Abstract. Human Resource Management (HRM) is essential in today’s digital era to ensure that HR strategies meet the demands of the times. Business transformation driven by digital technology requires an understanding of how HRM responds to these changes and how it impacts employee dynamics. To create strategic initiatives that maximize the integration of technology and HRM, it is essential to understand the implications of technology integration on employee engagement and performance. In the context of the HRM paradigm, this study attempts to unravel the relationship between employee happiness, leadership competencies, and technology adoption. This study aims to explore the dynamics of digital transformation of Human Resource Management (HRM) in startups and examine its impact on employee engagement and performance. This study highlights the significant influence of technology on leadership skills development and the need for adaptive leadership in the digital era. The foundation of engagement is employee satisfaction, and higher levels of engagement are associated with improved organizational performance. These observations underscore the value of developing leadership skills, driving employee satisfaction, and leveraging technology, and provide useful suggestions for HRM practitioners in startups in Indonesia. This study serves as a basis for future research and improvement of HRM methods in different startup ecosystems in Indonesia, which prioritize employee welfare and organizational success in facing challenges in the digital era.
