Outdated HR Systems Cost Government $1 Billion Annually, New Workday Report Shows
A new Workday (WDAY) report reveals that outdated federal HR systems are costing taxpayers nearly $1 billion annually in lost productivity. The study shows that 89% of federal HR leaders believe these legacy systems are significantly hampering agency performance.
Key findings highlight that federal HR leaders spend 48% of their time on system workarounds and manual tasks. Additionally, 47% face data update delays, and 28% encounter system downtime weekly. Despite these challenges, only 48% of leaders prioritize HR modernization, with 83% lacking a modernization roadmap.
The report suggests that 61% of processes could be automated, with 98% of leaders supporting shared service models. Recommended solutions include AI-driven skills matching, centralized recruiting, and standardized personnel systems.
Un nuovo rapporto di Workday (WDAY) rivela che i sistemi HR federali obsoleti costano ai contribuenti quasi 1 miliardo di dollari all'anno in perdita di produttività. Lo studio mostra che il 89% dei leader HR federali ritiene che questi sistemi legacy ostacolino significativamente le prestazioni delle agenzie.
I risultati principali evidenziano che i leader HR federali dedicano il 48% del loro tempo a soluzioni alternative e compiti manuali legati ai sistemi. Inoltre, il 47% affronta ritardi negli aggiornamenti dei dati e il 28% sperimenta interruzioni dei sistemi settimanalmente. Nonostante queste difficoltà, solo il 48% dei leader dà priorità alla modernizzazione HR, mentre il 83% non dispone di una roadmap per la modernizzazione.
Il rapporto suggerisce che il 61% dei processi potrebbe essere automatizzato, con il 98% dei leader favorevoli a modelli di servizi condivisi. Le soluzioni raccomandate includono il matching delle competenze guidato dall'IA, il reclutamento centralizzato e sistemi del personale standardizzati.
Un nuevo informe de Workday (WDAY) revela que los sistemas federales de recursos humanos obsoletos están costando a los contribuyentes casi 1.000 millones de dólares anuales en pérdida de productividad. El estudio muestra que el 89% de los líderes de RRHH federales creen que estos sistemas heredados están afectando significativamente el desempeño de las agencias.
Los hallazgos clave destacan que los líderes de RRHH federales dedican el 48% de su tiempo a soluciones alternativas y tareas manuales relacionadas con los sistemas. Además, el 47% enfrenta retrasos en la actualización de datos y el 28% experimenta tiempo de inactividad del sistema semanalmente. A pesar de estos desafíos, solo el 48% de los líderes priorizan la modernización de RRHH, y el 83% carece de una hoja de ruta para la modernización.
El informe sugiere que el 61% de los procesos podrían automatizarse, con el 98% de los líderes apoyando modelos de servicios compartidos. Las soluciones recomendadas incluyen la coincidencia de habilidades impulsada por IA, reclutamiento centralizado y sistemas de personal estandarizados.
새로운 Workday(WDAY) 보고서에 따르면, 노후된 연방 인사 시스템이 납세자들에게 연간 거의 10억 달러에 달하는 생산성 손실 비용을 초래하고 있습니다. 연구 결과 연방 인사 책임자의 89%가 이러한 구식 시스템이 기관의 성과에 심각한 장애를 초래한다고 믿고 있습니다.
주요 발견 사항으로는 연방 인사 책임자들이 시스템 우회 및 수작업에 48%의 시간을 소비하고 있다는 점입니다. 또한 47%는 데이터 업데이트 지연을 경험하며, 28%는 매주 시스템 다운타임을 겪고 있습니다. 이러한 문제에도 불구하고, 리더의 단지 48%만이 인사 현대화를 우선시하며, 83%는 현대화 로드맵이 없는 상태입니다.
보고서는 61%의 프로세스가 자동화될 수 있으며, 98%의 리더가 공유 서비스 모델을 지지한다고 제안합니다. 권장 솔루션으로는 AI 기반 기술 매칭, 중앙 집중식 채용, 표준화된 인사 시스템이 포함됩니다.
Un nouveau rapport de Workday (WDAY) révèle que les systèmes RH fédéraux obsolètes coûtent aux contribuables près de 1 milliard de dollars par an en perte de productivité. L'étude montre que 89 % des responsables RH fédéraux estiment que ces systèmes hérités entravent considérablement la performance des agences.
Les principales conclusions soulignent que les responsables RH fédéraux consacrent 48 % de leur temps à des contournements système et des tâches manuelles. De plus, 47 % rencontrent des retards dans la mise à jour des données et 28 % subissent des temps d'arrêt système chaque semaine. Malgré ces défis, seuls 48 % des responsables accordent la priorité à la modernisation des RH, et 83 % ne disposent pas d'une feuille de route pour cette modernisation.
