Legacy tech isn’t just harming productivity and finances, it’s affecting workforce morale – research shows 20% of workers are ‘exhausted’ and ‘demoralized’ by outdated tools

The impact of legacy technology goes beyond enterprise efficiency or workforce productivity and has a direct effect on employee experience and retention, according to new research.

In a survey from Pegasystems, more than two-thirds (68%) of respondents said outdated tools are eroding productivity and slowing down processes.

The company noted that many workers are forced to navigate “complex, demoralizing systems that slow work and sap momentum”.

Indeed, just 28% of respondents described the technology they use at work as helpful. Notably, over one-third (38%) said they would consider leaving their employer if improvements weren’t made.

Pegasystems said the study highlights the significant impact legacy technology has on both productivity and general staff wellbeing.

Nearly half (45%) of respondents reported feeling frustrated due to outdated tools and systems while around one-fifth said they’re “exhausted” and “demotivated”.

Perception of tech adequacy was also a key problem flagged in the study. Less than half (48%) of respondents said their employer provides “modern technology” that is both reliable and relevant for their specific tasks.

Don Schuerman, chief technology officer (CTO) at Pegasystems, said legacy technology can create a “hidden tax” on employee engagement - and it’s one that “many organizations fail to recognize until it’s too late”.

“When workers spend their days fighting slow, frustrating tools, it doesn’t just hurt productivity, it signals to talented employees that the organisation doesn’t value their time or enable their best work.”

For enterprises that invest in modernization, Schuerman said the benefits are two-fold. First and foremost, they’re equipping staff with tools that are up to the task and contribute to productivity gains.

They’re also “protecting their talent” pipeline, which prevents brain drain and ultimately provides huge long-term benefits.

Modernization is easier said than done

Legacy tech has become a recurring pain point for IT leaders and tech teams in recent years, and the financial impact can be severe. Previous research from Pegasystems found outdated technology is costing enterprises hundreds of millions of dollars each year.

Yet only marginal improvements have been made to remedy the situation, and many businesses are still hindered by an array of outdated systems and tools.

30% of respondents to Pegasystems’ recent survey revealed their organization still uses legacy tech for “one of more business functions”.

Around 70% were unsure, which the company noted suggests the actual footprint of legacy systems “may be far larger than reported”.

Desktop-only applications, for example, are still used by 19% of firms, while 8% continue using mainframe systems. The company said these both have an adverse effect on workforce efficiency and performance.

“These desktop-bound workflows and mainframe remnants can constrain speed, usability, and integration, shaping frustrating daily experiences,” Pegasystems noted.

What do workers want?

In terms of what workers want from workplace tools and technology, Pegasystems said respondents identified three focus areas. These included:

• Faster speed/performance of tools (46%)
• Automation of repetitive tasks (30%)
• More accuracy/fewer errors (24%)

Similarly, investments that cut latency and modernized user experiences were also flagged. The company noted these were among the “loudest pain points” identified by workers.

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