Inside government HR: a case for purpose-built ERP

Managing human resources (HR) in the public sector can feel like navigating a large ship through a narrow canal. Private companies have an ocean of options for creating, managing and executing employee policies. Governments, on the other hand, must navigate the waters of bargaining units, transparency demands and strict reporting regulations - offering little room for deviation or error. To remain compliant while continuing to modernize operations, public sector organizations must adopt HR software that offers government-specific solutions. 

Prioritizing labor cost distribution

Accurately tracking labor costs to funding sources is a critical need for governments. With costs spreading across multiple projects and funding types, public sector organizations need targeted solutions with built-in capabilities to manage labor cost distribution (LCD) granularly. While most large enterprise resource planning (ERP) vendors offer some level of LCD, it is essential to understand the scope of capabilities. For example, is LCD a part of financial management or payroll? How might this impact your operations? Does the solution provide opportunities to track funding to the timesheet line level, or is it only compatible at a higher level, like the project? 

The complexity of LCD demands precision; errors can lead to lost funding, operational inefficiencies and even compliance challenges. For example, state departments of transportation (DOTs) rely on federal funding, which is subject to strict audit requirements. Accurate reporting of labor costs is essential to comply with these audits and prevent the loss of federal funds. HR systems must offer granularity that enables detailed tracking and reporting, ensuring compliance and maximizing funding opportunities.
Having precise LCD enables organizations to accurately determine labor costs expended by individual employees across departments, enabling fast and accurate grant and project reimbursement billing. 

Classifying government employees

Civil service laws and collective bargaining agreements dictate many employee classification elements for governments. From overtime rules, leave accrual calculations and pay schedules, the management of public sector employees, especially those in unions, requires flexible HR solutions capable of adapting as collective bargaining agreements (CBA) adjust and organizational innovation drives change. It is not unusual for a CBA to include provisions for current or retroactive sweeping pay changes. These changes may consist of longevity or grandfather clauses and require all bargaining unit members' records to be reviewed for retroactive pay owed. Additional types of agreements may include current or retroactive leave allowances and benefit package changes. Government HR solutions must be flexible enough to review all affected employees’ records and consider complicating factors such as the Fair Labor Standards Act (FLSA) and pay differentials (shift, premium day, hazard pay) when calculating current pay changes as well as possible past monies owed. 

Accurate and timely payroll 

Compensation structures in the public sector often follow predefined salary schedules that consider an employee’s assignment details, such as grade, step, longevity and department or salary banding schedules. While these standardized structures ensure equity and a transparent path for advancement, they require different operational strategies than private sector compensation. Think of the common scenario of union pay renegotiation. Once agreed upon, the organization must apply a pay change to all employees in the defined group or classification. The right solution can streamline this action with a targeted mass pay change by percentage, amount, or other calculation. It may also grant automatic compensation adjustments based on pre-defined parameters, such as time in position or seniority level, allowing compensation professionals to focus on more strategic tasks. 

Public safety employees, such as firefighters and police officers, best represent the uniqueness of the public sector compensation structure. These positions have unique pay requirements and, like most state and local roles, must comply with FLSA, which requires detailed record-keeping of hours worked and wages earned for schedules outside the regular payroll schedule. While the uniqueness of public safety compensation varies, common elements that impact pay include the type of shift work, equipment used, and activities completed. Some unions have negotiated pay differences based on details such as the ladder height used during a firefighter call. Effective HR solutions ensure compliance and simplify the management of these complex compensation models, supporting public safety personnel while reducing administrative burdens.

Ensuring long-term sustainability and modernization

Modernizing HR is more than meeting immediate challenges; it's about creating systems that support long-term success. CGI is committed to developing and delivering solutions that support sustainable modernization and foster more effective governance. CGI Advantage, a purpose-built government ERP solution, empowers governments to achieve operational excellence and eliminate customizations while transforming key public sector HR processes such as labor cost distribution, FLSA compliance and public safety compensation management. Navigating that large government HR ship down the narrow canal of regulatory compliance does not need to be overwhelming. 
With a dedicated, knowledgeable partner, state and local organizations can widen the canal and take advantage of the benefits of solutions that reduce cost and risk while continuing to innovate toward the future of government. 

Explore CGI's purpose-built government HR solution.