Digitalization for Sustainable Working Environments: The Role of Job Crafting and Job Resources on Employees Engagement

ABSTRACT With the rapid expansion of digitalization, banks are transitioning from traditional financial intermediaries to proactive agents, increasing operational efficiency and playing a critical role in improving sustainability across multiple industries. As digital tools transform work environments, they also reshape employee engagement dynamics, influencing how employees interact with their roles. This study examines the relationship between digitalization and employee engagement through the lens of the job demands‐resources (JD‐R) model and job crafting. Survey data collected from remote workers suggest that digitalization improves job resources, resulting in increased engagement. The findings reconcile the contradictory results of prior research, indicating that the relationship between digitalization and engagement is mediated by job resources and job crafting. Moreover, job crafting, facilitated by the flexibility enabled by digitalization, significantly improves employee well‐being. The study highlights how digitization enhances organizational sustainability by promoting employee well‐being and tackling social issues.