. Technology’s changed a lot between 2015 and today, and so our environment may or may not be as complex as we think. So it is complex, just to be clear, but we designed it against the current environment. So we have nine cloud extensions that Dayforce is building on things like mass retro, which that is a very peculiar thing in the HR and Pay world, globally speaking, but they are designing solutions against that complexity. So if for whatever reason the simplification can’t happen at the negotiating tables, we will have a technical solution for it as well. And that’s trending green right now. Dayforce has been very good at making sure that we’re building towards those nine cloud extensions. And as we go through the project, we may need more extensions. We may need less. Actually, we started with 10 or 11 and we’re down to nine. So this is something that’s going to continue to evolve over the course of the project.
[Video changes to Mathew Nepssy talking from podium.]
Okay. So panelists, we’re going to shift gears here for a second because we’ve had quite a large number of return-to-office questions come in, and I’d like to bring forward one that has received well over 550 likes so far.
With large budget cuts needed, why are we still so focused on office space? Real property has been directed to stop the offloading of property. Work from home works. Rather than cut people, why not cut spending on office space which seems better?
[Video changes to Christiane Fox talking at the table.]
Thank you. And I know this is top of mind for many public servants. I think from the beginning, we’ve taken the approach that we are constantly reviewing kind of in-office presence and its impact on the workplace. That’s something that management across organizations are seized with. And it’s not just a financial issue in the context of letting go of real property to get savings. I think the review is focused on the performance of the public service in the face of enormous complexities. Whether geo-political, economic, the launch of many initiatives, the major projects office, defence, procurement agency and investment agency, what we’re doing with building Canada homes, we have to look at the organizations and the mandate of the government and how best to deliver, and how best to deliver that in a sort of focused, simplified and accountable way as the clerk has articulated. And so this question is very much related to kind of budget dollars and savings, but the review actually factors in public service performance, public service presence to serve Canadians here and abroad. And so all of those factors are taking into account not solely a savings from, you know, the sale of a building. And so we’ll continue to do this work. Once decisions are made, people will communicate those decisions, but I think for the time being, we have to reflect on how can we be most performing. What are the benefits from in-office presence and how we’re delivering service to Canadians? And as I said, it’s not just a question of budget dollars.
[Video changes to Mathew Nepssy talking from podium.]
Pulling us back to the processing with pay.
November 4th will be the federal budget. Is there anything in there that could create concerns on the continued “clean-up” of Phoenix, but also the eventual replacement of Phoenix to a new platform?
[Video changes to Christiane Fox talking at the table.]
I think it would be quite career limiting to start talk about what’s in the budget prior to the government tabling the budget, but what I can say is that the DM Sponsorship Steering Committee continues to implement the changes to clean up the Phoenix, to work on the backlog, to implement AI, to move to Dayforce, to think about our strategies over the next few years, and that is what we are focused on. That is what Alex and team bring to us every week for us to review and really reflect on the decisions that we need to make, both from a consideration of risk, from a relationship with the union. So I would say that we are steady the course. We are continuing that work, and we’ve got those investments to continue that work, and we remain committed to it.
[Video changes to Alex Benay talking at the table.]
Yeah, I mean I’m obviously not going to contradict Chris on this one either. It’s important for people to understand. We are funded right now for definition phase, which means we’re defining what rollout will look like. We are building the solution. We have everything we need for that. Our next stage in our life—in the lifecycle of the project is the deployment phase, and I’m actually very comfortable with how government has funded us over the course of the year is because it’s been phase by phase, show us that we’re doing the right work and that we’re hitting our targets. Because the last thing we want is to obviously fail at this a second time, so the incremental approach for us has worked. The next step for us, once we are done this tranche of funding, which will take us to March 2027, is actually to look at how we roll this out across the GC. So for us, that’s pretty exciting and it’s a natural moment in time to talk about funding at that point. But as Chris mentioned, we have a lot of work between now and then.
[Video changes to Mathew Nepssy talking from podium.]
At a recent town hall, we heard about a pilot to place Pay Centre pods in 10 departments by the end of this fiscal year. Can you share how this will roll out, which departments were picked and how they were chosen?
