Digital Transformation in HR: The Impact of AI-Based Recruitment on Organizational Performance and Employee Well-Being
DOI:
https://doi.org/10.65049/eh5m2j55Keywords:
AI-based recruitment, organizational performance, employee well-being, digital HR transformation, qualitative researchAbstract
This study examines the dual impact of AI-based recruitment systems on organizational performance and employee well-being in Indonesian companies. The research addresses the paradoxical reality where AI implementation enhances operational efficiency while potentially compromising human aspects of talent acquisition. Using a qualitative multiple case study approach, data were collected from 35 participants across 12 organizations through in-depth interviews, observations, and document analysis. The findings reveal three distinct implementation patterns: comprehensive adopters (42%), selective implementers (33%), and experimental users (25%). While AI implementation demonstrated significant efficiency gains, reducing time to hire by 65% and cost per hire by 48% it also increased new hires' anxiety levels by 23% due to perceived depersonalization. Critical success factors identified include HR digital literacy (explaining 42% of variance), perceived fairness, and management support. The study introduces an AI HR Implementation Framework that emphasizes optimal human AI collaboration at approximately 70% integration threshold. These findings contribute to strategic HRM theory by integrating technological and human perspectives, providing practical guidance for the ethical implementation of AI in talent acquisition processes. The research offers valuable insights for organizations navigating digital transformation while maintaining a focus on both operational excellence and employee well-being.
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Copyright (c) 2025 Reni Farida, Deni Permana, Ima Amaliah, Nunung Nurhayati (Author)
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