TECHNICAL NOTE ON HUMAN RESOURCE MANAGEMENT INFORMATION SYSTEM MODERNIZATION IN CAMBODIA June 2024 Table of Contents Acknowledgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.1 HRMIS in the Public Sector: International Experiences at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.2 HRMIS in Cambodia: Current Status and Challenges . . . . . . . . . . . . 12 II. Towards a Modernized HMRIS for Improved Public Sector Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.1 Roadmap for HRMIS Modernization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 III. The Prototype. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3.1 Prototype Scope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3.2 Prototype Features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.3 The Benefits of Pilot Implementation of the Prototype . . . . . . . . . . 27 IV. Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 V. References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Annex 1: Cost Calculations for Full-Suite HRMIS in Cambodia . . . . . . . 32 TECHNICAL NOTE ON HUMAN RESOURCE MANAGEMENT INFORMATION SYSTEM MODERNIZATION IN CAMBODIA 6 Technical Note On Human Resource Management Information System Modernization In Cambodia ACKNOWLEDGMENT This technical note is prepared by the World Bank team comprising of Sokbunthoeun So (Senior Public Sector Specialist and Task Team Leader, EEAG1), Rath Daravuth Sithy (Public Sector Specialist, EEAG1), and Sebastian Foo (Consultant, DEADD) with inputs from Jolyda Sou (Consultant, EEAG1), Sopheak Young (Consultant, EEAG1), Chandra Choeung (Consultant, EEAG1), and Dimong Chea (Consultant, EEAG1). This work program was conducted under the overall guidance of Alma Kanani (Practice Manager, EEAG1), Tania Meyer (Country Manager, EACSF), Andrea Coppola (Lead Economist and Program Leader, EEADR), Lalita M. Moorty (Regional Director, EEADR), and Mariam Sherman (Country Director, Cambodia, Lao PDR, and Vietnam, EAVCL). The team would like to thank peer reviewers including Donna Andrews (Lead Governance Specialist, EAEG1) and Muhammad Faisal Ali Baig (Public Sector Specialist, EGVPA) for their constructive comments for refining this note. The team would also like to thank the Ministry of Civil Service (MCS) and other relevant stakeholders for their support and contributions. Specifically, the team would like to thank H.E. Youk Bunna, Permanent Secretary of State, MCS; H.E. Kong Sophy, Secretary of State, MCS; H.E. Long Saroeurn, Director General of the General Department of the Digital Management of Civil Servants, MCS; and H.E. Tep Rithy, Advisor, MCS. Coordination support provided by Seakheang Heng (Program Assistant) and Chanmoniroith Poan (Program Assistant) during technical assistance missions is gratefully acknowledged. The preparation of this technical note is co-financed by the GovTech Trust Fund and the Multi-Donor Trust Fund (MDTF) on Public Financial Management (PFM) and Service Delivery contributed by Australia and the European Union. Technical Note On Human Resource Management Information System Modernization In Cambodia 7 EXECUTIVE SUMMARY Cambodia has been making incremental progress in modernizing its core government systems since 2020. In particular, the country has improved its scores in the Government Technology (GovTech) Maturity Index (GTMI) from 0.45 in 2020 to 0.58 (out of 1) in 2022. Despite this improvement, there is still an absence of a well-functioning and centralized full-suite Human Resource Management Information System (HRMIS) to manage public sector personnel information and data. This issue presents myriad challenges for effective and efficient human resource management (HRM) in the Cambodian civil service, currently consisting of more than 284,484 active and contracted staffs. Cambodia will benefit from investing resources into operationalizing a full-suite HRMIS in the civil service, especially to improve the quality of its existing human resource (HR) practices in line with its overarching priorities on public administration reform and digital government transformation. The Ministry of Civil Service (MCS) – the lead government agency responsible for HRM - has already introduced custom HRMIS and payroll systems to allow all line ministries (LMs) to register government officials’ data and process salary payments. However, these systems are outdated and not fully fit-for-purpose, especially in the context of modern HR practices in the public sector. Manual paper-based processes are still being used for some tasks, including document transfers and data exchanges, which are both time-consuming and inefficient. This lack of a well-functioning and modern HRMIS in the public sector adversely impacts the level of government effectiveness in Cambodia. Lessons learned from the development and pilot implementation of the online payroll data entry service module prototype have shown that it is possible to utilize modern technology to improve the quality and efficiency of HRM in Cambodia at a moderate cost. However, the full benefits of HRMIS can only be materialized when a well-functioning central system is in place, providing timely and high-quality HR-related information essential for enabling better decision-making, employee experiences, public service delivery and, more importantly, value for money from public spending. Going forward, it is then necessary for Cambodia to formally adopt the HRMIS modernization roadmap and commence implementation as soon as possible. The HRMIS modernization roadmap offers a gradual approach towards implementing a full-suite HRMIS. It outlines a set of prioritized modules for MCS to develop in the short-, medium-, and long-term toward a functioning full-suite HRMIS capable of generating useful analytical insights for improving HR management and deployment. Successful roadmap implementation can also help to facilitate process streamlining reform toward improving efficiency in HR- related tasks, thereby reducing manual and paper-based work and allowing employees to reallocate saved time to focus on more strategic and critical tasks at hand. 8 Technical Note On Human Resource Management Information System Modernization In Cambodia The successful transition to a full-suite HRMIS requires careful planning, collaboration, and attention, ensuring that the system effectively supports the government’s HR management needs while being user-friendly, secure, and compliant with regulations. Cambodia can draw from experiences and lessons learned from the development and pilot implementation of the online payroll data entry service module prototype, including the following: • Technical Considerations: experiences from the pilot suggested the importance of seamlessly integrating the Online Payroll Data Entry service with the existing HRMIS. • Continuous Improvement: The pilot phase offers a learning opportunity, laying the groundwork for ongoing improvements and progressive implementation. This approach was essential for fine-tuning the system before its broader implementation. • Change Management and User Adoption: Change management was crucial for transitioning to the Online Payroll Data Entry service and will be even more important in the implementation of these broader reforms. • Project Management: Effective project management is crucial to the success of HRMIS implementation. The initiative requires meticulous planning, clear objectives, defined timelines, and resource allocation. It will be necessary to ensure sufficient financial and human resources to support HRMIS implementation. This will include not only adequate funding for software development and implementation, but also long-term capacity development and operating costs such as maintenance and software updates. Last but not least, it is necessary to ensure legal and regulatory compliance by conducting comprehensive reviews and making necessary amendments to the pertinent laws and regulations, as well as introducing new prerequisite regulations, particularly those related to data management, digital signature, data privacy, and digital standards for services in public sector administration. These are the essential ‘analog complements’ for ensuring sustained efforts in this modernization process. Technical Note On Human Resource Management Information System Modernization In Cambodia 9 ACRONYMS AI Artificial Intelligence API Application Programming Interface CGSI Core Government Systems Index DCEI Digital Citizen Engagement Index DSS Digital Service Standards GovTech Government Technology GTEI GovTech Enablers Index GTMI Government Technology