The Impact of Digital HRM Practices on Employee Well-Being: The Mediating Role of Knowledge Sharing and the Moderating Role of Technological Readiness in Virtual Work Environments

In the digital age, organizations are increasingly leveraging Digital Human Resource Management (DHRM) for improved performance and flexibility,yet this shift comes with issues such as digital fatigue and social isolation in virtual workplaces. This research seeks to explore the effect of Digital HRM on employee well-being (EWB), as well as the mediating effect of Knowledge Sharing (KS) and moderating effect of Technological Readiness (TR). Employing a quantitative, cross-sectional approach, primary data were collected through structured online surveys from 297 employees in the IT and banking industries in Islamabad and Rawalpindi, Pakistan. The results suggest that the effect of DHRM on knowledge sharing is positive and significant (beta = 0.184, p = 0.001), which leads to improved well-being (beta = 0.268, p = 0.000). Knowledge sharing partially mediates the relationship between DHRM and well-being (beta = 0.049, p = 0.011), and technological readiness significantly moderates the relationship between DHRM and knowledge sharing (beta = 0.102, p = 0.001). This study adds theoretically by combining Social Exchange Theory and the Technology Acceptance Model to explain psychological responses. Practically, it suggests that HR managers should consider employee technological readiness and trust for optimizing the impact of a digital transformation on employee well-being.