Strategic framework AI-driven HRM, hybrid work, psychological welfare, sustainable talent development, and governance of HR against HR future trends

https://doi.org/10.35912/ahrmr.v5i4.3461
Published: Dec 24, 2025

Abstract:

Purpose: This study aims to develop and empirically validate an integrative strategic framework linking AI-driven HRM, hybrid work, psychological welfare, sustainable talent development, and HR governance in predicting future-ready HR within digitally transforming organizations.

Research Methodology: A quantitative approach using SmartPLS-SEM was applied to analyze survey data from 150 HR managers, supervisors, and practitioners across multiple industries in Indonesia. The model evaluated reliability, convergent validity, structural relationships, effect sizes, and predictive relevance.

Results: Findings confirm that all five constructs significantly and positively influence future-ready HR. AI-driven HRM improves strategic decision-making and predictive analytics; hybrid work enhances flexibility; psychological welfare strengthens engagement; sustainable talent development builds long-term workforce capability; and HR governance reinforces fairness and ethical practices. The model shows strong explanatory power (R² = 0.713), with all path coefficients significant (p < 0.05).

Conclusions: A multidimensional, integrative HRM model is essential for preparing organizations for future challenges. The synergy between technological innovation, employee well-being, continuous talent development, and ethical governance forms the foundation of resilient and future-ready HR systems.

Limitations: The study uses a cross-sectional design, a relatively limited sample size, and excludes other potentially relevant predictors such as organizational culture, leadership style, and digital maturity.

Contribution: This study advances HRM literature by presenting an empirically validated, holistic model that integrates technology, human factors, and governance, while offering practical guidance for sustainable and human-centered HR strategies.

Keywords:
1. AI-driven HRM
2. Future-Ready HR
3. Hybrid Work
4. Psychological Welfare
5. Sustainable Talent Development
Authors:
1 . Ahmad Ridwan
Universitas Islam Lamongan, Jawa Timur, Indonesia
2 . Enni Sustiyatik
Universitas Kadiri, Kediri, Jawa Timur, Indonesia
3 . Tontowi Jauhari
Universitas Kadiri, Kediri, Jawa Timur, Indonesia
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How to Cite
Ridwan, A., Sustiyatik, E., & Jauhari, T. (2025). Strategic framework AI-driven HRM, hybrid work, psychological welfare, sustainable talent development, and governance of HR against HR future trends. Annals of Human Resource Management Research, 5(4), 261–279. https://doi.org/10.35912/ahrmr.v5i4.3461
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Issue & Section
Vol. 5 No. 4 (2025): December
Articles
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References

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    Pandey, S. (2024). Cloud Computing for AI-enhanced Smart City Infrastructure Management. Smart Internet of Things, 1(3), 213-225. doi:https://doi.org/10.22105/siot.v1i3.253

    Paroli, P. (2025). Transforming Human Resource Planning: Building a Strong Foundation for Achieving Good Governance. Golden Ratio of Social Science and Education, 5(1), 95-105. doi:https://doi.org/10.52970/grsse.v5i1.919

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    Richter, N. F., Hauff, S., Ringle, C. M., & Gudergan, S. P. (2022). The Use of Partial Least Squares Structural Equation Modeling and Complementary Methods in International Management Research. Management International Review, 62(4), 449-470. doi:https://doi.org/10.1007/s11575-022-00475-0

    Rufeng, L., Nan, Z., & Jianqiang, Z. (2023). Impact of Employee Well-Being on Organizational Performance in Workplace. International Journal of Management and Human Science (IJMHS), 7(2), 87-95. doi:https://doi.org/10.31674/ijmhs.2023.v07i02.010

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    Wiyono, D., Dewi, D. A., Ambiapuri, E., Parwitasari, N. A., & Hambali, D. S. (2025). Strategic ESG-Driven Human Resource Practices: Transforming Employee Management for Sustainable Organizational Growth. Jurnal Organisasi dan Manajemen, 21(1), 65-82. doi:https://doi.org/10.48550/arXiv.2505.08201

