Human capital management in the context of digital transformation and labor market fragmentation

Abstract

The electronic reshaping of the economy is notably altering the structure of the job market, causing its division. Under such circumstances, established methods for personnel capital oversight are declining in efficiency, which underscores the necessity to discover novel administration remedies and instruments.

Purpose. The objective of the research is to offer theoretical grounding and devise practical recommendations for enhancing human resource administration amid the digital splintering of the job market, considering evolving employment structures, the influence of digital instruments, and emerging demands for staff competencies.

Methods. The ensuing techniques were utilized in the research: analysis and synthesis - to examine theoretical avenues for human capital administration, induction and deduction - to shape generalizations and findings, comparative and structural-functional approaches - to evaluate labor market shifts, alongside techniques of generalization, systematization, expert judgments, and the graphical technique - to interpret the study outcomes.

 Results. The progress of scholarly perspectives regarding the understanding of human capital is explored, and its financial essence is determined. The influence of electronic instruments on shifting work arrangements is examined, specifically the rise of the gig economy and platform employment. The primary hazards and prospects confronting workers and enterprise proprietors amidst a fractured job market are outlined. Present approaches to human capital oversight within a digital setting are examined, specifically the employment of HR analytics and digital systems. Strategies are outlined for enhancing the human capital management structure amid the digital splintering of the job market. Governmental policy routes for fostering human capital advancement in the digital economy are validated.

Conclusions. The findings suggest that the digital splintering of the labor market is considerably reshaping methods for human capital administration, necessitating the deployment and adjustment of HR tactics designed to secure the competitiveness of enterprises in the digital sector.