ACT’s $30m HR system upgrade under scrutiny amid high staff turnover

The ACT government maintains that an upgraded human resources system will be online by 2026, despite a series of personnel changes to the delivery team behind the scenes.

The $30.7 million [pdf] Payroll Capability and Human Resource Management (PC-HRM) program aims to upgrade existing systems that the territory government previously - unsuccessfully - attempted to replace with SAP SuccessFactors.

The program has a workforce of 143, comprising 64 public servants, 65 consultants and 14 contractors on labour hire agreements that were sourced through external agencies.

But the labour hire number masks significant movement: 35 people were 'onboarded' and 21 'offboarded' over a two-year period, with all but one exiting since July 2024, documents published on notice reveal." [pdf]

On a single day in October last year, eight people on labour hire agreements were let go, due to what officials termed a “workforce adjustment within the project”.

Other people on labour hire agreements allege their time on the project was cut short, with contracts ended early, while the government has confirmed that 11 percent of the total workforce has left within their first six months [pdf].

At least one review is currently underway in response to "allegations made by a former team member" after they “offboarded” from the project.

Turnover on the project - including within the labour hire workforce - has attracted scrutiny from several opposition members of the Legislative Assembly, including Peter Cain and Thomas Emerson, both of whom have submitted questions on notice regarding the issue.

Emerson’s questions raise concerns about “cultural risks” with the program, and “allegations of exclusion, role manipulation, or inappropriate leadership conduct.”

Allegations were also raised to iTnews by five former staff who worked on the program, and were put to the Chief Minister, Treasury and Economic Development Directorate (CMTEDD), which is overseeing the project.

A CMTEDD spokesperson said: “There are several reasons for labour hire resources leaving the PC-HRM Program, including completion of assigned work, leaving the ACT government for other opportunities or promotions, performance or resource levelling to ensure continued alignment with program outcomes and personal reasons.”

The spokesperson added that “the ACT government takes all concerns raised by staff seriously and is committed to fostering a safe, respectful, and inclusive workplace.

“While the ACT government does not comment on individual matters or allegations to protect the privacy of those involved, any concerns raised are managed in line with established policies and procedures.

"Where appropriate, matters are investigated and addressed through the relevant ACT government frameworks to ensure fair and transparent outcomes.”

A complex upgrade

The PC-HRM project was initiated following the failure of the government's attempt to replace the ACT public service’s existing Chris21 and HR21 platforms with SAP SuccessFactors.

Known as the Human Resources Information Management Systems (HRIMS) program, the system replacement initiative was established under the purview of CMTEDD in 2017 with a budget of $15 million.

However, by the time the program was scrapped in July 2023, $77.63 million had been spent, but only one module, the learning management system, was delivered in what an audit described as a "significant failure for the territory" [pdf].

Another audit pointed to deficiencies in the project’s governance [pdf]; unclear roles and responsibilities across the owner, user, supplier and no single person was accountable for delivery.

In the wake of the HRIMS collapse, the territory government shifted course, opting to retain and upgrade the existing platforms.

This renewal modernisation attempt aimed to centralise the public sector’s payroll and HR systems, establishing new functionality, automated payroll processing and staff self-service options [pdf].

In May 2024, it awarded a $13 million contract to Frontier Software to re-licence and support Chris21 and HR21 until 2029.

According to the territory, the upgrade will provide a “modern integration” into the Chris21 system, reduce manual processes and improve security risks by hosting the system in Australia.

In December last year, Accenture was awarded a $13.7 million system integration contract for the project, which is set to expire in June 2026.

According to questions answered by Member of the Legislative Assembly Rachel Stephen-Smith on notice, $19.13 million in expenditure has been spent on the PC-HRM Program [pdf] as of 30 April 2025, which “aligns with the approved total project budget”.

Milestones achieved so far, according to Stephen-Smith [pdf], include the closure and decommissioning of the HRIMS system; the establishment of a multi-disciplinary team for the PC-HRM program; scoping and design of the whole-of-government rostering system; and the transition of 1600 users from the time and attendance system Kronos Workforce Central to Kronos UKG Pro.

Still on schedule

In a statement to iTnews, a CMTEDD spokesperson said that despite the workforce ructions, the upgrade of core payroll and HR platforms “is progressing on schedule” and is expected to be completed in full by June 2026.

The territory is also in the process of procuring a rostering and attendance solution for the entire ACT public service workforce, with delivery currently estimated by the end of June 2027.

The program’s “size and complexity” has it operating at an “amber” status. While this can be an indicator of challenges, it is also not uncommon for complex projects to maintain this status throughout, owing to ongoing risks.