84% of healthcare organizations still rely on backup systems and manual processes, putting AI ambitions at risk

New research reveals fragmented HR, payroll and HCM systems are preventing healthcare organizations from unlocking the full value of AI

THE WOODLANDS, TX, AUGUST 18, 2026 - New research from Strada, the people, payroll and technology leader that simplifies international workforce management, reveals that many healthcare employers still rely on outdated workforce systems and manual processes, limiting their ability to fully embrace AI and workforce transformation.

The findings, from Strada’s Workforce Possibility Report 2026, reveal that despite significant investment in cloud-based HR technology, operational complexity remains a major challenge across the healthcare sector. The study found that 84% of healthcare employers maintain backup systems, spreadsheets or legacy processes alongside their primary Human Capital Management (HCM) platform. These disconnected processes can increase administrative effort, create inconsistent workforce data and make it harder for leaders to gain a clear, real-time view of staffing levels, labor costs and workforce needs.

Fragmented technology environments also remain widespread. Nearly two-thirds (66%) of healthcare organizations were found to use multiple systems to manage HR, payroll, benefits and finance operations, while only 27% report having a fully cloud-based HCM architecture. This suggests many healthcare organizations have yet to create the connected workforce technology foundation needed to support AI, automation and future workforce transformation.

 These findings reinforce the importance of helping healthcare organizations maximize the value of their cloud HCM investments, including Workday, by reducing complexity, connecting workforce data and eliminating manual processes that limit AI readiness.

Commenting on the findings Stephen Dolan, Vice President and Head of Workday Professional Services at Strada said: "Healthcare organizations are under enormous pressure to do more with less. As organizations look to get more value from their Workday and broader workforce technology investments, AI has enormous potential to improve workforce planning, reduce administrative burden and help leaders make better decisions. But it can only be as effective as the data behind it. Our research shows many organizations are still relying on disconnected systems, spreadsheets and manual workarounds to manage their workforce. That complexity makes it harder to create a single, trusted source of workforce data and limits the value organizations can realize from AI and automation.

The next stage of workforce transformation isn't about adding more technology. It's about simplifying what's already there, creating connected workforce data and giving healthcare leaders the confidence to make faster, more informed decisions."

 As healthcare providers continue to navigate workforce shortages, rising labor costs and increasing demand for care, simplifying workforce technology will be critical to helping organizations unlock greater value from Workday, AI and future workforce transformation.

Strada’s Workforce Possibility Report 2026 draws on independent research conducted among 405 senior decision makers in organizations with more than 1,000 employees across seven global markets. Explore the full Workforce Possibility Report 2026 here