[Video changes to Alex Benay talking at the table.]
Yep. So the direct access pilots, we are hoping to get—we’re not there yet—we are hoping to get to 10 between the end of the fiscal year. The goal is to try to continuously bring HR and Pay back together again. And I think Francis can correct me, in 2008, we had our policy on people management that federated HR, and we have a centralized compensation services practice that we have at PSPC. And we’ve created some arbitrary divisions between those two worlds over the course of the last eight years. The pilots are intended to see what it looks like if we start bringing this back together a little bit more. So how do we get HR and compensation advisors working together to answer quicker? And how do we get the point of service in a department where all the action is happening in order to be able to serve people better? So how they were chosen, it’s a mixture of things. In some cases, we wanted departments that had no backlog. Like SSC, we were able to eliminate their backlog last year, and then we wanted departments that had backlog to see if we could accelerate backlog reduction with direct access pilots. The goal is to gather data so that we could look at what we do in the future around the service model, and what we want to do to make sure that we continuously bring HR and Pay back together again. I’ll repeat, we are the only organization in the world, according to Goss Gilroy, to have split our HR and our Pay technical functions in Peoplesoft and MyGCHR in Phoenix. We need to bring that back together with Dayforce. It means we also need to bring the service back together.
[Video changes to Francis Trudel talking at the table.]
I guess this is where I show my age a little bit or the time that I’ve spent in HR because I’ve worked in all of these different models and departments, and I’m actually very enthusiastic about this—about where this is going. We have to understand at the starting point what we have in an HR world is a delegated regime. So we delegate to departments, their delegation and their ability to manage their HR. And yet on the Pay front, we have flip-flopped from centralizing it to decentralizing it, either the model or the systems and, you know, where are where we are. In my own personal experience, I actually think experimenting where a department actually has some level of interaction and control with their own actual provider of service is actually a better model. Now I will just say a caveat here, and that’s a big risk, and that’s something you cannot repeat, is yes, you can have departments having an interaction with their Pay folks as far as making decisions as to what is prioritized versus not prioritized. That’s fine. But we cannot decentralize or where we cannot allow to customize, is the practices of how we do our pay. Then we’re getting back into a customization system, which will lead to different practices, which will lead to different system requirements. Like we cannot go back into that world. But the fact that we’re actually allowing departments—like experimenting more with departments interacting with their service provider—I think that works well with the actual model that we have in the HR regime.
[Video changes to Mathew Nepssy talking from podium.]
Our next question is asking: How will you make sure that Dayforce will do what it is supposed to do? And what measures will be taken to prevent it from being another Phoenix or ArriveCAN?
[Video changes to Alex Benay talking at the table.]
I’ll maybe take this one off, and if Francis and Chris want to chime in, by all means. Just point of clarification. There is a lot of differences between ArriveCAN and Phoenix, just to be very clear so that we don’t all mix these projects up. So that’s thing one. Thing two, to stick to Phoenix and Dayforce, we’re going to do six months of parallel payroll testing. So we’re going to start there. Actually, we’re going to start by testing it. We should probably start there because that really wasn’t done thoroughly with Phoenix. So we will test it. So as I mentioned, in June, parallel payroll testing will start for six months. That’s thing one.
Thing two is all of the testing that we’ve been doing, we’ve been doing it along the way. So there’s already test results that are available on the internet right now from the project, if you want to go see it. Transparency by design is there for you to get engaged. So again, like you can find an error in what we’re doing, I want to know. We all want to know. So that’s why the test results are there, and the test results are going to continue to be made public on transparency by design so that people can see it every step of the way. So that’s very, very important. And I’d say the other thing that’s very different is we’ve already talked to thousands of employees. In some cases, multiple thousands of employees. We’ve gone to lobby sessions. We’ve had on-line sessions. We’ve gone to the Pay Centre. We’ve gotten to make sure they could touch it, feel it, see what Dayforce is like. Varied success measures along the way, but the fact that we are already significantly engaged way more individuals and employees in this round without even having a final product to test, compared to last time we’re miles ahead of where we were.
