The impact of digital transformation on human resource management: Survey evidence in Vietnam

Abstract

The digital economy is regarded as a long-term developmental orientation for many countries globally. The Fourth Industrial Revolution has introduced significant changes in the design and operation of human resource management. Vietnam is among the countries with substantial potential in accessing, exploiting, and applying digital transformation within human resources. This research aims to evaluate the impact of digital transformation on human resource management. To analyse this impact, the author assessed the relationship between digital transformation and human resource management factors. The proposed research model includes one dependent variable and three independent variables, referencing previous studies: human resource development, talent management, and work performance. The research method combines qualitative approaches through in-depth discussions with experts and quantitative methods based on multivariate regression analysis. Survey data, including 500 employees and managers in the human resources sector in Vietnam, utilised a 5-level Likert scale. The research results indicate a positive impact of digital transformation on human resource management. Furthermore, the impact on work performance is the strongest, followed by talent management, and finally, human resource development. This research is valuable not only in raising organisational awareness about digital transformation but also in providing a deeper understanding for human resource management policymakers on how to approach digital transformation in organisational operations.