Digital Transformation and Sharia Human Resources Management: Challenges and Opportunities in the Industrial Era 5.0

Abstract

The Industrial 5.0 era demands humanistic human resource (HR) management, while the fast-growing Islamic finance industry faces the pressure of digital transformation that often exceeds the readiness of its human resources. This research aims to identify the challenges and opportunities of sharia HR management in facing digital transformation in the Industrial 5.0 era and formulate a strategic framework for its management. The research uses a qualitative approach with a case study design on Islamic banks, combining primary data from semi-structured interviews with management, questionnaires on licensed employees, and field observations, which are analyzed with the Miles and Huberman model and triangulation of sources and techniques. The results of the study show that the readiness of sharia values and ethics is high, while the readiness of digital competencies and human-technology collaboration is still lagging behind, so that the core of the problem shifts from compliance to talent development. The research concludes that sharia values, such as niyyah, amanah, itqan, and justice, function as a humanistic bridge that links technology adoption with the human-centric orientation of Industry 5.0, so that it becomes a comparative advantage, not an obstacle to modernization. The implication is that Islamic financial institutions need to shift the orientation from administrative compliance to the development of talents that are digitally competent and spiritually strong.