Industry Society 5.0-Based Development Model of Human Resources in Indonesian Rural Bank

Abstract

One of the banking businesses in Indonesia is a Rural bank, which requires tough human resources with appropriate competencies. The Rural Banks must also develop human resources to face the era of changes and work transformation 4.0. The number of workers in rural banks decreased in 2016–2024. This decline was caused by some factors, including the presence of unskillful human resources and a lack of competence. Besides, the banks had not transformed the human resources into work systems and ways of working in the 4.0 era, thus leading to the human resources’ lower capabilities. In other words, industry-based human resources development has not been carried out properly. As a result, the existing human resources could not improve their skills and competence, so they cannot compete with other human resources in other regions and countries. This research employed a descriptive quantitative method through path analysis using SPSS 22. The population of this study involved 6,085,840 workers working in Rural Banks throughout Indonesia. Through the purposive sampling technique, 95 workers of the population were taken using questionnaires distributed via email. Based on the partial hypothesis, the results of this study demonstrated that the improvement of human resources (HR) skills, competence, and skill transformation to the work system positively and significantly affected the increase in HR’s capabilities in the Rural Banks throughout Indonesia, and these three variables had an effect on HR development in the Rural Banks based on Industry Society 5.0. Simultaneously, the improvement of HR’s skills and competence and the skill transformation to the work system had a positive and significant impact on HR development based on Industry Society 5.0 in the Rural Banks throughout Indonesia through the increase in HR’s capabilities as an intervening variable