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Federal government introduces new tools to improve HR, pay operations as it moves away from Phoenix

by Todd Humber
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Ottawa has unveiled several new technologies aimed at improving human resources and pay services. The updates come as part of a broader initiative to overhaul the troubled Phoenix pay system and address ongoing issues faced by federal public servants.

In its second quarterly progress report, released Wednesday, the government outlined various projects it has been working on over the summer to support employees and modernize its HR and pay processes. These include the launch of a new virtual assistant for the Public Service Pay Centre, improvements to the MyGCPay platform, and the introduction of Dayforce user sessions for public servants.

“We are improving our current operations to better serve federal public servants, while working towards a new HR and pay system that meets our needs now and into the future,” said Jean-Yves Duclos, Minister of Public Services and Procurement. “It is our responsibility to ensure public servants are paid accurately and on time.”

The trouble with Phoenix

The government’s efforts come in the wake of widespread dissatisfaction with the Phoenix system, which has resulted in numerous pay errors affecting thousands of federal workers since its implementation in 2016. In response, Public Services and Procurement Canada (PSPC) has been exploring alternatives, including the Dayforce solution, which has been under testing since 2021.

This fall, the government initiated Dayforce user awareness sessions, allowing public servants to try the system and provide feedback. The aim is to determine if Dayforce can serve as a viable replacement for Phoenix in the future.

The role of AI

Additionally, the government is exploring the use of a new artificial intelligence-based virtual assistant designed to support compensation advisors, with the goal of reducing processing times for pay transactions. Plans are also in place to develop a new Case Client Relationship Management tool to streamline the management of pay-related issues.

Treasury Board President Anita Anand emphasized the importance of accuracy and timeliness in the government’s pay processes. “All public service employees deserve to be paid accurately and on time,” she said. “As we work on improvements to our systems by reducing the number of HR systems in the core public administration and facilitating automation, we will work closely with bargaining agents to simplify overall human resources processes.”

The federal government has allocated $135 million in Budget 2024 to support the exploration of a new HR and pay system. Of this, $85 million will be directed toward continuing Dayforce testing and designing the system to meet the specific needs of the public service. In total, the current HR and pay systems support over 430,000 current and former public servants across more than 100 departments and agencies.

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