Human resource competency 4.0 and its impact on Bank Indonesia employees’ readiness for transformational change

Abstract

Purpose – The purpose of this paper is to analyze the influence of factors that affect human resource competency (HRC) 4.0, employee readiness for transformational change as well as analyzing the mediating and moderating factors that influence the relationship of factors such as soft skills training and individual characteristics on employee readiness for transformational change and HRC 4.0. Design/methodology/approach – This research is a quantitative research with descriptive statistics. The analytical tool used is a structural equation model of partial least squares (PLS). This research was conducted at five Bank Indonesia Offices in Aceh and North Sumatra Provinces. Using a proportional random sampling technique, 200 respondents of employees were selected. Findings – The results of this study are as follows: (1) both soft skill training and individual characteristics have a significant effect on HRC 4.0; (2) HRC 4.0, soft skill training and individual characteristic have a significant on employee readiness for transformational change; (3) soft skill training has significant effect on employee readiness for transformational change through HRC 4.0; (4) individual characteristic has a significant effect on employee readiness for transformational change through HRC 4.0; (5) the effect of HRC 4.0 on employee readiness for transformational change moderates by transformational leadership; (6) the effect of HRC 4.0 on employee readiness for transformational change moderates by employee commitment to change. Originality/value – This research contains valuable novelty, which is a new concept of HRC 4.0 that is linked to soft skill training and individual characteristics variables, and employee readiness for transformational change. Furthermore, transformational leadership and employee commitment variables have significant effect in moderating the influence off HRC 4.0 on employee readiness for transformational change.