Next Generation HR and Pay
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This document contains information which has been redacted in accordance with provisions of Part 1 of the Access to Information Act.
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- Budget 2018 announced the Government of Canada’s (GC) intention to identify option for a long-term and sustainable pay system alternative.
- TBS, with representatives from the Office of the Chief Information Officer of Canada as the digital advisors and Office of the Chief Human Resource Officer as the business owner, are working together as the NextGen team to identify a way forward.
- The NextGen team initiated an iterative dialogue with vendors as a means to identify the technological options that will address the HR and pay needs of the government.
- The new solution has been driven by the GCs business needs, informed by engagements with employees and HR and pay practitioners at all stages of the procurement process. In addition, NextGen has had ongoing dialogues with bargaining agents, including the establishment of a Joint Union Management Committee to provide regular updates and seek input on NextGen.
- To date, three vendors have been deemed qualified to deliver a new solution for the GC: Ceridian, SAP and Workday. Work is underway to select a preferred vendor (from the list of qualified vendors) with whom the GC can work on the development of a viable solution in pilot(s).
- Department of Finance approved a $117.1M investment in September 2019, to co-design and deliver pilot projects for the Next Generation human resources and pay solution. These pilot projects will test potential solutions against the real complexities of the federal government’s human resources and pay systems.
Key Lessons Learned
Paying employees accurately and on time is a top priority responsibility for any employer and must be treated as a crisis.
The project must include an iterative process (e.g. agile) and a dedicated team to shelter core functions from demands of information.
Project Champion should be the single point of accountability, working in concert with the Business Owner. Governance should include independent oversight.
Experts with experience should be leveraged to validate work. Stakeholders should be consulted at all phases of the initiative. Information should be transparent.
Business needs must drive technology decisions. Involvement of HR and pay professionals will be critical.
The NextGen team has initiated a broad engagement strategy with external and internal stakeholders to ensure investments are both strategic and representative.
- Consulting firms
- Other Governments (Alberta, Australia, California)
- Large enterprises
- Digital Advisory Board
- Core public service
- Central agencies
- Agencies/Crown Corporations
- Deputy Ministers
- Parliamentary Committees
- Individual pay system (DND, RCMP, CRA)
- Secure environments (CSE, CSIS)
- HR practitioners
- Compensation Advisors
Community of Specialists
- Heads of HR
- Official Languages
- UX/UI Design
- Enterprise Architecture Review Board
- Bargaining agents
- SSC, PSC, CSPS
- Industry best practices
- Lessons learned from similar undertakings
- Interoperability with existing systems
- Compatibility requirements
- User interface
- Functionality (e.g. onboarding, talent management, recruitment)
- Complex work environments
- Business transformation
- Data migration
- Cloud Connectivity
- Parliamentary Briefings
- HR Workshops
- Industry Day
- Online - #NextGenHRPay
Adopting an Agile Procurement Approach
The NextGen team has adopted an agile method to support an iterative dialogue with industry and stakeholders.
|Process run in its entirety||Smaller/faster sprints|
|Long blackout contractual periods||Gated Approach|
|Course corrections only available at the end of the process||Course corrections as needed throughout the process|
|Scope is determined and set||Full potential scope is charted but is incremental, flexible and adaptable|
|Limited interactions with vendors and users||Interaction with vendors and users is ongoing|
|All requirements need to be known and documented up front||Requirements evolve through collaboration, industry feedback and best practices|
Agile Procurement Contracting Outcomes
A Qualified List of Suppliers (QLS) is a set of contracts with basic terms and conditions that enable a restricted group of qualified vendors to compete for work.
- Flexible contracting arrangement through which services may be procured efficiently and effectively
- Three vendors and their partners qualified:
- Ceridian [redacted]
- SAP [redacted]
- Workday [redacted]
- Contract Liability: Guarantee of $5,000 over 2 years
A Task Authorization (TA) is a process enabling the client to authorize work by a contractor for different problem sets on an "as and when requested" basis in accordance with an existing contract.
- Multiple Task Authorizations can be competed amongst the vendors for different work packages or business problems.
- Qualified vendors will be ranked where the top vendor will earn the right to work with us on the different work packages or business problems.
- Task Authorization contain key decision points (KDPs) where tasks may be extended or refined or work stopped to meet the business needs. E.g. Extended to work on pilot and subsequently extended for implementation and run phases
Working through a Gated Approach
Testing The Solution
Design and build a new HR and pay solution (in up to two core departments) which would run in parallel to their existing HR and pay systems. During this pilot, employees’ HR and pay transactions would continue to be processed through Phoenix and existing HR systems, eliminating the risk of additional pay issues. Pilot results would allow TBS to gather information on the potential replacement system and related business processes with the goal of testing, in a low/no-risk way, whether a potential replacement works and what it would take for a broader GC deployment and considerations for enterprise management.
Conduct a feasibility study with a separate agency (outside the core public administration) to identify the resources and level of effort required to transition away from Phoenix, using a combination of the HR component of the organization’s existing, partially integrated system with one of the new pre-qualified solutions. If the study yields positive results, [redacted]
Key Timelines Between Now and Early 2020
Selection of the vendor(s) is expected to be completed in the fall of 2019, with work to design the pilots running through to January 2020
The Need for Sustained Urgency
Impact on Employees
- Over 200,000 public servants have at least one outstanding pay issue
- Many public servants have suffered financial hardship or mental health effects
Relationships with Unions
- Loss of trust
- May reinforce criticism on the lack of a funding commitment in Budget 2019
Relationships with Vendors
- May compromise strong working relationships developed
- Vendors may move on to other projects
Mounting Stabilization Costs
- Over $1B allocated to date to stabilize Phoenix and Pay Centre operations
- Between now and December 2019, NextGen will identify a preferred vendor from the list of qualified vendors, with whom the GC can work on to develop pilot(s).
- NextGen will work collaboratively with stakeholders (e.g. vendors, pilot departments, bargaining agents) to conduct pre-definition work and to prepare for the pilots to set ourselves up for success
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