The ‘retention crisis hiding in plain sight’

New research from Pegasystems has revealed that not meeting employees’ technological expectations can have dire consequences.

Employees are getting frustrated with technology, but with business leaders feeling increasing pressure to modernise, productivity is becoming the least of their concerns.

According to newly released research, 64 per cent of working adults report tools or systems are slowing them down – but more alarmingly, more than 30 per cent would consider leaving their jobs if their needs aren’t met.

It appears the promise of AI isn’t matching reality.

Systems that are complex or simply demoralising are sapping momentum and fulfilment, with only 40 per cent of surveyed respondents identifying the technology they use professionally as effective, and 33 per cent finding their systems helpful. Descriptors such as frustrating, slow, and outdated, however, are common.

This disconnect is compounded when organisations insist on using legacy software – described by Pegasystems’ ANZ CTO Barry Coughlan as “technology that once served a purpose but now constrains the business”.

He said: “It’s slow, hard to integrate, and increasingly at odds with the way modern work gets done.”

“This creates a hidden tax on engagement and productivity that many organisations don’t recognise until talent starts walking out the door.”

Moreover, the day-to-day effects of technology shortcomings lean towards “frustrated”, “exhausted”, and “demotivated”, with 12 per cent of respondents admitting they abandoned tasks altogether.

The research found 31 per cent are using legacy technology in current, or used, in past roles, but the remaining 69 per cent were unsure, suggesting the actual impact of such systems could be much larger.

Desktop-only and non-web-based applications, and “green screen” systems were particularly identified as likely constraints on speed, usability and integration. Just over one-quarter of respondents said they had never or rarely encountered technology problems, leaving a significant majority that is struggling frequently.

In a similar vein, it was suggested that non-intuitive legacy UX can drive up training time and require shortcuts and hidden actions to accomplish work. However, it was also found that 70 per cent of workers adapted to their tech stack within a month, suggesting the issue is less training or capability, and more the day-to-day performance of said technology.

Luckily, the research also pointed to a solution.

Organisations are recommended to pursue a legacy transformation strategy that incorporates AI to modernise systems and streamlines workflows. This allows for the possibility of extending the value of existing investments while addressing employee engagement, productivity and retention.

And this aligns with employee responses. When asked what they would improve about workplace technology, the most popular answers were faster speed and performance, more automation of repetitive tasks, and greater accuracy.

Coughlan said: “Our stance is clear: legacy transformation is no longer an IT priority, it’s a business and people priority, and the organisations treating it as such are the ones building a genuine competitive advantage.”

“Technology is the enabler, but the real work is organisational.”

“It starts with leaders being honest about the pain points employees are experiencing day-to-day, and committing to fix them … When organisations can simplify these processes and improve usability, they reduce that friction and signal to employees that their time matters, ultimately improving morale and productivity.”

Pegasystems CTO, Don Schuerman, said: “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.”

Acknowledging the short-term disruption of transformation, Coughlan asserted: “Organisations that treat modernisation as a foundation for sustained performance, rather than a temporary setback, will be far better placed to attract and retain the talent they need to grow.”