Transformation of Human Resource Management in Islamic Financial Institutions

Ghina Salsabilla Iskandar (Universitas Airlangga)
Ari Prasetyo (Universitas Airlangga)

Al-Kharaj: Journal of Islamic Economic and Business
Vol. 8 No. 3 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi

This study aims to analyze the transformation of human resource management in Islamic financial institutions and to formulate strategies for its development in response to industrial modernization and digital disruption. The study employed a descriptive qualitative approach using a library research method. The findings indicate that the transformation of Human Resource Management requires a holistic approach that integrates technical competence (kafa'ah), managerial competence, and moral-spiritual character (himmah) based on Islamic values. This transformation is realized through the strengthening of personal, organizational, and spiritual competencies implemented in human resource planning, recruitment and selection, training and development, performance appraisal, and compensation systems based on the principle of justice ('adl). Furthermore, the development of human resources is carried out through the continuous enhancement of personal, organizational, and spiritual competencies integrated into recruitment, training, career development, and performance evaluation processes.