Management of Human Resources in the Emerging Digital Economy

The rapid evolution of the digital economy creates a suitable time for Human Resource Management (HRM) practitioners to reassess their digital skills and capabilities. This requires the creation of a culture that supports digitalization.

HR leaders have the opportunity to transform HR processes and the entire organization through artificial intelligence (AI). Moreover, they can create employee self-service tools that empower employees to access their essential information and make decisions with data that is instantly accessible.

Globalization

Globalization significantly impacts human resource management, which is the process of managing human resources. This includes hiring, training and retaining employees.

Globalization also increases the availability of talent from various countries, which can help companies find new and innovative ways to develop their products. Additionally, it promotes free trade and communication between countries.

Many people today experience the effects of globalization on their lives. This affects how they access goods and services, pay prices, travel and live in their communities. Moreover, it changes the way cultures develop within communities.

This is a complex phenomenon, and HR managers must be aware of it to ensure they’re providing their employees with the best possible workplaces. If they ignore these outside influences, their policies can be off-target and cause dissatisfaction among their workers. This can lead to unmotivated employees being less likely to perform at their highest potential.

Diversity

In the emerging digital economy, diversity is crucial for human resource management. It enhances creativity, innovation, empathy and social cohesion.

In addition to this, a diverse workforce also promotes social justice and equity. It also leads to better decision-making within organizations, boosting economic growth.

The key to diversity is ensuring employees feel like they belong and have a voice. For example, suppose a Black mother of three in accounting or a non-binary employee in engineering has an equal voice. In that case, it will ensure they feel valued and respected by their employers.

However, implementing a diversity policy can be costly and take time. So, it’s important to focus on smaller and less expensive changes that can help ensure everyone feels included in your company culture. These include mentoring schemes, promoting diversity training and offering a clear, professional development structure to all your employees. These can all be highly effective strategies to improve diversity and inclusion.

Learning

Learning is a complex, adaptive process in different domains (knowledge, attitudes, skills) and involves self-reflection and external influence. Human learning aims to develop knowledge and skill sets that enhance personal and professional performance and support achieving organizational goals.

Continuous learning is key to empowering people to adapt to their surroundings, keep up with new developments in their industry, and maintain a high level of productivity. This means that businesses must invest in a workforce willing to continue learning throughout their careers.

In this emerging digital economy, HR specialists must adopt a data-driven approach to HR management. Systematic quality improvements can be made across all HR functions if this is done.

Employee retention

Retaining top talent is essential to your success. It reduces the cost of recruiting and training new hires while increasing employee morale and productivity.

While employee retention rates vary across industries and organizations, some basic commonalities exist. Workers tend to stay with organizations that offer meaningful work, competitive salaries and benefits, and an engaging culture.

Companies that don’t offer these amenities will see increased turnover. This can include employees who are unhappy with their compensation or feel they’re not a good fit for the company.

Offering remote work options, a compressed work week or mental health days are benefits that can make a big difference in employees’ satisfaction levels and retention rates. A flexible schedule can allow employees to attend to their personal needs without worrying about work being affected by their absences.