Issue
The Consolidated Board By-laws for the Windsor-Essex County Health Unit (“the WECHU”) as well as the WECHU Procurement Policy, require a non-competitive procurement in excess of $2,499 be approved by the Board
Background
The WECHU utilizes the Ceridian Payflex (“Payflex”) application to process payroll. The Payflex application does not interface with the WECHU’s Sage 300 Financial System or the InfoHR system (the current system utilized to track employee entitlements and usage as well as limited other human resource information). The InfoHR system is also dated and limited in its uses. The majority of human resource processes are manual and documentation is primarily paper-based. In terms of the managing of staff time, the Program Managers are limited in their abilities to leverage the InfoHR system and have constructed separate excel-based tracking forms requiring frequent manual updating.
The Payflex application is being retired in December 2020, and as a result, the WECHU must implement an alternative solution. As Ceridian has been WECHU’s payroll service provider for over 25 years, conversion to an alternative application using a Ceridian solution would allow for a more effective implementation. As such, the WECHU has not embarked upon a competitive procurement process.
The first of two alternatives to Payflex is Ceridian Powerpay (“Powerpay”). Powerpay is a cloud-based application, similar to Payflex in so far as its ability to process payroll, but also includes limited employee self-serve capabilities (i.e. digital pay stubs). This application typically serves organizations with 100 to 150 employees but can be expanded to fit our requirements with basic use of the application. The second alternative to Payflex is Ceridian Dayforce (“Dayforce”). Dayforce is a cloud-based application, but represents a more wholesome software solution with payroll, human resource and time management capabilities.
A more wholesome and integrated solution such as Dayforce will allow for increased capacity in the areas of Payroll and Human Resources, as well as with the Management Group. In addition, this application will enhance the employee experience with a more comprehensive self-serve system that will follow them through their employee life cycle.
The implementation and annual fees associated with the Dayforce application are as follows:
Implementation of Dayforce Core, payroll, time and attendance, education package, performance, dashboards, compensation and recruitment modules
$25,599.71
Annual subscription fees (based upon 240 employees)
$72,505.22
Currently, the WECHU is paying the following annual fees for Payflex and the InfoHR system.
Payflex (estimated 2019 fees)
$18,178.66
InfoHR
$5,155.16
Net increase in the annual operating budget
$49,171.40
Note: Costing above includes the non-refundable portion of HST.
Proposed Motion
Whereas, the payroll application the WECHU is currently utilizing is being retired effective December of 2020
Whereas, Ceridian has been the WECHU’s service provider for over twenty-five (25) years and has alternative systems solution to address the WECHU’s requirements, not only from a payroll perspective, but also in relation to human resources and time management,
Now therefore be it resolved that the Windsor-Essex County Board of Health be permitted contract the services of Ceridian to implement the Dayforce solution in advance of the retirement of the existing Payflex application.