Quantifying the Digital Dividend: The Causal Effect of Human Resources Digitisation on Labour Productivity in Ukrainian Firms

Abstract

In the era of digital transformation, technological adoption has become a key determinant of economic performance. This study quantifies the causal impact of human resources (HR) digitization on firm-level labour productivity in Ukraine over the period 2010–2024. A novel Digital HRM Index was constructed to measure the intensity of digital adoption across HR processes, including e-recruitment, HRIS, digital performance management, and e-learning. Employing a fixed-effects panel regression model, the study finds that a one-unit increase in the Digital HRM Index raises labour productivity by approximately 3.1% (p < 0.01), controlling for firm innovation capacity, size, capital intensity, and training expenditure. The results are robust and highlight the significant role of HR digitization in enhancing firm efficiency. Policy implications point toward the necessity of supporting digital transformation strategies in personnel management, particularly in transition economies such as Ukraine.