Maturity Index HR Human Resource HRM Human Resource Management HRMIS Human Resource Management Information System IT Information Technology LMs Line Ministries MCS Ministry of Civil Service MEF Ministry of Economy and Finance MoE Ministry of Environment MoWA Ministry of Women’s Affairs MoEYS Ministry of Education, Youth, and Sports MPTC Ministry of Post and Telecommunications NPAR National Program for Public Administration Reform OPDESM Online Payroll Data Entry Service Module PAR Public Administration Reform PSDI Public Service Delivery Index RGC Royal Government of Cambodia 10 Technical Note On Human Resource Management Information System Modernization In Cambodia I. Introduction This technical note is prepared as a part of the prioritize improving public sector HRM policies and World Bank’s technical assistance to Cambodia’s procedures to bolster their public administrative Ministry of Civil Service (MCS) to support its capacities and organizational adaptiveness for ongoing efforts in modernizing its Human Resource improved government effectiveness (Sabharwal Management Information System (HRMIS). This et al., 2024). note outlines global trends and good practices in HRMIS; the current challenges in human resource HRM in the public sector is a complex and management (HRM) and HRMIS development in challenging task. However, technology has Cambodia’s public sector; the potential benefits become a key enabler for improving the process of HRMIS modernization in addressing these and efficiency of public sector HRM in the past challenges; a recommended roadmap towards two decades. Given the vast composition of civil HRMIS modernization in line with the country’s servants in most governments worldwide, public public administration reform (PAR) priorities; the sector HRM becomes more streamlined and pilot implementation of a quick-win prototype efficient when a modern and integrated system is to demonstrate the possibilities and benefits of in place to facilitate and expedite their associated using digital technologies to advance HRMIS functions and core activities. As a result, many modernization in Cambodia; and key next steps. governments worldwide have been increasingly adopting several state-of-the-art digital and 1.1 HRMIS in the Public Sector: innovative government technologies (GovTech) to International Experiences at a Glance modernize and streamline their core government services, including human resource management Effective and efficient HRM is a fundamental information systems (HRMIS) (Deloitte, 2024). prerequisite for enhancing public sector In broad terms, HRMIS can be referred to as an performance. Governments manage two advanced information system designed to enable types of resources to deliver their policies: better and more data-driven HRM in both public financial and human resources. The efficient and and private entities (Farooq and Kim, 2023). effective management of these two resources is This system encompasses several functional fundamental for ensuring the optimal functioning components and digital processes for managing of public administration and sustained excellence HR-related data and information on personnel in public service delivery. Both of these are and staff administration. This also includes critical determinants of positive socioeconomic performance information and other HR-related outcomes (Schuster et al., 2023). In the post- data reporting and analytics (Yasar, 2023). Recent Covid19 pandemic period, public expectations of developments in information technologies (IT) and government performance have shifted significantly. artificial intelligence (AI) have also made its key As such, most governments are now under functionalities more expansive and powerful than pressure to operate with heightened institutional ever before (Farooq and Bartosz Jakub, 2020). agility and adaptiveness, operational efficiency and innovation, and responsiveness to keep pace In the public sector, HRMIS operationalization can with the public’s expanding and evolving demands generate a multitude of benefits for improving for high-quality and excellent service delivery civil service modernization and public sector (KPMG, 2021). This development has compelled performance accordingly. In particular, the system many public sector reformers to significantly can help achieve many potent policy objectives in Technical Note On Human Resource Management Information System Modernization In Cambodia 11 the modern context of public sector management. performance. Finally, HRMIS can improve fiscal Firstly, its inherent process digitization and task sustainability in the public sector by strengthening automation features can enhance the operational the credibility of wage bill expenditures through efficiency and accuracy of the relevant HRM enhanced compliance with determined budget processes by eliminating manual paper-based plans. This can be achieved through functions and traditional business processes, which are like payroll controls and employee records often time-consuming, non-transparent, and highly management, which offer users the feasibility to prone to human errors. This will lead to improved generate valuable and timely information on wage work efficiency and, ultimately, gains in government and other administrative expenditures to support productivity. Moreover, HRMIS utilization will better-informed budget scrutiny and evaluations. also minimize the institutional avenues and The latter is crucial for ensuring the alignment of discretion for public officials to conduct certain public sector compensation plans with set budget HRM malpractices (e.g., payroll data manipulation and performance accountability frameworks for or ghost employee fraud) in the public sector efficient, effective, and responsible use of public (Hasnain, 2017). Process reliability and transparency resources (Farooq and Kim, 2023). will then improve, thereby enhancing public trust in government operations (Farooq and Kim, 2023). On a global scale, the operationalization Secondly, HRMIS is the primary technological tool of HRMIS in the public sector has been for facilitating the embedding of performance significantly increasing since 1984. According to management at the center of public sector Figure 1 below, around 119 HRMIS systems were management. In particular, its key performance- deployed across multiple governments between evaluation-and-reporting functions can generate 1984 and 2020. Its adoption rate has also been useful data and analytics on the performance consistently increasing following the IT revolution information of civil servants. The latter is pertinent in 2000, highlighting the widespread and growing for informing strategic HR decisions and action recognition of its significance in the overarching plans associated with public sector workforce PAR and digital transformation of core government planning and development, as well as other services agendas. organizational measures to bolster public sector Figure 1 – Global Trends on Diffusion of Information Systems in the Public Sector Diffusion of Information Systems 1984-2020 200 FMIS Cumulative number of Government Systems 180 Cust MIS Tax MIS 160 165 Debt Mgmt 140 146 TSA 140 e-Procure 128 120 119 Payroll 100 HRMIS 80 PIMS 60 62 40 20 0 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 Year Source: Herrera Gutierrez, Ramalho and Kim, 2023 12 Technical Note On Human Resource Management Information System Modernization In Cambodia 1.2 HRMIS in Cambodia: Current Status 0.45 in 2020 to 0.58 out of 1 in 2022, moving its and Challenges classification from Group C in 2020 to Group B in 2022. More specifically, there have been notable Since 2020, Cambodia has been making improvements in its scores on core government considerable progress with modernizing systems (from 0.44 in 2020 to 0.701 out of 1 in its core government systems to enhance 2022), public service delivery (from 0.51 in 2020 public administration. In particular, the country to 0.719 out of 1 in 2022), and GovTech enablers has improved its scores in the Government (from 0.31 to 0.592 out of 1 in 2022) (see Figure 2). Technology (GovTech) Maturity Index (GTMI) from Figure 2 Comparison of Cambodia’s scores in the GovTech Maturity Index for 2020 and 2022 a. GovTech Maturity Scores for b. GovTech Maturity Scores for Cambodia (2020) Cambodia (2022) Source: Findings from GTMI 2020 and 20221 Note: GTMI measures GovTech maturity in four centric design and universal accessibility; DCEI: focus areas — supporting core government The Digital Citizen Engagement Index (6 indicators) systems, enhancing