Digital transformation and talent management in industry 4.0: a systematic literature review and the future directions

Abstract

Purpose This study aims to explore the relationship between digital transformation and talent management during the current industrial revolution (Industry 4.0). Talent management is a critical strategic focus for human resource (HR) managers, evolving with changing approaches over time. The paper seeks to guide talent management in Industry 4.0 by advocating a collaborative approach between employees and HR managers amidst technological transformations. Design/methodology/approach A systematic method of finding the literature using the PRISMA framework, through databases like Scopus, EBSCO, Emerald Insights and Science Direct was applied. A total of 629 papers were initially identified, which were filtered down to 42 papers for the review, leading to identification of research gaps, formulation of different research questions and proposal of a conceptual framework. Findings The literature highlights varied HR practices in Industry 4.0 and the corresponding transformation initiatives. It underscores that Industry 4.0 technologies empower employees to leverage creative, digital and interpersonal skills, fostering continuous learning. HR managers, through coaching and a commitment to sustainable practices, further motivate employees to acquire new skills. This collaborative effort propels the digital transformation of talent management, significantly impacting the overall talent pool. Research limitations/implications Although the literature review was conducted using prominent databases, some papers in regional languages were excluded, along with few articles whose full texts were not available, which may be a limitation of this paper. Originality/value This research represents a pioneering exploration of the interdisciplinary intersections between talent management and technological transformations. Initially, it surveys digital transformation practices, followed by a systematic review presenting various authors’ perspectives on talent management in Industry 4.0. The paper concludes by identifying research gaps and articulating key variables shaped by the intentions of HR managers and employees, thus, driving the transformation of talent.