Digital transformation of human capital management in the Gulf Cooperation Council

Abstract

Digital human capital management (HCM) has emerged as a pivotal strategy in the Gulf Cooperation Council (GCC) region’s pursuit of modernizing and optimizing workforce management practices. This article examines the growing dynamics of digital transformation within the GCC’s human resources landscape. This transformation transcends conventional human resource (HR) practices, ushering in the rapid evolution of digital HCM. The thematic analysis results reveal two main strategies for HR/HC managers to employ digital transformation, categorized into primary themes and sub-themes. Critical areas impacted include human capital (HC), recruitment and selection (R&S), learning and development (L&D), compensation and benefits (C&B), organizational development (OD), performance management (PM), and employee relations (ER). Specific results include the use of technology for workforce prediction, acceleration of planning procedures through human capital management systems (HCMS), and advanced tools such as psychographic assessments and online simulations for candidate screening. This study underlines the transformative impact of digital HCM in the GCC, while highlighting challenges such as resistance to change, digital skills gaps, and data security concerns, providing a comprehensive assessment of digital transformation efforts in the GCC, and offering insights into strategies and outcomes of digital HCM implementation in the region.