Abstract: Accelerating the construction of digital China and developing the digital economy cannot be separated from the support and guarantee of talents. This paper adopts the data from the World Bank’s China Private Enterprise Survey to analyze how enterprises invest in human capital during the process of promoting digital transformation. The findings show that digital transformation will promote enterprises to increase their investments in human capital. The specific measures are: to raise the requirements for educational level in the recruitment of employees, to increase the proportion of on-the-job training for productive employees, and to extend the duration of employee employment contracts. Further study reveals that R&D innovation and quality certification are important factors that promote digital transformation enterprises to increase their human capital investments. Although digital transformation enterprises with different informatization levels will all extend the employment contract period of their employees, enterprises with higher informatization levels pay more attention to the education level of their employees, while enterprises with lower informatization levels mainly carry out on-the-job training for productive employees. In addition, the labor market is an important external environmental factor that affects the human capital investment of enterprises in the process of digital transformation. Therefore, the policy measures such as resolving the segmentation and distortion of the labor market, improving the legalization level of the labor market, reducing improper regulation of the labor market, and strengthening the construction of the labor marketizationare of great significance in promoting enterprises to increase human capital investment in the process of digital transformation.

Key words: digital transformation, labor marketization, human capital investment, information technology