C1999-73 announced that the Budget Committee of Cabinet had approved an implementation scheme for ESS in Personnel and Payroll functions and called for expressions of interest in hosting demonstration projects. The response to that invitation was very encouraging and selection of demonstration sites is underway. The detailed funding arrangements for the ESS scheme have now been agreed with Treasury.

 

Funds have been allocated from the connect.nsw initiative and will be provided in the form of repayable advances to agencies meeting the criteria for funding. Funded agencies will be expected to repay the amount of the advance within 2-3 years, from the direct savings achieved from introducing ESS. The repayment will include an interest component. Ongoing recurrent savings may be retained by agencies to assist in meeting the unfunded component of the recently announced Award increases under the Proposed Crown Employees (Public Sector Salaries, January 2000) Award.

 

Consistent with this, ESS for Personnel and Payroll is specifically listed as an initiative in the Memorandum of Understanding (see attachment to Circular No. 2000-14). The full benefits of ESS will only be realised by agencies that are ready to implement this change. It will not therefore be an appropriate immediate strategy for all agencies. However, I encourage all CEOs to consider whether and when their agency should plan to introduce ESS to improve the quality and cost effectiveness of their Human Resources operations, especially given that investment funding is available under the ESS scheme. If appropriate, plans to introduce ESS can be included in your draft management agenda to meet the unfunded component of the wage increases. A report explaining more about ESS and the readiness criteria that apply to its implementation will be sent to you shortly. Details of the funding scheme which begins in July 2000, including how to apply and the conditions of funding, will also be sent out over the next few weeks.

 

Col Gellatly Director-General