The last thing I’ll say is the deputy minister sponsoring group gets to see all of these results any time they want. They are my bosses effectively, and so that will be made transparent as well. I think even our minutes and our records of decisions, sorry, of those meetings are made public. So it’s hard for us to hide behind not testing something before pressing launch at this stage.
[Video changes to Christiane Fox talking at the table.]
Yeah. And I would just add, like the principles that we’re applying to these very regular conversations that we’re having with Alex and team, are around sort of readiness around change management and around training. Those are kind of what we try to get to the heart of in all of these conversations, and I think, you know, just to echo some of the messages from Alex, like that testing, that ensuring that we’re running parallel pay processes, those sessions that they had with over 3,000 people to help inform and improve the system, that’s kind of helping with the readiness, which I don’t think we have seen that in the past. And the final thing I would say is that phased onboarding of departments. If they are ready to go, they sign an MoU, DMs with us, to ensure that they’re ready, that they’re accountable for the transition, all of us are accountable for it and we proceed. So the phased approach is a shift from where we were, but it’s not just a phased approach without all of the checks and balances to ensure testing, readiness, training, and change management for the culture, and that’s what we try to get at every meeting of this sponsoring committee. So just wanted to reinforce some of those messages.
[Video changes to Mathew Nepssy talking from podium.]
Next, rather than a question, we have a fairly direct statement. But I’ll invite the panelists to speak to the subject matter at hand and maybe the concerns that it implies.
The backlog remains and the cases being closed are often closed without corrective measures actually happening. More oversight will not change the lack of competence. Dayforce is not a silver bullet to any of these issues.
[Video changes to Alex Benay talking at the table.]
Alright. I’ll take a pass at this. Well I agree, Dayforce is not a silver bullet to any of these issues. We’ve said that from the beginning. It’s one of several issues that we have. We have a technical issue. Phoenix is okay, not great. We separated HR and Pay. You’ve heard us say that before. You’ve heard me also say that some of these pay issues are not pay issues. An overpayment: 70% of overpayments are not a Pay Centre issue. They stem from the fact that leave without pay is not approved by managers on time, yet it’s categorized as a Pay Centre issue and we chase it down. That stops us from being able to actually fix real pay—not real—pay issues that we created, right? So absolutely agree that there’s still a lot of work to be done on the service model front. You’re going to hear about some measures in January, where we are sending transactions back to departments because it’s not a pay issue, so that we could focus on pay issues. So absolutely, 100% can’t agree—do agree that Dayforce isn’t the only thing. What I will say, though, to this statement is the teams in the pay centres are working hard, and they’re working extremely hard to process about 1.6 million transactions a year that come to them, that our current fractured HR and Pay environment causes. And I get that individuals are at the tail end, but I just want you to know that the Pay Centre folks are working extremely hard. I’ve seen them pulling overtime. I’ve seen some of them sleep under their desks. I’ve heard of all the stories as well. So I have to say, like while I want to empathize, I also want to defend the Pay Centre and the amount of work that they’re doing at this point, to make sure that people are getting paid accurately. And as I mentioned, like we have a lot to unpack to fix this problem. It is not just a pay issue at this point.
[Video changes to Mathew Nepssy talking from podium.]
PSPC is currently communicating very aggressive onboarding timelines for departments that have non-public service employees, yet no HR fit-gap has been started to date. Does this not go against the readiness commitments in PSPC documentation?
[Video changes to Alex Benay talking at the table.]
Well I think the question is incorrect. There has been a lot of work done on the HR front. We have already standardized 189 HR processes, as we mentioned in our statement, like not pay processes. I’m talking about HR. Example, we have 66 different letters of offer. That sounds trivial, but when you’re the Pay Centre and you receive something in 66 different ways with inconsistent dates—start dates—whether it’s year, month, day or month, day, year. All of that needs to be cleaned up. So that’s the kind of HR practices that we’re standardizing as we go through this process. We have 189 officially, we’ll be closer to 200 in the next few weeks. We intend on having departments validate those HR gaps to make sure that Dayforce works against that HR environment. So I have to say, like there’s a lot of work that’s happening on the HR front, so I would encourage you to contact your head of HR and your departments to find out their level of engagement. We’re at the HR Committee very regularly and we’re going to increase that cadence. In fact, we even have the HR community that sits on a weekly meeting that Francis and I chair called the Program Management Committee, to make sure that we’re not missing anything on the HR front, because if anyone knows the impact of having disassociated HR and Pay, it’s us at PSPC because of the work that we have to do to clean everything up on a daily basis. Francis, I don’t know if I’ve overstepped my answer?