service delivery, measures aspects of public participation mainstreaming citizen engagement, and fostering platforms, citizen feedback mechanisms, open GovTech enablers- to assist practitioners in the data, and open government portals, GTEI: The design of new digital transformation projects. It GovTech Enablers Index (16 indicators) captures provides a baseline and benchmark for GovTech strategy, institutions, laws, and regulations, as maturity and identifying areas for improvement. well as digital skills, and innovation policies and CGSI: The Core Government Systems Index (17 programs, to foster GovTech. indicators) captures the key aspects of a whole- of-government approach, including government Despite these incremental improvements, there cloud, interoperability framework and other is still an absence of a centralized HRMIS to platforms; PSDI: The Public Service Delivery Index manage personnel information and data in the (9 indicators) measures the maturity of online public sector. In Cambodia, the Ministry of Civil public service portals, with a focus on citizen- Service (MCS), established in 2014, is the lead 1 The bars with non-transparent colors (in both graphs) represent the average GTMI scores (of all focus areas) for all assessed countries in the East Asia and Pacific Region. The bars with clear colors represent the scores for Cambodia. Technical Note On Human Resource Management Information System Modernization In Cambodia 13 agency liable for managing the personnel records full-fledged and advanced HRMIS. This platform is and government payroll for more than 284,484 also not linked with the other systems, particularly active and contracted civil servants in the public in other LMs where most of the processes are sector (around 41% of which are female). Out of still largely manual. More specifically, the monthly the total number of active civil servants, around data transfer and submission for payroll and 20 percent are working at the central level and other related work are often done manually using 80 percent in provincial and local offices. The portable drives. These occurrences indicate that ratio of civil servants is around 1.3 civil servants there is a lack of a system-wide communications per hundred population, which is estimated to network for safe and secure data transfers in the be around 3.43 percent of the total employed civil service. As a consequence, some LMs and population as of 2021, according to data from the public institutions still maintain their own separate International Labor Organization2. Despite having payroll databases, resulting in the fragmentation such a relatively large public sector workforce, of payroll databases across LMs that adversely there is still no central and integrated HRMIS to affect the efficiency and transparency of the whole provide the fundamental data and information payroll data management and processing in the to measure and manage HRM. This limits the civil service. capacity of HR policymakers to make informed and evidence-based decisions on workforce planning. In 2019, the MCS developed a new custom web- based HRMIS and payroll system and initiated a Currently, MCS has introduced custom HRMIS pilot implementation in two LMs – the Ministry and payroll systems to allow all LMs to register of Environment (MoE) and the Ministry of government official data and process salary Women’s Affairs (MoWA). Nevertheless, the new payment. Unfortunately, the current systems are system contained only basic functional modules still outdated and not fully fit-for-purpose compared and was also not interfaced with other systems. to a full-suite HRMIS. These systems are based Only 200 users from the two ministries are using on a custom software launched about 10 years this system, while other LMs are still using the old ago. At present, it is being used as a client-server legacy system. The transition to this new system database only within MCS to maintain the personnel had been moving slower than expected due registry and payroll database and consolidate the to issues such as limited staff to perform data data received from all ministries every month. migration, inadequate training for all LMs, and lack Moreover, MCS has introduced only two key of an authorizing environment. This resulted in the HRMIS-like modules into the system – Employee delayed implementation of the HRMIS and payroll Master Record and Employee Self-Service system. Consequently, key LMs including the Portals. Other key modules such as recruitment Ministry of Education, Youth, and Sports (MoEYS) and performance management modules are still and Ministry of Economy and Finance (MEF) began absent from the system, making it far from being a developing their own HRMIS and payroll systems. 2 This is calculated using data from the ILOSTAT Explorer, which compiles labor statistics from the Cambodia Household Socio-Economic Survey (HIES) 2021 (the latest version of the survey). 14 Technical Note On Human Resource Management Information System Modernization In Cambodia II. Towards a Modernized HMRIS for Improved Public Sector Performance Improving the quality and pace of public to achieve these objectives in this context. administration is now a central priority for the Given these priorities, the institutionalization and Royal Government of Cambodia (RGC). The modernization of HRMIS can provide manifold Pentagonal Strategy Phase I – the government’s benefits to effectively realize the set PAR agendas overarching development strategy – emphasizes in Cambodia, particularly in line with the core PAR as a core priority of the government’s priorities of the Pentagonal Strategy. overarching reform agendas. In line with this agenda, the government has produced the Firstly, the operationalization of HRMIS can National Program for Public Administration Reform significantly improve process efficiency in (NPAR) – a comprehensive reform program outlining HR-related tasks. As noted above, the bulk myriad institutional and policy measures for of the current HRM processes (e.g., payroll improving the current practices and arrangements management) in the Cambodian civil service are for public sector governance and management, still predominantly manual and time-consuming. with core priorities focusing on strengthening The use of HRMIS can then help streamline (1) meritocracy in civil service recruitment, (2) these administrative processes by reducing the organizational efficiency of public institutions, and associated lengthy business processes and (3) performance-based management in the public manual paperwork involved. Subsequently, this sector (particularly revising the incentive structures will enhance work efficiency, as employees will to link civil service pay to performance). According spend less time on daily operational tasks and to the Cambodia’s Budget in Brief 2024, the can relocate the saved time to focus on the more government has allocated USD 120 million to strategic and critical tasks at hand. A case in point support the implementation of PAR priorities is civil service recruitment. Currently, this process for Fiscal Year 2024 (Ministry of Economy and remains largely paper-based, as MCS is still Finance, 2023). conducting nationwide paper-based examinations (with human screening and evaluations) to recruit To achieve its reform priorities (including civil servants for particular LMs (e.g., secondary PAR), the government is also heavily investing school teachers in MoEYS). Depending on the in modernizing its current core government scale of the examinations, this whole process systems for enhanced public sector can take between 4 to 6 months to complete. In performance. ‘Digitalization’ is now the fifth pillar addition, there is also heavy and cumbersome of the government’s overarching reform priorities workload involved, oftentimes exerting significant in the Pentagonal Strategy Phase I. Under this work pressure on current staffs. When staffs pillar, there is a clear prioritization on digitalizing become overburdened, their productivity public administration and services to strengthen levels will decrease, resulting in delays in other government effectiveness and accountability ministerial priorities. Therefore, the introduction (Royal Government of Cambodia, 2023). The of a ‘Recruitment and Application Management landmark Digital Economy and Society Policy Module’ in HRMIS can help streamline this Framework 2021 – 2035 and Digital Government process by onboarding all application procedures Policy Framework 2022 – 2035 also outline the and examinations to a central