The Digitalization of Human Resource Management: Present and Future

Abstract

Information technologies are rapidly transforming the field of human resource management in organizations. The digital transformation of human resource management has become specifically important in the context of the COVID-19 pandemic, which has significantly accelerated the pace of digitalization of HR processes. Companies that are able to quickly take advantage of the opportunities of the implemented digital HRM technologies are in a better position than those in which digitalization was paid less attention. At the same time, the factors and consequences of digitalization of human resource management, as well as its relationship with various characteristics of firms, remain unclear today. This article provides an attempt to shed light on the key components of HRM digitalization analyzed against significant characteristics of organizations (size, personnel structure, staff turnover, performance) using personal data of 449 small, medium and large businesses operating in the Russian market. The collected data indicate the presence of two key components of digitalization: quantitative (reach or breadth) and qualitative (effectiveness of digital practices). We found that the combination of wide reach and high efficiency has not always been a sign of more successful and functional companies.