<![CDATA[Digital transformation has reshaped the banking industry by changing how banks allocate labor costs, invest in information technology, and generate output through human capital. This study examines the effect of labor cost efficiency and information technology investment on employee productivity in digital and conventional banks listed on the Indonesia Stock Exchange. The study uses secondary data from annual reports of eight banking issuers during the 2021-2025 period, generating 40 pooled firm-year observations. Employee productivity is measured using revenue per employee, labor cost efficiency is operationalized as an efficiency index derived from labor cost ratio, and information technology investment is measured using the natural logarithm of IT-related capital expenditure. The data are analyzed using multiple linear regression supported by classical assumption tests. The results show that labor cost efficiency has a positive and significant effect on employee productivity, while information technology investment has a negative and significant short-term association with employee productivity. The model explains 70.1% of the variation in productivity. These findings indicate that productivity gains in banking are not produced by technology spending alone, but depend on the alignment between technology investment, human capital capability, and operational redesign. The study contributes to human capital theory and the resource-based view by emphasizing organizational complementarity in digital banking transformation.]]>
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