Abstract

Abstract The main objectives of this research include the analysis of the impacts of human capital implementation, talent management, and employee welfare on the performance of employees in PT Solusi Bangun Andalas. Adaptation to change is used as a moderating variable in this study. The population of this research includes all the employees of PT Solusi Bangun Andalas. There were a total of 106 employees included in the sample of this research. The results show that human capital implementation has a strong positive effect on the performance of employees in PT Solusi Bangun Andalas. Furthermore, talent management significantly impacted and improved the performance of employees. Besides, employee welfare greatly improved the performance of employees at PT Solusi Bangun Andalas. However, adaptation to change did not moderate the impact of human capital implementation, talent management, and employee welfare on the performance of employees at PT Solusi Bangun Andalas. Adaptation to change by the employees and the organization is therefore critical in enhancing performance. This study will offer valuable information to the management of PT Solusi Bangun Andalas regarding the formulation of human resource management policies.

Keywords

Human Capital Implementation Talent Management Employee Welfare Employee Welfare Adaptation to Change

1. Introduction

With globalization and fierce business competition, there is a need for firms to maintain their competitive edge. In this regard, human resources are viewed not only as a means of production but also as strategic tools for the future of the business. The use of advanced technology and capital by themselves does not guarantee the best possible outcomes if the support of competent and adaptive human capital is not provided. Thus, the management of human capital becomes critical for firms that are trying to survive and succeed in today’s volatile environment.

PT Solusi Bangun Andalas (SBA), belonging to SIG Group (Semen Indonesia Group), is a producer of cement based in Lhoknga, Aceh Besar. Today, the company proves its desire to increase its competitiveness by introducing technological innovation, strengthening sustainability practices, and implementing a performance-oriented culture of work to produce high-quality environmentally-friendly products. Despite that, PT SBA still suffers from different external threats such as unstable prices for raw materials, increased competitiveness in the sector of producing cement, and increased efficiency requirements worldwide.

In light of these developments, the firm has developed an organizational structure that features the production, finance, marketing, human resources, and sustainability divisions. The aim of this organizational structure is to improve coordination between units, speed up decision-making processes, and facilitate the successful implementation of corporate strategy. Through the integration of the organizational structure, the firm will be able to maximize human resource capabilities and meet the objectives of the entire corporation.

On the other hand, internal factors that contribute to the organizational effectiveness of PT SBA include the quality of its human resources, flexibility in its work processes, and ability to deal with changes. Based on the information provided by the company, PT SBA has employed 106 people, comprising 94 male workers and 12 female workers [1]. This clearly shows the importance of human resources to the business organization. Despite the many HRM strategies implemented by PT SBA, their full potential has not been achieved yet.

Pre-survey results for 30 people indicate that organizational performance has an average score of 3.82 which means that it belongs to the (Primary data, 2025). Nevertheless, there are some areas which have yet to be addressed such as efficiency of internal work processes (3.40) and responsiveness to customer complaints (3.60).

One of the aspects which facilitate organizational performance is efficient implementation of human capital. The term refers to the economic worth of skills, capabilities, and competencies that the organization's employees possess. Research done by [2] has shown that efficient use of human capital increases productivity and competitive advantage of organizations. The average implementation of human capital according to pre-survey done at PT SBA stands at 3.78 (Primary data, 2025). The figure indicates that human capital is used rather efficiently by the organization, although training programs have a score of 3.40 which is the lowest among all sub-categories.

Human capital and talent management are equally vital aspects of the modern approach to human resource management. According to [3], an excellent organization is able to put the right people in the right places at the right times. As shown by pre-survey results, the level of talent management at PT SBA was assessed as 3.75 on average (Primary data, 2025). The indicator concerning the clarity of the definition of future leaders and their development plans obtained a score of 3.30, which shows the necessity of improving the talent identification and planning process.

Moreover, the state of well-being among employees has a positive impact on organizational performance. As pointed out by [4], well-being is positively correlated with job satisfaction, organizational commitment, and performance in general. Pre-survey results have revealed that the level of well-being among employees was assessed as 3.77 on average (Primary data, 2025). At the same time, the indicator reflecting happiness and job satisfaction obtained a score of 3.20.