[Video changes to Francis Trudel talking at the table.]
No. Actually, what you’re describing is what I’m observing from where we are. So a little bit more that’s what I see versus what the question is suggesting. But isn’t that also fair to say that if there are some gaps, if there is unreadiness, this will be the stop moment for us to say this is not an organization that is actually ready to onboard. That’s the beauty of not doing a big bang approach, of doing this by waves. So if there are things that’s in our—what’s the expression—“dans notre angle mort”, not in our line of sight, because I’m assuming there must be when we do the checklist and when we go through the readiness requirements that we’ve talked about, that would be a moment where we say okay, not ready. We just push it to the next wave to make sure we don’t repeat the mistake we’ve done before.
[Video changes to Alex Benay talking at the table.]
Yeah. Sorry, I guess I should have thought of this, but as you were talking you made me think of something, like every time we miss something, if it’s based on data and evidence, like we want to know. Like that’s the reason why we do these sessions, right? I’m not promising we’re going to get everything, but we are going to try to catch everything. And there will be many, many more sessions in the lobby. There will be many more sessions with the departments. So like if anything is missed, I encourage you to highlight it. Like much to the chagrin of my office, send me an email, right? Contact your head of HR. There will be departmental leads on this project being assigned over the next six months. Contact them, you know, find a way to get engaged because we want to get this right. Like nobody wants to get it right more than we do at this point. So please, please do help us as well.
[Video changes to Mathew Nepssy talking from podium.]
Question. We’re going to take from a subject that’s received a lot of interest.
What does the future of the compensation landscape look like? Will we see more departments move to or from the centralized Pay Centre? I say this as a compensation advisor; will you ever consider decentralizing and bringing pay advisors back into each department? I don’t think we will make significant progress until or unless this happens.
[Video changes to Alex Benay talking at the table.]
Wow, what a great way to end the Q&A. So listen, I want to be very transparent. We don’t know yet. In the past, we’ve made decisions on the service model with presentations, PowerPoints and fancy consultants coming in. We want to make a decision in the future based on real data and real lived experience, which is why we’re doing the 10 direct access pilots, which is why in January we’re going to be sending transactions back to departments where they’re caused by issues of self-serve, and which is also why we’ve started two redistribution pilots with PSPC and SSC, to see how they could reintegrate CAs into their world. So we’re doing all of this work to be able to get real lived experience, real data, and make a collective decision as deputy ministers on the best way to serve departments and individuals, not by some presentation that that looks good with assumptions, but actually real lived experience over the course of the next six months.
[Video changes to Mathew Nepssy talking from podium.]
Well that was certainly a very lively Q&A session with lots of interest. It concludes our session for today, and I want to thank all of you for your active participation.
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Questions and answers addressed during the French session
For the first question to our panel, we ask how Francophones’ experience of the French version will be taken into account? AI translations are based on stats, not on the meaning of the message, and the Report of the Commissioner of Official Languages shows the challenges.
Alex Benay: Okay. Well, I'll get started. For some context, Dayforce was one of three final solutions we evaluated within the Government of Canada, and the reason it was chosen was precisely because Dayforce made a commitment to ensure that the solution would be bilingual. The Dayforce solution is implemented worldwide. So, it’s available in more than two languages, but we did our tests with the official languages and the solution is fully bilingual. On the other hand, what I would say to you is that the work we're doing in artificial intelligence and automation within current payroll operations is all about numbers. It's not even words. So, we want to make sure that the calculations we implement with our automation systems are really based on numbers. So, there's a little less impact from a language point of view. I won't go into the Report of the Commissioner of Official Languages. To be quite frank, I haven't read it. Then, I'm sure there are other challenges with artificial intelligence, also with official languages, but regarding the project as such, Dayforce, is completely bilingual. Current payroll operations are really based on numbers. So, that's what the machines do best, I'd say. So, we feel comfortable enough to move on at this point.
