New Research Uncovers the Hidden Toll of Ineffective Workplace Technology on Employee Engagement and Productivity

WALTHAM, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), The Enterprise Transformation Company™, today released research that revealed when technology fails to meet modern performance, usability, and automation standards, consequences go well beyond inefficiency – they negatively impact employee experience and retention. The results revealed that 64% of working adults say their tools or systems erode productivity or slow them down to some degree, and more than a third (36%) would consider leaving their jobs if their technology needs aren’t met.

Business leaders under increasing pressure to modernize are turning to AI strategies designed to deliver measurable outcomes. Yet for many employees, the promise of AI remains out of reach. Instead of empowering workers to explore and benefit from intelligent technologies, organizations are asking them to navigate complex, demoralizing systems that slow work and sap momentum. Fewer than half (41%) of respondents describe the tech they use at work as effective, and just 33% say it is helpful, while employees also describe their tools as frustrating (24%), slow (23%), and outdated (18%) — highlighting a disconnect between workplace technology and modern expectations.

The human impact of these shortcomings is even more pronounced. When asked how ineffective technology affects day-to-day experiences, employees report feeling frustrated (42%), exhausted (21%), and demotivated (18%), with 12% admitting they abandon tasks altogether. Together, these findings underscore how fragmented, unreliable technology undermines productivity and erodes morale. With the right modernization approach, organizations have an opportunity to reverse this dynamic by replacing friction with efficiency and restoring confidence in the tools employees rely on every day.

Other key findings include:

• Legacy software persists, constraining daily work: Thirty-one percent of respondents are using legacy technology in current or previous roles, but with the other 69% unsure, the actual footprint of legacy systems may be far larger than reported. Non-web-based, desktop-only applications are still used by 18% of organizations for business functions, and 10% continue using mainframe "green screen" systems. These desktop-bound workflows and mainframe remnants can constrain speed, usability, and integration, shaping frustrating daily experiences. Additionally, the continued use of non-intuitive legacy UX can drive up training time and require the tedious use of shortcuts and hidden actions to get work done, slowing productivity.
• Mixed perceptions of tech adequacy: Only about one in four (28%) respondents say they’ve never or rarely encountered technology problems, leaving most workers grappling with frequent and often frustrating issues. Similarly, less than half of respondents (49%) believe their employer provides modern technology, and more than one quarter (26%) report that their tools often or always hinder productivity.
• Frustration overshadows learning curves: The issue isn’t onboarding: 70% of workers adapt to their tech stack within a month. Yet only 53% believe their tools and systems help them do their best work — pointing to day-to-day performance, not training, as the real barrier.

What do workers need from their employers? When asked what they'd improve about workplace technology, the top answers were faster speed/performance (46%), more automation of repetitive tasks (28%), and more accuracy/fewer errors (23%). Investments that cut latency, modernize user experiences, and automate routine tasks directly address the loudest pain points.

To reduce the burden of outdated technology, organizations should pursue a legacy transformation strategy that incorporates AI to modernize systems and streamline work. AI can help extend the value of existing investments while improving employee engagement, productivity, and retention outcomes.

Methodology:

For this survey, Pega partnered with YouGov Plc. to survey nearly 2,600 working adults in the UK and US. The survey examined workplace technology experiences, focusing on legacy system usage, performance perceptions, morale impacts, and retention considerations. The legacy technology respondents were asked about include mainframe/COBOL, Lotus Notes, legacy BPM, older ERP and database systems, and older collaboration and workflow tools. Download the accompanying infographic here.

Quotes & Commentary

"Legacy technology can create a hidden tax on employee engagement and productivity that many organizations fail to recognize until it's too late," said Don Schuerman, CTO, Pega. "When workers spend their days fighting slow, frustrating tools, it doesn't just hurt productivity, it signals to talented employees that the organization doesn't value their time or enable their best work. Organizations that modernize their technology with a focus on speed, automation, and user experience aren't just improving efficiency, they're protecting their talent pipeline and enabling their ability to quickly evolve and innovate."

About Pega

Pega provides the leading AI-powered platform for enterprise transformation. The world’s most influential organizations trust our technology to reimagine how work gets done by automating workflows, personalizing customer experiences, and modernizing legacy systems. Since 1983, our scalable, flexible architecture has fueled continuous innovation, helping clients accelerate their path to the autonomous enterprise. Ready to Build for Change®? Visit www.pega.com.

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