Employee Digital Literacy Improvement Paths in the Digital Transformation of Enterprise Human Resource Management 
Fan Wencao  Malini Sathappan

SEGi University, Malaysia, 47810；

Abstract：Human resource management is moving from process administration to data-supported workforce decisions. Firms adopt HRIS, RPA, and AI, but returns are uneven due to employees' lack of data awareness and algorithmic judgement. This paper treats employee digital literacy as a human-capital capability. Drawing on TAM and RBV, it explains resistance, underuse, and poor HR data quality, then proposes a path that links culture, tiered training, work-scenario practice, ROI tracking, data minimisation, and AI-HR arbitration. Systems can calculate and screen; employees must interpret, question, and translate outputs into fair managerial action.

Keywords: human resource management; employee digital literacy; digital transformation; competency development; human-machine collaboration; data ethics

References

[1]Abbas, A. (2025). Digital ethics in the workplace: HR’s role in data privacy and compliance. *ResearchGate* [preprint; DOI status to be verified].

[2]Audrin, B., Audrin, C., & Salamin, X. (2024). Digital skills at work: Conceptual development and empirical validation of a measurement scale. *Technological Forecasting and Social Change, 200*, 123279.

[3]Barreto, I. (2010). Dynamic capabilities: A review of past research and an agenda for the future. *Journal of Management, 36*(1), 256–280.

[4]Blanka, C., Krumay, C., & Rueckel, D. (2022). The interplay of digital transformation and employee competency: A design science approach. *Technological Forecasting and Social Change, 178*, 121575.

[5]Brown, M. (2019). How boosting people skills helps in digital transformation: A case study. *Strategic HR Review, 18*(4), 183–186.

[6]Brynjolfsson, E., Li, D., & Raymond, L. R. (2023). *Generative AI at work*. National Bureau of Economic Research.

[7]Cetindamar Kozanoglu, D., & Abedin, B. (2021). Understanding the role of employees in digital transformation: Conceptualization of digital literacy of employees as a multi-dimensional organizational affordance. *Journal of Enterprise Information Management, 34*(6), 1649–1672.

[8]Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. *MIS Quarterly, 13*(3), 319–340.

[9]Deloitte. (2023). *Powering human impact with technology*. Deloitte Insights.

[10]DLA Piper. (2024). *Protection of employee personal information in China*.

[11]Freise, L. R., et al. (2025). How Siemens empowered workforce re- and upskilling through digital learning. *MIS Quarterly Executive, 24*(3).

[12]Gómez Gandía, J. A., Gavrila Gavrila, S., & de Lucas Ancillo, A. (2024). RPA as a challenge beyond technology: Self-learning and attitude needed for successful RPA implementation in the workplace. *Journal of the Knowledge Economy, 15*, 18951–18975.

[13]Huang, Y. H., & Huang, Y. J. (2023). Innovating enterprise training system to improve employees’ digital literacy and skills [Chinese source; original title verified]. *China Training*, (04), 88–90.

[14]Jimoh, A. L. (2025). Digital HR systems adoption and administrative efficiency in public institutions: The role of employee digital literacy. *Industrial and Commercial Training, 57*(1) [Early Access].

[15]ISO. (2019). *ISO/IEC 27701:2019 Security techniques — Extension to ISO/IEC 27001 and ISO/IEC 27002 for privacy information management — Requirements and guidelines*. International Organization for Standardization.

[16]Khang, A. (Ed.). (2024). *AI-oriented competency framework for talent management in the digital economy: Models, technologies, applications, and implementation*. CRC Press.

[17]Mazurchenko, A., & Maršíková, K. (2019). Digitally powered human resource management: Skills and roles in the digital era. *Acta Informatica Pragensia, 8*(2), 72–87.

[18]Peltier, J. W., Zhao, Y., & Schibrowsky, J. A. (2023). Cost-sensitive digitalisation in SMEs: A resource-based view. *Journal of Small Business Management, 61*(2), 450-475.

[19]Personal Data Protection Commissioner Malaysia. (n.d.). *FAQ: Personal Data Protection*.

[20]Sangaji, R. C., Setyaning, A. N. A., & Marsasi, E. G. (2023). A literature review on digital human resources management towards digital skills and employee performance. In *Lecture Notes in Networks and Systems* (pp. 681–692). Springer.

[21]Singh, P., Angra, P. K., & Ahmed, H. M. (2026). Ethical considerations: Algorithmic bias and employee privacy. In *AI-Enabled Workforce Management*. IGI Global [forthcoming/in press; DOI status to be verified].

[22]Stofkova, J., Poliakova, A., Stofkova, K. R., Malega, P., & Binasova, V. (2022). Digital skills as a factor of human resources development. *Sustainability, 14*(20), 13117.

[23]Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of enterprise performance. *Strategic Management Journal, 28*(13), 1319–1350.

[24]Vial, G. (2019). Understanding digital transformation: A review and a research agenda. *Journal of Strategic Information Systems, 28*(2), 118–144.

[25]Wei, Z. N. (2025). Analysis on strategies for improving the digital literacy of state-owned enterprise employees in the digital era [Chinese source; original title verified]. *Business 2.0*, (13), 109–111.

[26]Yang, K., & Li, K. (2022). Data empowerment to improve employees’ digital literacy [Chinese source; original title verified]. *Enterprise Management*, (10), 101–103.

[27]Yuan, L. G. (2025). Research on the construction of human resource training system in the digital transformation of traditional enterprises [Chinese source; original title verified]. *Time-Honored Brand Marketing*, (23), 97–99.