Abstract
Human capital is the most important resource for the Industry 4.0 transformation of businesses and directly affects the success of this transformation. Therefore, having a good talent management strategy is vital for businesses. In this chapter, the effects of Industry 4.0 on talent management are revealed by examining the studies in the international literature. In the results, it is understood that talent management is affected by the Industry 4.0 revolution in many ways, and the findings are examined in seven different groups. The required skills and capabilities of employees have changed, there has been a worldwide digital talent gap, the workplaces have been freed from their physical boundaries, the differences in the adaptation and use of technology of different generations have become clear, the effects of digital culture and leadership on the acceptance and use of technology have increased, online education and learning activities have become widespread, and the importance of harmonizing digital business strategies with talent management strategies has been revealed.
TopIntroduction
In addition to globalization, socioeconomic and demographic changes, technological advances also deeply affect the business world and the way of doing business. As such, in order to meet the needs and expectations that arise in parallel with the technological changes, businesses need to attach more importance than ever to identifying, attracting, recruiting, developing and retaining talented employees (Claus, 2019; Pagan-Casta˜no et al., 2022). The Fourth Industrial Revolution brings people closer to technology by creating a new environment where physical, digital and biological fields are combined. Emerging digital technologies such as artificial intelligence, data mining, machine learning, deep learning, autonomous systems, internet of things, robotics and blockchain are forcing all economies, industries, businesses and individuals to a transformation and change. Because the only thing that will ensure economic development and lead to the emergence of high-skilled and high-paying jobs in the future will be the widespread use of digital technologies (World Economic Forum, 2018).
Harteis et al., (2020) examined the effects of cyber-physical systems on the business world and employees in four groups. First of all, thanks to cyber-physical systems, some of the work done by humans began to be done by machines alone and some of them were started to be done with human-machine cooperation. Secondly, the industry 4.0 revolution causes some changes at the organizational level. The redistribution of work between machines and people has come to the fore, and work processes can be observed and managed remotely, unmanned. For this reason, employees need to have information about how digitalized business processes work and how they can be managed. Thirdly, when machines interact with people, they generate data from people's activities and can process this data autonomously in their later interactions. Finally, cyber physical systems may not be well understood by employees. Because the employees, who are the end users of these systems, cannot be able to understand what data the systems collect, which data they use, and how they make decisions that affect the nature of the work. This can turn things into a black box and allow them to be adequately understood only by the developers of the systems. Considering the impact of cyber physical systems on the business environment and employees, this process is not an ordinary automation process. Employees will be affected cognitively due to the change in the nature of jobs, motivationally due to the need to adapt to these systems, and emotionally when jobs are taught through machines (Harteis et al., 2020).
The fourth industrial revolution, unlike the previous ones, has been a technological revolution characterized by technologies that will deeply shake countries, economies, business world, workplaces and workforces (Schwab, 2017). The speed and scope of technological change that emerged with Industry 4.0 puts a strain on the adaptation skills of employees and businesses (Deloitte, 2017). In particular, the issues of what kind of skills employees need in order to survive in business life in such a technological transformation process, and how to fill talent gaps by businesses have become the topics of discussion in the field of talent management (Whysall et al., 2019).
In the center of the digital transformation brought about by Industry 4.0 technologies in businesses, there is essentially human since businesses can have any technology and its infrastructure by giving money. However, it is a much more difficult process to have and retain talented employees who have the knowledge, skills and capabilities to use digital technologies effectively (Frankiewicz & Chamorro-Premuzic, 2020). For this reason, reshaping talent management practices in the context of Industry 4.0 has become an important agenda for the effective management of new generation employees (Hecklau et al., 2016).
Key Terms in this Chapter
Digital Workplaces: They are working environments that do not have physical boundaries that we are used to traditionally, where work is mostly done in virtual environment, technology is used intensively, digital business models and ways of doing business are adopted.
Digital Skills and Capabilities: They are the skills and abilities that will enable employees to integrate digital technologies into their work and to use them actively in their work.
Digital Talent: Employees who know digital technologies and have the skills and abilities to use these technologies in the workplace.
Generations: They are groups of people born in certain year intervals; exposed to similar economic, political, and social events; and acting and thinking alike.
Digital Transformation: Parallel to the intensive use of digital technologies, it is the holistic transformation of employees, work environments, ways of doing business, strategy, culture, leadership, and technological infrastructure in enterprises.
Industry 4.0: It is a phenomenon that aims to expand the use of technology in the industry and at the same time reshapes business environments and ways of doing business.