Digital transformation fundamentally changes the management processes of contemporary organizations and reshapes the relationship employees establish with their organizations. This book chapter examines the effects of digitalizing management processes on employee engagement and adaptation dynamics from theoretical and practical perspectives. The chapter systematically explores the conceptual framework of digital transformation, theoretical foundations of employee engagement, psychological and organizational dimensions of adaptation processes, and strategies for successful transformation. Findings based on literature review indicate that digital transformation has both positive and negative effects on employee engagement. While factors such as technostress, perceived surveillance, and information overload negatively affect engagement, self-efficacy, learning orientation, digital leadership, and supportive organizational culture facilitate adaptation and strengthen engagement. The digital transformation of human resource management assumes a strategic role, offering new opportunities for improving employee experience, competency development, and performance management. The chapter provides evidence-based recommendations for academics and practitioners to enhance employee engagement in the digital age and sheds light on future research areas.