ACT Government’s HR Upgrade Under Pressure
The Australian Capital Territory (ACT) government is pushing ahead with its $30.7 million Payroll Capability and Human Resource Management (PC-HRM) program, despite facing serious questions about high staff turnover and internal challenges. The initiative aims to modernize the territory’s public sector HR and payroll systems by 2026—but recent revelations about workforce instability have raised concerns among lawmakers and former employees alike.
Turnover Raises Red Flags
The PC-HRM project currently employs 143 individuals, including 64 public servants, 65 consultants, and 14 contractors hired through labor hire arrangements. However, data reveals that the project has seen significant staff movement, especially among labor hire workers. Between July 2023 and July 2025, 35 contractors were onboarded and 21 were offboarded, with most departures occurring after July 2024. On a single day in October 2024, eight labor hire employees were dismissed due to a “workforce adjustment,” according to official documentation.
Alarmingly, 11 percent of the total workforce exited the program within their first six months. This turnover has caught the attention of opposition members in the Legislative Assembly, including Peter Cain and Thomas Emerson, who have submitted formal questions concerning the project’s internal culture and leadership practices.
Allegations and Investigations
Concerns over the program’s culture have been amplified by allegations from former team members, including claims of exclusion, role manipulation, and inappropriate conduct by leaders. One review is already underway following allegations made by a departing staff member. Additionally, five former employees have voiced similar issues to the media.
A spokesperson for the Chief Minister, Treasury and Economic Development Directorate (CMTEDD), which oversees the project, acknowledged various reasons for turnover, including project completion, career progression, performance issues, and personal decisions. The spokesperson emphasized, “The ACT government takes all concerns raised by staff seriously and is committed to fostering a safe, respectful, and inclusive workplace.”
They added, “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 Project with a Complex History
The PC-HRM program was launched after the failure of a previous initiative, the Human Resources Information Management Systems (HRIMS) program. Established in 2017 with a $15 million budget, HRIMS aimed to replace legacy systems Chris21 and HR21 with SAP SuccessFactors. However, by its cancellation in July 2023, the project had cost $77.63 million and delivered only a single learning management module. An audit later described this as a “significant failure for the territory.”
Governance issues plagued the HRIMS project. Auditors found unclear responsibilities among stakeholders and a lack of accountability. In response, the ACT government pivoted to upgrading the existing Chris21 and HR21 systems rather than replacing them entirely.
Modernizing with New Contracts
In May 2024, Frontier Software was awarded a $13 million contract to relicense and support Chris21 and HR21 through 2029. The government claims the upgrade will enable “modern integration,” reduce manual processes, and enhance security by hosting the systems within Australia.
Accenture was brought on board in December 2024 with a $13.7 million system integration contract, running until June 2026. As of April 30, 2025, the PC-HRM project had spent $19.13 million, in line with its approved budget.
Progress and Future Goals
Despite staffing challenges, the project is reportedly on track. Achievements to date include decommissioning the failed HRIMS system, forming a multidisciplinary PC-HRM team, designing a whole-of-government rostering solution, and transitioning 1600 users from Kronos Workforce Central to Kronos UKG Pro.
Looking forward, the government plans to implement a new attendance and rostering system for the entire ACT public service by June 2027. Officials describe the program’s current status as “amber,” indicating existing challenges but not necessarily signaling failure. This classification is considered common for large-scale, complex initiatives.
Conclusion
While the ACT government remains confident in the PC-HRM program’s trajectory, scrutiny from lawmakers and former staff underscores the importance of addressing internal issues. With millions already spent and more critical milestones ahead, the program’s success will depend not only on technical deliverables but also on cultivating a stable and inclusive workforce environment.
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