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  2. Alotaibi, N. S. (2024). The Impact of AI and LMS Integration on the Future of Higher Education: Opportunities, Challenges, and Strategies for Transformation. Sustainability, 16(23), 1-21. doi:https://doi.org/10.3390/su162310357
  3. Ammirato, S., Felicetti, A. M., Linzalone, R., Corvello, V., & Kumar, S. (2023). Still Our Most Important Asset: A Systematic Review on Human Resource Management in the Midst of the Fourth Industrial Revolution. Journal of Innovation & Knowledge, 8(3), 1-14. doi:https://doi.org/10.1016/j.jik.2023.100403
  4. Amri, A. (2024). Trends in Human Resource Management and Organizational Behavior. Economics and Digital Business Review, 5(2), 1011-1027. doi:https://doi.org/10.37531/ecotal.v5i2.1374
  5. Bakr, A. M., El Amri, M. C., Mohammed, M. O., Kastac?, H., & Erol, T. (2024). Proposing Circular Economy for Enhancing the e-Waste Recycling in Turkiye. Turkish Journal of Islamic Economics, 11(2), 166-192. doi:https://doi.org/10.26414/a4173
  6. Cayrat, C., & Boxall, P. (2023). The Roles of the HR Function: A Systematic Review of Tensions, Continuity and Change. Human Resource Management Review, 33(4), 1-26. doi:https://doi.org/10.1016/j.hrmr.2023.100984
  7. Choudhury, P., Khanna, T., Makridis, C. A., & Schirmann, K. (2024). Is Hybrid Work the Best of Both Worlds? Evidence from a Field Experiment. Review of Economics and Statistics, 1-24. doi:https://doi.org/10.1162/rest_a_01428
  8. Collings, D. G., McMackin, J., Nyberg, A. J., & Wright, P. M. (2021). Strategic Human Resource Management and COVID?19: Emerging Challenges and Research Opportunities. Journal of Management Studies, 58(5), 1378-1382. doi:https://doi.org/10.1111/joms.12695
  9. Devaraju, S. (2022). Natural Language Processing (NLP) in AI-Driven Recruitment Systems. International Journal of Scientific Research in Computer Science, Engineering and Information Technology, 8(3), 555-566. doi:https://doi.org/10.32628/cseit2285241
  10. Frenette, J. (2023). Ensuring Human Oversight in High-Performance AI Systems: A Framework for Control and Accountability. World Journal of Advanced Research and Reviews, 20(2), 1507-1516. doi:https://doi.org/10.30574/wjarr.2023.20.2.2194
  11. Guest, D. E. (2017). Human Resource Management and Employee Well?Being: Towards A New Analytic Framework. Human Resource Management Journal, 27(1), 22-38. doi:https://doi.org/10.1111/1748-8583.12139
  12. Hou, H., & Sing, M. (2025). Transformative Response in Office Workplace: A Systematic Review of Post-Pandemic Changes. Buildings, 15(9), 1-18. doi:https://doi.org/10.3390/buildings15091519
  13. Huang, X., Yang, F., Zheng, J., Feng, C., & Zhang, L. (2023). Personalized Human Resource Management Via HR Analytics and Artificial Intelligence: Theory and Implications. Asia Pacific Management Review, 28(4), 598-610. doi:https://doi.org/10.1016/j.apmrv.2023.04.004
  14. Hunkenschroer, A. L., & Luetge, C. (2022). Ethics of AI-Enabled Recruiting and Selection: A Review and Research Agenda. Journal of Business Ethics, 178(4), 977-1007. doi:https://doi.org/10.1007/s10551-022-05049-6
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  16. Maity, R., & Lee, K. L. (2025). The Impact of Remote and Hybrid Work Models on Small and Medium-Sized Enterprises Productivity: A Systematic Literature Review. SN Business & Economics, 5(10), 1-18. doi:https://doi.org/10.1007/s43546-025-00931-7
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  19. Ncube, T. R., Sishi, K. K., & Skinner, J. P. (2025). The Impact of Artificial Intelligence on Human Resource Management Practices: An Investigation. SA Journal of Human Resource Management, 23(1), 1-11. doi:https://doi.org/10.4102/sajhrm.v23i0.2960