Adaptation plays an important role in the success of implementing human resource strategies in modern organizations. In other words, the adaptation is a characteristic of the ability of organizations to adapt to changes occurring within the context of changing technologies, regulations, dynamics of markets, and internal factors. The pre-survey results show that adaptation to change has an average score of 3.74 (Primary data, 2025); nevertheless, the level of monitoring of regulatory and market changes stays relatively low, which can be assessed at 3.30. It means that further development of organizational adaptation capabilities is needed for the effective implementation of human resource strategies.

A range of scientific works were devoted to the assessment of the effects of such factors as human capital, talent management, and employee well-being on organizational performance ; [3]; [4]. All those studies paid attention to direct relations between the variables but ignored the possible influence of adaptation to change as an environmental factor capable of affecting these relations either positively or negatively. According to [5], adaptation enables organizations to enhance human resources' potential more effectively.

As seen from the above description, the research will be moderating change adaptation in relation to human capital management, talent management, and employee well-being towards organization performance. This theory will be helpful not only to provide some theoretical insight on the development of the human resource management field but also provide some practical insight for PT Solusi Bangun Andalas to improve their HR management system.

2. Theoretical Study

2.1. Organizational Performance

Organizational performance is all about how successful the organization has been in reaching its goals and objectives both efficiently and effectively. Performance involves more than just measuring the end result; it also involves how resources and governance processes have been used to help realize these goals and objectives. According to Richard et al., organizational performance can be explained in terms of financial performance, market performance, and return on investment. As pointed out by [6], organizational performance should be measured based on its outcomes and how effectively and efficiently its processes work, as well as any social and environmental consequences of these processes. According to [7], performance is multidimensional as it depends on the goal systems and governance processes of the organization.

Performance within an organization is affected by numerous interconnected strategic elements such as human capital management, talent management, employee well-being, and adaptability to change. Human capital investment through the use of continuous education and training programs improves organizational efficiency and creativity [8]. In addition, proper talent management assists in discovering, nurturing, and retaining potential employees, hence enhancing the competitive advantage of organizations [9]. Moreover, the well-being of employees, which includes financial and psychological elements, helps improve motivation levels and engagement in their duties [10]. The adaptability of an organization to environmental changes is another important strategic element that affects organizational performance [7].

Usually, organizational performance evaluation follows a comprehensive approach, and among them, the Balanced Scorecard model can be included. According to [11], there are four essential viewpoints for organizational performance evaluation, which include the financial viewpoint, the customer viewpoint, the internal business process viewpoint, and the learning and growth viewpoint. The financial viewpoint evaluates financial success, which is considered as the final output, while the customer viewpoint takes into account satisfaction and loyalty. As for the internal business process viewpoint, this involves measuring the efficiency of value creation process. On the other hand, the learning and growth viewpoint concentrates on organizational capabilities improvement in the long run

2.2. Adapting to Change

Change adaptation is the ability of an organization to alter its strategic approaches, structure, process, and behavior as a consequence of dynamics in its environment. This change can result from technological advancement, market changes, regulations, or crises that necessitate proper action on the part of the organization. According to [12], the adaptability approach plays a critical role in change management due to its importance regarding how well an organization is prepared for dealing with the challenges presented by the business environment. Similarly, from the viewpoint of dynamic capabilities theory, [13] stress the importance of adaptability for competitive advantage and sustainability.

Moreover, according to [14], organizational adaptation is defined as a conscious, strategic process to close the gap between an organization and its environment. It is an intended process, which takes into account both internal and external aspects, and cannot be considered as a random occurrence. Organizational adaptation is characterized as being intentional (done consciously), relational (affected by interactions with the environment), conditional (based on internal and external circumstances), and convergent (focusing on strategy alignment). Therefore, adapting to change becomes essential for an organization’s survival in the environment.

Based on the work done by [14], there are four critical indicators of adaptability to change. The first indicator is intentionality, which measures whether policies have been put in place to adapt to change. The second indicator is relational, which considers how an organization can understand and respond to pressure from outside forces. The third indicator is conditioned, which takes into account the extent to which the internal environment allows for adaptability through flexibility in structure, culture, and resource use. Finally, convergent focuses on ensuring that organizational strategy aligns with changes in the environment.

2.3 Implementation of Human Capital

Human capital implementation refers to a strategy undertaken by an organization whereby it manages human resources as assets through the building up of employee’s competencies and skills. In terms of the theory on human capital, according to [15], education, training, and work experience all play important roles towards increasing productivity. As such, human capital implementation is not simply an administrative HR function but an investment intended to create value and gain a competitive edge over others.

