Impact of Human Resource Digitalization on Employee Performance in Banking Sector of Khairpur Mir’s, Sindh, Pakistan

Abstract

This research is based on effect of Human Resource Digitalization on Employee Performance in banking sector of Khairpur Mir's, Sindh, Pakistan with independent variables being Transactional E-HRM and Transformational E-HRM. A quantitative cross sectional survey design was used, and 265 bank employees were selected using simple random sampling method and a structured 15 item Likert scale questionnaire was used to collect data, which was then analyzed using SPSS version 27 with reliability test, Pearson correlation and multiple regression analysis. The findings reveal that the regression model explains 97.9% of the variance in Employee Performance (R² = 0.979, F = 6031.909, p < 0.001), with both Transactional E-HRM (β = 0.614, t = 34.390, p < 0.001) and Transformational E-HRM (β = 0.410, t = 22.945, p < 0.001) emerging as significant positive predictors. The results of the correlation analysis indicated that all the variables were positively and highly correlated with each other, with the highest correlation being found for Employee Performance and Transactional E-HRM (r = 0.967, p < 0.01), followed by Transformational E-HRM (r = 0.940, p < 0.01) and the instrument had excellent reliability (Cronbach's Alpha = 0.893). The study findings indicate that both dimensions of HR digitalization positively affect the employee performance (with transactional E-HRM showing slightly greater impact); which adds to the existing body of knowledge on HR digitalization in developing countries and fills the existing gaps in literature regarding the implementation of HR digitalization in smaller sized cities in Pakistan, thereby contributing significantly to the body of knowledge on HR digitalization.

Keywords: Human Resource Digitalization, Transactional E-HRM, Transformational E-HRM, Employee Performance, Banking Sector