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Fed Facts: Have You Heard about NewPay?
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Information contained in this article is not original and is from numerous sources, including the OPM and General Services Administration official websites.

You may not yet have heard of NewPay, but you probably soon will. The longest government shutdown in history revealed the impact of not paying Federal employees on time and correctly. NewPay should help.  

For decades, one of the government’s top priorities has been to increase Federal agencies’ reliance on “shared services” to get their work done more efficiently. Financial systems, asset management, and customer experience are just a few of the areas across government designated for migration to shared services. These efforts promise substantial savings and measurable improvements in service. Payroll, work scheduling, and leave management systems are the unheralded mechanisms by which Federal workers get paid. It’s imperative that we get it right every time. Payroll is one of the Federal Government’s biggest expenses. The NewPay initiative has bipartisan, government-wide support to consolidate and modernize agency systems. 

The effort to consolidate payroll providers from 26 to four was a success, saving the government approximately $1 billion. Today, when it’s open, the Federal Government successfully pays more than 2.2 million civilian employees every two weeks. Unfortunately, according to GSA, today’s payroll systems “predate the internet, the personal computer, and mobile phones.” NewPay promises to deliver better, faster, and more accurate payroll administration to Federal agencies and their employees. 

NewPay potentially benefits every Federal civilian employee in the executive branch, including the civilian workforce within the armed services and quasi-Federal agencies. NewPay will provide user-friendly self-service options, future cost avoidance, and increased efficiency in a secure environment. It is a Software as a Service (SaaS) cloud-based technology that will leverage the scale of the Federal Government and enable agencies to focus resources (human and fiscal) on core mission priorities, which will reduce costs, significantly improve security posture, increase user experience and service, and better manage budgets. 

The Federal Government anticipates the streamlining of employee time reporting and payroll processing using standard application program interfaces and data schemas to support data exchanges between legacy human resource and financial management systems and the SaaS solutions. This approach will allow the Federal Government’s shared services providers to provide this information technology (IT) solution, along with IT professional services that support customer agencies within the Federal Government.

Moving to SaaS will make keeping up with evolving technology far more efficient for all agencies than in the past. It will also make the experiences of both providing and receiving pay much more enjoyable, productive ones for both payroll administrators and employees. Errors and delays will be minimized or corrected much more quickly. Agencies won’t have to administer payroll using antiquated, increasingly obsolete systems, especially after a government shutdown.

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