The Effect of Human Resource Digitalization on Employee Performance Through Employee Engagement

For Micro, Small, and Medium-Sized Enterprises (MSMEs) to increase production and work efficiency, digital transformation in HR management has become an essential tactic. Through the mediating function of employee engagement, this study seeks to scientifically examine and demonstrate the impact of HR digitalization on employee performance, both directly and indirectly. One hundred workers from digitalized MSMEs in Makassar City participated as respondents in a quantitative causal-associative study that used a purposive sample technique. Structured questionnaires were used to gather data, and SmartPLS's Partial Least Squares Structural Equation Modeling (PLS-SEM) was used for analysis. The findings show that employee performance is positively and significantly impacted by HR digitalization. On the other hand, it has been demonstrated that employee engagement has no discernible impact on employee performance. Employee engagement does not moderate the relationship between HR digitalization and employee performance, according to the indirect effect tests, which leads to a direct impact alone model . These results highlight how HR technology's operational efficiency and practical ease effectively influence daily employee performance in MSMEs without depending on emotional engagement. In order to increase operational productivity, the practical conclusion is that MSME owners should concentrate on implementing effective and user-friendly digital HR technologies.