People Factors in e-HRM Adoption

The digitalization process in business seems unavoidable, and the human resource management (HRM) function must also embrace it. Through the implementation of electronic HRM (e-HRM), the HR function can be optimized and aligned with the planned business strategy. This study evaluates how people factors determine the success of e-HRM adoption in companies undergoing digital transformation in Indonesia and the influence of the industry’s nature on adoption. A qualitative approach was conducted through top management interviews and managerial focus group discussions (FGDs) in a telecommunication and a property construction company in Indonesia. The study finds similarities and differences between skills and expertise, top management support, user acceptance, inter-unit communication, cooperation, and leadership and culture between these two companies. The defining difference in their digital readiness is employees’ digital-tool proclivity. The higher the proclivity, the higher the digital readiness. The influence of the business sector, the need for self-directed learning SDL) skills, and the application of change management are implications that must be considered. Further study is needed on how self directed learning (SDL), digitally enhanced personal learning, and the nature of the business influence people’s adoption of e HRM. Organizations that wish to adopt e-HRM must consider the nature of their business toward the digital-tool proclivity of their employees, facilitate learning using digital initiatives, and facilitate positive change management in e-HRM transformation.