ACT’s $30 Million Overhaul of HR System Under Review Due to Increasing Employee Turnover

Quick Overview

• The ACT government is enhancing its HR system with a budget of $30.7 million.
• The PC-HRM project is under examination due to elevated staff turnover and cultural challenges.
• The initiative seeks to supersede prior unsuccessful efforts with SAP SuccessFactors.
• Agreements with Frontier Software and Accenture are vital aspects of the enhancement.
• The upgrade is anticipated to be finalized by June 2026, with complete rostering by June 2027.

Insights into the HR System Revamp

The Australian Capital Territory (ACT) government is currently engaged in a major upgrade of its human resources infrastructures, expected to be finished by 2026. This $30.7 million revamp, referred to as the Payroll Capability and Human Resource Management (PC-HRM) project, aims to replace obsolete systems and rectify previous shortcomings with the SAP SuccessFactors integration.

Workforce Turnover and Obstacles in the Project

The project’s personnel includes 143 members, comprising public servants, consultants, and contractors. Yet, notable turnover has been observed, with 35 new hires and 21 exits over a span of two years. Concerns regarding cultural matters, exclusion, and leadership issues have surfaced, leading to scrutiny from ACT Legislative Assembly opposition members.

Officials have cited a variety of reasons for staff departures, including project completions, new opportunities, and personal reasons while reaffirming their dedication to a respectful work environment. An ongoing evaluation is addressing these issues.

The Challenging Journey Toward Modernisation

The PC-HRM initiative follows the failed HRIMS project, which utilized $77.63 million but yielded minimal outcomes. The current endeavor focuses on upgrading the existing systems, streamlining payroll processes, and rolling out self-service features.

Contracts with Frontier Software for system support and Accenture for integration are essential to the project’s development. As of April 2025, $19.13 million has been expended, consistent with the project budget.

Prospects and Completion Schedule

Despite changes in workforce, the ACT government assures that the primary payroll and HR platform enhancements are on track for completion by June 2026. A rostering and attendance solution for the entire ACT public service is forecasted for June 2027. The complexity of the project maintains it at an “amber” status, indicating ongoing challenges and risks.

Conclusion

The ACT government’s $30.7 million HR system enhancement aims to modernise and centralise payroll and HR functions. While it confronts scrutiny over staff turnover and cultural concerns, the project is progressing towards completion by 2026, with a comprehensive rostering solution by 2027. Key collaborations with Frontier Software and Accenture are crucial to this multifaceted upgrade.

Q&A Segment

Q: What is the financial allocation for the ACT’s HR system enhancement?

A: The financial allocation for the Payroll Capability and Human Resource Management (PC-HRM) initiative is $30.7 million.

Q: What are the reasons for the project’s scrutiny?

A: The project is scrutinised due to significant staff turnover, cultural concerns, and accusations of improper conduct within the team.

Q: When is the project anticipated to reach completion?

A: The essential HR system upgrade is projected to be finished by June 2026, with a rostering solution anticipated by June 2027.

Q: Who are the primary contractors involved in the enhancement?

A: Frontier Software and Accenture are the main contractors, tasked with system support and integration respectively.

Q: What are the key functionalities of the enhanced system?

A: The enhancement seeks to centralise payroll systems, automate processes, and offer staff self-service options.