Le rapport suggère que 61 % des processus pourraient être automatisés, avec 98 % des responsables favorables aux modèles de services partagés. Les solutions recommandées incluent le jumelage des compétences piloté par l'IA, le recrutement centralisé et des systèmes de personnel standardisés.
Ein neuer Workday (WDAY)-Bericht zeigt, dass veraltete föderale HR-Systeme die Steuerzahler jährlich fast 1 Milliarde US-Dollar an Produktivitätsverlusten kosten. Die Studie zeigt, dass 89 % der föderalen HR-Führungskräfte der Ansicht sind, dass diese Altsysteme die Leistung der Behörden erheblich beeinträchtigen.
Wesentliche Ergebnisse heben hervor, dass föderale HR-Leiter 48 % ihrer Zeit mit Systemumgehungen und manuellen Aufgaben verbringen. Zudem erleben 47 % Verzögerungen bei Datenaktualisierungen und 28 % wöchentliche Systemausfälle. Trotz dieser Herausforderungen priorisieren nur 48 % der Führungskräfte die HR-Modernisierung, und 83 % verfügen über keine Modernisierungs-Roadmap.
Der Bericht legt nahe, dass 61 % der Prozesse automatisiert werden könnten, wobei 98 % der Führungskräfte Shared-Service-Modelle unterstützen. Empfohlene Lösungen umfassen KI-gestützte Kompetenzabgleiche, zentralisierte Personalbeschaffung und standardisierte Personalsysteme.
- Report positions Workday as a thought leader in federal HR modernization
- Identifies significant market opportunity in federal sector ($1B inefficiency)
- Strong potential for automation (61% of processes) indicates growth opportunity
- High support (98%) for shared service models suggests favorable market conditions
- No immediate revenue impact or contract announcements
- Low prioritization (48%) of HR modernization by federal leaders could slow adoption
- 83% of agencies lack modernization roadmap, indicating long sales cycles
Insights
Workday's report strategically positions them as the solution to $1B federal HR inefficiencies, representing significant potential revenue opportunity.
This report from Workday represents a strategic market positioning move to capture federal government contracts by quantifying the inefficiency costs of outdated HR systems. The headline figure of
The research highlights severe operational issues: federal HR leaders waste
What's particularly noteworthy is the identified disconnect between problem recognition and action - while
The report strategically emphasizes automation potential (
This represents a significant potential revenue opportunity for Workday in the massive federal sector, particularly as the government faces pressure to modernize aging systems while balancing security and compliance requirements - areas where Workday claims strong capabilities.
Federal HR Modernization Lags Despite Costly Inefficiencies
The High Cost of Outdated Systems
The report, Future-Ready Feds: Modernizing Human Capital Management to Empower Government Service, highlights a critical inefficiency: Federal HR leaders dedicate almost half their time (
The consequences are real: During a typical week,
"The federal government is at a crossroads," said Lynn Martin, Chief Growth Officer Government, Workday. "Legacy systems are wasting valuable employee time and taxpayer dollars. Federal HR systems must embrace modernization to drive efficiency and enable data-driven decisions that enhance service delivery, customer satisfaction, and mission success."
The HR Transformation Imperative
Automation and shared services emerged as critical areas for transformation. Federal HR leaders believe
The report comes at a time where the federal sector is facing unprecedented change, highlighting the urgent need for HR modernization to support the federal workforce and meet mission demands. To accelerate this transformation, the report recommends federal agencies:
- Make HR modernization a mission-critical IT priority
- Digitize and automate manual HR workflows to boost efficiency
- Invest in workforce analytics to improve hiring and reskilling decisions
- Prioritize security and compliance in HR technology
About the Research
The Future-Ready Feds research was conducted by Meritalk and is based on a survey of 100 federal HR decision-makers across civilian agencies and the Department of Defense in February and March 2025. The resulting research has a margin of error of ±9.78 percent at a 95 percent confidence level. To view the full findings, click here.
About Workday Government Cloud
Workday Government Cloud is an integrated cloud platform for HR and finance with built-in federal functionality, responsible AI and machine learning, and a zero-trust architecture, serving a range of existing federal customers across civilian, defense, and intelligence agencies, including the Department of Energy (DoE).
About Workday
Workday is the AI platform for managing people, money, and agents. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 11,000 organizations around the world and across industries – from medium-sized businesses to more than
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