Why US Local Government CHROs are Moving Away from Legacy ERPs

Employee experience has become a strategic priority for organizations today. According to Workday’s global survey and insights on employee experience, 50% of HR leaders aim to create positive experiences for employees to enable and accelerate transformation across the organization.

With the evolution of digital experiences in the private sector, employees in the public sector now look for simplified workflows, improved transparency, better collaboration, and greater empowerment. As such, the sweeping workplace and workforce mindsets call for building a more streamlined and seamless ERP experience – a task that is not optional but operational for CHROs in the US local government. Yet many government agencies have been found to rely on digital systems deeply rooted in legacy infrastructure, such as PeopleSoft and Tyler. Though such systems can boost the digitization of HR operations, , they may not bring stability, usability, or engagement.

This is where the need for modern ERPs like Workday for local government comes into play.

“Today’s HR leaders need platforms that go beyond record-keeping to actively enable workforce strategy. Modern cloud solutions like Workday give them a unified view of their workforce, real-time analytics for smarter decisions, and an intuitive experience that employees actually engage with.” –Sridhar Koneru – Practice Director (Workday) at Kastech

 

Why Workday Matters for CHROs

A 2025 article published by Workday states that 89% of federal HR leaders believe that legacy HR systems are curbing the organizational performance and goals, costing taxpayers about a $1 billion in productivity loss. The report further reveals the key factors that are observed to restrict HR performance, including system workarounds, manual tasks, error correction, data reconciliation, limited analytics, data sharing issues, and security risks. These challenges directly impact HR modernization, operational efficiency, and workforce effectiveness.

  • System workarounds replacing standard processes: Employees are often pushed outside formal workflows to get work done, which results in fragmented and inconsistent experiences, reducing confidence in HR platforms.

  • Manual tasks and long, repetitive processes: Time-consuming, low-value activities increase effort for employees, making everyday interactions with HR systems feel inefficient and frustrating.

  • Frequent error correction and data inconsistencies: Inaccurate payroll, benefits, or employee records undermine trust, turning routine HR interactions into sources of concern.

  • Complex data reconciliation across systems: Delays in approvals and updates disrupt the employee lifecycle, weakening responsiveness and slowing down critical workforce actions.

  • Limited analytics and workforce insights: HR remains reactive, unable to anticipate employee needs or personalized experiences, resulting in disengaged and disconnected workforces.

  • Security risks and compliance constraints: Increased controls often come at the cost of usability, creating friction in access and limiting seamless interaction with systems.

Workday vs Legacy ERPs: What’s Changing

The transition to Workday HCM is not just a mere move to the cloud; it signifies a major shift in how Workday employee experience is designed, integrated, and measured within public sector organizations. The distinction between legacy ERPs like PeopleSoft and Tyler and Workday for local government becomes clearer when viewed through the lens of employee experience:

Employee experience dimensionLegacy ERP realityWorkday advantage
How work gets doneEmployees adapt to rigid
systems and predefined
processes
Systems adapt to employees,
enabling intuitive and flexible interactions
Employee perception of HR
systems
Viewed as administrative tools
that slow work down
Experienced as enablers that
simplify and support daily work
Workflows that matter
(onboarding, promotions,
transitions)
Fragmented and process-heavy,
often requiring multiple
touchpoints
Connected and seamless,
designed around key employee lifecycle moments
Pace of experienceDelayed responses and
approvals disrupt momentum
Real-time actions enable faster
decisions and smoother
workflows
Consistency of experienceVaries across departments,
systems, and processes
Unified experience across the
entire workforce lifecycle
Data as an experience driverData is retrospective and used
for reporting
Data is real-time and actively
shapes employee interactions
and decisions
Employee autonomyHigh dependency on HR for
updates and actions
Self-service empowerment with
guided, user-friendly interfaces
HR’s strategic positionFocused on resolving system
inefficiencies
Focused on designing and
improving workforce experience

Considering the above distinctive factors from employee experience lens, the shift to Workday HR transformation is already visible across US local government agencies. Mobile County’s transformation with Workday demonstrates how moving from legacy, paper-based HR systems to a unified platform improved both efficiency and employee experience. The county reduced data access time from up to one week to nearly real-time (often within an hour), while automating payroll processes that were previously manual and resource-intensive. Additionally, Workday’s self-service capabilities enabled employees to independently access and update their HR and payroll information, enhancing transparency, reducing dependency on HR teams, and improving overall user experience.

Similarly, Clark County’s transition to Workday highlights a strategic shift away from legacy ERP investments. Instead of spending approximately $6 million to upgrade its existing systems, the county chose to implement Workday as a cloud-native platform. This enabled the county to complete payroll 60% faster, cut unapproved spend by 15%, manage 9600 fewer general ledgers, and save $1.6M annually. The result was greater flexibility, streamlined HR and financial processes, and improved system usability, allowing employees and managers to interact with a more responsive and intuitive system aligned with evolving workforce expectations.

