The Impact of Human Resource Practice in Digital Transformation the Case of Zamzam Bank
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Date
2025-05-12
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A.A.U
Abstract
The purpose of this study was to examine the impact of HR practices on digital transformation outcomes in the case of ZamZam Bank, the first interest-free bank in Ethiopia. A structured questionnaire and systematic random sampling were used as instrument and technique respectively. The sample for the study was comprised of 261 respondents representing different functions of the bank. Of these, 236 questionnaires had been duly completed and returned, resulting in a 90% response rate. Quantitative data were analyzed using correlation and multiple regression analysis through SPSS version 25. The findings revealed that Digital Skills Proficiency, Employee Engagement, and Alignment of HR Policies with digital objectives significantly and positively influenced digital transformation outcomes, with p-values less than 0.001. Notably, Training and Development Programs and Talent Acquisition Strategies did not show statistically significant effects. Key findings indicate that enhancing digital skills and fostering employee engagement are critical for successful digital transformation. The study concludes that ZamZam Bank should focus on aligning its HR practices with digital transformation goals. By prioritizing employee engagement and ensuring that HR policies support these objectives, the bank can create a more adaptive and innovative workforce. This strategic alignment will not only facilitate effective digital transformation but also strengthen the bank's competitive position in the Islamic banking sector. Keywords: Islamic banking, Digital transformation, Human resource, Digital technologies