Francis Trudel: Without knowing exactly the rationale for the question, certainly not to talk about artificial intelligence, but in a more macro way, I would say that—a little earlier, I mentioned that the employer was talking about the necessary requirements to accommodate in a solution—just to reassure the Francophone audience, since I'm thinking in terms of the question. It's very, very, very clear that there will be no compromise on requirements. We don't accept any compromise on official languages in the administration of this project, whether it's the way the system processes information or the way in which we’ll interact with the clients who will use it. And that's something that Alex's team and ours are very clear about. So, I don't know what the question refers to specifically, but I just have to reassure you that there’s absolutely no compromise on requirements.
Our second question relates to rumours of a pilot project to place Pay Center teams in 10 departments by the end of the fiscal year. Can you tell us how it will be deployed? Which departments were chosen and according to what criteria?
Alex Benay: It's ironic. This is a very nice translation of the question we had in the English session. Almost word for word! So, I'm going to say the same thing. The aim here is—we have always said we were in the process of implementing a technological platform that integrates human resources and payroll. According to the Goss Gilroy reports, we’re the only entity in the world that has technologically separated an HR platform from a payroll platform, in the way we did. Our aim is to reintegrate them. Okay, so, if you have an integrated HR and payroll platform, you also need an integrated HR and payroll service. So, the aim of the pilots, of the pilot projects for the 10 departments we're going to choose—because we still haven't chosen them—is to see what it looks like, to bring the pay service closer to the HR service, which is already provided in the departments, so as to offer even better service to civil servants throughout our system. So, I could tell you that we could make decisions about the future of the service model we’re implementing with presentations, PowerPoints. What we're more interested in doing is having real pilot projects, with real data, with partner departments that will have direct access to the Pay Centre, so that we can see the results of this data, and those of the pilots. Then, make an informed decision, instead of having a decision based on analysis, which may or may not be good, but which is certainly not based on actual facts. So, it's more of a practical approach that we want to use over the next few months.
Francis Trudel: Perhaps I'll just share with you a personal perspective, a little, on this question. As someone who has been in the human resources field for a very long time, those of you who have experienced it will recall that the Pay Centre has experimented with several centralization versus decentralization models over the last few decades. The reason I'm so enthusiastic about this pilot, or these initiatives, is first of all because Alex clearly mentioned it: we're bringing payroll and human resources closer together. So, that's one component, but I think it goes further than that. We're also bringing payroll and human resources closer to the decision-makers who are themselves delegated, i.e., those accountable for managing the administration of human resources in the departments, i.e., the Deputy Ministers. So, I think there's a kind of logic in this proximity. There are obviously risks that need to be managed, i.e., just because there will be interaction between decision-makers and human resources and payroll in the departments doesn't mean they can configure things as they please. Standardization has to be maintained for the reasons we discussed earlier, but I think there's added value in experimenting with this pilot.
We're going to change the focus now. A question about going back to the office—something that's quite popular, as it's there in the questions and answers. The budget to improve it. Telework is good for both sides: the employer and the employee. We're more productive; the numbers show it, and less leave is taken. Telework and the future. So, why not apply it?
Christiane Fox: Thank you for the question. I'm aware that this is on the minds of many public servants. I think that right from the start, when we made our management decisions, we always said that we would assess the return to the office on an ongoing basis to have an idea of the pros and cons. And then, productivity—as you mentioned in your question—and how we do and perform our work in the service of Canadians, and also in the delivery of our mandate. We all know that the current context is enormously difficult for the country. Tariffs, major projects of national interest, diversification of our economy. All these major files are really at the heart of the performance of our teams, of the performance of the public service, and we really have to meet the challenges. So, it's not just a financial issue in terms of savings, work, telework, but we really have to look at all of the considerations, as I said. The delivery of service to Canadians. So, this is an important issue. This is a question that concerns us in the context of the assessment of our work. Then, I think we have to do our best to be a public service that supports Canadians at home and abroad. So, the issue is: ongoing assessment. Thank you.