In operational terms, the implementation of human capital involves many practices such as competency-based recruiting, training and development, performance management, career development, and improved organizational culture. As per [16], such an approach will enhance the engagement of employees who can act as mediators for improving performance at both individual and team levels. Likewise, according to [17], effective learning programs, competent recruitment, and capability development play a key role in developing human capital quality and productivity.

According to [17], some of the indicators of human capital implementation are competency-based human resources planning and acquisition, training and development initiatives, performance management process, career development processes, and a collaborative organizational culture. Apart from this, some other indicators are retention and engagement of employees, which could be determined through their satisfaction and commitment to the organization.

2.4. Talent Management

Talent management refers to a strategic talent management process that involves managing high-potential employees in order to maximize their contribution towards the organization's long-term goals. According to [3], talent management is concerned about positioning potential talent into critical roles for gaining competitive advantage. However, [3] note that talent management entails placing "the right people in the right positions at the right time" in order to create organizational value.

Taking a holistic view, [18] define talent management as a holistic process that involves all activities related to planning, recognizing, acquiring, developing, placing, and retaining talent. As such, all the above activities should work together for improving organizational performance and creating sustainable competitive advantage. Hence, companies have to devise ways of identifying and nurturing talented people.

According to [18], talent management metrics consist of talent planning consistent with organizational strategy, potential identification via an objective process, talent attraction and recruitment, training programs and mentoring, competency-based staffing, and talent retention via incentive programs. It can be seen from the above metrics that talent management is not just about recruiting people; it is a strategic investment in developing superior human resources.

2.5. Employee Welfare

he well-being of an employee means the state where the physical, psychological, social, and professional needs of the worker are met at work in order to promote a comfortable and productive environment. Well-being does not only involve the money-related needs of workers but also includes the safety of the working place, adequate support, and room for development. [4] pointed out that the concept of well-being is crucial for HR management since it helps to boost employee engagement and loyalty.

There is a rising interest in a holistic approach to well-being. According to [19], an organization has to implement HR practices including mental well-being programs, flexible work, proper rewards, and support for creating a healthy and diverse working atmosphere. In turn, [20] claim that the idea of well-being should embrace such aspects as the physical, emotional, and social needs of the worker and his or her work-life balance because they affect engagement and task performance.

As per [20], measures of employee well-being comprise the following four categories. The first category involves the state of physical well-being. It is associated with an individual's health and security at his/her job. The second category of emotional well-being is related to the level of psychological stability and stress of employees. Social well-being refers to the quality of interpersonal relations between employees in the workplace. Work-life balance concerns the capability of an employee to combine the professional and private lives successfully.

3. Research Methods

As part of this study, the population examined was made up of all permanent employees of PT. Solusi Bangun Andalas, amounting to 106 participants. Due to the fairly limited population size, a census method (also called saturated sampling) was used to include all elements of the population as the sample. As such, the sample size comprised 106 permanent employees, thereby allowing results to effectively represent the whole population.

For the collection of data, this research involved the use of questionnaires distributed directly to all participants. Indicators related to each research variable were used in measurements, which have been obtained from prior studies and theories. Participants' responses were analyzed using a five-point Likert scale consisting of options that range from strongly disagree to strongly agree.

This study used the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method as the technique for analyzing the research model as well as testing the proposed hypotheses. The application of SEM-PLS method was considered most appropriate since it was particularly suited for analyzing the complicated relationship between latent variables, especially those involving the prediction of cause-and-effect relationships.

Data analysis was performed through two major phases. The first phase included assessment of the outer model based on convergent validity, discriminant validity, Cronbach’s alpha, composite reliability, and average variance extracted (AVE). The second phase entailed an assessment of the inner model through assessment of R-squared (R²), effect size (f²), predictive relevance (Q²), path coefficients, and subsequent bootstrapping.

4. Research Results and Discussion

4.1 Hypothesis Testing

Testing the research hypothesisas in Table 1 below.

Table 1: Path Coefficient
Variables Original Sample Sample Mean Standard Deviation T- statistics P-values
Human Capital ImplementationOrganizational Performance 0.237 0.245 0.083 2,842 0.005
Talent ManagementOrganizational Performance 0.160 0.163 0.080 2,001 0.046
Employee welfareOrganizational Performance 0.179 0.142 0.079 2,164 0.044

Source: Processed Primary Data, (2025)

4.1.1 Direct Hypothesis Testing

It is found that Human Capital Implementation has a positive effect on Organizational Performance. As for the initial sample, its value is equal to 0.237, and it reflects a positive correlation between variables under consideration. In turn, the t-statistics of 2.842 and the p-value of 0.005 confirm the statistical significance of the effect. Thus, the enhancement of human capital implementation is positively related to improved organizational performance. Hence, the hypothesis is accepted.

