DIGITALIZATION OF HUMAN RESOURCE MANAGEMENT: A COMPARATIVE STUDY OF TALENT DEVELOPMENT AND EMPLOYEE ENGAGEMENT IN THE USA AND PAKISTAN

Abstract

Digitalization has changed the way organizations attract, develop, and utilize talent because the rapid change of Human Resource Management (HRM) has changed everything. This paper is a comparative analysis of how digital HR practices have influenced talent development and employee engagement practices in the United States and Pakistan, over the trends and organizational outcomes to the year 2023. The study examines the role of technological adoption in the HR functions such as e-recruitment, learning systems, performance management systems and HR analytics in influencing workforce effectiveness and worker engagement in varying economic and technological environments.

The research design is a comparative type of research where the authors assess differences in the digital adoption, organizational readiness, and perception of employees between a developed and a developing economy. Results show that despite increased efficiency and access to learning as well as communication in both countries, infrastructure, digital literacy, organizational culture and strategic alignment moderate the extent of impact of digital HRM. Organisations in the United States exhibit more evolved digital ecosystems which enable ongoing talent development and increased levels of engagement, however, organisations in Pakistan exhibit rapidly growing adoption, but are constrained by structural and resource-related factors.

The research helps add to the overall body of international HRM research by emphasizing the situational aspects that cause the success of digital transformation efforts. It also offers managerial implications to understanding how managers can adopt technology-based HR practices to develop sustainable working approaches and to engage in various economic contexts.