Instead of blaming employees and managers for compensation problems, when will you take responsibility for the complexity of HR processes and the lack of support from Compensation Advisors?
Alex Benay: I'll start with the first part of the answer, then I'll probably go back to Francis for emotional, intellectual support, sorry! Listen, what I can tell you is that things are looking up. But that doesn't mean we're there. Okay? We have not reached our final destination. We get about 1.6 million transactions per year. We have a pay system efficiency rate of 98.4%. Our arrears of over one year are 130,000, and if we can stay on course, they'll be down to 80,000 by June. The smallest backlog we have had since we launched Phoenix. So, I can tell you that I'm very proud of the Pay Office and the work they're doing with the Transformation Team. It's not perfect. Mistakes are made, but when I see them happen, I know we can correct them quickly. Unlike—I'll give you some more statistics. The overpayments. Did you know that over 70% of the overpayments are due to the fact that a manager or an employee has failed to properly submit their request for Leave Without Pay? So, we have a department—which I won't name, because if I do, I'll get into trouble—with 8,800 transactions older than four months, waiting for a manager to approve a request for Leave Without Pay. So, if I tell you that I'm paying 98.4%, and that the transaction hasn't been entered in four months, that means that there are 8,800 cases of overpayments of more than four months in that department. When we say that we can't continue to separate human resources and payroll, as we have been doing for the past eight years, it's an example, I'd say that is quite striking, that there are over 70% of overpayments. This is the kind of example regarding our request for Leave Without Pay. So, for it to stop, because it's not a payroll problem. This is a human resources management problem. It’s a communication problem. So, this is type of transaction we receive at the Pay Center that clearly prevents us from processing pay errors. So, I'm going to turn to Francis, but I can understand your frustrations, but I can also tell you that I see people working hard just to be able to solve problems.
Francis Trudel: My perspective on the question is that I have to disagree with the premise, I think, of the question. The premise of the question suggests that we don't assume responsibility for the complexity of the system. I'd say if that's what you've heard, it's certainly not what we want to convey. We recognize the complexity of the system. We need to simplify it. It's part of the first pillar I was talking about. We need to address it. It's not easy when all these complexities arise from negotiated employment conditions. So, they need to be renegotiated to simplify them. So, we focus on them. So, there’s recognition. The other premise—the question I disagreed with a little—is that there's a kind of search for blame, that is, who is actually to blame for the problems. I would tell you bluntly that what is being referred to is a diagnosis of the whole process which indicates that everyone in the process has a role to play in order to improve the system, and that everyone therefore has a role to play in the problem we're facing. And yes, that includes human resources practitioners. And yes, that includes managers. Not all, but some. This includes the central directives of which we’re a part. So, we have—in fact, the message I think we're trying to send is that when we diagnose the problems and changes we need to make with a cool head, both at the systems and cultural levels, these elements are factually true, but please don't hear in that answer that we don't recognize that the complexity of the system needs to be addressed and that people working at the compensation level don't need adequate support.
This link says that full-time Pay Center employees will drop from nearly 4,000 to around 750. Do you have an explanation?
Alex Benay: Yes, I have one. Well, I think it will be better in French than it was in English, but we'll be close to the same explanation. We're budgeted until March 31, 2027. So, it's clear that in our financial projections, we indicate that will go from 4,000 to 750. We haven't made our next budget request to implement Dayforce, in order to continue our payroll operations. If I may be honest, it's the same situation we had 18 months ago. We’re funded every two or three years. So, we need to demonstrate our financial goals for that period. I can tell you that there's no point in going from 4,000 to 750 employees, but it's a financial exercise that we have to report on. Our budget request, we're going to submit it once we're well established, once we have done our parallel testing, I'd say, of Dayforce and Phoenix to make sure everything's going well. We'll be submitting a budget request in the near future, that's for sure, and we'll be continuing with our operational services as well.
