The Influence of Digital HR Analytics and Digital Competence on Employee Productivity in the Society 5.0 Era

Abstract

Digital transformation in the Society 5.0 era requires organizations to manage human resources (HR) adaptively through the use of technology, one of which is Digital Human Resource (HR) Analytics. HR analytics enables organizations to make data-driven decisions on employee performance, turnover, and development, but its effectiveness is highly dependent on the digital competence of the employees. This study aims to analyze the influence of Digital HR Analytics and digital competence on employee productivity within the context of Indonesian organizations. Using a quantitative approach, the study measures the relationship of these two independent variables on employee productivity through a survey of a number of purposively selected respondents. The findings show that Digital HR Analytics contributes significantly to increasing productivity, consistent with evidence-based decision-making theory, while employees' digital competence is proven to strengthen the utilization of the analysis results. This finding confirms that digital literacy not only involves technical skills but also the ability to adapt, collaborate, and be aware of data security. Theoretically, this study enriches the literature on contemporary public administration and HR management by integrating two important variables that have previously been studied more in isolation. Practically, the results provide recommendations for organizations to invest in HR analytics technology while also enhancing the digital capacity of their employees through continuous training, so that productivity can be optimally increased.