In addition, the effect of talent management practices on organizational performance has been studied. The coefficient of influence equals 0.160, which means that there is a unidirectional correlation between two variables under study. Moreover, the values of t-statistics (2.001) and p-value (0.046), which is lower than 0.05, confirm the statistical significance of the effect. Hence, it can be said that good talent management practices can promote better organizational performance.

In addition, Employee Well-Being has a positive and significant effect on Organizational Performance. From the initial sample value of 0.179, a t-statistic of 2.164, and a p-value of 0.044, it can be stated that the relationship is statistically significant. This means that an increase in employee well-being will result in better performance from employees in the accomplishment of their organizational objectives. Thus, Hypothesis 3 is accepted.

4.1.2.Testing the Mediation Hypothesis

The testing of the mediation hypothesis of this study is as in Table 2 below.

Table 2: Bootstrapping Test Results
Variables Original Sample Sample Mean Standard Deviation T- statistics P-values
Human Capital Implementation Organizational Performance 0.237 0.245 0.083 2.842 0.005
Talent Management Organizational Performance 0.160 0.163 0.080 2.001 0.046
Employee welfare Organizational Performance 0.179 0.142 0.079 2.164 0.044
Adapting to Change Organizational Performance 0.293 0.279 0.119 2.471 0.014
Moderating Effect 1 (Human Capital Implementation x Adaptation to Change)Organizational Performance 0.143 0.146 0.094 1.513 0.131
Moderating Effect 2 (Talent Management x Adaptation to Change) Organizational Performance -0.059 -0.081 0.112 0.527 0.559
Moderating Effect 2 (Employee Well-being x Adaptation to Change) Organizational Performance -0.156 -0.157 0.143 1.095 0.274

Source: Processed Primary Data, (2025)

The result of the test shows that adaptation to change does not moderate the effect of human capital implementation on organizational performance. With a sample value of 0.143, a t-value of 1.513, and a p-value of 0.131 (greater than 0.05), the moderating effect is not significant. Thus, adaptation to change in an organization does not enhance or hinder the effect of human capital implementation on organizational performance.

In regard to the relationship between talent management and organizational performance, adaptation to change did not emerge as a moderator. With a coefficient of -0.059, a t-value of 0.527, and a p-value of 0.559, there is no statistical significance of the moderating effect. This implies that adaptation to change does not moderate the effect of talent management on organizational performance.

In the same way, the effect of adaptation to change on the connection between employee well-being and organizational performance was also insignificant. As can be seen, the initial value of the correlation coefficient in this case is -0.156, which is accompanied by a t-score of 1.095 and a p-value of 0.274, which is greater than 0.05. In other words, it may be stated that adaptation to change does not mediate the effect of employee well-being on organizational performance.

4.2. Discussion

From the results of the research conducted, it is evident that the implementation of human capital has had a positive effect on organizational performance. This means that digital-based HRM activities not only serve as administrative actions but also act as strategic tools in increasing the efficiency and productivity of organizations. The integration of human capital with information technologies leads to competency improvement, faster processing of work procedures, and decisions based on data. This study's results are similar to those obtained by [9] and proving that investments in training programs and career development as well as learning environments improve organizational effectiveness.

Apart from being beneficial for technical issues and productivity, the implementation of human capital encourages organizational culture characterized by innovation and collaboration. Digital systems used in human resource management make organizations more adaptive to changes and create opportunities to develop a learning-centered work environment. According to [21], strategic human capital management is associated with financial performance and efficiency. Thus, the implementation of human capital proves organizational capability in managing human potential as its competitive advantage.

Also, the study shows that there is a correlation between talent management and improved organizational performance. Efficient talent management comprises processes of finding out, developing, and retaining talented employees who will enable the company to reach its strategic objectives. Competency-based recruiting, effective training, and succession plans are the basic elements required for creating sustainable performance. According to [22], when organizations consistently practice talent management, they see better efficiency in their work, goal achievements, and satisfied customers.

Moreover, talent management helps ensure the continuity of leadership and knowledge transfer from one generation of workers to another. Therefore, the implementation of this management approach allows organizations to improve their competitive position in an ever-changing external environment. As [23] state, companies that regularly apply talent management strategies demonstrate increased service quality, innovation, and financial performance. Consequently, apart from improving the performance of individual employees, talent management increases organizational performance potential.

