The COVID-19 pandemic and technological development lead to a shift in economic, educational, and social behavior, subsequently influencing human life patterns and new realities through digital literacy. Education sector development and quality depend on how the employees are adapted to the current condition. Therefore, this study is directed to investigate whether and how organizational factors, including IT training, digital infrastructure, management support, and work-family conflict, affect employees who work in Indonesia’s universities. It also examines how the mediators influence employee performance. 596 employees were recruited for a survey study. Structural equation modeling (SEM) was used to test the research hypotheses. The results show that IT training, digital infrastructure, and work-family conflict positively and significantly affect employees’ digital literacy. Meanwhile, management support plays a more minor role in influencing employees’ digital literacy. Furthermore, as a mediator variable, digital literacy strongly moderates the relationship between organizational and individual factors influencing employee performance. This study’s findings provide stakeholders with information about the relationship between individual and organizational factors and employee performance. The organization’s sustainability should not only attract the required market segmentation but also enhance, strengthen, and engage the employees’ sense of belonging and commitment.