THE IMPACT OF DIGITAL TRANSFORMATION IN HUMAN RESOURCE MANAGEMENT ON EMPLOYEE SATISFACTION IN SAUDI PRIVATE SECTOR

Abstract

his study investigates the impact of digital transformation in Human Resource Management (HRM) on employee satisfaction within the Saudi private sector, reflecting the objectives of national initiatives such as Vision 2030. As organizations increasingly adopt technology-driven HR practices, this research evaluates the effectiveness of digital HRM tools in enhancing employee engagement, work-life balance, and overall satisfaction.

A structured electronic questionnaire was administered to 400 employees across ten leading private-sector companies representing diverse industries, including retail, manufacturing, pharmaceuticals, electronics, and food services. Quantitative analyses were conducted, including reliability assessment via Cronbach’s Alpha, construct validation through Exploratory Factor Analysis (EFA), and hypothesis testing using Pearson correlation and multiple linear regression.

Findings indicate that digital HRM practices positively and significantly influence employee satisfaction. The adoption of digital tools enhances engagement, streamlines HR processes, and fosters a supportive work environment. Nonetheless, challenges such as resistance to change and the need for comprehensive training programs were identified.

This research contributes empirical evidence to the growing body of literature on digital HRM and underscores the strategic importance of integrating technological infrastructure with human capital development. The findings provide actionable insights for HR leaders and policymakers aiming to implement or optimize digital HR initiatives in dynamic organizational contexts.