The conclusions drawn below provide evidence that the welfare of employees is positively linked to the performance of the organization. The more an organization cares about the physical, mental, social, and financial well-being of its employees, the more motivated and engaged they become in their activities, thus increasing productivity and service quality. According to [24], employee well-being is related to operational efficiency and customer satisfaction and plays an essential role in boosting organizational performance.

Besides increasing productivity, well-being programs encourage organizations to create a positive work atmosphere and decrease their turnover. Organizational well-being initiatives included in HR policies can minimize work pressure on employees and help develop their creative potential. As [25] state, caring about well-being is much more than just being socially responsible.

As opposed to the direct effect of these three variables, the outcomes of the present study show that Adaptation to Change does not have any significant moderating effect on the connection between Human Capital Implementation, Talent Management, or Employee Well-being and Organizational Performance. In other words, performance enhancement is more affected by the direct effect of the respective independent variables rather than by the organization’s ability to adapt to changes. While theoretically, it could enhance the association between the two constructs [26]; [9], there was no empirical evidence to support such an assumption.

The low level of moderating influence may be explained by the presence of fairly stable systems and processes within organizations, which means that their ability to adapt to changes is not a distinguishing factor when considering its influence on performance. In addition, the ability to adapt to change among the organizational units could be similar and not diverse enough to strengthen the connection between the variables under consideration. It should also be mentioned that despite the importance of adaptability to changes as a determinant for effective implementation of human resource management policies indicated in the research by [27], and [26], adaptability was not identified as an influential factor in the current research.

5. Conclusion

5.1 Conclusion

From the findings of this study, it can be seen that the implementation of Human Capital, Talent Management, Employee Welfare, Adaptation to Change, and Organizational Performance at PT Semen Bangun Andalas is categorized as good. It means that PT Semen Bangun Andalas has successfully implemented human resource management activities and organizational strategy to achieve the organization’s objectives. In addition, the findings of hypothesis tests show that the implementation of Human Capital, Talent Management, and Employee Welfare has a significant effect on Organizational Performance at PT Semen Bangun Andalas.

In addition, the findings of this study prove that Adaptation to Change acts as a moderating variable for the influence of Human Capital Implementation on Organizational Performance. However, Adaptation to Change does not act as a moderating variable for the influence of Talent Management and Employee Welfare on Organizational Performance at PT Semen Bangun Andalas. As such, it can be seen that the moderating effect of Adaptation to Change in this study is selective, particularly to enhance

5.2 Suggestions

  1. Organizational Performance had the lowest average value at 3.90, particularly in terms of offering training and development services to all members of staff. This result implies that the managers need to focus on enhancing the quality and provision of training facilities for their employees. Corporations are advised to introduce well-structured competency-based training programs, which would meet the needs of individual job positions. In addition, the evaluation of such training facilities is important for making sure that the results of training contribute to the improvement of organizational performance.

  2. Human Capital Implementation had the lowest average score of 3.80 in relation to the work culture dimension. This result implies that firms should enhance collaboration among the employees by utilizing digital technologies. For example, organizations may facilitate cross-functional cooperation, introduce digital collaboration platforms, and encourage people to share innovative ideas and concepts. All these measures would improve the motivation level of employees and ensure effective implementation of human capital management strategies.

  3. The Talent Management variable had the least score of 3.88, especially in its policy aspect pertaining to assisting with the retention of highly performing employees. There is therefore a call for more attention to be paid to talent management as far as ensuring the retention of key talent goes. It is recommended that companies improve reward schemes, career pathing, and performance bonuses as ways of improving their talent management strategies.

  4. As far as the Employee Well-Being variable is concerned, it also scored the least score of 3.62, particularly when assessing the aspect of employees’ availability of time in their private lives. It means that there is an urgent need for companies to pay more attention to the issue of work-life balance among their employees. Ways that could improve employee well-being include the introduction of flexible working policies, proportional workloads, and psychological well-being of employees.

  5. The Change Adaptation variable was found to have the least mean of 3.75, showing that the company had been successful in aligning itself according to the requirements of the market. This finding may assist companies in making changes more effective. It is advisable that companies regularly evaluate their policies regarding changes and involve employees in this process. Through such involvement of employees, changes may be tailored in accordance with the requirements of the market.

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