A new report from Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people, money, and agents, reveals that outdated federal human resources systems are costing taxpayers nearly $1 billion in lost productivity every year. According to the report, 89% of federal HR leaders believe these outdated systems are significantly hindering agency performance and mission delivery.
The newly-released report, Future-Ready Feds: Modernizing Human Capital Management to Empower Government Service, highlights a critical inefficiency: Federal HR leaders dedicate almost half their time (48%) to system workarounds, error correction, data reconciliation, and manual tasks. Key challenges include security risks, limited analytics, and data sharing issues.
Surprisingly, despite these clear problems, only 48% of leaders consider HR modernization a high priority, and 83% report lacking a modernization roadmap.
The consequences are real: During a typical week, 47% of federal HR leaders face data update delays due to manual processes, and more than one in four (28%) encounter system downtime or technical failures.
"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."
Shares in WDAY zoomed $4.60, or 1.8%, to $263.78.
