In early April 2025, Croatian Radiotelevision (HRT) launched a public procurement process to acquire a comprehensive Human Resource Management System (HRMS) designed to modernize and digitalize its human resources operations. The system aimed to enhance employee performance tracking, reporting, and career data transparency for roughly 2,500 staff members. The contract’s estimated value was set at €780,000, but the final offer accepted reached €888,134 including VAT.
The Need for a Modern HR System at HRT
HRT explained that it currently lacks an up-to-date system to monitor employee performance and engagement efficiently. Managers do not have easy tools for performance ratings or timely assessments, while employees cannot access personal career data or conduct self-evaluations. Presently, reporting is handled through various standalone spreadsheets, complicating interdepartmental information sharing and reducing operational efficiency.
The new HRMS software is intended to digitize the entire human resources workflow, enabling faster, standardized processes and more strategic decision-making based on real-time employee data.
Strict Tender Requirements Limit Competition
The procurement set very specific eligibility criteria for bidders, which raised eyebrows in the market. Companies wishing to participate had to demonstrate experience with at least three comparable projects worth a minimum of €70,000 each, delivered within the last four years. Moreover, at least one project had to serve an organization with a workforce of over 2,500 employees; another had to be in the public sector, and another had to be related to media or cultural industries.
These combined demands, HRT justified, were necessary to ensure the system aligned with the unique requirements of a large public media organization.
Market Pushback: Accusations of Limited Fairness
Potential vendors quickly flagged these criteria as overly restrictive and possibly designed to limit competition to a single favored supplier. One bidder formally objected, urging HRT to revise the criteria to allow wider participation and comply fully with Croatian procurement laws and market fairness principles.
Another contender noted that the requirements did not necessarily guarantee better quality, arguing that employee count or sector specificity did not directly correlate with the capability to deliver a functional HR system.
HRT stood firm, maintaining their specifications complied with legal provisions and reflected their operational needs. Despite requests, HRT refused to name other suppliers who met their standards or adjust the tender’s conditions.
A Lone Bidder: SD Worx Croatia
Ultimately, only one company submitted a valid bid — SD Worx Croatia d.o.o., a branch of the Belgian multinational SD Worx Group, which has served the European market for over 75 years and operates in 26 countries. The Croatian subsidiary, with over two decades of experience under its former name HRpro, offers HRnet software, recognized as a local solution.
SD Worx Croatia proposed €710,507 excluding VAT, totaling €888,134 including VAT. Their bid met the technical and professional capacity requirements, and an expert committee approved the offer as financially and technically satisfactory. The contract term extends until May 2029.
Questions of Ethical Transparency and Alleged Conflict of Interest
Faktograf, a Croatian fact-checking outlet, reported confidential sources hinting at a potential conflict of interest. Jasmina Lukačević, a current SD Worx Croatia management board member, is reportedly godparent (kum) to HRT’s general manager Robert Šveb. This relationship, if confirmed, could raise ethical concerns about the tender’s impartiality.
Faktograf directly asked SD Worx about this alleged connection, and the company declined to comment on private relationships involving their employees and client representatives. They acknowledged that close professional circles in Croatia’s HR sector often lead to personal connections but refused to confirm or deny the specific claim.
HRT did not respond to Faktograf’s inquiry about this matter. Neither the broadcasting company nor SD Worx issued any denials regarding the godparent relationship, leaving the issue unresolved publicly. If true, the situation could suggest a conflict of interest influencing procurement fairness.
Pricing Discrepancies Compared to Other Clients
Documents obtained under the Freedom of Information Act reveal that SD Worx charged other large Croatian companies significantly less for similar or even more feature-rich HR software modules in 2023. For instance, Končar d.d. acquired a more comprehensive HRMS solution from SD Worx for around €100,000 less than HRT’s deal. Similarly, Croatia Postbank paid approximately €181,359 excluding VAT for expanded software modules the same year.
HRT’s contract specifically excludes payroll calculation modules, relying instead on a separate SAP system—a fact confirmed within tender documents and HRT’s own responses. This limitation further highlights the higher relative price paid by HRT for fewer software functions compared to other clients.
Pre-Tender Market Analysis and Communication Gaps
HRT insists it conducted thorough market research before issuing the tender, including consultations with multiple companies capable of delivering advanced HRMS solutions. This market analysis supposedly shaped the tender criteria.
Yet, despite repeated requests, HRT declined to provide details of this market research or identify the companies consulted. They defended their approach, citing internal procedures and compliance with public procurement laws.
On the other hand, SD Worx confirmed that HRT contacted them during 2024 for preliminary market exploration and price evaluations in line with Croatian Public Procurement Law, which mandates such consultations to prepare competitive tenders.
Questionable Tender Criteria and Evaluation Process
Industry insiders have criticized the tender’s technical criteria, emphasizing that the focus appeared misaligned with practical needs. One entrepreneur, speaking anonymously, pointed out that a critical element for successful HR software implementation is a skilled consulting team capable of managing customization and deployment.
While HRT’s tender documents mention the necessity of experienced consultants to adapt the system to client-specific requirements, no such personnel-related requirements were actually included in the bid evaluation criteria. When questioned, HRT simply justified that the chosen criteria met legal standards and ensured vendor capability without elaborating.
Summary: A Controversial Procurement with Limited Transparency
HRT’s plan to upgrade its human resource management with a nearly €900,000 software contract resulted in a tender marked by restrictive conditions, a single bidder, and lingering questions about ethics and pricing fairness. SD Worx Croatia, the only company to meet the demanding criteria, secured the contract despite past clients paying much less for similar solutions.
Allegations of a godparent relationship between an SD Worx executive and HRT’s general manager, although unconfirmed, fuel concerns about the integrity of the procurement process. HRT’s refusal to share its market research and its dismissal of calls for more open competition have also contributed to skepticism.
As public institutions embrace digital transformation, transparency and fairness in vendor selection remain essential to maintain public trust and ensure best value for taxpayers.
Frequently Asked Questions (FAQ)
Q: Why did HRT decide to invest in a new HR software system?
A: HRT lacked a modern system to track employee performance, conduct evaluations, and allow employees access to career data. Existing manual processes were inefficient, relying on spreadsheets and slow information sharing. The new system aims to digitalize and standardize HR workflows for better management and reporting.
Q: What caused only one company to submit a bid for this procurement?
A: The tender’s strict requirements demanded that bidders demonstrate experience with large clients (over 2,500 employees), public sector projects, and work related to media or cultural sectors. Several potential vendors objected to these restrictive criteria, believing they unfairly limited competition. HRT refused to change the conditions, resulting in only SD Worx Croatia meeting all criteria.
Q: What is the significance of the alleged godparent connection between SD Worx and HRT?
A: Allegedly, a senior SD Worx executive is godparent to HRT’s director, raising concerns of potential conflict of interest. Neither party denied or confirmed the relationship. If true, it could imply biased favoritism in awarding the contract, undermining the tender’s fairness and transparency.
Q: How does the price HRT is paying compare to other clients of SD Worx?
A: Documents suggest that SD Worx charged other clients in Croatia lower fees for HR systems with equal or greater functionality. For example, the company provided more extensive services to Končar d.d. at a price about €100,000 less, and other major companies also paid significantly less.
Q: Did HRT ensure a fair and transparent procurement process?
A: HRT claims full compliance with Croatian procurement laws and justified their strict criteria as necessary for their needs. However, they refused to disclose market analysis documents or name other firms they contacted before the tender. This lack of transparency, combined with restrictive criteria and a single bidder outcome, raised questions about fairness.
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