online platform for fundamental policy and institutional measures all candidates and examiners. The subsequent Technical Note On Human Resource Management Information System Modernization In Cambodia 15 assessment work can then be quickly processed governmentwide (Farooq and Kim, 2023). These via the system. In this regard, the exam evaluations key functions can include, but are not limited to, (1) can be automatically made against a set merit- performance evaluations linked to job descriptions based criteria without the need for time-consuming and key performance standards and indicators, and error-prone manual work. Empirical evidence (2) information on assessment criteria and from other countries have illustrated that this methodologies, and (3) mechanisms to regularly method of process digitization can contribute to review real-time performance evaluations and a 20 to 30 percent time reduction on average in determine the necessary remedial actions to civil service recruitment, as it can address the root address identified performance deficiencies, triggers of work inefficiencies and enhance the amongst others (Zhai and Wang, 2022). With these overall seamlessness and reliability of the related functions and the trainings necessary to conduct business processes. Other relevant functions from performance management discussions with staff, job advertisement to result notification can also be senior and mid-level managers in the civil service digitized and automated via the system, making can then utilize the generated performance these processes more time-and-resource-efficient information to better manage and reward high- (Zhai and Wang, 2022). performing civil servants (including linking pay increases to performance). Certain functions will Secondly, HRMIS can significantly allow for also assist them in digitally monitoring absenteeism the purposeful use of performance information and other performance deficiencies from staffs, to improve performance-based management and in identifying the appropriate measures and in the Cambodian civil service, which is disciplinary actions for addressing them objectively essential for improving overall government and transparently. Overall, these management effectiveness and service delivery excellence. practices will strengthen the institutionalization In Cambodia, despite the current PAR efforts, of a performance-based management culture the institutionalization of performance-based across all government agencies in Cambodia. management is still an ongoing process in the civil This is imperative for enhancing government service. Although some government agencies effectiveness and service delivery excellence, as (e.g., General Department of Taxation of the Ministry discussed above (The World Bank, 2020b). of Economy and Finance) already have their own performance management systems in place, there Finally, HRMIS can generate useful analytical is still no central HRMIS that optimally consolidates insights for improved HR management and all these systems into one single module for the deployment. For instance, the operationalization purpose of effective and transparent performance of a HRMIS-enabled Payroll Data Management management. The absence of this module limits module can enhance the timeliness and accuracy the capacity of the government, particularly the of payroll data for wage bill calculations and MCS, to strengthen an effective and durable projections, preventing any potential overspending performance-driven culture for improving service on public sector wages (Farooq and Kim, 2023). delivery quality. Payroll and pension modules can also generate relevant and evidence-based insights on wage Resolving this issue will require the introduction bill size and composition, wage bill arrears, and of a HRMIS with an advanced Performance implications of benefits payment on set budget Management Module. The usefulness of this plans. This provides valuable information to inform module lies in its modern and integrated functions key considerations to improve value-for-money in capable of generating and disseminating the public sector compensation practices. performance information of individual civil servants 16 Technical Note On Human Resource Management Information System Modernization In Cambodia Box 1 provides an overview of the key potential full-suite HRMIS. Box 2 provides further information benefits of HRMIS implementation in Cambodia, on the value of HRMIS implementation in achieving particularly to support its current and future PAR the key priorities of NPAR. Box 3 outlines the priorities. These benefits become more optimal common HRMIS modules and their key measures. and salient when there is the implementation of a Box 1. Summary of Key Benefits from the Implementation of a Full-Suite HRMIS in Cambodia HRMIS Modules generating new value creation: 1. Comprehensive Data Management: Beyond payroll, introducing more HRMIS modules (i.e., Performance Management Module) would enable the creation, analysis, and usage of a wide range of employee data, including recruitment, onboarding, performance management, training, and benefits. This comprehensive data management approach ensures efficient HR management in the civil service. 2. Improved Decision Making: With more HRMIS modules (i.e., Position Management Module), the system can provide advanced analytics and generate insights to support better decision- making. This can lead to more strategic HR practices, such as workforce planning, talent management, and succession planning. 3. Enhanced Employee Experience: A full-suite HRMIS can allow employees to manage their personal information, apply for leave, access training modules, and more. This can be done through Employee Self-Service Modules such as Leave and Attendance Management or Timesheet Management. This enhances employee engagement and satisfaction. 4. Cost Efficiency: Automating various HR processes can save significant costs by reducing manual work, minimizing errors, and improving process efficiency. Deployment across the Civil Service to generate new value creation: 1. Standardization of Processes: Implementing HRMIS across the civil service ensures standardization of HR processes and policies across different departments and regions. This consistency is crucial for fair and transparent HR management. 2. Data-Driven Policy Making: With a centralized system, the government can collect and analyze data from all departments, aiding in informed policymaking and resource allocation. 3. Improved Service Delivery: Efficient HR management directly translates to improved public service delivery. Civil services can be more responsive, effective, and citizen-centric with better managed human resources. Technical Note On Human Resource Management Information System Modernization In Cambodia 17 Box 2. Aligning HRMIS with NPAR in Cambodia Modernizing HRM practices in Cambodia via HRMIS implementation can support and accelerate NPAR through: 1. Enhanced Efficiency and Productivity: Modernizing HRMIS can streamline administrative processes, reducing paperwork and manual work. This increases government operations’ efficiency, allowing employees to focus on more strategic tasks. 2. Improved Data Management and Accuracy: A modernized HRMIS ensures better data management with accurate and up-to-date information. This is crucial for informed decision- making and policy formulation, aligning with NPAR’s goals of improving administrative effectiveness. 3. Transparency and Accountability: Advancing HRMIS can enhance transparency in HR processes, such as recruitment, promotions, and performance-based evaluations. This aligns with NPAR’s objectives to promote transparency and accountability in public administration. 4. Capacity Building and Skill Development: By incorporating digital training modules and skill development tools, HRMIS can efficiently aid civil servants’ capacity building, a key NPAR component. This ensures that employees are well-equipped to meet the evolving demands of public service. 5. Better Resource Allocation: Modernizing HRMIS can provide insights into workforce planning and resource allocation, ensuring that human resources are optimally utilized. This aligns with NPAR’s aim of optimizing resource use in public administration. 6. Facilitation of Policy Implementation: HRMIS can be crucial in effectively implementing various policies under NPAR. It can track progress, monitor compliance, and provide feedback for continuous improvement. 