The federal government is moving into the final build and testing phase of its Dayforce HR and pay solution, aiming to replace the problematic Phoenix pay system and modernize human resources operations across its departments.
Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, announced the decision today. The step follows a detailed feasibility study and represents a significant move to streamline the government’s extensive HR and pay infrastructure. The Dayforce solution is intended to replace numerous existing HR systems.
Phased implementation
The government plans to finalize the configuration and testing of Dayforce and will collaborate with departments to confirm their readiness for onboarding. This phased strategy incorporates lessons learned from previous large-scale system overhauls and seeks to minimize risks, ensuring a smoother transition for public service employees.
Employee engagement remains a priority throughout this transformation, involving staff in readiness activities and implementing mechanisms for continuous feedback. The goal is to create an efficient, people-centric platform that aligns with the workforce’s needs.
“The Government of Canada remains committed to modernizing its HR and pay systems in a responsible and transparent manner,” said Lightbound. “By investing in the future of HR and pay, we are taking an important step forward in ensuring an efficient, secure, and sustainable solution for public service employees.”
System scope and complexity
The current pay system processes payments for an average of 431,000 current and former employees every two weeks. In 2024, this amounted to approximately 13.4 million payments, totaling about $40.1 billion. The complexity of the government’s HR and pay environment includes applying nearly 150 different collective agreements for employees across more than 100 departments and agencies.
“We are excited to strengthen our partnership with the Government of Canada,” said David Ossip, chair and chief executive officer of Dayforce, Inc. “Dayforce brings together advanced technologies into a single, AI-powered people platform designed to simplify processes and deliver real value. We are committed to supporting this transformative HR and pay initiative, ensuring it enhances work-life and drives meaningful improvements for government employees across the country.”
The initiative is incorporating recommendations from past pay system implementations, specifically those guiding large-scale projects, including stakeholder engagement and governance recommendations from the Goss Gilroy report.
Over 3,000 public servants participated in user awareness sessions during the feasibility project, with most reporting that they found Dayforce simple and easy to use. Participant feedback is being used to refine the system.
Over the next two years, the deployment of the Dayforce solution will begin with the progressive onboarding of two departments and a separate agency. The government will focus on departmental readiness as it prepares for wider deployment.
