Human Resource Management in Facing the Challenges of Digitalization in the UMKM Environment of Kwala Serapuh Village

Abstract

Digitalization has become an inevitable global trend, including in the Micro, Small, and Medium Enterprises (MSMEs) sector. The main objectives of the research are to identify digitalization challenges faced by local MSMEs, analyze the readiness of human resources in adopting digital technology, and formulate effective human resource management strategies to increase the competitiveness of MSMEs in the digital era. This study uses a qualitative approach with a case study method. Data was collected through in-depth interviews with 20 MSME owners, a survey of 100 MSME employees, and direct observation of the work process in 10 selected MSMEs. The results of the study show that the challenges faced by MSMEs in Kwala Serapuh Village in digitalization include: (1) lack of understanding of digital technology, (2) limitations of information technology infrastructure, (3) resistance to change from some employees, and (4) limited budget for technology investment. HR readiness analysis reveals that only 30% of MSME employees have basic digital skills, while 70% require intensive training.