7. Enhanced Service Delivery: HRMIS can contribute to improved public service delivery by automating and optimizing HR processes, a fundamental goal of NPAR. This can lead to greater citizen satisfaction and trust in public institutions. 8. Supporting Decentralization Efforts: In line with NPAR’s decentralization objectives, a modernized HRMIS can empower local governments by providing the necessary tools and information to manage their workforce effectively. 18 Technical Note On Human Resource Management Information System Modernization In Cambodia Box 3. Common HRMIS Modules and Their Key HR Measures and Functions Module HR measures Foundational Payroll Management Size of wage bill and budget/position compliance; deviation of wage bill expenditures from the budget; sector, administration, and geographical breakdown; percentage of employees in various categories—civil servants, public servants, part-time, wage bill arrears, and others. Employee Master Record Establishment control—employees paid against the approved positions in the budget; average tenure on a position; history of service, educational profiles, degrees and certifications, regional quotas; ratio of civil servants, minorities and disabled employees, political appointees, temporary workforce, ghost workers as a percentage of total workforce, and other employee categories. Contract Staff Percentage of contract staff as a share of total public sector Management workforce, functions for administration and tracking of contract staff, compensation management, contract renewal and termination, tracking working hours and project assignments, performance evaluation tools tailored to short-term employment, and others. Personnel Development Competency improvement measures; promotions; secondments Benefits Management Benefits administration, enrolment tracking and eligibility verification, integration with payroll systems, and their cost impact analysis; cost tracking and reporting, claims management, and others. Staff Compensation Salaries and allowance structures; bonus and incentive Management management, merit increase management, compensation equity/ disparities in allowances/pay across sectors, compensation administrations (including compensation planning and budgeting toolkits), compensation benchmarking, and geographies. Time Registration and Absentee rate; overtime; staff on various types of leave; time Management registration, time approvals, credit hour, overtime work, and others. Technical Note On Human Resource Management Information System Modernization In Cambodia 19 Pension Management Pension as a percentage of the wage bill; future liabilities; impact of pension increases on established budget plans. Talent Management Performance Performance goals setting, information on top-rated and lower- Management rated employees disaggregated by ministry, department, and agency; performance evaluations and rate of performance reviews completed—ministry-wide. Recruitment and Time to hire; time to fill; applications per job posting; recruitment Application Management patterns; applicant profiles; recruitment method—through online examination, public service commission, direct contracting, contingent workforce, political appointments, or internal competition; ministry-level appointments. Learning Management Training and skills metrics, trainers’ details, training calendar, training (or Training and feedback, training records, training budget and others. Development) Succession Planning Functions to identify and track high-potential employees suitable for more senior positions ; percentage of identified positions that have an identified successor; career path mapping tool, succession planning scenarios, and others. Workforce Planning Ratios—grade-wise and sector-wise; promotions; vacancies. Career Development Promotion rate; average time to promote in a grade per service category. Competency Percentage gaps in required competencies. Management User experience and employee engagement Employee Self-service Time taken to complete an HR transaction; number of self-service (including Official Letter systems available; official letter generation is a specialized tool Generation) designed to streamline the creation and distribution of various official HR-related letters and documents. Employee Case Centralized tools and functions for tracking and managing various Management employee issues, including grievances, disciplinary actions, ethical concerns, and other general HR inquiries. 20 Technical Note On Human Resource Management Information System Modernization In Cambodia Exit Management Tools for recording exit-related information – date of registration, type of exit, notice period details, reasons for exit, and others – and conducting and documenting exit interviews. Manager Self-service Time taken to decide or approve HR transactions, number of Systems manager self-service systems available. Mobile apps for additional Number of mobile apps available for various HR functions—leave, self-services (e.g., leave profile, and others. and attendance) Employee engagement Number of employees responding to surveys; satisfaction rate with surveys management and HR policies HR analytics and reporting HR Dashboards and Levels and distribution of employment; wage bill and its distribution Reports across sectors, administration, and geographies; wage bill and its impact on fiscal sustainability; wage bill as a percentage of revenue; wage bill as a share of GDP; public vs. private employment; sector, administration, and geographic distribution of public employment Source: adapted from Farooq and Kim, 2023 2.1 Roadmap for HRMIS Modernization outlines recommendations on the required change management for expediting the development The HRMIS Modernization Roadmap outlines a of a fully functional and comprehensive HRMIS set of sequenced recommendations and actions going forward. It is also aligned with the central toward gradually modernizing the HRMIS development objective of the government’s in Cambodia. The document was formulated current Digital Government Policy Framework following a series of technical consultations, 2022 – 2035, which is to ‘build a smart government knowledge exchange sessions, and capacity- using digital infrastructure and technology as an building activities with relevant government ecosystem for governance system modernization’ officials from MCS and other LMs. In addition to (Royal Government of Cambodia, 2022). Box 4 technical recommendations, the roadmap also outlines its key features. Technical Note On Human Resource Management Information System Modernization In Cambodia 21 Box 4. Key Features of the HRMIS Modernization Roadmap for Cambodia Vision Statement - To modernize and serve the Cambodian civil service by delivering comprehensive functionality, timely and reliable data, valuable reporting, increased efficiency, improved risk management, and remaining relevant with a robust self-service function for better decision-making and enhanced service performance. Key features of the HRMIS Modernization Roadmap for Cambodia, structured around (1) Focal Areas and Delivery Arrangements, (2) Technical Priorities, and (3) Costing and Budget 1. Focal Areas and Delivery Arrangements Focal Areas and Challenges: The document outlines several focal areas, each with its challenges and corresponding recommendations, including leadership and governance, legislation and regulation, change management, user-centered design, application and infrastructure, data management, capabilities and skills, and operations protection and recovery. User-centered Design: Emphasizing the importance of a user-centered approach, the roadmap recommends adopting the ‘Design Thinking’ framework. This framework will be applied in various stages, including empathizing with users, defining needs, ideating solutions, prototyping, and testing. Implementation Timeline: The document segments the roadmap actions into short-, medium-, and long-term phases, each with specific activities and timelines. It emphasizes a ‘Think Big, Start Small, Scale Fast’ approach, starting with pilot implementation and gradually scaling up based on learnings from these pilots. Roles & Responsibilities: Detailed roles such as HRMIS Software Architect, Software Engineering, Applications Support Engineering, Systems Operations Engineer, Database Support Engineer, Product Manager, HRMIS Success Manager, and HRMIS Users Support Officer are provided, along with their specific functions and tasks. 