Source: State and Local Government Software Solutions | Workday US

Workday HCM and AI: Next-Gen Workday Employee Experience

From a CHRO’s standpoint, the transition to Workday HCM is about moving HR systems from being reactive tools to becoming intelligent platforms that actively support workforce engagement and productivity. To operate within the constraints of public sector environments, it is necessary to utilize Workday with its embedded AI capabilities to make HR systems more responsive, intuitive, and aligned with employee needs.

As per Gartner’s insight on AI in HR, organizations that integrate AI into HR systems are better positioned to improve employee experience and enable more proactive workforce strategies. AI is designed within Workday HCM to elevate and not complicate employee experience. The benefits include:

  • Reducing dependency on HR teams: AI-guided workflows help employees complete their tasks independently, improving access and reducing bottlenecks.

  • Improving decision speed: Real-time insights enable faster workforce actions, critical in time-sensitive public sector operations.

  • Enhancing personalization at scale: Employees receive role-based recommendations, making interactions more relevant and efficient.

  • Minimizing friction in daily processes: Automation reduces repetitive tasks, allowing employees to focus on meaningful work.

A CHRO-Led Approach to Successful Workday Implementation

It often happens that during ERP implementations organizations majorly focus on technical go-live milestones instead of getting a 360-degree analysis of the post-implementation factors. Without a clear focus on how employees interact with the system, even the most advanced platforms fail to deliver value. Hence, a CHRO-led approach here becomes critical for aligning technology with workforce expectations and organizational priorities.

Key Strategies for Effective Workday HCM Implementation

  1. Design for employee experience, not just process efficiency
    Implementation should begin with understanding how employees interact with HR systems. Prioritizing intuitive workflows ensures that Workday employee experience becomes a driver of adoption rather than resistance.

  2. Align implementation with workforce outcomes
    Instead of focusing solely on system capabilities, CHROs must define success in terms of engagement, productivity, and workforce agility – core pillars of Workday HR transformation.

  3. Drive adoption through simplicity and accessibility
    Systems that are easy to navigate require less training and generate higher engagement. A simplified experience is essential for scaling Workday for local government environments effectively.

  4. Enable real-time decision-making with unified data
    A key advantage of Workday is its ability to provide real-time workforce insights. Leveraging this capability allows CHROs to move from reactive to proactive workforce management.

  5. Embed change management as a continuous process
    Adoption does not happen at go-live. Continuous communication, training, and feedback loops are essential to ensure long-term success of Workday HCM.

  6. Leverage AI and automation to reduce friction
    Integrating AI-driven capabilities helps streamline workflows, minimize manual effort, and enhance usability, further strengthening employee engagement.

As per McKinsey & Company insights on digital HR transformation, organizations that align technology implementation with employee experience and business outcomes achieve significantly higher adoption and performance gains. For CHROs, this reinforces a critical insight: implementation is not an IT initiative; it is a workforce transformation initiative.

Conclusion

As discussed across the evolving role of HR systems, the shift from legacy ERPs to modern platforms is not just a response to inefficiencies; it is a response to changing workforce expectations. For CHROs in the US local government, this shift is becoming increasingly difficult to defer. The limitations of legacy systems are no longer confined to operations; they are directly shaping how employees experience work, interact with HR, and engage with the organization.

This is where Workday creates a meaningful inflection point. By aligning system design with employee needs, Workday HCM implementation enables a transition from fragmented, process-driven interactions to a more unified and intuitive experience. It also sets the foundation for true HR transformation, where HR moves beyond administration to actively shaping workforce outcomes.

For organizations navigating this shift, the focus must remain on adoption and long-term value. At Kastech, we work closely with CHROs to ensure that Workday implementation is aligned not just with system goals, but with workforce expectations, enabling a transition that is both practical and impactful for US local government agencies.

Ready to plan your Workday HCM implementation journey? Connect with us today!

FAQs 

1. How does Workday improve employee experience in government organizations?

Workday HCM improves employee experience by offering intuitive workflows, real-time data access, and self-service capabilities. In government environments, this enables faster processes, greater transparency, and higher adoption—resulting in a more seamless Workday employee experience.

2. What are the limitations of legacy HR systems in local government?

Legacy HR systems rely on manual processes, fragmented workflows, and delayed insights. This leads to low adoption, inconsistent experiences, and limited workforce visibility, thereby driving the need for Workday for local government.

3. What is Workday HCM and how does it support HR transformation?

Workday HCM is a unified HR platform that helps organizations move beyond fragmented legacy systems. By utilizing Workday HCM implementation, CHROs can improve decision-making, enhance employee interactions, and accelerate Workday HR transformation, creating a more connected and efficient workforce environment.