Original scientific paper
Challenges of implementing digital transformation of human resource management functions in micro-, small and medium-sized enterprises in the Republic of Croatia
The development of digitization internally affects organizations on many levels because it requires change management, i.e. the adaptation, development of competences and introduction of new ways of working. Digital transformation is continuously changing the way organizations recruit, hire, motivate and retain people. The aim of this paper is to analyze the challenges of implementing the digital transformation of the human resource management function in SME companies in the Republic of Croatia. The basic hypothesis of the paper is that the digitization of the human resource management function results in the growth of the company’s market share. Primary sources were obtained through empirical research conducted by an online survey with 105 respondents employed in human resource management departments of micro-, small and medium-sized enterprises in Croatia. The results show that in the SME sector of the Republic of Croatia, new, digitized channels for recruiting employees are used to a significant extent. It also emerged that the biggest advantages of the digital transformation of HRM functions are lower operating costs, simpler and faster processes, less bureaucracy and enabling work from home.
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