Question Period Note: Next Generation Human Resources and Pay Initiative

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

• Canada’s public servants deserve to be paid accurately and on time, every time
  • The NextGen HR and Pay initiative aims to replace over 34 HR systems, the current pay system, and several peripheral systems and applications
  • NextGen HR and Pay is part of a broader Government of Canada enterprise IT approach, replacing legacy systems with modern digital solutions. It is a fundamental transformation of how the federal government does business. To achieve this, we are working closely with the Treasury Board Secretariat Office of the Chief Human Resources Officer as the owner of the People Management Policy
  • 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

If pressed on contracts:

• NextGen HR and Pay is testing the solution, with the vendor, against the real complexities of the Government of Canada’s HR and pay requirements and to prove there is a viable solution to solve the defined business problem. A recommendation to the Government is expected in 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.

Treasury Board of Canada Secretariat (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.

$113.1M in funding was allocated for the Next Generation HR and Pay initiative until 2023. In collaboration with several departments, the Initiative is testing a proposed solution against the complexities of the Government of Canada’s HR and pay requirements, clearly defining what needs to change so the Government can successfully adopt a new solution, such as business processes and how employees access and use HR and Pay systems.

Effective April 1, 2020, leadership for NextGen HR and Pay was transitioned from 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.

NextGen HR and Pay is using an agile procurement process to move forward and quickly adapt to changing circumstances. Using this innovative and iterative procurement process, the initiative qualified three vendors (SAP, WorkDay and Ceridian) for the NextGen HR and Pay solution, with an option to pivot to a different pre-qualified vendor, if required. In August 2021, this option was used to pivot to a new vendor (Ceridian) for Design and Experimentation after the initial contract expired with SAP.

The built-in flexibility within the contract, where all three pre-qualified vendors remain under contract, will enable for course corrections throughout the identification of the solution. Lessons learned will be applied immediately, leading to a better solution.

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

Canadian Heritage was selected as the pilot department for the 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.

The NextGen HR and Pay team has engaged a broad representation of employees across the Government of Canada through a wide variety of forums, such as presentations, information sessions, and over 600 hours of workshops across 27 federal organizations. The feedback received has informed the work completed to date and will continue to do so throughout Phase 1 of the 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 and further expanded in 2022 to include Crown-Indigenous Relations and Northern Affairs Canada and Indigenous Services Canada.

A recommendation to the GC is expected in 2023.

Leading up to 2023, the NextGen HR and Pay initiative will carry out additional testing layering on complexity and a feasibility study that 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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