Question Period Note: Next Generation Human Resources and Pay Initiative

Update on the Next Generation Human Resources and Pay (NextGen HR and Pay) initiative

• Every public servant should be paid accurately and on time, every time
  • NextGen HR and Pay is exploring solutions for a future human resources and pay solution that meets user needs and follows modern people management processes
  • NextGen HR and Pay will be a user-centric, accessible, and enterprise cloud-based solution. It will meet the complex needs of the Government of Canada now and into the future
  • The NextGen HR and Pay initiative is working with the government HR and pay communities to modernize and streamline HR and pay processes to align with commercially available software

If pressed on contracts:

• NextGen HR and Pay is working with Ceridian on delivering options and recommendations for a new integrated HR and pay system for Government of Canada employees. Recommendations out of the experimentation are expected by Summer 2023.

Budget 2018 announced the Government’s intention to move away from the current pay system and begin the development of a new one that will be better aligned with the complexity of the federal government’s human resources and pay structure.

TBS received $16 million over two years, beginning in 2018-19, to explore replacement options for a Next Generation Human Resources and Pay (NextGen HR and Pay) solution.

In summer 2019, the Government announced it had selected SAP, Workday and Ceridian as the vendors deemed qualified to deliver a NextGen HR and Pay solution for the Government of Canada.

In September 2019, the Government announced that it will invest $117 million to co-design and deliver pilot projects for the NextGen HR and Pay system.

In March 2020, after extensive evaluation, and testing, it was announced that SAP had been selected to work with our team on a pilot for a new HR and Pay solution.

SAP was selected through a rigorous evaluation process which was open and transparent and placed users at the centre. The evaluations involved elements such measuring vendors against Digital, Privacy and Security Standards as well as testing of hundreds of HR and pay scenarios, both simple and complex.

All three vendors remain qualified to work with the government in the future for HR and pay solutions. This affords the government maximum flexibility to access the solutions of multiple, best-in-class vendors which is critical to the NextGen HR and Pay approach.

The NextGen HR and Pay team at Shared Services Canada (SSC) engaged SAP on a series of discussions to assess organizational capacity and readiness to work on NextGen HR and Pay under the current COVID-19 circumstances.

The initial focus of work with SAP included establishing governance and oversight, project management tools and protocols and development of a detailed plan to pilot the solution in a core department.

Effective April 1, 2020, leadership for NextGen HR and Pay was transitioned from Treasury Board of Canada Secretariat (TBS) to SSC. The Chief Human Resources Officer at TBS remains the Business Owner and a key collaborator of the NextGen HR and Pay initiative.

On October 14, 2020, the selection of the Department of Canadian Heritage for the Exploratory Phase of the Next Generation HR and Pay initiative was announced.

Canadian Heritage was selected as the pilot department for Exploratory Phase because their organization provides a good representation of the government’s human resources complexities, including multiple occupational groups, regional representation, overtime, and other considerations.

Throughout this process, the NextGen HR and Pay team is engaging with public service employees, leaders, HR advisors and technical specialists, as well as working hand-in-hand with bargaining agents in the development of a user-centric HR and pay solution.

As part of this pilot initiative, the NextGen HR and Pay team has engaged a broad representation of more than 1000 employees across the Government of Canada through a wide variety of forums, such as presentations, information sessions, 38 workshops and 90 working sessions, across 20 federal organizations. These activities form the basis for the NextGen HR and Pay’s Exploratory Phase, and they will inform the next steps in the initiative.

Following successful completion of the Exploratory Phase in April 2021, the Government of Canada pivoted to a new vendor. On September 14, 2021, the Government of Canada signed a contract amendment with Ceridian for the next 18 months for the Design and Experimentation Phase of the NextGen HR and Pay initiative.

Any testing undertaken will not affect employees’ actual pay. All testing for the NextGen HR and Pay initiative will continue to take place in parallel with existing HR and pay systems and all testing has been designed to ensure the protection of privacy and personal information.

The Government continues to work with stakeholders, such as bargaining agents, employees, and HR and pay practitioners, and will continue to engage in an open and transparent manner, so that the new solution can address the needs of a modern public service and its employees as soon as possible.

On July 27, 2021, the Government of Canada announced the expansion of testing to include the Department of Fisheries and Oceans and the Canadian Coast Guard and Canada Economic Development for Quebec Regions.

Leading up to March 2023, the NextGen HR and Pay initiative will carry out additional tests layering on complexity and a feasibility study. The details for the additional tests and the feasibility study are being finalized and learning from the exploratory phase will continue to inform the way forward.

Ongoing stabilization of the current Government of Canada pay system remains a top priority for the government and is being managed by Public Services and Procurement Canada.

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