Ethical AI in HRM and HR Data Analytics in Achieving Fair Recruitment Outcomes and Employee Trust at Technology Companies in Jakarta
DOI:
https://doi.org/10.58812/sdi.v2i02.2976Keywords:
Ethical Artificial Intelligence, Human Resource Management, HR Data Analysis, Fair Recruitment Outcomes, Employee TrustAbstract
The increasing adoption of artificial intelligence (AI) in Human Resource Management (HRM) has transformed recruitment and HR data analysis by improving efficiency, consistency, and data-driven decision-making. However, concerns regarding algorithmic bias, transparency, accountability, privacy, and employee acceptance remain significant. This study examines the effects of Ethical AI in HRM and HR Data Analysis on Fair Recruitment Outcomes and Employee Trust in technology companies in Jakarta. A quantitative explanatory research design was employed using data collected from 120 employees through a structured questionnaire measured on a five-point Likert scale. The data were analyzed using Structural Equation Modeling–Partial Least Squares with SmartPLS 3. The measurement model demonstrated satisfactory reliability and validity, with factor loadings exceeding 0.70, composite reliability values above 0.90, and Average Variance Extracted values above 0.50. The structural model showed that Ethical AI significantly influenced Fair Recruitment Outcomes and Employee Trust. HR Data Analysis also had significant positive effects on Fair Recruitment Outcomes and Employee Trust. Fair Recruitment Outcomes exerted the strongest influence on Employee Trust. Furthermore, Fair Recruitment Outcomes partially mediated the relationships between Ethical AI and Employee Trust and between HR Data Analysis and Employee Trust. The model explained 62.8% of the variance in Fair Recruitment Outcomes and 70.3% of the variance in Employee Trust. These findings demonstrate that ethical, transparent, accountable, and responsible AI-supported HR practices can improve recruitment fairness and strengthen employee confidence in organizational technologies.
References
[1] T. Dogru et al., “Generative Artificial Intelligence in the Hospitality and Tourism Industry: Developing a Framework for Future Research,” J. Hosp. Tour. Res., p. 10963480231188664, Jul. 2023, doi: 10.1177/10963480231188663.
[2] X. Huang, F. Yang, J. Zheng, C. Feng, and L. Zhang, “Personalized human resource management via HR analytics and artificial intelligence: Theory and implications,” Asia Pacific Manag. Rev., vol. 28, no. 4, pp. 598–610, 2023.
[3] S. K. Rao and R. Prasad, “Impact of 5G technologies on smart city implementation,” Wirel. Pers. Commun., 2018, doi: 10.1007/s11277-018-5618-4.
[4] M. A. Kwarteng, A. Ntsiful, L. F. P. Diego, and P. Novák, “Extending UTAUT with competitive pressure for SMEs digitalization adoption in two European nations: a multi-group analysis,” Aslib J. Inf. Manag., vol. ahead-of-p, no. ahead-of-print, Jan. 2023, doi: 10.1108/AJIM-11-2022-0482.
[5] R. Fenech, P. Baguant, and D. Ivanov, “The changing role of human resource management in an era of digital transformation.,” J. Manag. …, 2019.
[6] I. M. Sačer and A. Oluić, “Information technology and accounting information systems’ quality in Croatian middle and large companies,” … Inf. Organ. Sci., 2013.
[7] J. Y. Yong, M. Yusliza, T. Ramayah, C. J. Chiappetta Jabbour, S. Sehnem, and V. Mani, “Pathways towards sustainability in manufacturing organizations: Empirical evidence on the role of green human resource management,” Bus. Strateg. Environ., vol. 29, no. 1, pp. 212–228, 2020.
[8] V. R. Zainal, I. Siswanti, and L. C. Nawangsari, “The Implementation of Green Human Resource Management: A Survey on the Manufacturing Industry in Indonesia,” J. Manag. Econ. Stud., vol. 6, no. 1, pp. 38–51, 2024.
[9] S. M. Obeidat, A. A. Al Bakri, and S. Elbanna, “Leveraging ‘green’ human resource practices to enable environmental and organizational performance: Evidence from the Qatari oil and gas industry,” J. Bus. ethics, vol. 164, no. 2, pp. 371–388, 2020.
[10] E. H. Osolase, R. M. Rasdi, and Z. D. Mansor, “Developing awareness of green human resource development practices in the hotel industry,” Adv. Dev. Hum. Resour., vol. 25, no. 2, pp. 116–122, 2023.
[11] H. Xie and T. C. Lau, “Evidence-Based Green Human Resource Management: A Systematic Literature Review,” Sustain., vol. 15, no. 14, 2023, doi: 10.3390/su151410941.
[12] F. Wijaya, “Formulasi Perancangan Strategi Pengembangan Usaha Menggunakan Analisis SWOT dan Business Model Canvas,” J. Ilmu Manaj. Dan Bisnis, vol. 10, no. 2, pp. 205–212, 2019, doi: 10.17509/jimb.v10i2.15308.
