Technology-Driven HRM and Competencies: Insights from Indonesian Rural Banks

Digital transformation has brought significant changes in HRM, one of which is through the implementation of Electronic Human Resource Management (E-HRM). This investigation is conducted to evaluate the influence of technology, motivation, and employee competency on the organizational performance of Rural Banks (BPR) in Bali. Using a quantitative survey-based approach, the entire population of 131 BPRs was sampled using a saturated sampling method. A 5-points Likert scale questionnaire served as the primary instrument for data collection, and the gathered responses were examined through Structural Equation Modeling with the Partial Least Squares (SEM-PLS) technique. The results show that technology has a significant and positive impact on employee competency and organizational performance. Motivation was also proved to contribute positively and meaningfully to enhancing employee competence as well as organizational performance. Furthermore, employee competency has a significant positive effect on organizational performance. These findings confirm that E-HRM is not merely an administrative tool, but rather an important strategy in developing employee competency and driving organizational performance. Effective E-HRM implementation requires organizational support in the form of continuous training and integrated knowledge management. This study provides a practical contribution to BPRs in encountering intensifying competitive pressures in the financial industry by utilizing digital technology to create sustainable competitive advantage.