2. Technical Priorities Application and Instructure: The roadmap identifies data exchange challenges and recommendations. It also suggests potential enhancements to the IT department’s software development productivity. Data Management: Recognizing the importance of data management, the document outlines components like data architecture, modelling, database administration, integration, interoperability, business intelligence, data quality management, security, and governance. 22 Technical Note On Human Resource Management Information System Modernization In Cambodia Operations Protection and Recovery: It highlights the importance of having a robust disaster recovery and data backup plan and outlines detailed strategies for database backup and recovery, including backup schedules, retention policies, and cybersecurity safeguards. Capacity Building: The roadmap stresses improving digital skills competency among public sector officers and suggests strategies for recruiting IT talent and service support staff. 3. Costing and Budget Costing and Budget: The roadmap includes a detailed breakdown of costs associated with the development and deployment of HRMIS modules, including hardware, cybersecurity safeguards, maintenance, and helpdesk support. The HRMIS Roadmap is a strategic and detailed guide for systematically implementing and scaling the HRMIS in Cambodia’s civil service, with a strong focus on data management, user-centricity, and capacity building. As part of the modernization efforts, the roadmap • The long-term phase will last two years and also recommended a set of prioritized modules will focus on implementing nine new HRMIS for MCS to develop in the short, medium, and modules: Contract Staff, Leave and Attendance, long-term. The implementation timeline is set in Exit Management, Time Registration, Employee three phases over a five-year time period.3 These Case Management, Official Letter Generation, prioritized modules are mostly in line with the Benefits Management, Succession Planning, standard HRMIS modules mentioned in Box 2. The and Staff Compensation. recommended implementation timeline is outlined below. The institutional arrangements for the implementation of the roadmap are functional • The short-term phase lasts 1 year and focuses in form, but the implementation capacity of the on enhancing existing modules to address key responsible institutions remains limited. The pain points in existing HRM practices. MCS has established a new General Department of Digital Management of Civil Servants to manage • The mid-term phase is planned for two years HRMIS modernization efforts across all LMs going and will focus on implementing four new forward. In line with the Digital Government Policy HRMIS modules: Recruitment and Application Framework 2022 - 2035, the government is also Management, Performance Management, establishing ‘Digital Transformation Units’ across Training and Development Management, and some sectoral ministries. Their primary task is to HR Dashboards and Reports. internally implement current and planned digital 3 The 5-year implementation timeframe was identified as suitable through consultations and goal-setting exercises with the MCS. This 5-year timeframe would offer the runway to: (1) start with the quick-win implementation of HRMIS modules in the short-term, which is critical to demonstrating success, (2) the emphasis for the next 2 + years (medium term) will be pivoted towards implementing priority modules and rollouts, and (3) the fourth and fifth years would focus on completing the implementation of the remaining modules and scaling the adoption across 50 public agencies. Technical Note On Human Resource Management Information System Modernization In Cambodia 23 government transformation initiatives including strategies must also be strongly embedded in institutionalizing and modernizing HRMIS. These departmental governance frameworks to promote undertakings provide the necessary but not a conducive authorizing environment for roadmap sufficient foundations for effective roadmap implementation in the short-and-long-run. The implementation going forward. Although tasked roadmap also described these recommendations, with HRMIS modernization, the current General amongst others, in more detail. Department at MCS is still lacking a comprehensive and long-term ‘ICT transformation vision and On the broader level, a whole-of-government strategy.’ The latter is generally considered by approach, with strong support from the many as a fundamental guiding compass for the highest level of management and across all modernization of core government backend government institutions, is also vital to the systems (e.g., HRMIS) based on international good successful implementation of the HRMIS practices. Effective roadmap implementation also roadmap following its formal adoption. Strong requires resolute and seamless collaboration and enduring political buy-in from LMs is needed, across multiple government agencies. Clarity with active leadership from MCS in championing of mandates and responsibilities between the the rollout and advocating for its inherent benefits current General Department and the incipient on civil service performance and modernization. Digital Transformation Unit is then needed to Formal adoption of the roadmap is the first step avert any potential reform-inhibiting coordination to laying the necessary groundwork for this work problems and overlapping portfolios during the going forward, accompanied by the determination implementation phase. On the capacity front, of clear mandates and action plans for interagency there is also a need to strengthen the institutional coordination associated with its rollout and capacity of the relevant implementing government maintenance. Overall, the HRMIS roadmap will departments at all administrative levels, serve as an important document for supporting the particularly the digital and innovation-promoting government of Cambodia’s HRMIS modernization competencies of responsible government efforts in line with its civil service reform agendas. officials4. Comprehensive change management 4 According to the above GTMI 2022, Cambodia only scored 0.592 in the GovTech Enablers Index, which also assesses the digital ca- pacity levels of government institutions. This score is only slightly above the regional average of 0.45 for countries in the East Asia and Pacific Region (see GMTI Index 2022 above). 24 Technical Note On Human Resource Management Information System Modernization In Cambodia III. The Prototype The ‘Online Payroll Data Entry Service Module 3.1 Prototype Scope (OPDESM) prototype’ was developed to The current payroll business process at MCS demonstrate the possibilities and benefits is assisted by a database system, which the of using digital technologies to advance the Ministry uses to update the data on the change modernization of HRMIS in Cambodia. One of status, remuneration, and other details of of the main challenges in HR management is the civil servants. At the national level, MCS changing the administrative and family status of civil reviews and approves the requested change servants. The manual process whereby relevant of status and other details of civil servants from officers use and transfer paper-based documents other ministries. At the subnational level, the from one ministry or government institution to Provincial Departments of Civil Service and MCS another at all administrative levels is highly time- use the “Send and Receive Payroll Table System.” consuming and inefficient. The prototype offers Ministries and provincial administrations send their opportunities to better enhance this process by monthly changes of civil servants’ status to MCS replacing the manual process with the online via physical documents, requiring manual checks entry of data on civil servants’ status changes to and data entry, both of which create a significant the database of MCS. Through this process, users strain on MCS resources to perform timely data can then make the necessary updates to the checks and data entry. An Online Payroll Data status of civil servants much quicker and can also Entry Service will then serve as an enhancement have easier access to the data for checking and to the existing HRMIS payroll module. verification purposes, if needed. This will reduce the time required to reflect changes of status for The prototype for online payroll data-entry civil servants in payroll payment processing. service addresses the change of civil servants’ status by including only remuneration and other The prototype was also piloted in three line details of civil servants that are important for ministries – the Ministry of Environment (MoE), the current payroll module in MCS’s HRMIS Ministry