Why not automatically eliminate overpayment codes that are over six years? In any case, it's a time limit beyond what the government is authorized to collect. Why pay for unnecessary effort?
Francis Trudel: I can start with part of the answer. Obviously, I'm not the Comptroller General. So, I'm not in a position to speak about the completely legal aspect of the component, but what I would say to you is that indeed the premise of the question is true. When there’s an overpayment that exceeds a certain time limit, which is a six-year period, it’s statute-barred—sorry, I don't know the translation of what the legal stop is that would allow an employer to authorize or secure funds. What is often misunderstood about overpayments, however, is that just because a six-year period has passed, the debt to the Crown has not disappeared. The debt to the Crown remains. It exists. This is money that was given to individuals who have received funds that were paid by the Crown and that are not owed to them. These funds, which are not due, are part of the debt, and the employer must—and here I emphasize must—take every possible measure to collect these funds, even beyond the six-year period, but obviously without the legal status to do so. So, the fact that we continue to search for and ask people to acknowledge an overpayment that is not owed to them, that was given to them over a long period of time, continues to add to a debt to the Crown that does not disappear just because time has passed.
There’s a persistent division between Human Resources and Payroll. Working in silos doesn't help anyone. What solutions are you considering to remedy the situation?
Alex Benay: Okay. We're going to—well, I guess between me, then Francis? Well, I don't know, Chris, if you want to add something? I might start. I think, if I can be very honest, I think we made a fundamental mistake when we designed Phoenix and our current HR system. We have a centralized Payroll Department, and we have a decentralized HR Department. If anyone wants to help me find an example in the history of our Government where this works exceedingly well, let me know, because we're obviously very interested. But in the meantime, we haven't found any. So, as I mentioned, we're in the process of implementing an integrated HR and payroll platform. We're definitely going to have to take a look at our HR and Payroll Departments, and see what we can do with them. That's why we do our pilot projects. So, in January, we'll be returning certain transactions to the departments, including overpayments, for example. The example I mentioned earlier. We have our ten pilots for direct access to the Pay Centre, where we’re going to try them out starting in January, and also, we have two pilots we're implementing for the redistribution of Compensation Agents within two departments: PSPC and Shared Services. Through the three types of pilots, I hope that by spring we'll have some real experience. Then numbers, real numbers, as I mentioned earlier, to enable us to make a future decision about what we're going to do about, I'd say, the division. That's where I agree with the question we have created, not arbitrarily, but that we created in the past in relation to how we implemented our payroll services.
Christiane Fox: But, I think that—maybe I'd add, but I'm not an expert in human resources and payroll. What I noticed right from the start, when I first got involved in this file, was that this division—which was articulated in the question—is parallel. So, an integrated platform means we'll have to think about an integrated service. Then, we'll have to change the way we work. That's why the group really emphasized the question of our system's culture and also people's willingness to work differently. So, how do we manage this integration? It's really about looking at the elements of the culture that are going to be needed, in order to initiate a change in approach, which means change management, which means training, tests, testing in an environment where people can work together to see what works, and what doesn't work so well. And that's what's going to ensure that the state of our preparation, all the work we're going to do when we make our final decisions, will really enable us to have a transformation that will be more effective for people who work in the resources and payroll environment and people who receive human resources and payroll services. So, I think that is an excellent question. It’s part of our discussions to make this important transition with an integrated approach.
Francis Trudel: Not a lot to add. I also agree somewhat with the question. In my own experience, the times when payroll worked best, I'd even say when human resources worked best, were when this proximity—or this silo—did not exist. I'll just go a little further with the question and also with the idea of the question. Well, I'd say it’s a proximity or a silo that is abolished between human resources, payroll and the managers who are delegated. That's why I spoke earlier of my enthusiasm for pilot projects, which would bring all these components somewhat closer together, but I think that the work is indeed moving in that direction.
Perfect, could you send this in an official email to us (like the other comms products) so we have it on our end and Sonali and confirm that all is good on her end too?