[13] W. Fitrayanto Nugraha, H. Hardjomidjojo, and M. Sarma, “Risk Assessment of MSME Credit Process Digitalization Program of PT Bank XYZ West Sumatra Region,” Int. J. Res. Rev., vol. 10, no. 6, pp. 361–371, 2023, doi: 10.52403/ijrr.20230644.
[14] S. E. Bibri, J. Krogstie, A. Kaboli, and A. Alahi, “Smarter eco-cities and their leading-edge artificial intelligence of things solutions for environmental sustainability: A comprehensive systematic review,” Environ. Sci. Ecotechnology, vol. 19, p. 100330, 2024, doi: https://doi.org/10.1016/j.ese.2023.100330.
[15] M.-Á. García-Madurga and A.-J. Grilló-Méndez, “Artificial Intelligence in the Tourism Industry: An Overview of Reviews,” Administrative Sciences, vol. 13, no. 8. 2023. doi: 10.3390/admsci13080172.
[16] M. Schneider, “Digitalization of production, human capital, and organizational capital,” Impact Digit. Work. An …, 2018, doi: 10.1007/978-3-319-63257-5_4.
[17] H. Halid, Y. M. Yusoff, and H. Somu, “The relationship between digital human resource management and organizational performance,” First ASEAN Bus. …, 2020.
[18] P. O. de Pablos and L. Edvinsson, Intellectual capital in the digital economy. books.google.com, 2020.
[19] J. Meijerink, M. Boons, A. Keegan, and ..., “Algorithmic human resource management: Synthesizing developments and cross-disciplinary insights on digital HRM,” … resource management. Taylor &Francis, 2021. doi: 10.1080/09585192.2021.1925326.
[20] E. Baykal, “Digitalization of human resources: E-HR,” Tools Tech. Implement. Int. e …, 2020.
[21] R. L. Mathis and J. H. Jackson, Human Resource Management : Personnel Human Resource Management, vol. 13, no. January 2019. 2016.
[22] A. H. Union, G. A. K. Al Shiblawi, and A. N. Abdulzahra, “Recruitment Determinants For Central and Non-Local Auditors: an Analytical on the Tehran Stock Exchange,” Int. J. Prof. Bus. Rev. Int. J. Prof. Bus. Rev., vol. 8, no. 5, p. 7, 2023.
[23] R. Aldhuhoori, K. Almazrouei, A. Sakhrieh, M. Al Hazza, and M. Alnahhal, “The Effects of Recruitment, Selection, and Training Practices on Employee Performance in the Construction and Related Industries,” Civ. Eng. J., vol. 8, no. 12, pp. 3831–3841, 2022.
[24] G. R. Nagiah and N. Mohd Suki, “Linking environmental sustainability, social sustainability, corporate reputation and the business performance of energy companies: insights from an emerging market,” Int. J. Energy Sect. Manag., 2024, doi: 10.1108/IJESM-06-2023-0003.
[25] J. P. Román-Calderón and M. Gentilin, “Mutual trust and employee performance of virtual and face-to-face dyads in multilatina organisations,” J. Manag. Organ., pp. 1–12, 2024.
[26] F. Natalia, H. Sarjono, O. Prihatma, and B. Putra, “Systematic Literature Review: Employee Empowerment in Indonesia’s Hotel Industry,” no. 2014, pp. 654–663, 2023, doi: 10.46254/ap03.20220104.
[27] M. R. B. Rubel, N. N. Rimi, M.-Y. Yusliza, and D. M. H. Kee, “High commitment human resource management practices and employee service behaviour: Trust in management as mediator,” IIMB Manag. Rev., vol. 30, no. 4, pp. 316–329, 2018.
[28] I. Eshiett and O. Eshiett, “Corresponding author: Idongesit Oto Eshiett Artificial intelligence marketing and customer satisfaction: An employee job security threat review,” World J. Adv. Res. Rev., vol. 21, pp. 446–456, Jan. 2024, doi: 10.30574/wjarr.2024.21.1.2655.
[29] H. Aldoy and B. Mcintosh, “Employee Engagement Concepts, Constructs and Strategies: A Systematic Review of Literature,” Artif. Intell. Transform. Digit. Mark., pp. 1159–1174, 2023.
[30] F. Strich, A.-S. Mayer, and M. Fiedler, “What do I do in a world of artificial intelligence? Investigating the impact of substitutive decision-making AI systems on employees’ professional role identity,” J. Assoc. Inf. Syst., vol. 22, no. 2, p. 9, 2021.
[31] P. M. Leonardi, “COVID‐19 and the new technologies of organizing: digital exhaust, digital footprints, and artificial intelligence in the wake of remote work,” Journal of Management Studies. ncbi.nlm.nih.gov, 2021.
[32] S. Chowdhury, S. Joel-Edgar, P. K. Dey, and ..., “Embedding transparency in artificial intelligence machine learning models: managerial implications on predicting and explaining employee turnover,” … Manag., 2023, doi: 10.1080/09585192.2022.2066981.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Muhammad Syafri, Husnil Hidayat, Wellie Sulistijanti, Taswati Nova Wijayaningrum, Ani Silva

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.









