HR Management Innovation and Employee Performance Improvement in SMEs Under the Background of Digital Transformation: A Cross - Industry Study

Abstract

This study explores HR management innovation’s impact on SME employee performance across 4 industries (manufacturing, retail, IT, healthcare) and 3 digitalization levels (2021–2024). Using mixed methods—surveys of 6,000 employees, interviews with 120 HR managers, 30 SME case studies—it analyzes 3 core HR innovations: digital recruitment, AI-driven training, data-based performance management. Results show high-digitalization SMEs (UK, South Korea) with full-cycle digital HR see 32% higher task efficiency and 27% lower performance gaps. Low-digitalization ones (Senegal) focusing on basic digital recruitment/on-demand training have 18% efficiency gain but only 9% gap reduction. IT SMEs benefit most from AI training (29% efficiency), manufacturing from data-based performance management (25% efficiency). It offers insights for SMEs to align HR innovation with digitalization and industry traits.