of Women’s Affairs (MoWA), and also database. The prototype does not store or the MCS – to demonstrate its possibilities and manage the complete information of civil servants benefits beyond MCS. Several capacity-building and payroll, but it is specifically designed to sessions were conducted onsite in MCS between incorporate civil servant data changes. A staging September 2022 to July 2023, focusing on HRMIS database for storing relevant data that interfaces modules and their technical implementation with the HRMIS database to retain all information considerations. To ensure their competence in on civil servants and payroll is needed. The undertaking future developments, the developers system is web-based, providing functionality also conducted a training on the implementation to users through a web browser and a secured of the prototype from December 2023 to January environment for the authorized personnel to 2024. submit. The display that will be implemented by the system will be consistent with other applications. Technical Note On Human Resource Management Information System Modernization In Cambodia 25 3.2 Prototype Features Upon clicking the ‘submit’ button to submit the new data to MCS, the authorized users can generate The online payroll date entry service module the report in a structured format for printing. The prototype has several features including role- report is based on the type of changes made. based data access, data modification, data Below are some of the reports that could be submission, report generation, notification generated based on these types of data changes: system, and data verification and acceptance. It is accessible after login using the Civil Service ID 1. Records of Monthly Changes for Administration and password. A link to the help page is visible and Family Statuses for users who need assistance to use the service. An existing password generator exists in HRMIS 2. Records of Civil Servant Salary for Joining the and can be utilized to enable the administrator New Classification / Reinstatement / Transfer to create and issue passwords to new users. Upon successful login, the authorized users from 3. Records of Civil Servant Salary under the line ministries will be shown their respective Probationary Period for the Assigned institutions’ online payroll data and are permitted Classification to add, delete, or modify the data. The authorized users will have two means to submit data changes 4. Records of Allowances for Civil Servants to MCS. Firstly, the authorized users can have selected data pre-populated from the HRMIS 5. Records of Base Salary for Civil Servants database to make changes and attach supporting Changing Classification document(s) to support the changes. Secondly, the authorized users can upload the Excel 6. Records of Base Salary for Civil Servants spreadsheet carrying the data changes with the through Scheduled Promotion / Graduation supporting documents. The following pieces of civil service data shall be allowed for updating: 7. Records of Two-Shift Allowance and Combined Classes for Civil Servants 1. Pay Scale 8. Records of Adjustment or Provision of Mission 2. Position Allowance for Civil Servants 3. Allowances (e.g., child allowance, spouse 9. Records of Rental Allowance for Prosecutors allowance, arrears allowance, etc.) and Judges 4. Family Status 10. Records of Final Payment for Existing Civil Servants 5. Civil Service Status 11. Records of Salary Transfer for Civil Servants 6. Workplace 12. Records of Family Allowance for Civil Servants 26 Technical Note On Human Resource Management Information System Modernization In Cambodia Each of the reports will be structured to present For incorrect or incomplete data provided both the existing and new data for comparison. or unapproved change requests, the MCS- authorized user will reject the change with the The reports include tabulation of numerical option of providing comments on the reason(s) for information (e.g., new salary amount). The formula each rejected case. The MCS-authorized officer for tabulation and reference tables consisting of can click on the ‘Unapproved Records’ button data needed for the tabulation are available in to generate a list of data records, which are not the HRMIS core, which shall be accessible from accepted for updates in the HRMIS database. The the ‘staging’ database through an Application list is transmitted to the relevant line ministries for Programming Interface (API) or a Web Service. resubmission with the supporting documents and The new data and supporting document(s) will be stated deadline for compliance. The process will digitally transmitted to a ‘staging’ database in the restart from the beginning until all data records HRMIS Server and updates to the HRMIS database are validated or the deadline for resubmission has will only be permitted once an authorized MCS passed, in which case the remaining unapproved officer validates the change, and the MCS records will be resubmitted in the next monthly authorized user generates a report for submission payroll cycle with supported documents. Account to the supervisor for approval. Upon the final management functions will be created to enable approval, the MCS officer can trigger the approved the MCS to create new accounts, delete existing updates to the HRMIS database. accounts, and update existing accounts of the line ministry users. Box 5 below describes the key features and functionalities of the prototype as outlined above. Box 5. Summary of Key Features of Online Payroll Data Entry Service Module Prototype Online Payroll Data Entry Service Module Prototype enables: Role-Based Data Access: Upon login, authorized users from line ministries can view and interact with their respective organizations’ payroll data. Data Modification Capabilities: Authorized users can add, delete, or modify payroll data, providing flexibility and control over their organizational data, with suitable integrity safeguards. Data Submission Methods: Submitting data changes to the MCS is supported by modifying pre- populated data from the HRMIS database. Report Generation: After submitting changes, users can generate one of 20+ reports, structured based on the type of change made. Notification System: Email notifications will alert MCS ministries’ updates to the payroll data. Data Verification and Acceptance: The ability for MCS-authorized users to verify the data updates. MCS can reject incorrect or incomplete data with comments for corrections. Technical Note On Human Resource Management Information System Modernization In Cambodia 27 3.3 The Benefits of Pilot Implementation way, the implementation issues were more easily of the Prototype addressed on a smaller scale without affecting the entire organization. Piloting the Online Payroll Data Entry Module Prototype with a limited number of LMs Performance Assessment: The pilot phase provided a practical approach to testing, allowed for an assessment of the system’s refining, and demonstrating the value before performance, including speed, accuracy, and it is implemented more broadly across the reliability of the payroll processing. civil service. It has already delivered several key benefits, particularly the following: Change Management: The pilot supported change management efforts by gradually Feedback gathering: The pilot has provided introducing the HRMIS through a small-scale an opportunity to gather user feedback, which deployment, thus reducing employee resistance. is crucial for user-centric improvements and full- scale HRMIS implementation at a later date. Stakeholder Engagement: The pilot engaged various stakeholders, including management, IT Training and familiarization: The capacity-building staff, and end-users, ensuring that the pilot met the activities have helped train and familiarize the needs and expectations of all parties involved. users with the piloted prototype. This is important for a smoother transition from the pilot to full-scale Demonstration of Benefits: The pilot was system implementation by the government at a a successful model for other line ministries, later stage. showcasing the benefits. This should help gain buy-in from other parts of the civil service for future Risk Mitigation: The pilot organizations have expansion. mitigated risks by starting with the pilot. In this 28 Technical Note On Human Resource Management Information System Modernization In Cambodia IV. Recommendations Given the government’s current heightened it is necessary for the MCS to implement the emphasis on PAR and public sector online payroll data entry