Digital transformation (DT) has gained significant attention in information systems research, as the organizations strive to enhance and expand their operations through the integration and adoption of new digital technologies. However, DT projects struggle with high failure rates, with studies identifying people-related issues as a primary cause of these failures. Employees are believed to have a pivotal role in successful digital transformation. However, the DT literature shows that the employees are often overlooked in these initiatives. To understand how the employees can be effectively engaged in DT initiatives, we conducted a systematic literature review. Our review reveals five important conditions for fostering employee participation in digital transformation initiatives. These conditions include: transparent and trustworthy strategizing, the need for communication and collaboration, incentivizing the participation, provision of knowledge and skills, and balancing organizational structure and employee autonomy. We present theoretical and practical implications for enabling digital transformation through effective employee participation.