The Role of HR Analytics and Artificial Intelligence in Enhancing Employee Engagement and Organisational Performance

Digital transformation has significantly influenced organisational practices across industries, particularly in Human Resource Management (HRM). The integration of advanced technologies such as artificial intelligence (AI), big data analytics, and cloud-based HR platforms has transformed traditional HR practices into data-driven strategic functions. This study examines the role of digital transformation in HRM with particular emphasis on HR analytics capability and its impact on employee engagement and organisational performance.

The research identifies a gap in existing literature where digital HR technologies and HR analytics are often studied separately rather than within an integrated framework. Using a conceptual research model, this study explores the relationships between digital HR tools, HR analytics capability, employee engagement, and organisational performance. Secondary data from recent global HR technology reports and industry statistics (2024–2025) are analysed to examine the growing adoption of digital HR technologies. The findings indicate that organisations adopting HR analytics platforms and AI-based HR systems experience improved recruitment efficiency, higher employee engagement, and better strategic decision-making.

The study contributes to the existing body of knowledge by proposing an integrated HR analytics framework for digital HR transformation. It also highlights the importance of developing HR analytics capabilities to support evidence-based decision-making in organisations. The research provides valuable insights for managers, HR professionals, and policymakers seeking to leverage digital technologies to enhance workforce productivity and organisational performance in the digital economy.