Alex Benay: Yes, listen, I'll answer the question, and then really focus a little on the ticketing system. We brought in a team of consultants to look at our operations. This report will soon be available to the public. The committee members had a chance to review it, and we also sent it to employees this week. Then, one of the findings that the team of consultants noted was that our ticketing system—and I'm going to use the word archaic a lot—and yes, it causes a lot of problems. Then, when we have a ticket entering the system at the Pay Center, sometimes, it's like you say, the hand off is not always done right. We currently have a call for tenders to indeed replace our ticket management tool and also our case management. The intention is to get details from management by the holiday season or perhaps in January. So, ask your question again in January, for a slightly more in-depth update on this point, but it’s an item we're well aware of, and which we're currently addressing through a call for tenders.
Now with the purchase of Dayforce from an American, how can we ensure the sovereignty of our data in Canada with the adoption of a bill in the United States that may mean that our data won’t be protected?
Alex Benay: Okay. I'll start on this one too. I'd say that it’s currently an ongoing conversation. We had conversations with Thoma Bravo, which is the very company that had acquired Dayforce. There are several different bills in the U.S. that, in theory, could give access to Canadian data on cloud systems and the like. Okay. First, there's a technological answer. We'll be able to make—pardon my anglicism—a description of our data. So, we'll be able to ensure that our data is managed in a technological way, and that no one has access to it other than Canadians or the Government of Canada. Moreover, we also have launched a call for tenders. I'd say right now that it’s active for what we call our hub, for the management of Government of Canada personnel data. It's going to be a centralized solution, completely sovereign, managed by Canadian companies and Canadian employees, with total sovereignty, to ensure that at the same time, we're able to manage Government of Canada personnel data in a sovereign way. Then, we'll even be able to provide updates on the project, precisely at our quarterly updates.
Christiane Fox: Well, I think that's a very good question. And I hope you'll be relieved by the measures we have put in place, because Dayforce Canada Limited is really a Canadian entity. We have to keep this in mind. It must also comply with Canadian privacy legislation. So, that's an important point. Beyond that, we also need to make sure that Dayforce 's contract and activities are going to be in line with the Government's integrated cybersecurity strategy. Then, as Alex noted, there will be regular checks as the project is implemented. So, that's a really good question. Then, we'll continue to ensure compliance.
Several high-ranking officials wanted or tried to postpone the arrival of Phoenix, but the decision to launch was a political one. Performance Award What mechanisms will be put in place to ensure this doesn't happen again?
Christiane Fox: Yes, I can start. I think, of course, that our role as a public service is to give our best advice and to carry out the decisions of the Government. I think what we can tell you, in terms of the mechanisms that will be in place, it’s really focused on readiness. So, there's a lot of work to be done to see how we can make this transition a success. What can we learn from the lessons of the past, so that we can apply them to the present? Well, this is testing. As we noted earlier today, we carry out the tests on a regular basis. To ensure that each department is ready. So, to really begin in phases and not to all start at once. Run parallel pay cycles in both systems to ensure that the transition is made only when we're ready. Then, as I mentioned earlier, it's really about making sure people are ready for this change. Then, there’s ongoing assessment to avoid Phoenix mistakes. And finally, as the Clerk noted in his messages, it's really about taking responsibility. Each Deputy Minister must take the lead in their department, to ensure that they are ready to move this transition forward. So, I think the measures we have put in place mean that the system is very aware of the responsibilities they have to ensure the transition so as to best serve their employees.
Alex Benay: Perhaps I'll just add to that by saying that all the testing we have done is currently available online on our portal. And, all the testing we do will also be available on our portal. A third party will be brought in to assess the testing results. So, don't take our word for it, we will actually have an independent assessment to validate the system's success. I'll just reinforce a few points that Chris mentioned. We also have many other things besides the system to deal with.
We have talked a little about the service model today. So, thank you for your questions. We need to review this, because if we put the current system on the service model we have now, it will work better. It may not necessarily work as well as it should. So, we have to look at the service model. We also need to look at the standardization of HR processes. So, there’s a lot of work to be done, I'd say, not only technological, over the next 12 to 18 months.