service fully and begin modernization, it is necessary to move developing four new HRMIS modules (Recruitment beyond the piloting of the prototype toward and Application Management, Performance implementing a full-suite HRMIS in the Management, Training and Development Cambodian civil service. The experiences from Management, and HR Dashboards and Reports developing the online payroll data entry service Modules) to support the government’s current module prototype and its pilot implementation core PAR priorities focusing on strengthening demonstrated that it is possible to use simple merit-based recruitment, performance-based technology to advance the modernization of management, and organizational efficiency of HRMIS in Cambodia at a moderate cost. Such a public institutions. The additional nine HRMIS pilot offers lessons, but the full benefits of HRMIS modules (Contract Staff, Leave and Attendance, can only materialize when a well-functioning Exit Management, Time Registration, Employee central system is in place to provide improved HR Case Management, Official Letter Generation, information for better decision-making, enhanced Benefits Management, Succession Planning, employee experiences, improved public service and Staff Compensation) could be implemented delivery, and, more importantly, value-for-money between late 2025 and 2027. A detailed roll- from public spending on human resource. Overall, out plan should also be developed to guide this transition is not just a technological upgrade, the adoption of these modules across different but a strategic move towards modernizing and government agencies in Cambodia. professionalizing the civil service in Cambodia. The absence of a fully operational HRMIS limits the Successful scale-up implementation of the government’s ability to efficiently manage human HRMIS can draw from the experiences and resources, which often consumes a substantial lessons learned from the pilot implementation portion of the national budget. of the online payroll data entry service prototype. These lessons underscore the It is then necessary for MCS to formally adopt importance of technical proficiency, adaptive the HRMIS modernization roadmap and put it change management in implementing new digital into implementation in collaboration with other solutions, and project management (including LMs in Cambodia. The roadmap offers a gradual stakeholder engagement). Specifically, the approach toward implementing a full-suite HRMIS. development and implementation of additional It recommended a set of prioritized modules HRMIS modules should consider the following for MCS to develop in the short-, medium-, activities: and long-term over a five-year implementation period. The adoption and implementation of • Technical Considerations: Experiences from the roadmap will significantly help the MCS and the pilot suggested the importance of seamlessly other LMs in improving both the operational integrating the Online Payroll Data Entry service efficiency and quality of HRM in Cambodia’s civil with the existing HRMIS. Data migration was a service, as well as help achieve the broader PAR critical step, necessitating careful handling to priorities of the government to strengthen service ensure data integrity and security. Additionally, delivery excellence. As an immediate next step, the prototype was designed with scalability in Technical Note On Human Resource Management Information System Modernization In Cambodia 29 mind, ensuring it could accommodate future relevant parties early in and throughout the expansions and maintain high reliability and project – from senior management to IT staff. uptime. It will also be necessary to ensure sufficient • Continuous Improvement: The pilot phase financial and human resources to support offers a learning opportunity, laying the HRMIS implementation. This includes not only groundwork for ongoing improvements and adequate funding for software development progressive implementation. This approach and implementation but also long-term capacity was essential for fine-tuning the system development and operating costs, such as before its broader implementation. Each new maintenance and updates. The importance of module developed should first be piloted and factoring in training costs is also necessary for improved before full-scale implementation. Any effective implementation. Annex 1 outlines the complicated and time-consuming business projected cost calculations for the development of processes should also be streamlined before a full-suite HRMIS in Cambodia. the full-scale adoption of any new modules in HRMIS, thereby making them more value-added Last but not least, it is necessary to ensure by helping to accelerate daily operational legal and regulatory compliance by conducting tasks than to digitize the existing complicated comprehensive reviews and making necessary processes or create additional layers of amendments to the pertinent laws and technical or administrative complications. regulations, as well as introducing new prerequisite regulations, particularly those • Change Management and User Adoption: related to data management, digital signature, Change management was crucial for transitioning data privacy, and digital standards for services to the Online Payroll Data Entry service and will in public sector administration. In fact, the Digital even be more important in the implementation Government Policy Framework 2022 – 2035 has of these broader reforms. Comprehensive already specified these priorities and responsible training programs are necessary for preparing government agencies for executing these tasks, users and facilitating a smooth adoption particularly within the set timeframe. Progress has process. Effective communication was key also been made in some areas, especially with the to keeping all stakeholders informed and formulation of specific guidelines and legal norms managing resistance. Establishing an open for digital signatures plus the current drafting feedback loop enabled continuous collection of a data privacy law. Both of these creates the and incorporation of user input, which was enabling conditions for the pursuit of further digital essential for the pilot’s refinement. government transformation, including HRMIS modernization. • Project Management: Project management is crucial to the success of HRMIS implementation. The successful transition to a full-suite HRMIS The initiative required meticulous planning, implementation requires careful planning, encompassing clear objectives, defined collaboration, and attention to all the above critical timelines, and resource allocation. An agile areas. It is also pertinent to ensure that the system project management approach would have effectively supports the government’s HR needs proven beneficial, as it would offer the flexibility while being user-friendly, secure, and compliant to adapt to changing requirements and with regulations. These are the essential ‘analog incorporate iterative improvements. 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Available at: https://www.paradigmpress.org/SSSH/ article/view/226. 32 Technical Note On Human Resource Management Information System Modernization In Cambodia Annex 1: Cost Calculations for Full-Suite HRMIS in Cambodia HRMIS modules development estimated cost Modules Estimated Cost (USD) Payroll Management* $79,200 Recruitment and Application Management $79,200 Contract Staff Module $53,760 HR Dashboards and Reports $48,000 Leave and Attendance $53,760 Performance Management $62,400 Staff Training and Development $62,400 Exit Management $39,360 Staff Time Registration $46,560 Official Letter Generation Module $39,360 Employee Self Service Module* $57,600 Total Modules Cost $621,600 *The modules have been developed. Cost is incorporated to support additional enhancements. Additional HRMIS modules development estimated cost Modules Cost (USD) Benefits Management Module $57,600 Succession Planning Module $64,800 Staff Compensation Module $64,800 Staff Benefits Module $57,600 Total Additional Modules $244,800 All Modules $866,400 Non-development estimated costs Work Costing (USD) Deployment Cost (50 organizations) $2,736,000 Hardware and Security (35% of development cost) $303,240 Maintenance (20% of development cost) $173,280 Helpdesk support (25% of development cost) $216,600 Total $3,429,120 The World Bank Cambodia Country Office Exchange Square Building Floor 10th IBRD and 11th IFC Streets 51-61 and Streets 102 -106 Sangkat Wat Phnom, Khan Daun Penh Phnom Penh, Cambodia Website: www.worldbank.org/cambodia