Digital transformation in human resource management has become an important strategic agenda for service companies because service quality, speed, and customer experience are highly dependent on employee productivity. This article aims to analyze the role of Digital HRM transformation in improving employee productivity in service companies in Indonesia. The study uses a qualitative literature review approach by synthesizing relevant concepts of digital HRM, electronic human resource management, human resource information systems, employee experience, and work productivity. The findings indicate that Digital HRM transformation contributes to employee productivity through several mechanisms, namely administrative efficiency, data-based HR decision making, acceleration of learning and development, digital performance management, self-service HR, and stronger employee engagement. However, the implementation of Digital HRM also requires digital readiness, leadership support, data governance, user-friendly systems, and continuous employee capability development. The study concludes that Digital HRM transformation should not be understood merely as technology adoption, but as a strategic redesign of HR processes, work culture, and employee value creation. This article provides managerial implications for service companies in Indonesia to build integrated, ethical, and productivity-oriented Digital HRM practices.
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