Digitalization of Human Resource Management and its Influence on Employee Productivity of Small and Medium Enterprises (SMEs)

Abstract

This study examined the effect of Digital Human Resource Management (HRM) practices on employee productivity among Small and Medium-Sized Enterprises (SMEs) in Kano State, Nigeria. The study was motivated by the increasing adoption of digital technologies in business operations and the need to understand how digital HRM practices influence workforce productivity within SMEs. Specifically, the study investigated the effects of e-recruitment, digital training and development, and electronic performance management on employee productivity. A descriptive survey research design was adopted for the study. The target population consisted of 2,645 registered SMEs in Kano State, from which a sample size of 338 SME owners, managers, and HR personnel was selected using purposive sampling techniques. Data were collected through a structured questionnaire, and 314 valid responses were obtained. The data were analyzed using descriptive statistics and multiple regression analysis. The findings revealed that e-recruitment, digital training and development, and electronic performance management all have positive and statistically significant effects on employee productivity among SMEs in Kano State. The study found that digital training and development emerged as the strongest predictor of employee productivity, indicating that technology-driven learning and skill development initiatives significantly enhance employee performance. It recommends that SMEs strengthen the adoption of e-recruitment systems, invest in digital training and development programmes, and implement effective electronic performance management systems to improve workforce productivity, competitiveness, and long-term sustainability.