The chapter discusses the transformation of human resources (HR) in the era of Industry 5.0, highlighting the importance of digital HR implementation in driving business growth. It discusses the strategic integration of digital tools, analytics, and automation within HR functions to improve workforce agility, productivity, and engagement. This chapter discusses the benefits of digital HR solutions, including talent acquisition optimization, performance management enhancement, learning facilitation, and employee experience enrichment. It emphasizes the importance of organizational agility, change management, and continuous innovation for successful adoption. By aligning HR strategies with Industry 5.0 needs, businesses can drive sustainable growth, foster innovation, and maintain a competitive edge in the global marketplace.
TopIntroduction
Industry 5.0 is a new industrial era that integrates advanced technologies with human-centric processes, transforming how businesses operate and interact with their environments. HR, traditionally associated with personnel management, is at the heart of this transformation, navigating the complexities of a digital landscape. This introduction explores the convergence of digital HR implementation and business growth within the context of Industry 5.0(Erro-Garcés & Aramendia-Muneta, 2023a). Industry 5.0 represents a departure from the mechanistic and automated approach of its predecessors, emphasizing the symbiotic relationship between humans and machines. The role of HR in this era is pivotal in orchestrating this harmonious coexistence and leveraging technology to augment human capabilities. The evolution of industrial paradigms, from mechanization in Industry 1.0 to automation and mass production in Industry 2.0, and the digitalization and connectivity of processes in Industry 3.0 and 4.0, has brought about profound changes in work and organizational structures(Sulistyaningsih, 2023a).
In Industry 5.0, HR is shifting from administrative tasks like recruitment and payroll management to a strategic role at the intersection of technology, talent, and organizational objectives. HR professionals are expected to drive workforce agility, foster innovation, and promote employee engagement. They must also navigate the ethical and societal implications of emerging technologies like artificial intelligence, automation, and augmented reality in the workplace(Parameswaran, 2021a). The digital HR landscape in Industry 5.0 is characterized by a variety of technologies, including cloud-based HRIS, AI-powered recruitment platforms, and predictive analytics tools, which enhance HR processes and decision-making. These solutions help organizations streamline operations, gain insights into workforce dynamics, and personalize employee experiences. They also facilitate remote and distributed work models, particularly in response to global events like the COVID-19 pandemic(Cillo et al., 2022a).
Digital HR is crucial for business growth in Industry 5.0, where innovation and agility are significant. It optimizes talent acquisition, nurtures high-potential employees, and aligns individual goals with organizational objectives. Digital HR also enables data-driven decision-making, identifying trends, anticipating future skill requirements, and mitigating workforce risks. This catalyst drives productivity, innovation, and competitive advantage in a rapidly evolving business environment(Orlova, 2021). This explores the role of digital HR implementation in Industry 5.0 business growth. It highlights the opportunities and challenges of integrating technology and human capital. By adopting digital HR solutions and fostering a culture of continuous learning, businesses can position themselves for sustained success in the digital age. It provides strategic imperatives, best practices, and case studies for organizations to thrive in this era(Kraus et al., 2023).