Analysing the impact of sustainable human resource management practices and industry 4.0 technologies adoption on employability skills

Abstract

PurposeThe study aims to examine the influence of Sustainable Human Resource Management (SHRM) practices and Industry 4.0 Technologies (I4Te) adoption on the Employability Skills (ES) of the employees. The study has undertaken four major SHRM practices – Training (TR), Flexibility (FL), Employee Participation (EP) and Employee Empowerment (EE) to measure its impact on the ES along with I4Te.Design/methodology/approachA survey approach method was designed on the identified constructs from existing literature based on SHRM, I4Te and ES. The survey resulted into 198 valid responses. The study used confirmatory factor analysis (CFA) and structural equation modelling (SEM) using SPSS 25.0 and AMOS 25.0 for constructs validation and hypothesis testing.FindingsThe current study reveals that all the four SHRM practices (TR, FL, EP and EE) along with I4Te directly influence ES in the organisation. The I4Te along with the SHRM practices may bring enhancement in the skills and competencies of the employees that is the requirement of future organisations.Practical implicationsConsidering the results, the SHRM practices aligned with I4Te may directly influence the employee's ES including core skills, IT skills and personal attributes. The SHRM practices in the organisation will enhance the opportunities for the employees and bring long-term association with the employees.Social implicationsFor the development of the economy and the individual, the SHRM practices need to conduct themselves in more socially responsible ways along with the I4Te to enhance the ES of the employees. The individual development will bring sustainable behavioural changes in the employees.Originality/valueThere has been no research conducted on exploring SHRM, I4Te and ES together. This is the pioneer in the HRM fields that explores the interrelationships and influence amongst the five constructs undertaken in the study.