  20. Nguyen, M., Pontes, N., Malik, A., Gupta, J., & Gugnani, R. (2024). Impact of High Involvement Work Systems in Shaping Power, Knowledge Sharing, Rewards and Knowledge Perception of Employees. Journal of Knowledge Management, 28(6), 1771-1792. doi:https://doi.org/10.1108/JKM-04-2023-0345
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  22. Pandey, S. (2024). Cloud Computing for AI-enhanced Smart City Infrastructure Management. Smart Internet of Things, 1(3), 213-225. doi:https://doi.org/10.22105/siot.v1i3.253
  23. Paroli, P. (2025). Transforming Human Resource Planning: Building a Strong Foundation for Achieving Good Governance. Golden Ratio of Social Science and Education, 5(1), 95-105. doi:https://doi.org/10.52970/grsse.v5i1.919
  24. Pillai, R., & Srivastava, K. B. (2024). Smart HRM 4.0 Practices for Organizational Performance: The Role of Dynamic Capabilities. Benchmarking: An International Journal, 31(10), 3884-3908. doi:https://doi.org/10.1108/BIJ-05-2023-0288
  25. Rezaei, M., Pironti, M., & Quaglia, R. (2024). AI in Knowledge Sharing, Which Ethical Challenges are Raised in Decision-Making Processes for Organisations?. Management Decision, 63(10), 1-20. doi:https://doi.org/10.1108/MD-10-2023-2023
  26. Richter, N. F., Hauff, S., Ringle, C. M., & Gudergan, S. P. (2022). The Use of Partial Least Squares Structural Equation Modeling and Complementary Methods in International Management Research. Management International Review, 62(4), 449-470. doi:https://doi.org/10.1007/s11575-022-00475-0
  27. Rufeng, L., Nan, Z., & Jianqiang, Z. (2023). Impact of Employee Well-Being on Organizational Performance in Workplace. International Journal of Management and Human Science (IJMHS), 7(2), 87-95. doi:https://doi.org/10.31674/ijmhs.2023.v07i02.010
  28. Sadeghi, S. (2024). Employee Well-being in the Age of AI: Perceptions, Concerns, Behaviors, and Outcomes. International Journal of Social and Business Sciences, 18(9), 1-8. doi:https://doi.org/10.48550/arXiv.2412.04796
  29. Shah, M. R. (2025). Remote Work and Talent Management Post-Pandemic: Analyzing the Evolution of Employee Engagement and Performance Metrics. AEIDA: Journal of Multidisciplinary Studies, 2(1), 24-33.
  30. Silva, L. B. P. d., Soltovski, R., Pontes, J., Treinta, F. T., Leitão, P., Mosconi, E., . . . Yoshino, R. T. (2022). Human Resources Management 4.0: Literature Review and Trends. Computers & Industrial Engineering, 168(1). doi:https://doi.org/10.1016/j.cie.2022.108111
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  32. Tsipursky, G. (2022). What Is Proximity Bias and How Can Managers Prevent It?. Retrieved from https://hbr.org/2022/10/what-is-proximity-bias-and-how-can-managers-prevent-it
  33. Tusquellas, N., Palau, R., & Santiago, R. (2024). Analysis of the Potential of Artificial Intelligence for Professional Development and Talent Management: A Systematic Literature Review. International Journal of Information Management Data Insights, 4(2), 1-9. doi:https://doi.org/10.1016/j.jjimei.2024.100288
  34. Watermann, L., Kubowitsch, S., & Lermer, E. (2025). AI and Work Design: A Positive Psychology Approach to Employee Well-Being. Gruppe. Interaktion. Organisation. Zeitschrift für Angewandte Organisationspsychologie (GIO), 56, 311-320. doi:https://doi.org/10.1007/s11612-025-00806-3
  35. Wiatr, A., & Skowron-Mielnik, B. (2023). Hybrid Team Management: The Long and Winding Road. Organizational Dynamics, 52(1), 1-10. doi:https://doi.org/10.1016/j.orgdyn.2022.100936
  36. Wiyono, D., Dewi, D. A., Ambiapuri, E., Parwitasari, N. A., & Hambali, D. S. (2025). Strategic ESG-Driven Human Resource Practices: Transforming Employee Management for Sustainable Organizational Growth. Jurnal Organisasi dan Manajemen, 21(1), 65-82. doi:https://doi.org/10.48550/arXiv.2505.08201