The rapid digitalisation of business processes and the widespread adoption of remote work since the COVID‑19 pandemic have forced private enterprises to re‑examine the role of human resource management (HRM). Drawing on the resource‑based view, this study investigates how digital HR strategies—covering recruitment & selection, training & development, performance management and digital employee services—affect employee engagement and firm performance in a context where a significant portion of the workforce operates remotely. Using survey data from 150 employees and managers in 50 privately owned firms in Chongqing, China, supplemented by semi‑structured interviews with HR leaders, we develop a digital HR adoption index and test its impact on remote work effectiveness and organisational performance. The results show that higher levels of digital HR adoption positively influence employee engagement, reduce perceptions of relative deprivation and cyberloafing, and enhance remote work effectiveness. Regression analysis further indicates that remote work effectiveness mediates the relationship between digital HR adoption and organisational performance. Qualitative insights highlight the importance of leadership support, training and the integration of platforms such as WeChat Work, DingTalk and Tencent Meeting for managing remote teams. Our findings offer evidence‑based recommendations for private enterprises in emerging economies to align digital HR strategies with remote working arrangements, support employee well‑being and sustain performance.